Bank interest rates, which are the main determining factors in economic indicators, were last increased to 46 percent at the Central Bank meeting held in March.
Representatives of the Izmir real estate sector pointed out that as annual inflation continues to fall, there is an expectation in the markets for an interest rate reduction decision as a result of the meeting to be held in June.
Sector representatives emphasize that the construction sector feeds 200 different business lines and makes a significant contribution to the economy, and state that if affordable loan opportunities are provided, there will be a revival in the housing sector.
Contractors Federation (MÜFED) President Ayhan Sulak:
“HOUSING PRODUCTION AND SALES WILL INCREASE”
Our sector has made a rapid entrance to 2025. We see that the demand that started in the last months of last year has continued this year. According to TÜİK data, housing sales have grown by 2025% in the first 4 months of 7,3. A total of 118 housing sales were realized, 359 of which were first-hand sales, and 34 of which were mortgaged sales. In addition to our citizens' search for earthquake-resistant and reliable housing after the earthquakes; due to the increases in rental prices, our citizens have turned to housing purchases. In order for the sector to continue its activity in the second half of 633, the land problem, which is the biggest reason for the increase in housing prices, must be resolved. There is a problem in supply due to the high current land prices and flat-for-flat rates. New housing areas must be created to solve this problem. We must prioritize urban transformation against earthquakes, which is the top priority problem of our country. We must take urgent measures in this regard. In order to reach earthquake-resistant, safe and new housing purchases, housing loan interest rates should be reduced. The upcoming period will be a preparation period for our colleagues. We believe that we will enter a period in which housing production and sales will increase.
Barış Öncü, Chairman of Sirius Yapı:
INTEREST RATE REDUCES MOVE INVESTORS
If interest rates are reduced as of June, there may be movement in the housing sector. A correction movement began in the sector until March. This process continued until mid-March. There was a revival in construction and related sectors. However, this movement stopped in April and May. When we look at it sectorally, we are currently in a period where the sales season should be high. February-June is actually the most active period in the real estate sector. However, the market is very stagnant due to increasing inflation and rising interest rates. There is a general expectation that interest rates will be reduced as of June. If interest rates are reduced, the market will start to turn to housing again.
Munir Tanyer, Chairman of the Board of Tanyer Yapı:
“HOUSING DEMAND CONTINUES TO INCREASE”
The demand for both new and second-hand housing is increasing. People are having difficulty accessing the necessary loans. There is an expectation in the sector in general for a decrease in housing loan interest rates. There may be occasional fluctuations in the economy all over the world. We should act knowing that these fluctuations are temporary. It is very important to maintain inflation targets and continue tight monetary policies. Not enough housing has been produced since the pandemic; however, demand is still vibrant. Currently, newly started and ongoing projects are important and valuable for everyone. People see housing investment as a safe haven. In my opinion, Izmir is the shining star of Türkiye. It continues to receive qualified migration due to its lifestyle, climate, ease of transportation and proximity to holiday resorts. For this reason, demand continues to increase.
Caner Tan, Coordinat Yapı Founding Partner:
“THE ROUTE OF INVESTORS IS REAL ESTATE AGAIN”
According to Maslow’s hierarchy of needs, shelter is one of the most basic human needs. For this reason, housing demand can never completely disappear. Recently, we have observed that investors who invest their savings in deposits or other financial instruments have turned to real estate again. The lack of serious movement in the foreign exchange market is pushing investors who remain in a cash position to seek alternatives. Those who think that staying in deposits carries risks in the long term prefer real estate as a safer haven. Moreover, houses purchased for investment purposes not only protect their value against inflation; they also provide regular rental income. However, the biggest obstacle to accessing housing is the difficulty in obtaining credit. Reducing bank interest rates and providing more suitable payment terms will both encourage investors and revitalize the real estate sector.
Gözde Group Chairman of the Board Op. Dr. Kenan Kali
“THE INTEREST RATE REDUCING PROCESS SHOULD BE GRADUAL”
The government implemented a tight monetary policy to combat inflation. Currently, interest rates are high, and access to housing has become difficult. Both costs have increased, and with interest rates increasing, the difficulty of accessing housing has also increased. Markets continue to expect policy interest rates to fall for the second half of 2025. Our expectation here is that this decline process will be slow and sustainable. It should be gradually reduced in a stable manner. There is not enough housing production in the construction sector. This has negatively affected contractors, investors and citizens. Currently, Türkiye's biggest problem is housing. The inability to produce housing also causes rents to rise. People have started to spend a large portion of their income on housing. If interest rates are reduced, the construction sector will enter a new period in the second half of 2025. Although the real season is summer, construction will experience the spring months.
FCTU Board of Directors Chair Gülçin Bekem:
“INVESTORS ARE WAITING FOR AN INTEREST RATE REDUCED TO BUY A HOME”
There is a stagnation in housing sales due to high loan interest rates. However, people who take out loans can actually be more comfortable with refinancing when interest rates decrease. Citizens who want to buy a house demand interest rate reductions. Those who have money prefer to invest their savings in banks. Investors continue to search for houses for both use and investment. People expect loan interest rates to decrease. They tend to choose the most affordable ones that they believe will increase in value in the future. Buyers search for both residence and investment up to 5-6 million. Loan interest rates need to decrease in order for them to exceed these figures. People with fixed incomes are stuck with these figures. It has become difficult to get loans from banks. In fact, the demand and need for housing is very high. If loan rates are reduced to reasonable levels, housing sales will also explode. However, if property owners set prices above the purchasing power of the market due to this demand, these properties will not be sold again.
