The high demand for houses for sale in Turkey declined in July. A similar picture is expected to be experienced in the housing sales data for August, which will be announced soon. Due to the declining demand, the sales periods in the residences extended from days to 2 to 3 months, resulting in an increase in the number of houses waiting for sale. According to the data available on Tapusor.com, the duration of the real estate offers in the housing for sale category has been extended. According to the data in Turkey, where 1.5 million new houses are needed annually, 1 out of every 3 real estate offers in July, August and September 2022 remain on the air until the next month. While more than 41 percent of the real estates put up for sale in July remained live until August, more than 18 percent of the real estates put up for sale in July remained live until September. According to the sector, the contraction in demand is due to the high rise in prices, the public banks’ tightening of the credit taps and the withdrawal of foreigners from the market.
“Cash money registered to KKM”
Evaluating the shrinkage in the sector, Emlakjet CEO Tolga İdikat said that there has been a contraction in the purchase side for two months, and this situation has led to an increase in the number of pending residences for sale. İdikat explained his reasons as follows: “Because it withdrew from the foreign market. 400 thousand dollar and the dislike for foreigners in Turkey was effective in this. In addition, the fact that people were not able to afford it, as homeowners increased prices too quickly to catch up with inflation, reduced home sales. Another factor was the high level of housing loans and the lack of loans. When the loan is not available, it is necessary to buy it in cash. However, those who have cash in cash tend to use the Currency Protected Loan (KKM) or foreign currency, which has been revived at the moment. When the stagnation in the summer season is added to this, sales slowed down.”
“The lowest sales of the last 5 years are expected in August”
Stating that the public banks, which provide housing with lower interest rates than private banks, have almost withdrawn from the housing loan market, Istanbul Gayrimenkul Değerleme ve Danışmanlık AŞ Founder and Managing Partner Ahmet Büyükduman said, “They are talking about the limit of 220 thousand to 500 thousand TL for the loan given. No public loans. As such, those who cannot get a loan from the public bank with a rate of 1.29 have to get a loan of 2.30 from the private sector. This means that interest rates rise, and in an environment where interest rates fall, demand falls. Stating that there is a weakening in sales, and that probably the lowest number of sales on a daily basis for the last five years, excluding 2020, will be this August, Büyükduman noted that whether there is a calendar and summer effect in this will emerge in the autumn months.
“They don’t increase the price”
Stating that the demand for housing has decreased, Istanbul Real Estate Brokers Club (İSTEB) President Ulvi Özcan said that the recession was effective in this. Stating that the owners call and increase the price during the periods when the markets are active, Özcan said, “They are not doing this at the moment. It doesn’t come in the new house. In order for new housing to come, people have to come across other opportunities. He must have the money and credit conditions to seize that opportunity. There is no opportunity in the market,” he said.
“High-priced housing has no buyers”
Stating that there is a contraction in the housing market for sale due to the curtailment of the credit taps, Istanbul Real estate The President of the Chamber of Brokers, Nizamettin Aşa, has extended the sales period for the houses that have been sold almost daily in the last year, reaching 2 to 3 months. Affordable ones are still for sale. But high-priced housing awaits,” he said. Noting that 650 thousand residences received construction permits and 450 thousand were sold last year, Aşa said, “This means that there are 150 thousand stocks in new residences. A significant portion of this stock consists of luxury residences. Recent projects are also luxury projects, but there are no buyers for them. If it continues like this, the luxury housing problem, which increased to 2 million in a period that occurred in 2010, may occur again.
“The decrease is due to the summer season”
Nazmi Durbakyim, President of the Istanbul Builders Association (IDER), said that the decrease was due to the summer months. Saying, “Turkey is preferred due to its geography, even though sales to foreigners are low,” Durbakalım said, “The recession in the world has an effect on this. Inside, there is no period when we say that the salary of one of the two people pays the house. Hopefully, we will come back to those days with the measures to be taken in the coming period. Because at the time when the house was making a move, someone was supporting the house, and someone was paying the loans. Because shelter is the second basic need after food,” he said.