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Turkish Real Estate Market After Pandemic

8 March 2021
Turkish Real Estate Market After Pandemic

The contribution of the retail sector to the country’s economies has turned into a global dimension. The impact of the retail presence in Turkey on the service sector and the economy is also a magnitude that cannot be ignored. A report prepared by the Turkish Federation of shopping centers and retailers announced that this sector has a turnover value of 1.2 trillion in our country. One of the partners in this success is PropertyTR, which is assumed by Yusuf Boz, the chairman of the board of directors.

Retail sales and turnover index

Sales volume and turnover in the retail sector are discussed on a year-by-year basis. Mainly through the work carried out by the Turkish Statistical Institute, it is possible to achieve index changes and annual averages. In light of these data, electronic commerce has come to the fore in the case of a leader in retail sales for 2018 and beyond.

Looking at the 2020 retail turnover index, there is a positive acceleration in most of the service sectors. The magnitude of this acceleration varies from month to month. When the result of TurkStat data is examined, it is reported that the turnover index also varies according to CPI.

Retail and Real Estate Market

Retail sales and the real estate market vary depending on many factors. According to the work of Propertyr, which is a leader in the real estate market, and Yusuf Boz’s comment, the shopping and spending habits of the consumer changed during the Covid-19 period. Accordingly, while shopping preference shifted to the Internet environment, non-mandatory spending began to be avoided. The data report on the real estate market prepared by JLL also supports this situation.

Turkey’s macroeconomic and Real Estate Market Data Report shows that rental yields in particular are declining. At best, primary rental yields do not increase and maintain a steady profile.

Shopping mall sector and Real Estate Market

As Yusuf Boz and PropertyTR, who have a say in the real estate market, noted, the development of shopping malls in Turkey has increased significantly in recent years. In this context, there are 444 shopping centers active in Turkey. The number of shopping centers under construction has reached 32. As for the leasable space, the expected reduction did not occur, and the opposite picture was encountered. Here, one of the negative effects of the epidemic is seen.

Post-Epidemic Period In The Real Estate Sector

The pandemic and the post-pandemic period had an impact on all sectors in the service category. Chairman of the board of directors Yusuf Boz comments on this issue that the trend of needs and consumption in the real estate sector has changed with the epidemic. Accordingly, people now take into account many factors such as the environment, architecture and private space when investing in new ones. PropertyTR, which takes an expert stance on real estate, also appears to be seeing an increase in demand for smart offices and homes.

It is clear that the use of financial resources after the outbreak has undergone a clear change. In this regard, as in other sectors, the real estate sector is taking some steps to adapt to this change. Companies such as PropertyTR, which lead the sector, closely monitor the balance of supply and demand both in the world and in our country at this stage.

Observed Changes In Consumer Behavior

The year 2020 is different from previous years. As a result of the Pandemic, there was a clear change in consumer behavior in all sectors. Among these changes, the most obvious is the restriction or complete cessation of unnecessary spending.

Cash flow in the real estate sector is often spent on savings or loans. Therefore, one of the sectors most affected by the pandemic period is the real estate sector. In this process, it is observed that the consumer avoids breakthroughs that need high spending, such as housing and cars. But it is impossible to limit change in consumer behavior to limiting spending.

A decrease in the frequency of shopping and instead of stocking, a tendency to buy cheaper products, a tendency to use credit cards, and a decrease in out-of-home consumption are also among the changing consumer behaviors. It is also possible to encounter research and comments that these behaviors will be permanent after the pandemic.

Real estate sector and Crisis Management

In recent times, the real estate sector within the service sector has suffered the biggest blow. Yusuf Boz, who is a pioneer in the real estate sector, emphasizes that some measures have been taken against the crisis in the real estate sector. The most dominant of the measures taken at this point are: creating a crisis management team, planning business continuity, editing the work and work plan.

Making technological updates, correcting disruptions in the workflow, and preparing a customer contact plan for sales are other actions taken related to crisis management. This value given to crisis management is also given to increase cash flow. Accordingly, transactions such as receiving additional financing, postponing the payment plan and selling assets are resorted to.

Rate Of Receiving Services Over The Internet

When the 2018, 2019 and 2020 data are examined, it is observed that there is a significant increase in the rate of consumers shopping and receiving services over the internet. Accordingly, e-commerce usage, which averaged 29% in 2018, has increased to 36% in 2020. This demand has also manifested itself in the real estate sector and some transactions have started to be made over the internet.

As a result, Turkey’s retail sales volume began to decline in early 2020 due to the pandemic. Although this decline has rebounded in a short time, the real estate sector has been very affected by the situation. High-spending actions such as housing, offices and cars have been delayed due to fluctuations in the economy. Before the pandemic, the rapidly growing shopping mall sector was also negatively affected by the situation.

The epidemic period has caused a major shift in consumer behavior. Accordingly, people have started to stay at home more and avoid unnecessary expenses. Face-to-face purchases and sales have been replaced by e-commerce. Public opinion surveys indicate that these behavioral changes will also be permanent after the pandemi

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