There are approximately 1.5 million housing deficit in Türkiye. Increasing construction costs, population growth, earthquake risk and decreasing land stocks can not meet the demand for housing supply. The country’s new housing needs vary between 800 thousand and one million, while the license applications for the production of new housing in the last 5 years declined up to 500 thousand. According to Housing Sales Statistics announced by TURKSTAT, the share of zero houses in total sales in February has fallen up to 30 percent. Ramadan Kumova, President of the Housing Investors Association (Konutder), stated that the housing deficit can be closed if the sale of 62 thousand 500 housing per month can be closed, while the sale of only 33 thousand 285 houses in the first two months of the year causes concerns in the sector.
Istanbul gives alarm
While the average monthly sales of 12 thousand houses in Istanbul are targeted, it is stated that only 4 thousand 859 sales were made in the first two months of the year. This figure corresponds to only 42 percent of the expected sales volume. When it is compared to 39 districts of Istanbul, it turns out that an average of 125 new housing sales per month is realized. Kumova, this ratio is quite low for Istanbul, stating, “loan interest rates and land costs decrease, increase in first -hand housing sales and restrictions brought to housing investors can be achieved in the market. However, without the fulfillment of these conditions, neither rent prices nor housing prices may fall.”
How does the sector move?
Real estate entrepreneur Hakan Bucak stated that there was a decrease in housing purchases of foreigners in February, while the factors that increase housing sales listed as follows: “The expectation that the housing prices will increase in order to increase, the loss of the attractiveness of other investment vehicles and the desire of the campaigns and tenants to be a home.
“Get if you have money”
Bucak emphasized that consumers with suitable conditions should not postpone the purchase decision and said: “Prices in the second -hand market are at the bottom level. The cost increases in new houses have not yet been reflected in the sales prices yet. Some consumers expect loan interest rates to decrease further, but the fall of interest rates will increase the demand, which will attract prices. So it is not the right strategy to wait. “
Bucak stated that new houses generally address the middle-upper and upper income group and that public support is a must for narrow and medium-income citizens. Bucak also added that they expect steps to be taken such as social housing projects and low -interest credit for the first home receivables.
Interests Thought Moving
Hakan Şişik, President of the Association of Construction Contractors of the Anatolian Side, said that with the fall of interest rates, citizens were directed to the real estate again and the use of credit increased. Şişik made the following evaluations: “Although the interest rates are high compared to the past, the concern that housing prices will increase and the 54 percent hike in the rents accelerates purchases. Real Estate has always been one of the most reliable investment instruments. We predict that housing sales will accelerate with the decrease in loan interest rates. “
Şişik, some of the construction companies are now turning to regions where labor and land costs are lower, “When we look at today’s data, we can say that the increase in construction costs slows down.”
What do the numbers say?
According to February 2024 data, zero housing sales fell to 30 percent.
In the last 5 years, housing prices have increased by 500 percent on average.
The average square meter housing price in Istanbul has exceeded 40 thousand TL.
Second -hand housing sales fell 35 percent in the last year.
In February 2024, housing sales to foreigners decreased by 45 percent.
Concrete, iron and labor costs have doubled in the last 2 years.
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