RECORD IN CARD-BASED PURCHASES ABROAD: WHAT DOES IT MEAN FOR TÜRKİYE’S PRICE COMPETITIVENESS AND REAL ESTATE INVESTMENTS?

WHAT DO CARD SPENDING DATA TELL REAL ESTATE INVESTORS?

In the economy, consumption data often appear to concern only the retail sector. Yet changes in the direction of card spending may offer a broader framework on purchasing power, price perception, exchange-rate effects and how consumers compare countries. For this reason, data on card-based purchases abroad are among the indicators that should also be read carefully by those considering real estate investment in Türkiye.

According to data announced by the Interbank Card Center (BKM), in-person spending abroad made with domestic debit and credit cards reached a historic level of TRY 93.1 billion in May. In the same period, the more limited pace of increase in spending made in Türkiye with foreign cards presents a picture that should be discussed not only in terms of consumption trends, but also in terms of Türkiye’s international price competitiveness and cost perception.

However, this data alone does not lead to the conclusion that “Türkiye has lost its price advantage.” It would not be healthy to reach a definitive judgment without assessing travel volume, seasonality, exchange-rate movements, inflation, card usage habits and the TRY equivalent of expenditures together. The real value of the data is that it enables investors to ask more comprehensive questions.

WHAT DOES THE RECORD IN CARD-BASED PURCHASES ABROAD INDICATE?

The rise in spending abroad with domestic cards may indicate that consumers are making price and service comparisons more actively. Improved transport options, increased cross-border travel, the emergence of different price advantages in certain products and services, and diversification in consumption preferences can be considered among the factors supporting this trend.

For investors, the important point is not only the size of the spending amount. The countries, product and service groups and exchange-rate conditions in which these expenditures occur are also significant. Without seeing these details, it would not be correct to link card data directly to the real estate market; however, the data can serve as a strong early signal for monitoring changes in Türkiye’s cost of living and international price perception.

HOW DOES PRICE PERCEPTION AFFECT REAL ESTATE INVESTMENT DECISIONS?

Real estate investors do not compare only the sale price of a residence, land plot or commercial property. Daily living expenses, maintenance and operating costs, transportation, healthcare, education, tax obligations and economic predictability also determine the real cost of an investment decision.

Even if the purchase price of a real estate asset appears relatively accessible, if living and usage costs increase faster than expected, the overall attractiveness of the investment may weaken. Conversely, a strong location, sustainable rental demand and a controlled cost structure may create a more balanced investment scenario regardless of the sale price.

THE COMPARISON IS MORE PRONOUNCED FOR TURKS LIVING ABROAD

Turks living in Europe have the opportunity to directly compare two different economic environments when investing in real estate in Türkiye. In addition to housing or land prices, grocery spending, service costs, healthcare and education expenses, transport options and daily living standards also affect the usage scenario of the investment.

This comparison is particularly decisive in investments intended for a second home, retirement planning, family use or long-term settlement. Looking only at the purchase price in euros or pounds is not sufficient to explain the total cost of the investment in the following years. Location analysis, intended use and the investor’s income-expense structure should be considered together.

THE VALUE OF REAL ESTATE CANNOT BE SEPARATED FROM THE ECONOMICS OF DAILY LIFE

The value of real estate in a region may be affected not only by population movements, employment, transportation, social infrastructure, rental demand and zoning conditions, but also by living costs. When people’s willingness to live, work or stay for a long period in a city weakens, real estate demand may also change over time.

For this reason, a valuation report should not be viewed merely as a technical document comparing comparable sale prices. A qualified investment analysis should take into account not only the legal and physical characteristics of the property, but also the economic sustainability of the region, usage costs and demand dynamics.

FOREIGN-CURRENCY-BASED VIEW: IS THE EXCHANGE-RATE ADVANTAGE ENOUGH ON ITS OWN?

For investors earning income in euros, dollars or pounds, real estate prices in Türkiye may appear advantageous in certain periods. However, the exchange-rate advantage can be misleading when not evaluated together with inflation and cost increases. The advantage at the time of purchase may be balanced over time by increases in maintenance, renovation, dues, taxes and daily living expenses.

Therefore, three questions must be answered together in a foreign-currency-based investment decision:

• Is the purchase price of the property realistic when compared with similar locations and assets?
• Are usage, operating and living costs compatible with the investor’s long-term plan?
• Do the location’s demand, rental, transportation and development dynamics support the investment scenario?

ANADOLU PROPERTIES ANALYSIS: DATA BEYOND PRICE

In investment consultancy, focusing only on the sale price of real estate is not sufficient. Living costs, the economic outlook, regional demand, the investor’s objective, the intended period of use and the exit scenario should be assessed together. Card spending data are also among the complementary indicators that help understand price perception and consumer behavior within this holistic analysis.

In the Anadolu Properties approach, the investment decision is based on the combined reading of official data, market comparisons, location analysis, zoning and title-deed checks and the valuation report. The aim is not to draw quick conclusions from a single data point, but to examine whether different indicators are giving signals in the same direction.

READING INVESTMENT VALUE HOLISTICALLY

The increase in card spending abroad and spending trends in Türkiye with foreign cards raise important questions about international price perception. In terms of real estate investment, the main issue is not to see this data as a stand-alone indicator of advantage or risk, but to read it together with living costs, purchasing power, exchange rates, inflation and location dynamics.

A sound investment decision should answer not only the question “How much am I buying it for today?” but also “In which usage scenario, with what cost structure and within which demand dynamics can this property generate value?” When data beyond price become visible, the true potential and risks of the investment can be evaluated more clearly.

Mustafa Yılmaz

CEO – Anadolu Properties

Europe–Türkiye Investment Bridge