Real estate sales started to rise again with banks’ interest rate cut. Following the September real estate sales data announced by the Turkish Statistical Institute, the goal of selling 1 million properties came to the agenda again.
In the first half of 2019 the real estate sector, which was going through a very difficult period due to high-interest rates and the deteriorating economy, stopped.
Real estate sales, which was declining steadily, started to revive after decrease interest rate to 0.99 by public banks.
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Real estate sales are close to 150 thousand in September
“When we look at the sales figures for September, we believe that by the end of the year sales could reach 1 million or more properties,” said Erkurtoglu, vice-president of the Federation of Building Contractors.
Erkurtoğlu in his assessment of September data said, “When we look at property sales that started to rise in August and reached 150 thousand properties in September, we can say that one of the main reasons for this is the interest rate cut. The percentage of properties sold by mortgage reached 45%, which indicates that property buyers are going to banks in addition to offers from construction companies.
However, the number of sales of second-hand properties was more than new properties. This is because property prices in the range of 1 million TL still a very high price for home buyers.
If we consider the average increase in construction costs reached 60% compared to the previous and the problem of land stock in Istanbul, fewer houses will be built in 2020 and these properties prices will be higher than current prices.”
Edit By: Realty Group