Agricultural land to gain in value in Turkey once coronavirus outbreak ends
According to research from the real estate department of the Industrial Development Bank of Turkey (TSKB), once the effects of the coronavirus pandemic start waning, it is anticipated that agricultural land in Turkey will quickly gain value, thereby providing an opportunity for investors. The rent and sale of office/work spaces is expected to fall, much to the benefit of tenants with leases.
Duvar English
According to research from the real estate department of the Industrial Development Bank of Turkey (TSKB), once the effects of the coronavirus pandemic start waning, it is anticipated that agricultural land in Turkey will quickly gain value, thereby providing an opportunity for investors.
According to Berk Ünsal, the director of the TSKB's real estate evaluation/special projects department, industrial structures, storage spaces, agricultural land, and the healthcare industry will quickly recover due to renewed demand. The country witnessed the importance of the agricultural/food sector, and will seek to limit the amount of imports in favor of producing domestically. This will make agricultural land and food-production sectors valuable investments.
“Together with a decline in international trade, it is anticipated that some products will begin to be produced domestically. And it is expected that investments in cold air storage spaces will increase,” Ünsal said.
On the other hand, the rent and sale of office/work spaces is expected to fall, much to the benefit of tenants with leases.
“In order to keep the spaces filled, contracts that are coming to an end will be renewed with a period during which the rent will be free or lowered. It is believed that tenants will request more short-term contracts,” Ünsal said.
Businesses including cinemas, gyms and theme parks are expected to suffer a drop in demand, as people will have become accustomed to doing exercise and other activities from home, the report noted.
Ünsal added that traditional retail is also likely to take a hit in favor of e-commerce.
“During the epidemic, e-commerce experienced a sudden and quick growth. After the epidemic, rather than large stores, it will be more common to see 'drive through' style places similar to fast food restaurants where one shops without leaving their car. Together with this, large stores will become smaller and the e-commerce market will increase.”