Turkey's latest data on the housing sector, on how the economy will likely reflect a contraction in the sector gave rise to questions. According to the Turkey property market data, according to the first housing sales in Istanbul with 16.9 percent share, Izmir and Ankara became the third second with 10 percent and 6.2 percent. In the last 10 years, Hakkari ranked among the cities with the lowest housing sales with 904 houses. 2 thousand 107 floors of housing in Istanbul Hakkari was sold. In the last 10 years, even in some metropolitan cities, housing sales did not exceed 100 thousand. The weaker course of housing demand may continue in the upcoming period due to high interest rates and housing prices that show an increase in inflation rates.
Foreigners bought 11 thousand 816 houses in Turkey this year. When we look at the housing sales figures, most of the citizens of the country that bought housing was from Iraq. Iraq was ranked first in the list with 1987 housing numbers, Saudi Arabia ranked second with 1087 houses, Iran was third with 944 houses, Russian Federation was fourth with 815 houses and Afghanistan was fifth with 719 houses. Property for sale in Turkey is actually a condition for foreigners that is still in demand.
The legislation introduced in order to encourage housing purchases, urban transformation projects with other big advantages of the project and the interest of foreign investors in residential sales ensured the continuation of life, but the rate of increase in house prices in Turkey slowed down, it has been the decline in prices in real terms. Did you foreigners to buy house in Turkey?
As shown by this data, a large number of incentives were introduced by the government in order not to slow down the housing sector. These include the reduction of VAT and title deed fees. The housing sector is one of the sectors most affected by the interest rate. Therefore, many banks have announced a reduction in housing interest rates. However, this raises the question whether the banking sector would be a problem.
No housing bubble in Turkey and in Istanbul. Sometimes, however, bubbles can occur in some cities or locations. Housing sector distress Istanbul, Ankara and Izmir in excess of the supply of large cities. With this supply surplus, prices do not increase as much as before. In addition, the high return on money and capital markets also hinders the investor from housing investment.
The second biggest problem in the sector is the high indebtedness of the top 20 companies in the sector. In addition, a significant portion of these debts in foreign currency. Due to the excess supply, companies cannot sell at the planned price. Considering the costs, we don't exaggerate. The same applies to interest rates. Banks are suffering from housing loans.
According to the calculation made by using national income figures, you can think of construction as the sector that contributes the least to growth after agriculture. When considered in this context, the construction industry has come to the end of the rapid growth in Turkey. In the following period, a growth strategy that will be driven by the branches of service such as industry or tourism producing for external demand must be passed.
Residential construction cost for Turkey is not a huge problem. However, serious distortions in income distribution, corruption in the economy carries. In this sense, construction activity based on reconstruction rent also undermines the institutional unity of the economy.
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