Page 23 - Журнал «Русский Берег» #12-2022

RUSSIAN COAST | № 4/12 2022 БИЗНЕС | BUSINESS

ENG OUR PUBLICATION HAS TIME AND AGAIN ADDRESSED THE TOPIC OF REAL ESTATE,
TRYING TO PROVIDE AN OBJECTIVE (DISINTERESTED) EVALUATION OF THIS SECOND
MAJOR INDUSTRY (AFTER AGRICULTURE) IN THE TURKISH MEDITERRANEAN. THUS, A
LARGE ANALYTICAL ARTICLE WAS PUBLISHED IN NO. 2, 2020, WHEREIN THE EXPERTS
SHARED THEIR FORECASTS, DEFINING A MARKET CAPACITY AS A PROMISING ONE IN
GENERAL, BUT NOT INFINITE. THEN, FEBRUARY 24, 2022 HAS ARRIVED...

urkey remains the world leader in higher - 30-40%, and in some regions - up enough reasons for their rise,” - says Dariya
the growth of the property prices to 50-60%. And it’s only the beginning. The Chichek, the Sales Director at Nordic
for the third year in succession. experts expect this trend to continue until Property Construction. - First of all, building
T(According to the investment the end of the year. As a result, the annual materials and components have risen in
attractiveness it is in the top ten - ed. price growth can range from 30% in the price. Some developers, at the request of
note). In the region of Antalya-Alanya, secondary market, and up to 60% in the the counterparties, have already faced the
apartments are often bought out at the primary one. need to revise the estimates in the approved
project stage. For the first time, the Russians – If in March a small 1+1 apartment in contracts and even in the projects that have
have taken the first place in terms of the Alanya could be bought for EUR 65,000, begun.
number of transactions. In some areas of at the end of May, a similar apartment According to the TUIK Statistics Institute,
Alanya, apartments with the cost from EUR already costs about EUR 90,000, i.e. the since the beginning of the year, the prices
60,000 can still be found, but so much price has increased by almost EUR 30,000 for almost all basic building materials and
for the “cheap” real estate on the coast. in 3 months, – says Yelena Lusnyakova, products: cement, concrete, aluminum,
(It should be noted that for the Russians it the Sales Manager at Em Group. Another wall blocks, profiles, windows, plumbing
has been especially difficult to count these typical market example: in January, a 1+1 and others, have risen by 30-50%. The
days, when the ruble rose up to RUB 54 apartment at one of the objects of Nordic construction work, for example, facade
for EUR 1, the amount of EUR 60 thousand Property Construction in Avsallar cost EUR finishing, has also risen in price by 113% as
has been about RUB 3.5 million. It is a 74.5 thousand, and in July already EUR compared with the same period of the last
long time that there are no such prices in 108.5, i.e. the price has increased by EUR year. The construction cost index speaks
the large Russian cities - ed. note). In recent 34 thousand. Even more, the cost of a 1+1 eloquently of the inflation, which in May
months, according to various estimates, apartment has soared in January-July, in 2022 has increased by 102% from the
the population of Antalya has increased one of the new complexes of Kargicak, data of May 2021. It is noteworthy that
by 200 thousand, mostly the Slavs. The from EUR 137.5 thousand to EUR 178.5 this index has grown by only 39% for the
Russians and Ukrainians flee to Turkey in thousand, or by EUR 41 thousand. A period of May 2021-2020.
roughly equal numbers for various reasons, natural question arises, how long will The manufacturers explain this rise by
but it does not matter for the real estate the prices be increasing, and is the real rising the prices for energy carriers and
market, what motivations the buyers have. estate market on the Antalya-Alanya coast fuel materials due to the increased duties,
They exist, and this fuels the demand. overheated? as well as general inflation, which in 2021
The prices are also pushed up by a Editorial note: in Turkey broke all records, and amounted
significant increase in the cost of the land, Yes, indeed, in some segments the prices to about 70%. The devaluation of the
construction and energy resources in Turkey. have soared by tens of percent, but this lira continues this year as well. Since the
In general, the prices in Alanya tend to the applies to a relatively narrow segment of beginning of 2022, the lira has fallen in
European levels, and can quickly reach the market – the complexes with a claim price against the euro by about 1 point (as
them next year. The Turkish government is to the infrastructure of a 5 ***** hotel of January 3 - 16.60, as of July 8 - 17.46
aware of the problem, and is trying to cool - almost 100% of this market is bought TRY:EUR). The Turkish government predicts
the market. But whether it will be possible is up by the expats at the excavation stage. that the inflation rate at the end of 2022
still the question. Herewith, the risks are mainly borne by the will make up another 50%. Although,
developer. They include in the new projects in May, the inflation has accelerated to
THE PRICES BREAK not only the current prices for the materials, 73.5%, according to the country's Statistics
RECORDS land and labor costs, but also an inflation Institute.
According to the experts, the prices component, so that in the end, in 1-2 years, All this, of course, affects the price of the
in Alanya in the secondary real estate after the construction is completed, they building materials, first of all imported ones,
market have risen in the first half of 2022 would not break even, or even go negative. the share of which in the projects can be
by 20% since the beginning of the year. “We don't see a single reason for the quite significant and, according to some
In the primary market, the growth is even reduction of prices, but there are more than estimates, makes up 10-40%.

23