Environmental disasters, whether natural disasters or man-made accidents, have a significant impact on the real estate market. In recent decades, the frequency and intensification of such events have led to serious changes in the structure and dynamics of this market. We tell you what impact disasters have on the real estate sector and what recovery strategies exist after them
Environmental disasters such as fires and floods have a significant impact on the residential real estate market. Recent earthquakes and floods in some regions of Turkey have highlighted how natural disasters can affect infrastructure, property prices and buyer preferences. Let’s look at exactly which aspects of Turkish real estate are affected by environmental disasters and what recovery strategies can be developed to minimize their negative impact.
The impact of disasters on the real estate market
The impact on the real estate market of natural disasters has a significant impact on various aspects of the market.
Firstly, the destruction of property is one of the most tangible consequences. Fires and floods cause huge damage to real estate, destroying homes, infrastructure and public buildings. This leads to significant financial losses for property owners and insurance companies.
Secondly, a decrease in the value of real estate in the affected areas becomes an inevitable consequence. After natural disasters, the value of real estate in such areas often falls, as potential buyers avoid unsafe and at-risk sites, which reduces demand and, consequently, prices.
The third important aspect is population displacement. Residents of the affected areas are often forced to move to safe regions, which can cause a sharp increase in demand for housing in these places and an increase in prices. Finally, changing customer preferences also plays a significant role. After disasters, property buyers become more aware of the risks and prefer areas with better protection from natural disasters, which affects the distribution of demand in the market.
Disaster recovery strategies
The restoration of areas affected by natural disasters requires an integrated approach, including both technical and socio-economic measures. The key recovery strategies are discussed in detail below.
1. Renovation and reconstruction
The restoration of buildings should begin with detailed planning and design, taking into account new conditions and possible risks. It is important to carry out an examination of the affected buildings and territories in order to understand the extent of damage and choose the best methods of restoration.
The use of modern construction technologies and innovative materials that provide greater resistance to future disasters is an important aspect. This includes the use of antiseismic structures, special materials resistant to water and wind, as well as automatic monitoring systems for the condition of buildings.
2. Raising construction standards
The development and implementation of standards that provide for the mandatory use of antiseismic technologies in construction in areas of increased seismic activity is a necessary step. The creation and support of certification systems for construction companies and materials guarantees their compliance with new standards and safety requirements.
Regular training and advanced training of builders, engineers and architects in the field of modern construction technologies and new safety standards also play a key role.
3. Creation of green areas and infrastructure for risk management
Green areas help mitigate the effects of natural disasters such as floods and hurricanes by naturally absorbing water and reducing soil erosion. The inclusion of green spaces in urban infrastructure, such as parks, squares and green roofs, not only helps in risk management, but also improves the quality of life of residents.
Installation and modernization of drainage systems that effectively cope with large volumes of water during floods includes the creation of underground reservoirs, storm sewers and drainage ditches. The introduction of fire prevention measures in forest and suburban areas, such as the creation of fire lanes, the installation of automatic extinguishing systems and regular exercises, are also important for risk management.
4. Insurance and financial assistance
Government support programs and insurance payments play a key role in rebuilding the affected areas. They help property owners cover the costs of restoration and renovation.
The development of natural disaster insurance systems that offer protection and support in the event of earthquakes, floods and other natural disasters encourages property owners to invest in insurance and increases their financial security. The provision of grants and subsidies for the renovation and reconstruction of buildings is especially important for socially vulnerable segments of the population and small businesses.
The real estate market in Turkey after the earthquake
In the two years leading up to the earthquake in February 2023, there was a steady increase in demand and housing prices in the Turkish real estate market. The disaster destroyed entire cities, and also became a real shock to the country’s construction sector.
After the earthquake in February 2023, the demand for real estate in Turkey decreased significantly. Already in early March, demand decreased by 30%, and sales in the primary market decreased by 11.2%, in the secondary market by 11.7%, and transactions with mortgage real estate decreased by 13.9% compared to the previous year. Transactions with foreign buyers in April 2023 decreased by more than 60% compared to April 2022.
After the earthquake in Turkey, housing prices temporarily halted their growth, prompting talk of market stagnation despite declining demand. Nevertheless, Turkish real estate continues to lead the way in price growth. According to the Bank for International Settlements, Turkey ranked first among 58 countries in terms of housing cost growth with an annual increase of more than 50%, while in Israel this increase was only 11%.
In 2024, Turkey faces a number of economic challenges. In the second half of 2023, the country switched to a tighter monetary policy, including rate hikes, which could reduce domestic demand and slow economic growth in the second quarter of 2024.
Despite the economic obstacles, the real estate market is showing a willingness to recover. The government’s focus on controlling inflation and economic growth indicates a commitment to long-term stability and growth, balancing the effects of tight monetary policy and external economic factors.
New customer preferences
Turkey is actively engaged in the renovation of housing with increased quality control, especially after devastating disasters. These measures include:
1. Stricter building regulations: Stricter building standards are being introduced in Turkey to ensure earthquake resistance of buildings.
2. State renovation programs: The state actively participates in programs for the redevelopment of old and dilapidated buildings, ensuring their compliance with modern safety standards.
3. Construction quality control: Stricter control over the quality of construction and the use of new technologies and materials.
In recent years, real estate with renovation has become the most relevant choice of housing in Turkey, especially in the central areas of large cities.
Such facilities are undergoing modernization and reconstruction to meet modern safety and comfort standards, including improving engineering systems, updating electrical wiring and water supply, as well as installing new security systems.
New building codes require compliance with strict earthquake resistance standards. Renovated buildings are being upgraded to meet these standards, which provides additional security for residents, as well as the quality of construction is more strictly controlled by the state.
Modern building materials and technologies are used in the renovation process, which not only improves the aesthetic appearance of the objects, but also increases their durability and resistance to external influences.
After the earthquake, buyers’ requests changed: now almost everyone is trying to buy reliable housing in earthquake-proof provinces. The resort regions and coastal cities are in the greatest demand: Alanya, Antalya, Side, Mersin, Kemer.
One of the most attractive destinations is business class apartments in Antalya:
ANTA HOME NEON:
– A business class complex on the main tourist street of the city.
– Redevelopment project.
– 2+1 apartments, view penthouses, with an area of 72 m2.
– The cost starts from € 130,000.
– Located just 3 minutes from beaches and historical sites.
– The estimated payback rate for daily rent is 9.8% per annum.
The project was developed by a reliable international developer AntaGroup, guaranteeing high quality construction.
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Daria Rogova – Head of Insurance Department at Visit World
For a safe move, travel or employment in a new country, you will need travel insurance. An extended policy can be issued on our website at the link.
Products from Visit World for comfortable travel:
Checklist for obtaining a visa and necessary documents in Turkey;
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