BNP Paribas, one of France’s foremost financial powerhouses, has identified not only direct financial investment opportunities in Turkey but also avenues for significant real estate gains. The bank lauds Turkey’s 2-year government bonds for their attractiveness and projects the USD/TRY exchange rate to stabilize at 36 by the year’s end.

As inflation figures align with the expectations of the Central Bank of the Republic of Turkey (CBRT), BNP Paribas maintains a steady year-end inflation forecast at 40%, with no further rate hikes anticipated soon. This stability in monetary policy and favorable exchange rate forecasts make a compelling case for considering real estate investments in Turkey.

The Turkish Lira’s robust performance in forward contracts suggests an economic environment conducive to investment. BNP Paribas points to Turkey’s improving current account and decreasing inflation in the latter half of the year as positive indicators that bolster the real estate market.

Specifically, the performance of 2-year government bonds can act as a bellwether for the broader economic conditions favorable to real estate investments. Investors are encouraged to leverage these bonds as a protective measure against currency fluctuations while exploring real estate opportunities.

BNP Paribas also notes that the attractive yields on zero-coupon bonds at the front end of the curve, particularly in contexts where inflation expectations remain managed, can free up capital for further investment in Turkish real estate. This approach provides a strategic gateway for investors aiming to capitalize on the potential high returns from Turkey’s property market.

In essence, BNP Paribas sees the current economic dynamics in Turkey as an optimal blend for expanding into real estate, offering a dual strategy of bond investment and property acquisition to maximize investor returns.