The Turkish Real Estate Sector Report for the 4th quarter of 2023, prepared jointly by the Association of Real Estate Investment Funds (GYODER) and Ziraat GYO, showed that housing sales fell to their lowest level in the past 8 years decreased by 17.5% YoY to 1,225,926 deals. The fourth quarter showed a decrease of about 23.9% compared to the same quarter last year totalling only 325,852 units.
Due to the high demand of banks for approval of housing loans, inflation and the spring elections at the local level, sales are traditionally frozen before such events. Potential buyers are waiting hoping for better sales conditions. Turkish citizens are looking forward to decreasing bank loan interest rates, which is a potential incentive from the government for people to purchase properties.
There was no incentive, and the Central Bank did nothing to fix the situation. So, many people have put off buying housing for the next six months still waiting.
However, this situation is advantageous for foreigners looking for housing in Turkey, as mortgage buyers have eliminated (at least for now), all sellers' hopes are pinned on those who buy properties for cash, for example, on foreign investors who cannot afford mortgages and come to the country with cash.
So, there are discounts, more loyal instalment terms (on an individual basis), etc.
As you know, local elections were held less than a week ago — on March 31, 2024, so stagnation can stop at any moment. It is high time to take advantage of the moment.