EUR
trThe situation with prices in the real estate market in Turkey
According to the Turkish construction publication Emlak Kulisi, the Turkish market has felt the significant impact of the consequences of the pandemic. However, the change in mortgage rates, which took effect from the summer of 2020, helped the market, and compared to July 2019, sales are up 124 percent! A significant increase in demand also increased the prices of apartments: objects that, prior to the introduction of the mortgage campaign, were roughly 500 thousand liras, were sold for 750 thousand liras.
As a result of the rise in mortgage rates, prices for the most basic building materials - iron, steel and cement - rose. All this led to a slowdown in the construction and real estate sector in Turkey and to forecasts of an increase in apartment prices in 2021.
Mustafa Andic, President of the Association of Construction Contractors, Industrialists and Businessmen (İMSİAD): “The cost of iron, which at the beginning of 2020 was 3200 lira per ton, approached 6000 lira in mid-December. Prices for other building materials are also growing. This will inevitably affect the cost of new apartments in Turkey and the increase in production costs of contractors. Already at the beginning of 2021, prices for houses and apartments in Turkey will be adjusted upward. In this situation, Turkish contractors are simply obliged to switch to domestic building materials and minimize the use of imported ones. "
The increase in iron prices will increase construction costs by 10%, according to experts, and will certainly affect the cost of new buildings in Turkey.
Even with a further decrease in interest rates on mortgage lending, market experts predict that at least 120-120 thousand apartments and houses will be sold monthly in Turkey in 2021. Consequently, those who plan to invest in long-term investments, experts still advise to invest in real estate. In 2021, a 50% increase in house prices in Turkey is predicted, so everyone who wants to make a profitable investment is advised not to postpone this business indefinitely.
