Turkish Housing Market Sees a Decline in October

Turkish Housing Market Sees Decline in October

Table of Contents

General statistics of Turkish Housing Market in October 2023

According to TÜİK (Turkish Statistical Institute) The Turkish Housing Market saw a decline in October 2023, with sales down 8.7% from the same month last year to 93,761 units. This marks the third consecutive month of decline in the Housing Market in Turkey.

The decline in the Turkish Housing Market was widespread, with sales down in all regions of Turkey. Istanbul, the country’s largest city, led the way with sales of 14,941 units, followed by Ankara (the Capital) with 7,394 units and İzmir with 5,192 units. The provinces with the fewest sales were Hakkari with 40 units, Ardahan with 43 units, and Bayburt with 80 units.

Foreign real estate sales in the Turkish Housing Market

Sales to foreigners also declined in October, falling 52.9% from the same month last year to 2,535 units. This brings year-to-date sales to foreigners down 44.4% to 30,599 units.

In terms of most selling cities to foreigners, Antalya took first place with 931 apartments. It was followed by Istanbul with 758 apartments and Mersin with 294 apartments.

Top nationalities purchasing real estate in Turkey

Russia was the top source of foreign buyers, with 713 units purchased in October. Iran was second with 235 units, followed by Germany with 152 units and Ukraine with 138 units.

Mortgage-backed housing sales

Sales of mortgage-backed housing also declined in October, falling 58% from the same month last year to 5,577 units. This was due to the government’s monetary tightening policy, which has led to higher interest rates. Mortgage-backed sales accounted for 5.9% of total housing sales in October.

New Apartment Or Second-hand Apartment ?

Sales of new apartments declined 10.6% in October from the same month last year to 29,230 units. This brings year-to-date sales of new apartments down 13.6% to 297,827 units.

Sales of used apartments declined 7.8% in October from the same month last year to 64,531 units. This brings year-to-date sales of used apartments down 14.6% to 696,089 units.

General reasons for the decline

It should be noted that the decline in the total number of real estate sales in Turkey is a healthy, natural, and also expected decline, as it is affected by the tight monetary policy that the current government is following to fight inflation. The interest rate has been raised on a monthly basis to 35% so far, and it is expected to be raised again in the coming weeks.

The high interest rate is a tempting attraction for depositors, as it provides a tempting investment return from their point of view and they resort to it as a safe haven at the present time.

It is also important to mention that the current geopolitical conditions also play an important role in the decline in demand for real estate in this period, especially from foreign investors from the Middle East.

Conclusion

The decline in the Turkish Housing Market market is a natural and healthy response to the government’s monetary tightening policy. The decline is relatively small considering the current economic conditions, and it is a sign of the strength of the Turkish Housing Market and its attractiveness to both Turkish citizens and foreign investors.

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