#July

The demand that was on hold in housing has been activated

According to the housing sales statistics for July announced by the Turkish Statistical Institute (TÜİK), the number of housing sales across the country in July increased by 16% compared to the same month last year, reaching 127,088. However, in the January-July period, sales decreased by 0.5%, falling to 672,162. Across the country, mortgage-backed housing sales in July decreased by 20.9% compared to the same month last year, dropping to 11,496. The share of mortgage-backed sales in total housing sales was recorded at 9%. Industry representatives shared their assessments of the July housing sales figures with reporters. "Those with down payments have started to take action to buy a home" Neşecan Çekici, the President of the Association of Real Estate Investors (GYODER), stated that housing sales in Turkey increased by 16% year-on-year in July. With this increase, the total number of housing sales in the first seven months of the year caught up with last year’s figures, reaching 672,162. Çekici noted that the decline in mortgage-backed sales continues, with first-hand sales increasing by 28.9% and second-hand sales by 10.8% in July. "This picture shows us that the campaigns initiated by companies have been effective, and more importantly, those with down payments have started to take action, fearing a potential price increase in the near future," said Çekici. Çekici also pointed out that expectations from alternative investment tools have become limited. "There is a possibility that interest rates will decrease in the short term, and that housing prices will move upward. Additionally, housing prices have been declining in real terms for seven months. For the first time in seven months, they have lagged behind exchange rates, deposit rates, and policy interest rates," she said. "Real price decreases have accelerated home purchases" Hakan Şişik, President of the Anatolian Side Construction Contractors' Association (AYİDER), recalled that there was a decline before the 16% increase in July. He attributed this previous decline to rising prices and high-interest rates. Şişik explained that the increase in deposit rates also deterred buyers from purchasing homes. "The stagnation in housing sales, along with the slowdown in price increases and even real price decreases, has prompted buyers to take action. Another factor here is the ability to think long-term. As interest rates trend downward, housing prices will rise. This shows that now is the right time to buy a home," he said. Faruk Akbal, Chairman of Fuzul Topraktan, also noted that July saw the highest monthly figure of the year, saying: "While the decline in bank loan sales continues, first-hand sales increased by 28.9% and second-hand sales by 10.8%. This picture shows us that the dormant demand is starting to activate, thanks to alternative products like those from Fuzul Topraktan that make it easier to access housing. Those with down payments are agreeing on payment plans with companies without waiting for banks, and are making profitable purchases. Therefore, we will see this positive effect spread to the remaining months." "Dormant demand has been activated to avoid being affected by price increases" Selman Özgün, Chairman of Helmann Holding, stated that the demand that had been on hold for a while has now been activated, resulting in the highest housing sales figure of the year. Despite the summer months, vacation period, and high-interest rates, a good figure was achieved, said Özgün. "After a 3-4 month decline period, the fact that double-digit growth was achieved again shows how strong the demand for housing still is. On the other hand, there are real price decreases. Our consumers have taken action to take advantage of these opportunities and avoid being affected by potential price increases," he said. Tamer Özyurt, Chairman of Özyurtlar Holding, noted that the upward trend in housing sales figures has begun, emphasizing that this is a positive development for industry representatives. "We are in a period where housing prices have peaked due to the increase in construction input costs and the inflationary environment. Using a loan is essential to becoming a homeowner at current figures. However, the high housing loan interest rates that citizens face are also a challenge. But recently, the stabilization of the sharp increase in housing prices has prompted those with money in hand to take action," he said. Abdüssamet Bahadır, CEO of Bahaş Holding, also stated that despite rising costs, economic fluctuations, and the inability of supply to meet demand, the upward trend in sales figures in July is a promising development. Bahadır noted that while there was an increase in sales to locals, sales to foreigners continued to decline both on a yearly and monthly basis. He suggested that various incentive models should be developed to make the sector more vibrant and to increase sales to foreigners.