House sales in Turkey declines by 3.7 percent in first half
Date
7/17/2024 5:19:23 AM
(MENAFN) According to data released by the Turkish Statistical Institute (TurkStat) on Wednesday, house sales in Türkiye during the first half of the year totaled 545,097 units, reflecting a decline of 3.7 percent compared to the same period last year. In June alone, the number of homes sold was 79,313, which represents a decrease of 5.2 percent year-on-year.
Istanbul dominated the market in June, accounting for the highest number of sales with 13,025 units, followed by the capital city Ankara with 6,866 units, and the Aegean city of Izmir with 4,361 units sold. Notably, sales involving mortgages saw a dramatic drop, plummeting by 49.4 percent in June to just 6,813 units, which constituted 8.6 percent of total sales for that month. Over the January to June period, mortgaged house sales experienced an even steeper decline of 57.7 percent.
This downturn in the housing market can be attributed to the Central Bank's aggressive interest rate hikes, which increased rates from 8.5 percent to 50 percent over the past year in an effort to combat high inflation. These hikes have significantly affected bank lending, leading to reduced access to mortgages for potential homebuyers.
Sales to foreign buyers also fell sharply in June, with only 1,440 properties sold, down 45.1 percent from the previous year. The cities with the highest sales to foreigners included Antalya, with 593 units, followed by Istanbul with 478, and Mersin with 116. The top nationalities purchasing homes were Russians, who bought 332 properties, followed by Iranians with 156 and Ukrainians with 102. In total, house sales to foreigners for the first half of the year decreased by 45.7 percent, amounting to 10,461 units.
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