The consequences of the tight monetary policy implemented by the government began to affect the real estate sector. Ankara-based Real Estate PR company, one of the sector representatives based in Ankara, announced that serious decreases are expected in sale and rental housing prices in the coming period and analyzed the expectations in the housing sector.
Gayrimenkul PR stated that one of the factors that causes housing prices to increase at exorbitant rates in Turkey is that the government offers consumers super advantageous housing loans with a 1-year grace period and an interest rate of 0,64; It was stated that 'inflating prices, especially through advertisements, and speculative price hikes by construction material manufacturers had increased prices disproportionately in all categories of real estate'.
Gayrimenkul PR stated that the tight monetary policy implemented since June 2023 has brought housing sales to their lowest levels in the past 10 years and said, 'According to the data, the housing bubble burst in September 2023, but construction companies did not reduce their prices, citing costs, but increased them, while second-hand houses were priced incorrectly on classified ad sites. "The advertisements provided the basis for property owners to keep their prices artificially high," he said.
Stating that housing prices remained below inflation for the first time in the last 4 years, sector representatives said, "When we look at Turkey's average, annual inflation was announced as 67.7%, while housing prices did not increase at the same rate, and we witnessed that houses were sold at much lower prices than the advertised prices. The strict control and heavy tax burden imposed by the government on daily rental houses caused such houses to be rented monthly or offered for sale. We predict that nearly 8 thousand houses of this type are on the market in Ankara. We are entering a new era where houses are not only purchased for investment purposes, but also rented houses are offered for sale at all prices. Reaching the deposit return rate to 50 percent will not only postpone housing purchases but also increase the supply of housing for sale. Considering the seasonal factors of housing prices, a contraction in the market and naturally an average of 30 percent decrease in prices are expected in the coming period. "In the market where there will be real buyers and sellers, prices will reach reliable levels in the medium term," he said.
It is predicted that the stagnation in the housing market will continue as long as tight monetary policy is implemented and deposit return rates are high.
