Is it worth buying real estate during a period of high inflation?
High inflation is not only a cause for concern, but also an opportunity for investment. The time when money loses its value every day prompts people to look for ways to preserve their savings. One such way is to invest in real estate.
Research by scientists from the universities of San Diego and Berkeley has shown that high inflation stimulates demand for real estate. The experience of different countries shows that people living in countries with regularly rising prices tend to buy real estate as a reliable investment. This is explained by the fact that in conditions of high inflation, real estate prices also rise, protecting owners from the loss of the value of their savings.
Today, this trend is observed not only in the US, but all over the world. In countries where there has been high inflation, the proportion of homeowners is significantly higher than in countries with low inflation.
Such an unstable period is accompanied not only by rising prices, but also by an increase in demand for real estate. This is observed everywhere, but is particularly pronounced in countries where the population has experienced several crises related to inflation. For example, in Germany and Austria, where previous years were relatively stable, less than half of households own their own homes. And in Lithuania, Slovakia and Croatia, which have experienced high inflation in the past, more than 85% of citizens own homes.
During a period of high inflation, people may feel uncertain about the future, and owning their own home can provide them with additional comfort and stability.
“Investing in real estate in Turkey: why it can be profitable during inflation”
In Turkey, where the population is growing rapidly and inflation is galloping, investing in real estate can be a profitable long-term solution. This is explained by the fact that demand for housing will constantly grow, and real estate itself will become increasingly attractive as an investment in conditions of regular price growth. The current period of high inflation, as in the past, may lead to an increase in demand for real estate in the long term.
If you are considering investing in real estate during a period of high inflation, it is worth paying attention to market trends and long-term prospects, as well as analyzing your personal motives and financial capabilities. Buying real estate in such a period is not without risks. When buying property, it is necessary to take into account not only inflation, but also other factors, such as market conditions, political instability, etc. However, experts warn that rapid market development can lead to overvaluation of property prices and possible bubbles. Therefore, investors should be cautious and assess the risks before investing in real estate. Also, it is worth remembering that real estate is a long-term investment that requires serious financial investment.