Experts predict an increase in the cost of housing after the election

Experts predict an increase in the cost of housing after the election

Mesut Guleroglu, Chairman of the Board of Directors of the Izmir Chamber of Real Estate Agents (IZEKO), who commented on some stagnation in the housing purchase and sale market, stressed that potential buyers took a wait-and-see attitude in terms of transactions, and sellers - in terms of prices. The reason is the presidential election, which lasted for two rounds and two weeks.

 

But this situation provoked a rise in the price of securities, currency and gold as assets of a different kind.

 

In general, in January-April, the volume of housing sales decreased by about 35-40% compared to the same period of the previous year (to clarify: 35% - on average in the country, and 41.4% - specifically in Izmir province, where 4,960 lots were sold in April against 8,459 in April 2022). However, Guleroglu emphasizes, there has been no reduction in the cost of the residences offered for sale. Although some of the market players consider it possible to potentially reduce prices for residential real estate, up to 25-30%. For the reason that it is necessary to look for buyers, and interested parties are stopped by their own financial capabilities.

 

In particular, credit restrictions: banks are reluctant to lend or mortgage large amounts, and the initial contribution to many households is often simply not enough to buy a home.

 

However, most likely after the second round of elections, the housing market will "wake up". However, this will become clear in the coming weeks, if not days.

 

Also, after the elections, the government promised to take rent rates under control. Even the owners were recently pleased with the announcement of a possible discount on aidat.

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