Acting as an arbitrator to stop the war between Russia and Ukraine, Turkey came to the fore as a safe haven for investment. There is a great movement in the real estate sector, especially in ready-made clothing.
The attack on Ukraine, launched by Russia on February 23, has plunged the country into economic chaos. Russia, which has been subjected to 2,778 new sanctions, most of them economic, since February 22, surpassed Iran with a total of 5,530, becoming the world’s most sanctioned country. Many financial instruments, from the use of credit to money transfers, have also become unusable. The statement that global brands operating in Russia would cease their activities one by one and withdraw from the market turned the eyes to this market. More than 100 global giants, including fashion brands such as H&M, Burberry, Chanel, Estee Lauder, Louis Vuitton, Prada, Gucci and Saint-Laurent, stopped their trade with countries. This picture, in which Russia is in, also increases economic interest in Turkey, which plays a leading role in the peace talks. The ongoing war between Russia and Ukraine enabled the route to be turned to Turkey in tourism, energy, food, exports and real estate. In addition, the sanctions of a significant part of Russian banks caused the Russians to turn to Turkish banks.
A NEW TRADE GATE
The withdrawal of most of the world’s brands from the country has started to open the door of a different trade between Turkey and Russia. Especially in retail, food and electronic goods, Russian buyers started to look for ways to procure these brands from Turkey. It has also emerged that Russian businessmen have started to come together with Turkish suppliers to procure textiles and durable consumer goods from the country. Again, Russian tourists who came to Turkey started to transport products to their countries via Turkey, both through luggage trade and other supply channels. Retailers speaking to Sabah state that the door to a very different trade is opened in the long run. On the other hand, a serious increase began in the border trade with Georgia.
REAL ESTATE INVESTMENTS CAME TO THE FORE
On the other hand, Russia’s high-income group citizens, to whom Europe has imposed an embargo, chose Turkey as a safe haven after the closed doors. Having met with agencies to invest in luxury and branded housing projects in Antalya and Istanbul, the Russians lined up to turn their savings into real estate in Turkey in case the money transfer problem was resolved. According to the information given by the agency members of the Real Estate Overseas Promotion Association (GIGDER), not only Russians but also Ukrainian investors are trying to transfer their money under the pillow to Turkey by buying real estate for citizenship and investment purposes. Agencies say, “Plan B for a safe life is now Turkey. Our country, where high-income investors turn to real estate, will face an influx of middle-income groups after the war. If the money transfer problem is resolved, the market can double.”
FLIGHT TICKET PRICES WENT UP
There is an intense air traffic from Russia to Turkey. Ticket prices on flights to Turkey went up to $3 thousand. The fact that the few Russian airspaces open to the world is over Turkey is shown as the main reason for the increase in ticket prices.
A SERIOUS REQUEST IS COMING
Omer Faruk Akbal, President of the Real Estate International Promotion Association (GIGDER), said, “Our hope is that this unfortunate process will end as soon as possible. We have detected that there is a serious demand from our member companies to Turkey from both countries in the last few days. Demands are increasing not only for vacation but also for investment and living. Russian citizens do not have many alternatives due to the sanctions. Our good relations with Ukraine will have a positive effect on their orientation towards Turkey.” Noting that the country’s investors are expected to turn to Istanbul, especially as a result of the isolations against Russia, GIGDER Vice President and Tekce Overseas Chairman of the Board of Directors Bayram Tekce stated that Russian intellectuals, the elite and the wealthy are in Istanbul at the moment.
Source: Sabah / Translated by Irem Yildiz