Real estate agency Homes Turkey in Turkey Alanya

Home sales rose by 54.4% after a sharp drop in interest rates.

Home sales rose by 54.4% after a sharp drop in interest rates.

According to official data, the growth of residential real estate sales in Turkey in November 2019 amounted to 54.4% compared to the same period last year. This, in turn, reflected a decrease in mortgage costs due to the decision of the Central Bank of the Republic of Turkey (CBR) to reduce interest rates.

According to the Turkish Statistical Institute (TurkStat), a third of the 138,372 homes sold in the last month were mortgages. 43,911 mortgages were sold, which is 725% more than a year earlier. In November, for the fourth month in a row, the volume of mortgage loan sales increased compared to last year.
The increase occurred after the Central Bank of the Russian Federation began a cycle of discounts in July.

After raising the key interest rate to 24 percent in September last year due to rising inflation, the bank lowered the key interest rate to 12 percent.
This issuance cycle has led state lenders and some private banks to cut interest rates, including mortgage rates, since August to boost domestic demand and accelerate the economic recovery.

The decrease in borrowing costs also increased the sale of apartments on mortgages. For example, mortgage home sales rose 168% year-on-year to 34,148 units in August, representing more than 30% of total monthly sales in the industry. In September, they increased by 410.2% compared to the same period last year and accounted for almost 39.5% of total home sales in Turkey. According to TurkStat, in October, the growth compared to the same period last year amounted to 525.1%.

In general, mortgage sales from January to July of this year exceeded only in the last four months. According to the statistical office, 186,281 mortgages were sold from August to November, and 95,949 in the first seven months.
The total volume of mortgage loan sales from January to November 2019 exceeded the same indicator for the whole of 2018. Last year, 276820 houses were sold with a mortgage, and in the first 11 months of this year - 282230 houses.

Given the strong results of recent months, the real estate sector is very optimistic about the prospects for 2020. "The increase in mortgage loan sales since July will not only pave the way for us to achieve our goals for 2019, but also create the basis for sales forms. in 2020, Said Tamer Ozyurt, CEO of Özyurtlar Holding.

According to the CEO of Bahaş Holding, Abdussamet Bahadir, the last months of 2019 represent the investment climate for 2020. "The acceleration in sales has also led to a significant increase in inventory. "New events will appear in 2020, including new projects and steps to develop our industry," Bahadir said.

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