Sector members who spoke about home prices disclosed both good and bad news. Although analysts predicted that the rate of markup would slow down, they also announced some explanations for it.
The rise in inflation and foreign exchange rates in Turkey had a serious impact on house prices in Turkey. As a result, starting last September, the house price in Turkey for sale and rent have been upgrading and increasing virtually every day. Recently, important statements about property prices have been made.
The increase in house prices in Turkey as of the end of June was 182% on an annual basis, according to reputable sources. Although May set a monthly record for house prices in Turkey with a 14.7% increase, it has been reported that the rate of price increase is projected to slow down soon. This was mainly due to the decrease in demand in the market.
"The increase in house prices in Turkey will be at the level of 18.7% in the 6 months, the reason is that it is difficult to buy a house."
Considering this, it is anticipated that the increase in house prices in Turkey would decrease to single digits in the subsequent time frame. Furthermore, the overall average increase will be 18.7% in the second half of this year. The following factors, according to market analysts, will contribute to a decrease in house prices in Turkey:
The narrowing of the buyer group with the limitation on housing loans,
The prices in the market are already peaking,
Concerns that there will be a new regulation for the market.
The current national average for home prices in Turkey and the year-end goal:
The average house price in Turkey throughout June:
Average square meter sales price: 9.979 TL
Average house price: 1,317,228 TL
The average house prices that will occur at the end of the year, based on the 18.7% average increase forecast covering the next 6 months, are as follows:
Average square meter sales price: 11,853 TL
Average house price: 1,552,743 TL
Authorities explained the average house prices in Turkey and projected prices in the cities at the end of June, taking Istanbul, Antalya, and Myrtle, which are the provinces with the highest increase in housing prices, under a separate heading:
Istanbul:
Average residential square meter sales price: 17,497 TL
Projected price at the end of the year: 22,360 TL
Average house sales price: 2,099,000 TL
Projected price at the end of the year: 2.593.000 TL
Antalya:
Average residential square meter sales price: 14,896 TL
Projected price at the end of the year: 18,532 TL
Average house sales price: 1.939.220 TL
Projected price at the end of the year: 2.316.500 TL
Myrtle:
Average residential square meter sales price: 8.933 TL
Projected price at the end of the year: 11,138 TL
Average house sales price: 1,339,550 TL
Projected price at the end of the year: 1,704,114 TL
They also stated that they expect the highest value increase in Tekirdağ with 31% until the end of the year.
Some similar statements about the upcoming process are also made such as the rate of increase in house prices in Turkey will slow down and the tightening policy of the Banking Regulation and Supervision Agency has made it difficult to give loans. Authorities emphasized that there were no daily or weekly changing house prices in Turkey in July, and states:
“Because the number of buyers has decreased. The loan rate has increased to 60%. You need to have 40% cash to buy a house in Turkey. Credit purchases are not as vibrant as they used to be. This slowed the growth rate. In the upcoming period, there will be changes in house prices in Turkey in 3-month and then 6-month periods.”
The increase will be stable for a few months, but the picture is clear in the medium and long term:
Another reputable source postulated that there may be a decline in house prices in Turkey due to the course of the economy sharing that they expect a stagnation of house prices in Turkey for 3-4 months, besides, they think that the increase will continue in the medium and long term.
Buyers of investment properties have recently trended to sell:
Those who buy investment houses are now looking for themselves in the direction of sales because the prices have peaked. The other reasons behind this are as follows:
“Also, 'is there a quota for those who own more than one real estate in terms of income tax difficulties and foreign purchases?' The questions started. A possible 10 percent increase in the dollar as well reduces domestic purchases. Therefore, the concerns of breaking and spoiling the prices in the market began. Even the possibility of being one of them disrupts the market.”
