Despite record low interest rates on mortgages provided by banks for the purchase of new apartments in Turkey, from January to August 2020, new home sales grew by only 11.2 percent compared to the same period last year. Sales of secondary housing, for which mortgage rates have been higher in 2020, increased by 63.3 percent. In August 2020, sales of new houses and apartments in Turkey increased by 28.2 percent (compared with the August 2019 stats) and reached 52,123 properties. August sales of secondary housing increased by 69.2 percent and reached 118,285 objects.
As reported by the Anadolu news agency, from January to August this year, 317,832 new residential real estate and 706,702 resale objects were sold in Turkey. The total number of sales from January to August 2020 increased by 42.6 percent year on year and exceeded a total of 1 million houses and apartments in Turkey. Why was the growth in secondary housing sales so noticeable, and the growth in new home sales so low, despite more favourable mortgage conditions?
Haji Ali Tailan, President of the Turkish Real Estate Advisers Federation (TEMFED): “House prices have risen by about 15-30 percent due to strong demand caused by the historic mortgage campaign. And although interest rates for the purchase of new housing are more favorable, today in Turkey there is a serious difference in the price of new and secondary housing - new is much more expensive. That is why resale options are in high demand. The rise in prices for houses and apartments in Turkey slowed down with the rise in interest rates, however this did not lead to a decrease in consumer demand for real estate in Turkey - there is still a sales boom."