Although the volume of residential real estate sales in October decreased compared to the previous year, it is not worth expecting a decline in housing prices due to a slowdown in demand, analysts believe.
Some experts note that the rise in the cost of construction has not yet fully affected the market value of housing. Which, on the contrary, will continue to grow, taking into account the increase in actual costs: after all, cement, iron and wood used in housing construction alone have risen in price by about 120% over the past year. This is only official data; in fact, the figures are often higher.
Emlakkulisi writes with reference to the words of economist Barysh Soidan that one of the reasons for the decline in consumer demand is the inflexibility of banks: they are not very willing to provide housing loans, and they offer high interest rates. So, the number of residences, during the acquisition of which borrowed funds were used, in October 2022 significantly decreased compared to the same month of 2021.
In addition, it has become impossible to find housing in large cities for less than 3 million Turkish lira. And it is extremely difficult for an average family to accumulate so much; it is often impossible to get a loan.
And although TOKI's social projects will certainly be effective in providing a certain percentage of those in need with their own apartments, this will not reduce prices in general.
Nevertheless, the distribution of social housing among applicants has already begun.