Money on the phone instead of paper in a wallet is our common future!

Türkiye develops digital state currency!

This is the project of the Central Bank of Türkiye, part of the global tendency to create digital versions of national currencies, such as digital yuan in China or digital euro in the EU.

Against the backdrop of the active development of blockchain technologies and the growth of the popularity of cryptocurrencies, back in 2020, Türkiye announced its intention to create its own digital currency. This is necessary to improve financial infrastructure and ensure additional safety of payments, to reduce the level of the shadow economy.

What is a digital lira, and how is it different from the usual one?

This is an electronic version of the Turkish lira, which will be supported by the Central Bank of Türkiye. It will become a safer, affordable and convenient form of money, which can be used for both retail and large payments.

It operates on the basis of blockchain technologies, ensuring a high level of safety and transparency of transactions.

A unit of accounting, token is a digital certificate of ownership of your digital money.

What is the difference from bitcoin and other crypts?

Cryptocurrencies are decentralized. In contrast, the digital TL will be centralized. The release and control of it will be carried out by the Central Bank of the country. Blockchain acts as a tool for ensuring safety, transparency and stability of the system. The Central Bank 100% controls the issue, transactions, and regulates the currency, which distinguishes it from traditional cryptocurrencies.

Volatility does not allow cryptocurrencies to become a full -fledged payment tool. And with the national crypt, everything is different. Digital TL is not a crypt in the classical sense, its cost is not determined by demand and supply in the open market. It is completely controlled by the central bank. Digital TL is a combination of innovative technologies with reliability and stability provided by state institutions.

Digital TL will be used for everyday payments, online purchases and cross-border transactions.

How can people keep it?

As well as a crypt – in digital wallets in the phone. Paying everything using applications. Technically, your liras are a unique digital code in an electronic wallet on the Platform of the Central Bank.

In 2024, the digital lira is at the stage of pilot testing in cooperation with private banks and technological companies, with the participation of the Council on Scientific and Technological Research by Türkiye, Aselsan and Havelsan. It will become available for wide use over the next years.

Digital TL, like other digital currencies of central banks, is supported by the state currency of Türkiye – the Turkish TL. Behind each unit of a digital TL is the equivalent amount of ordinary TL, which are stored on the accounts of the Central Bank of Türkiye. That is, the digital TL has the same value as physical money, and depends on the general economic situation in the country.

National digital currencies (CBDC – Central Bank Digital Currency) are in different countries:

China, leader in the development and implementation of national digital currency. Digital Yuan (E-CNY) has already been introduced and actively tested.

Bahami Islands, Sand Dollar is introduced. By the way, the Bagams became the first country to officially launch its digital currency in 2020 to simplify financial transactions on the archipelago, especially in remote regions where access to banking services is limited.

Russia, a digital ruble at the testing stage, can be used even without the Internet. Ukraine, Belarus, Georgia, Kazakhstan also plan to implement, develop and test it.

The European Union has a digital euro at the stage of research and development.

Nigeria and some small countries and the territories of the Caribbean poured digital money.

At the stage of pilot projects: South Africa, Thailand, Malaysia, Singapore, China, Myanmar, Sweden, Kazakhstan, Saudi Arabia.

At the development stage of 21 countries, including such countries as India, Indonesia, Germany, France, Spain, Italy, Iran, Türkiye, Brazil, Canada, Australia.

37 countries are investigating this issue, including Morocco, Tunisia, Mexico, Peru, Colombia, Chile, Great Britain.

Refused: Argentina, Uruguay, Ecuador, Azerbaijan, Finland, Denmark, DPRK, Egypt, Senegal.

By the way, the United States is the only country from the G20 that has not yet launched its Central Bank currency.

Many countries strive to introduce digital currencies to improve their financial systems and adapt to changes in the world economy. Türkiye is from the first.

The digital currency is convenient to perform cross-border and foreign exchange operations, that is, payments from different countries. Including for the purchase of foreign real estate!

By the way, most of the transactions are now taking place with crypto, this is a light, as fast as possible to invest in real estate. Contact for consultation.

Запись How Will We Pay for Real Estate in the Nearest Future? Digital Money! впервые появилась Stay Investment.

The new regulation was published on May 30, 2024, in the Official Gazette of the Turkish Republic resmigazete.gov.tr, ​​under number 32561.

What changed:

• The period for reviewing an application for short-term rental permission has been increased from 30 to 60 days. If the check is not passed the first time, no fine will be imposed. The certificate holder is given another 15 days to correct the shortcomings in subparagraphs (a), (b), (c) and (d) of paragraph 1 of Article 9. If the deficiencies are not eliminated, then an administrative fine is imposed and another 15 days are given to correct them, otherwise the permit will be closed.

• Previously, it was necessary to have the following amenities and services: reception, security and daily cleaning of premises, medical services, dry cleaning, laundry, transfer, food services and shops, gym, swimming pool. Now, at least two of the items listed on the site where the complex is located (previously in the complex) are sufficient.

• Regarding the consent of all 100% of the owners that apartments in the building will be rented out for short-term rent, the consent of the majority (4/5) of the owners is required now. The corresponding decision is included in the charter of the complex.

• The deadline for fulfilling the requirements has been extended until December 31, 2024.

Any questions left? Write us a message!

Запись Rules for Short-term Rental of Apartments in Turkey Were Simplified впервые появилась Stay Investment.

Now even the solid middle class feels how much money is spent on the first couple of levels of Maslow’s pyramid. Inflation eats up money exponentially.

For those who have money, the main headache now is how to save it. And to increase it in a good scenario, make it work and generate income. Is it relevant to implement such plans to protect money from inflation in the classic way: by investing in real estate?

What are investors afraid of? “Bubble” and real estate prices

It is profitable to invest where there will be growth in the real estate market. Consequently, no one wants to consider an overheated market for investment purposes. Where does the “bubble” fly and over what location will it burst?

The risks of bubble formation are usually assessed according to the authoritative annual report of the largest Swiss financial holding company UBS Group AG called Global Real Estate Bubble Index 2023. Revaluation of real estate globally began to decline in 2023.

According to the interpretation of the term real estate bubble and overheated prices, this cyclical phenomenon occurs when prices rise rapidly without sufficient economic preconditions. With falling demand, in theory, the bubble should burst.

The UBS report assessed the world’s 25 largest cities based on 5 factors:

• the relationship between the price of real estate and its profitability;
• price-to-rent ratio;
• changes in the mortgage-to-GDP ratio;
• changes in the construction to GDP ratio;
• comparison of prices in the city with the national average.

Cities with an indicator above 1.5 are candidates for a bubble.

According to UBS experts, the price imbalance has subsided; only Zurich and Tokyo remain at risk. A year earlier, the list included: Vancouver, Toronto, Amsterdam, Frankfurt, Munich, Zurich, Tel Aviv, Tokyo and Hong Kong.

Despite the fact that property prices in Turkey have tripled in a couple of years, Istanbul is not on the list.

And Dubai was included in the list of cities with fair real estate prices, along with Milan, New York, Singapore, Madrid, Boston, San Francisco, São Paulo and Warsaw.

In Dubai, prices continue to rise, but along with the incomes of residents and expats. The rental market is saturated with demand, and prices are still only 25% higher than peak prices in 2014, adjusted for inflation.

Is it possible to invest in real estate now and not go broke?

The UBS report finds that the past two years have seen a global surge in inflation and rising interest rates, which has led to a narrowing of imbalances in the housing market. Mortgage lending has halved.

A qualified worker can purchase living space 40% less than before the pandemic.

If interest rates remain elevated, then property prices are likely to decline. Since 2021, average mortgage rates have tripled.

Due to financing problems, fewer and fewer building permits are being issued, especially in Europe. There will be a persistent housing shortage.

The UBS report is available on the official website: www.ubs.com

Property prices in popular investment destinations

Türkiye. Brief summary for 3 years

At first, everyone was surprised why a ready-to-move-in two-room apartment, in a new building with a swimming pool and hotel infrastructure, cost only 35-50 thousand Euros. Then they began to wonder why it now costs 100 thousand Euros. And we decided to look “better already in the EU.” But, alas, they didn’t find it for the same price.

Now the market is stagnating, there are few transactions, foreigners from the CIS are leaving en masse due to problems with residence permits and inflation. But prices from developers are not falling, quite the contrary. Why?

According to a report from the Turkish Statistical Institute TUIK in August, the construction cost index in Turkey increased by 66% compared to last year. The materials index increased by 52.18%, and the labor index increased by 113.27%. In Turkey, the developer buys the land, and then it is owned by the apartment buyers in proportional shares. Having looked at the prices for Arsa land for development, it is not difficult to draw conclusions.

Dubai. For safe investment

It still looks like a quiet investment haven with political neutrality, absence of conflicts, iron stability of the local currency, the highest standards of living and safety, 0% tax for individuals and many other benefits.

By the way, the share of oil revenues in Dubai’s GDP is only 1%.

Average annual inflation in the UAE from 2017 to 2021 is about 2%. The UAE ranks 7th in the world in terms of GDP per capita. A kind of economic refuge for wealthy people and their capital.

Northern Cyprus. The island is washed by waves of development

Northern Cyprus is currently experiencing a construction boom and an influx of expats. And where there is development, there is potential for price growth. Prerequisites: climate, sea, opportunities for English-language education, medicine, light life without city stress surrounded by nature, which many strive for. The demand for this will always be high.

Investors are surprised by the scope and format of construction projects in Northern Cyprus.

The island serves as an anonymous piggy bank for anyone who wants to hide their income from prying eyes using real estate.

Will concrete piggy banks become cheaper?

Inflation in many countries has increased so much that real estate prices have begun to lag behind it. If a new comfort class car is becoming more expensive, why shouldn’t real estate also become more expensive?

According to experts from the Bank for International Settlements (BIS), in 58 countries by the first quarter of 2023, taking into account inflation, real estate prices fell by 3.3% over the year. Which is the largest increase since the financial crisis of 2008–2009. That is, prices are rising, but at a slower pace than inflation. Experts also claim that in 75% of countries, prices per square meter are falling. But prices remain 6% higher than before Covid.

In EU countries, real estate prices decreased by 7% by the first quarter of 2023

Inflation in the EU settled at 5.3%.

Analysts at Goldman Sachs argue that prices will not drop significantly like this was expected after the rise in mortgage prices.

Conclusions:

In the EU, property prices are falling for the first time since 2014. For the second quarter of 2023, they fell by 1.7% in the eurozone and by 1.1% in the EU. Prices are falling the most in Germany, Denmark and Sweden.

Dubai continues to attract the richest and most successful expats from around the world. Flip deals with a small down payment and quick exit from investments thrive here. The demand for rentals and their profitability are growing steadily.

Turkey is frozen in anticipation, demand has slowed down and is being looked around, but real estate is not significantly cheaper. There is an opportunity to catch last-minute offers, as well as obtain citizenship through a simplified procedure.

Northern Cyprus is now a growing property market. The projects are large, but there is less and less land. Northern Cyprus is like Alanya 10 years ago, with its banana plantations, from which entire neighborhoods grew. They have grown and become more expensive.

Запись Reinforced concrete protection of capital from inflation. Where to invest? впервые появилась Stay Investment.

With high prices already at the start of construction, is it profitable to invest and will real estate prices continue to rise in Turkey?

What Stimulated the Increase in Prices for Apartments Twice?

• • Coronavirus is gone along with the old prices for apartments 1+1 at €45.000. Today, the minimum for investment is from €90.000 in simple complexes and locations in Alanya to a solid 4. In Istanbul, the minimum price tag is 30-40% higher.

• • In 2017, the market grew significantly due to the abolition of VAT on the purchase of real estate, a one-time tax of 4% was recorded upon receipt of a TAPU document for an apartment. By the way, in July 2023 this and other registration costs were increased by 50%, now the tax is 6%.

• • Since 2018, foreigners have been able to obtain Turkish citizenship by purchasing real estate with a cadastral value of $250.000. In 2022, the required minimum amount was increased to $400.000, but there are even more people who want to get Turkish passports, due to geopolitical circumstances. Rumors are actively circulating among experts and market players that the amount may soon be increased to $600.000.

• • Also in 2022, a minimum was set for an apartment price in order to obtain a residence permit, up to $50.000 and $75.000, depending on the status of the city.

• • But all these amounts are relatively low, and the programs for obtaining a residence permit and a passport for investment in Turkey are simple, understandable and profitable, there are very few analogues. Due to this, the market grew, construction gained momentum in foreign-oriented regions, such as the province of Antalya and all its districts, as well as in multinational Istanbul.

What Happens to the Turkish Real Estate market in 2023

• • The earthquake in the south-east of Turkey and the expectation of the outcome of the presidential election significantly slowed down the market. But builders and developers did not stop, and prices in the price lists continued to rise. The Turkish real estate market and experienced realtors have experienced more than one crisis. Prices in Turkey are always rising, but never falling.

• • The price of building materials continues to rise, labor costs are growing, the minimum wage has increased by another 30% in July 2023. Land plots have risen in price several times and there is a significant shortage of them in demanded locations. And the demand for resort luxury in the Mediterranean and liquid real estate in Istanbul is only growing, both in the domestic market and among foreigners.

• • Turkey ceased to be a budget option to start life from scratch by the sea about 2 years ago. But that perception, fueled by low property prices before the coronavirus, still remains. The development, the level of infrastructure and the scale of development of modern Alanya, for example, make you wonder whether it is worth taking a used “one-room apartment” in the old quarter in Spain, and not a luxury two-room apartment in the elite quarter of new buildings in Alanya, for the same money.

• • The availability and scope for processing remote transactions during the pandemic significantly accelerated the construction and development of the markets of Antalya, Alanya, Mersin and Istanbul. Stay Investment experts note that now 80% of sales for new construction projects take place remotely. Clients strive to save their money in foreign currency and increase it by 15 – 30% upon completion of construction. There is no more profitable, understandable, predictable, safe and simple alternative to real estate.

• • Many experts note that after the re-election of President Erdogan, monthly demand is growing by 20-40%. We will see the results of this in the TurkStat statistics for the third quarter of 2023.

• • The market returns its momentum. The average investor check has doubled, but the quality of projects is growing along with it. Real estate in Turkey is interesting both in terms of investment and as an absolutely unique opportunity to buy modern housing with an ideal price-quality ratio. The minimum standard of housing in Turkey is like a prestigious business and comfort class “for all the money in the world” in many European Countries.

• • It is enough to walk through the modern quarters of the resort of Alanya to understand why not Italy, Spain or Dubai “for that kind of money”. The resort province of Antalya is not inferior, develops and adheres to the line of elite construction. Istanbul projects are not inferior to Dubai, even more superior to them in terms of concepts and infrastructure of the residential complex.

• • Buyers with a high level of wealth can afford to buy property in the appropriate environment, with a certain level of surroundings and maximum comfort living conditions, almost like in five-star hotels.

How to Choose a Project for Investments

• • The investor’s checklist can include either many items for independent analysis, or just one – to choose a competent specialist with many years of experience in the primary market. If, nevertheless, you would like to go through an independent market analysis, what to look for, we will consider further.

• • Payback and profitability can be predicted in the simplest way: select several analogues of the project, go to booking services like AirBnb and see the rental prices in low and high seasons. Now, at least 8% per annum in foreign currency can be obtained by renting out the simplest apartment in Turkey for a short time.

• • The market has grown greatly, many new developers have appeared who have no previous experience. They may offer good prices, but they will be small projects of an outdated format that will also increase in value over time. But the most liquid real estate today is large complexes with luxury infrastructure on a large territory. There were significantly more such projects in 2021-2023, as the outskirts began to be actively built up, where experienced and stable developers buy out large plots.

• • The infrastructure of the complex is now more important than proximity to the sea. All remote projects already provide a shuttle to the beach, which is convenient and even more reasonable than going to the sea 500 meters in the heat. Bright projects with good prices are often far from the sea.

• • Traditionally, the best investment option is the first line and the center. But projects are in short supply, and prices for 1 + 1 start from €200.000 and more.

• • As for Istanbul, there should be no compromise when choosing a location. Metro, metrobus, buses, other public transport, key highways should be nearby or within walking distance. It should be either a developed area, or a promising one, but with a clear and visible development plan – the construction of a shopping and entertainment center, schools, colleges, the opening of large supermarket chains, and the arrangement of park areas. Not every wasteland with pits in Turkey is quickly overgrown with infrastructure, but you can focus on developers if they can clearly justify their prices with budgets and official plans of local authorities.

• • Is it worth relying on the factor of open and closed areas for residence permits? Most likely, these are time constraints, and the course of changes cannot be predicted. But many experts are inclined to believe that areas closed for residence permits will soon be opened for homeowners, leaving them closed for tourist residence permits for rent. These are crowded with foreigners, developed and interesting areas, TOP demand. Therefore, prices in them will definitely increase if the opportunity opens up to obtain a residence permit for real estate ownership.

• • Do you have any questions? Walk this path of studying the Turkish real estate market 2023 with our experienced manager. The situation in the industry, legislation and real estate development formats have changed in recent years, and we always keep our finger on the pulse of the market, offering our investors the best opportunities. Contact for a consultation!

Запись What Kind of Property is Profitable to Buy in Turkey in 2023 впервые появилась Stay Investment.

• • In January 2023, the Central Bank of Turkey bought 23 tons of gold, ranking first in the world. It is followed by China and Kazakhstan. According to the World Gold Council, Turkey now has the largest gold reserves – 565 tons. In 2022, the Central Bank of Turkey imported gold for $20.4 billion, and in January 2023 alone, a record $5.4 billion.

• • In the last quarter of 2022, the Turkish economy showed more growth than expected. GDP grew by 3.5% in October-December, with an annual growth of 5.6%.

• • According to the Moody’s report, the expected increase in the growth of the Turkish economy increased from 2 to 2.3%, and from 3 to 4% according to forecasts for 2024.

• • The UN also predicted a significant slowdown in inflation and economic growth: it was expected that by the end of 2023, inflation in Turkey would decrease to 42.4%. In general, the forecasts are encouraging, for the fourth month inflation has been steadily declining: in February, 55.2% compared to 57.7% in January, 64.3% in December and 85.5% in October.

• • World Bank Resident Representative in Turkey Humberto Lopez estimates damage caused by the earthquake at $34.2 billion. The UN estimates the damage as “in excess of $100 billion”. Türkiye lost more than 46,000 citizens as a result of the natural disaster.

• • At the beginning of 2023, the volume of bank deposits in lira, protected by currency, increased. The increase was 130 billion liras.

• • The Central Bank of Turkey lowered the interest rate from 9.0% to 8.5%. Gross reserves of the Central Bank of Turkey decreased by 7 billion dollars.

• • Shares posted an 11% gain in February despite the earthquake.

• • In February, exports fell by 6.4%, while earlier in January they grew by 10.4%.

• • After the earthquake, many countries support Turkey. Saudi Arabia plans to deposit $5 billion with the Central Bank of Turkey through the Saudi Development Fund. The Norwegian Wealth Fund has invested $1.2 billion in Turkish companies.

• • The tourism sector is recovering, hotels on the Mediterranean coast are selling tours and the season will start on time. The victims of the earthquake, who were accepted by hotels in the resort provinces, will be placed in housing facilities in different parts of Turkey. In January 2023 there were already 56.51% more tourists than a year earlier for the same period.

• • In March, gas prices for companies in Turkey were reduced by 20%, and for the population – by 16%.

• • The authorities report that the elections in Turkey will be held on May 14, as previously scheduled. The opposition chose Kemal Kılıçdaroglu as their candidate.

Запись Turkish Economy News Q1 2023 впервые появилась Stay Investment.

What are the features of the housing market in the resort of Alanya and how to choose a developer to buy an apartment under construction:

• • The events were successfully held in Moscow on June 29-30, and in St. Petersburg on July 4-5, 2023.

• • MIPIF is an international platform that has been bringing together real estate market professionals, private investors and people interested in real estate investment and relocation since 2017.

• • The platform hosts conferences for professionals, online and offline real estate exhibitions, expert speeches, webinars and other events.

• • Our experts noted the high interest of investors in elite projects in Turkey and Northern Cyprus. Stay Property introduced new residential complexes that are just entering the real estate market – so that customers can choose the best options for investment, get the best prices “at the pencil stage” and convenient payment terms for interest-free installments.

• • Visitors to MIPIF events will always receive “front row seats” at the launches of projects by leading developers. We were pleased to present our exclusive projects in the best resort locations.

• • The next event will take place on September 23-24, 2023 in Moscow. Announcements can be found on the MIPIF website – mipif.com and in the Telegram channel t.me/mipif.

Запись MIPIF 2023: Stay Property presented new projects впервые появилась Stay Investment.