Turkish Statistical Institute, TUIK, shared the house sales data for June 2023 at 10.00. TURKSTAT determined that house sales in June decreased by 44.4% compared to the same period of the previous year.
According to statistics, 83 thousand 636 houses were sold monthly in our country. This figure was recorded as 150 thousand 509 in June of last year and 134 thousand 731 in the same period of 2021.
Istanbul is at the Top of Housing Sales
According to TUIK data, Istanbul, the largest populated city in our country, once again led the way in sales. Megakent took the top spot in real estate with a 16.2% share, while the capital Ankara had a 5.4% rate with 7,325 sales. Antalya, where Russian citizens showed great interest with the Ukraine war, took the third place with 4 thousand 503 sales. 5.4% of house sales took place in the Mediterranean city.
The low interest policy implemented by the previous administration caused a great increase in the interest in housing. However, the figures that emerged after the election show that the housing frenzy may have come to an end. According to official data, the real estate market contracted by 22.2% in the January-June period.
While 726 thousand 398 houses were sold in the first half of 2022, this figure has remained at the level of 565 thousand 779 today.
Big Drop in Mortgaged Housing!
After the elections, the Central Bank started to raise the interest rates again, which greatly demotivated those who bought housing by borrowing. Increasing housing interest rates in the free market caused mortgage sales to fall by 66% compared to the previous period. According to TUIK data, only 13.463 mortgaged sales were realized in the period of June 2023.
Great Interest from Citizens of Russia and Iran!
The fact that most of the foreign house sales in Turkey are to the citizens of the Gulf region has been the subject of great debate recently. However, according to TUIK data, foreign purchases do not come from the Gulf.
In June 2023, Qatari citizens bought only 21 houses. 50 purchases came from Saudi Arabia, where Turkey has melted the ice in recent months. The biggest foreign demand for domestic real estate comes from our border neighbors and war countries.
The Turkish Statistical Institute noted that in June, Russians bought 733, Ukrainians 168. On the other hand, 175 and 333 houses were sold from our border neighbors Iraq and Iran, respectively.
Total statistics reveal that foreigners bought only 2,625 real estate in June. When we compare this figure to the total sales, we find that the demand from abroad constitutes only 0.03% of the total.
It should be noted that there are no illegal immigrants living in our country in the foreign statistics.
Will Housing Prices Fall?
Housing problems in our country have been on the agenda lately. Citizens who want to buy a house, on the other hand, are doing research on whether the housing prices will decrease. I will try to answer this question with similar situations on Earth.
We also explained in the news that the interest policy implemented by the previous economy administration increased the demand. The rising housing interest rates in the new period seem to have slowed down the sales for now. In addition, when we examine the countries that increase interest rates in the face of inflation, we witness that the interest in housing has decreased. Housing loan rates, which move in parallel with the policy rate, cause a decrease in demand.
For example, house prices in England show a downward trend. According to the latest figures, housing prices in the island country decreased by 2.6% annually. The housing market in Europe and the USA follows a similar course. The situation is worse, especially in the Asian giant China.
Although the rational economic policy that the new administration has started to implement in our country does not cause a numerical decline in housing, it may cause it to fall into a disadvantageous position against inflation and foreign exchange. Public banks have recently decided to increase their housing loan rates.
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