Supply-Demand Imbalance in Housing Triggers Price Increase

Supply-Demand Imbalance in Housing Triggers Price Rise
Supply-Demand Imbalance in Housing Triggers Price Increase

Masse Real Estate Office Broker Seyhun Acar stated that high inflation also caused an increase in the prices of construction materials and land; He said that this situation upset the balance of supply and demand.

Noting that the demand for housing is increasing day by day despite the decreasing production of houses, Acar pointed out that house and office prices have increased exponentially in the last one or two years.

Emphasizing that the increasing population and marriages keep the demand for housing alive, Seyhun Acar said, “The number of marriages in 2021 was 561 thousand. 2022 figures have not been announced yet, but 2023 will not be below this. It may even go too high. When the population growth effect is added, the increase in marriages is around 17%, and there is a 2022% decrease in the number of apartments licensed in 32. That is, one increases by 17% and the other decreases by 32%. The supply-demand balance is well off. On the other hand, no new land is produced. With the increasing population, those who want to buy a new house have to continue to rent because of the prices. The high demand for rentals has also increased the rental rates seriously. This increasing trend will continue,” he said.

HOUSING DEMAND CONTINUES

Noting that İzmir also receives demand and immigration from outside the city, Acar continued: “People from all over Turkey, especially from Istanbul, buy and rent houses in İzmir for both investment and residence. Izmir has now become a center of attraction. The city's demographic structure, climate, transportation opportunities, and proximity to holiday centers attract people. Istanbul investors have preferred villa-style residences in Urla, Seferihisar and Çeşme for the last 3-4 years, and they continue to do so.

Investors in İzmir also preferred regions with solid ground. According to the location in Izmir, land and house costs have increased a lot. People now prefer places close to the center such as Menemen, Torbalı and Ulukent. referred to as the New Manhattan district BayraklıOn the other hand, very large projects continue. When these are completed Bayraklıwill be the shining star of the business world and İzmir. BayraklıLuxury offices and residences in , could not find tenants 5 years ago. Now, since there is no office construction and immigration from abroad continues, it has started to see a lot of demand in commercial offices. Compared to last year, there was an increase of up to one hundred percent. Companies from Istanbul and Ankara BayraklıThey also have difficulty in finding an office of at least 150 m2. When a new office is not built, the existing ones are also appreciated”

MOST PROFITABLE INVESTMENT TOOL

Evaluating real estate as the most profitable investment in the long run, Seyhun Acar said, “Other investment tools do not satisfy people today. Recently, real estate figures have increased rapidly, and it has started to turn into the safest port, namely real estate. Sales to foreigners in İzmir did not have much effect on the increase in prices. Not as many as Istanbul and Antalya. The Russians mostly make annual rentals. Every region of Izmir is valuable. Land and soil are very valuable because they cannot be produced new. Of course, the city center is always a must for this job. There are old buildings in Bornova Kazım Dirik neighborhood, which is the most developed and provides high income to investors in a short time, has become a living center consisting of high-rise luxury residences. The fact that it is within walking distance of Ege University, Yaşar University, Forum Bornova and metro stops further increased the demand for the region.”

Finally, Acar said: “As Masse Real Estate, we continue to offer professional solutions to anyone who wants to invest in İzmir in matters such as investment and real estate consultancy, sales, rental, free appraisal and commercial areas, as well as industrial factory sales.”

Günceleme: 24/01/2023 11:40

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