Page 27 - Журнал «Русский Берег» #12-2022

RUSSIAN COAST | № 4/12 2022 БИЗНЕС | BUSINESS

EVERY 4 BUYER IS A The demand for housing in Alanya has Observing the soaring of the property
TH
FOREIGNER been spurred on by the political events, prices in Turkey, some investors are
The main factor of driving the prices up the destabilization of the situation in wondering whether it is a bubble? Over
has been a feverish demand for real estate Kazakhstan in January, the insane war in the past 15 years, many witnessed the
in Alanya. the Ukraine, the curtailment of the entire catastrophic mortgage crisis in the real estate
We observe the effect of a deferred business clusters in Russia. The top three market in America in 2007-2008, and got
demand due to the pandemic of the past leaders among the investors in the countries burned on the local collapses of the real
years, - explains the situation in the market have changed, and now they are as estate prices in the CIS countries.
Alexandra Kostenko, the Director of the follows: the first place is occupied by the The causes of the mortgage crisis in
Global Estate agency. citizens of Russia, secondly, of Kazakhstan, the USA were well illustrated in the 2015
Yelena Lusnyakova, the Sales Manager and thirdly, by the citizens of the Ukraine. movie “The Big Short”. The weak link, which
of Em Group, agrees with her, providing Then come Iran and Germany (previously, caused the entire mortgage pyramid to fall
an example when all apartments in the the Russians took the 3-4th place after the was the excessive amount of “junk” loans
project have been sold out in two weeks Arabs and Germans - ed. note). with the floating interest rates. At some
at the “pencil” stage. By the way, such a However, to talk of the decisive “unforeseen” point, the borrowers were
sales strategy against the background of importance of the demand of the foreigners unable to repay the loans, the rates rose
a constant rise in the prices for building for real estate is not entirely correct. The sharply, securities ceased to be such, the
materials can play a dirty trick on a total number of real estate transactions in state did not intervene in time, and the market
construction company. the province of Antalya in the 1st quarter of collapsed. The “detonator” in this situation
- The prices for building materials are 2022 has amounted to 15,386, according was the mortgage, which was distributed
rising literally every day, therefore, in order to the TUIK Statistics Institute. Of these, the to everyone without taking into account the
to protect ourselves from the risks, we do foreigners have bought 3447 objects or solvency of the borrowers.
not sell all apartments at once. We are 22.4%. Almost every fourth apartment is The construction practice in Turkey shows
bringing them to the market gradually, so sold to the citizens of the other countries. that such a situation is not possible here,
that their cost covers the growing costs of Many investors are interested in the issue since mortgage lending for the foreigners
the construction, - says Yelena Lusnyakova. of citizenship, they want to start a business is prohibited in March 2022. One can buy
in Turkey or buy 5 apartments in order to real estate exclusively for money, and only in
save money, - says Yelena Lusnyakova. installments from the developer.

LESSONS OF THE
A real-estate bubble is a type ISTANBUL AND ANKARA FINANCIAL CRISES: HOW
ARE THE LEADERS!
NOT TO REPEAT THE PAST
of economic bubble that occurs According to the National Bank of Turkey, Recalling also the real estate market
periodically in local or global the real estate prices in 2021 increased by crisis in the CIS countries, the analysts say
real-estate markets, and typically 86%. In the first quarter of 2022, according that, by and large, it was provoked by the
follow a land boom. A land to the Knight Frank Global Home Price global financial crisis and foreign currency
Index, the price growth is even higher -
mortgage loans. For example, in 2007, 88%
boom is the rapid increase in the 110%. This is the highest rate among all of the loans for the purchase of apartments
market price of real property countries in the world. The Turkish cities in the Ukraine were issued in the foreign
such as housing until they reach of Istanbul, Ankara, Izmir are among the currency, the rates for which were almost half
unsustainable levels and then top three world leaders in increasing the as low as that in the hryvnia.
The economy of the Ukraine at that time
real estate prices according to the Knight
decline. Frank. Istanbul has topped the rating – the was actively supported by the Western
The questions of whether real real estate prices have soared by 122% in inexpensive borrowings. Many banks
estate bubbles can be identified the year. The second place is occupied by took these short loans and provided long
and prevented, and whether they Ankara (111.7%), the third one - by Izmir mortgages for the population, which was
already reckless enough. At the peak of
(105.9%).
have broader macroeconomic The Turkish trio is followed by a wide the global crisis in 2008, the flow of the
significance, are answered margin by the Canadian city of Halifax external financial injections into the Ukrainian
differently by schools of economic (34.7%) and the American Phoenix (32.9%). economy dried up, and the world prices
thought. (Wikipedia) Interestingly, London has not even been for the main items of the Ukrainian exports,
included in the TOP-20 in this rating. Among primarily steel, grain and chemicals, fell.
the European cities, only Bratislava occupies In such a situation, when the imports
the 13th place (+25.1%) and Utrecht in significantly exceeded the exports, the
the Netherlands, closing the 20th place country began to experience a shortage
(+21.3%) of the rating. of the currency. The government did not
take any adequate measures to protect

27