Analyzing the Factors Impacting Foreign House Sales in Turkey
Introduction
If you’re interested in real estate, you know that Turkey has seen a surge in foreign house sales in recent years. But what’s driving this trend? In this project, we (Honey Drip) set out to understand the factors that are impacting foreign house sales in Turkey. We examined a variety of data sets, including construction cost index, turnover rate, exchange rates, and sales data by province, and data visualization techniques to identify trends and patterns.
Key Takeaways
- When we examine the sales data, although the rate of sales to foreigners has increased over the years, it has remained around 5%. Considering this information, it seems difficult for foreign sales to have a significant impact on the market.
- After 2019, we can see that the annual average cost index exceeds the annual average turnover index. Due to the increasing cost index in 2018, new building construction became costly, resulting in a low response to new demand. As a result, the second-hand rate increased in sales, causing an increase in house prices.
- When we examine the relationship between the dollar and TL exchange rate, we conclude that the TL has experienced a high depreciation against the dollar. We also observe a clear correlation between the cost index and the dollar-TL exchange rate relationship.
- With the government’s limit on mortgages in 2021, the sales of housing with credit have decreased, but total sales have not decreased. We see this because people buy houses with cash from other sources, as they believe that house prices will not decrease.
Data Preprocessing and Wrangling
Before we could dive into the analysis, we had to make sure that our data was clean and organized. This involved converting certain data types, filling in missing values, and ensuring that the data was in a usable format.
Exploratory Data Analysis
In this project, we performed a range of exploratory data analyses (EDA) to understand the factors impacting foreign house sales in Turkey. This included:
- Regression analysis between exchange rate and construction cost: We examined the relationship between exchange rates and construction costs to see how they were impacting foreign house sales.
- Comparison of construction costs index in Turkey to other countries: We compared the construction cost index in Turkey to those of other countries to understand how it compared to the rest of the world.
- Analysis of First-Hand & Second-Hand Sales and Total Sales & Morgaged Sales: We looked at the breakdown of first-hand and second-hand sales and total sales and mortgaged sales to understand the trends in the market.
- Construction cost and Turnover index comparison: We compared the construction cost index and turnover index to understand how they were impacting the housing market in Turkey.
Data Visualization
To get a better understanding of the housing market in Turkey, we visualized the data using a range of tools, including charts, graphs, and maps. By examining the data in this way, we were able to identify trends and patterns that helped us understand the factors that are driving changes in the market.
Conclusion
Overall, this project was a deep dive into the factors impacting foreign house sales in Turkey. By examining a variety of data sets and using a range of analysis techniques, we were able to gain a better understanding of the trends and patterns in the market. This knowledge will be valuable in making informed predictions about the future growth of the housing market in Turkey.
Link to our project : https://pjournal.github.io/mef06g-honey-drip/finalreport.html
