Turkey: June house sales increased by 11.7% annually

Housing sales in Turkey in June amounted to 150.5 thousand units. Initial sales were up 11.57% year-on-year against an 80.52% increase in May. Used sales were up 11.77% year-on-year compared to May’s 119.49% increase. Sales to foreigners increased by 81.76% year-on-year against an increase of 235.7% in May.

It is observed that the strong trend of progress in house sales continued in June as well. Normally, summer periods are a little quieter in terms of house sales, but we can say that there is a slightly faster market outlook compared to the sales at the level of 122.8K in May. When we look at the mortgage-backed sales in June, we can call it an aggressive outlook. Mortgage sales increased by 40.6% compared to the previous year and by 38.4% compared to the previous month. Of course, the main factor in the development of the market despite rising prices and cost levels is the increased demand for real estate investment against the depreciation effect of money. The high rate seen in second-hand sales compared to first-hand sales also explains this trend.

As a result; There is a constantly rising inflation and an increasing demand for real estate investment against it. As long as this demand trend is fed with inflation, rather than a decrease in real estate prices, prices will be expected to rise even more. On the other hand, with the weak TRY, there is an increasing demand for foreign investors with the ease of acquiring real estate in Turkey for foreigners and the incentives for Turkish citizenship. Housing sales, which have been strong for the last few months, are also receiving serious support from foreign purchases. During this period, it is seen that Russian citizens lead foreign purchases.

As for July, some restrictions on housing loan usage may keep sales calmer. A certain level of flatness in prices may occur for the month with the calming demand. However, we do not anticipate a serious decline in prices in terms of the housing market for the whole year.

Kaynak Tera Yatırım
Hibya Haber Ajansı