Will the decline in housing prices continue?

Real estate investors, owners, and renters are watching real estate prices rise to record levels by the day. end The situation has changed somewhat over time. Especially in recent months, housing prices have stopped and even rent prices have decreased. percent There was a decrease of 10 to 15.

Turkey According to data from the Statistical Institute (TUIK), apartment sales across the country decreased by 20.6 percent in November compared to the same month of the previous year and reached 93 thousand 514. The reason for the sharp decline in apartment sales is the effect of the decline in apartment sales on rents rent and housing prices to continue.” Real estate expert Mustafa Hakan Özelmacıklı answered all your questions.

“THE DEMAND FOR LAND AND LAND HAS INCREASED”

in Milliyet place According to reports, Özelmacıklı, who evaluated the TÜİK data, said: “In fact, if we look at it from a numerical perspective, October In 2017, 93 thousand houses were sold. In this regard, we are looking closely at January-It’s November. Here is a decrease of 14.9 percent. We see that 1 million 87 thousand houses were sold.

Looking at it from that perspective, we estimate that home sales may end the year at 1.2 million with next month’s data. “We have been shown that 2023 will be a period where land and land sales will be more intense than housing sales in all real estate sales,” he said.

“CREDIT RESTRICTIONS REDUCED SALES”

Regarding the reasons for the decline in housing sales, Özelmacıklı said: “We can say that the main reason for the decline in housing sales is the restriction of bank loans. The sale of foreclosed homes in Turkey decreased by 68.5 percent in November compared to the same period of the previous year, reaching 5 thousand 245.

Here, the share of total housing sales in mortgage sales was 5.6 percent. In the period from January to November, compared to the same month of the previous year, it decreased by 33.6 percent. We can assess that the most intensive effect on the sale of mortgages is the increase in interest rates on housing loans and the decrease in demand after this increase.

Interest rates on deposits high The hike has also slowed down the process for people looking to invest in real estate. Interest rates have created a significant advantage for people who want to invest their money through deposits. “This has narrowed property investment in this period,” he said.

WHAT WILL HAPPEN TO HOUSING PRICES IN THE NEW YEAR?

Özelmacıklı stated that housing prices will rise in 2024, he said: “When we look at the housing price index, real increases remained at 17.8 percent in September. In the last 2-3 months, property prices have stagnated. But we see that the cost of new construction have increased due to rising construction costs and labor costs. Therefore, this Although prices have shown some stagnation during this period and appear to remain stagnant, new construction costs are increasing. This situation will push prices upwards, especially starting from the first quarter of 2024.

One factor that increased demand was sales to foreigners. The confusion between the terms foreign investor and refugee in our country led to the departure of foreigners from our country after the elections. In particular, we see that sales to foreigners fell by 46.1 percent. “It can be said that this is a separate factor affecting housing sales on the real estate side.”

“PONAL VOLUME OF HOUSING LOANS”

The real estate expert noted that there was a significant decline in the volume of housing loans reported by the BRSA on a weekly basis, saying, “The volume of housing loans, which was at 446 billion TL in the week of September 15, continued its decline and reached 8 December “We can say that it dropped to 439 billion TL by the end of the week,” he said.

CITIZENS’ INVESTMENT PREFERENCES HAVE CHANGED

Özelmacıklı stated that citizens are turning to land and land, he said: “When we look at the sale of non-residential real estate, there is more intense interest in land and land. Although there are such declines in apartment sales, sales of land and land yes. compared to the same during the period of last year, it does not decrease at these rates.

If we look at the total real estate sales, we can see that sales in the January-November period approached the threshold of 2 million 650 thousand. “In this context, we can say that we expect the end of the year at the level of 2.8 million total real estate sales,” he said.

Source: Nationality

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