Euro rates
  • USD/RUB106.6627
  • GBP/RUB131.2603
  • TRY/RUB5.6683
  • EUR/RUB117.201
Alanya
+4°C
2017apartments on site

Key policy rate decrease in Turkey and how it to affect country’s investment attractiveness

  • 28.01.2020
  • 1967
  • 1
  • 0
Key policy rate decrease in Turkey and how it to affect country’s investment attractiveness

It was announced the Central Bank decreased the interest rate by 0.75% on January 16, 2020. The rate decrease is a protective measure aimed at slowing down inflation and stimulating the country’s economy. This measure has been taken before and it is alleged that the government is going to continue this trend. However, experts express their concerns on this situation.

According to the experts, low interest rates may have negative impact on the investment attractiveness of the country. In 2019, foreigners invested $5.9 billion in the Turkish economy. Most of money was invested in the real estate market. Experts believe that the decreased interest rates may signal about the instability of the Turkish economy and geopolitical risks. This may result in the situation when foreign investors consider Turkey as a high-risk investment country.

Nevertheless, the current economic policy shows good results. The inflation rates are going down. However, there are still problems like the large government debt, weakening of the national currency and economic stagnation. On the one hand such problems create good conditions for foreign property buyers. On the other hand, if they are going to move to Turkey, their priority is the economic stability.

Read also
  • The results of Turkish real estate sales for November are in: demand continues to grow
    The total sales figures for November reached 292,493 transactions. This number is 6% higher compared to the previous month. The stable price growth does not confuse buyers. This fact confirms the potential profitability of investments. Istanbul takes the lead position in the sale and purchase of...
    22.12.2022
  • 45,500 properties in Turkey bought by foreigners
    According to the Turkish Statistical Institute, foreigners purchased 45,500 homes in Turkey in 2019. In total, there were 1.35 million properties in 2019. The percentage of properties acquired by foreigners increased by 14.7% comparing with the previous year. The most popular destination for...
    21.01.2020
  • What to do in Alanya in winter?
    Turkish resorts are renowned, popular summer holiday destinations that have plenty of activities on offer. However, the winter season in Turkey does not attract that many tourists. January is the coldest month in Alanya. But that does not mean that there is nothing to do there. The average...
    14.01.2020
Free consultation

Schedule a consultation with our real estate experts

Vildan van Welsen
Sales representative