With the economic reforms in Turkey that happened in November, the investment activity has returned to Turkey. With the stability of the country,and supposedly there will be an increase in interest in real estate and investments in Turkey.
In November, many reforms were instituted by the new central bank governor that aimed to fix the two-year economic turmoil, and what made it worse was the spread of the Corona pandemic, and the data shows that these measures are successful as the lira stabilized and investors returned.
It is also expected that the Turkish economy will grow by 4% over the previous year.
Ankara's policy to solve the economic problem was reversing the government's policy to keep interest rates low. This boosted the investor confidence and led to a decrease in perception and premium risk after it reached 14% in May.
Money infusion:
Encouraging many investors to pump their money with some lower risk premium, the Istanbul Stock Exchange received a large wave of interest. The amount of an increase in foreign investment in 2018 amounted to 2.2 billion dollars, and in 2019 it reached 3.3 billion dollars, while in 2020 the amount of the increase in foreign investment amounted to 4 billion dollars. With the rise of lira, many investors are motivated to invest, and these investments have increased their confidence.
According to several analysts, the influx of foreign money into the country is a welcome sign of economic stability.
Although the movement of high interest rates had a positive impact on the economy,but it also negatively affected many companies that rely on cheap credit, in addition this severely affecting people who have many debts. And This is one of the pressures that the Turkish government is going through.