Investment vehicles have changed: Interest in real estate has declined

The results of the research conducted in 3,089 households across Turkey have highlighted a shift in economic expectations. According to data published by the Central Bank, the annual inflation forecast for 12 months ahead in May fell to 49.51 percent, a decrease of 2.05 points compared to the previous month.

Survey participants ranked "food" and "fuel and energy" at the top of the list for products that saw the highest price increases over the past year and groups expected to see the highest price increases in the next 12 months. The proportion of those saying "food prices increased the most" rose to 40.9 percent, an increase of 0.2 percent compared to a month earlier.

Expectations for housing price increases also showed a decline compared to last month. Participants expect housing prices to increase by 33.95 percent in one year; this represents a 1.28-point drop from the previous month. During the same period, the dollar/TL exchange rate expectation rose by 0.41 liras to 52.53.

Although gold has maintained its position as the primary choice for public savings for many years, the proportion of those stating they would invest in gold in the survey decreased by 0.5 points from the previous month's level, falling to 48.3 percent. The proportion of those choosing real estate (houses, shops, land, etc.) investments was 33.2 percent, a drop of 0.2 points.

This change in economic expectations points to a new era in citizens' risk perception and savings strategies. According to the research results, especially following high inflation, people are moving away from traditional investment vehicles, and interest in gold and real estate, which are seen as safe havens, has begun to decline.

News Source: 12punto