The 7.8-magnitude quake that struck southeastern Turkey – Kahramanmaras, Gaziantep and Adana – left more than 80,000 buildings partially or fully damaged with more than 35,000 fatalities. That catastrophic earthquake will likely become Turkey’s deadliest — a 1939 quake killed 32,962 people.
Generally that natural disaster will have an impact on the Turkey’s real estate market specially in the affected areas, as well as on the overall economy of the country. In the immediate aftermath of a significant earthquake, we expect demand for real estate in the affected area may decline as people move away from the area or are hesitant to invest in property there. This can lead to a decrease in property values and a slowdown in the local real estate market. In cities like Istanbul, the demand may decrease also but due to significant demand in the area that won’t last longer.
It’s also worth noting that the impact of earthquakes on the real estate market in Turkey can be reflected on factors such as the overall economic conditions in the country and the level of investment in the affected areas.
In the longer term, however, the impact on Turkey’s real estate market will depend on the extent of the damage and the pace of recovery and reconstruction efforts. It is clear that the damage was significant in Sothern areas effected more 80,000 buildings. President Erdogan has given the promise to reconstruction new buildings for inhabitant in less than one year. That’s arguable if the recovery could be that fast, if so, it may take a short time for the market to recover, and property values may even increase as demand for housing in the area increases. That will effect whole property market in 2024. Most probably the price of construction will increase due to high demand for basic material like cement and steel. That will end higher prices of properties in Turkey due to imbalance in supply and demand.
It is obvious that year 2023, won’t be an easy year for Turkey’s real estate market. Investors, developers, real estate agents and brokers would better to analyze the situation before any action. The threats always come with opportunities, for those who study and analyze the situation better than others.
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