Experts announce expectations for the real estate market in New Year: Deposit interest or “Home Purchase”?
After a stagnant six months, the activity observed in the real estate market is reflected in the numbers. Sales increased by 37.3% compared to the same period last year, reaching 140,919. Experts predict that these figures could approach 1.3 million by the end of the year. However, there’s an important warning for those selling their homes and putting the money into savings.
Across Turkey, home sales in September increased by 37.3% compared to the same month last year, reaching 140,919. The cities with the highest number of home sales were Istanbul with 21,314, Ankara with 13,205, and İzmir with 7,612, while the cities with the least sales were Hakkari with 74, Ardahan with 82, and Bayburt with 106. Home sales in the January-September period increased by 5.2% compared to the same period last year, totaling 947,236.
According to investment experts, this movement in the housing market is expected to rise even further with anticipated interest rate cuts by the end of the year. Commenting on the “Home Sales Statistics and Housing Price Index” data for *Haber Global*, Chairman of Konutder, Ramadan Kumova, said, “Home sales across Turkey in September reached the highest level in the past 21 months. Mortgage sales continue to increase. In September, 15,825 units were sold, which is 54% above the yearly average and ranks among the best numbers of the last 13 months.”
Assessing the current state of the real estate market based on the latest data, Chairman of the Anatolian Side Construction Contractors Association, Hakan Şişik, stated, “There is an increase in first-hand sales. We had already predicted that sales would rise starting from September. The main reason for this is the signals of interest rate cuts. Those who invest their money in finance will return to real estate, which has always been seen as Turkey’s top investment vehicle. For those with cash on hand, this can be considered an opportunity period.”
HOUSING SALES EXPECTED TO INCREASE
Şişik added that home sales would exceed 1.3 million by the end of the year, and said: “Public banks have slightly lowered home loan interest rates, but we can say that the campaigns run by branded housing projects have been influential here. People are being encouraged to buy with both affordable down payments and suitable interest rates and payment plans. We will continue to observe the upward trend in home sales in the last quarter as well.”
ATTENTION TO THOSE CONSIDERING SELLING THEIR HOME AND INVESTING IN DEPOSITS!
Real estate expert Gamze Özlü pointed out that mortgage interest rates have increased significantly, leading to a decrease in mortgage home sales. She said, “The high deposit interest rates have deterred investors from buying homes. However, those thinking of selling their home and investing in deposits should be cautious. When interest rates fall, housing prices will rise again, making it difficult to repurchase the home they sold.”
“Those thinking of selling their home and putting the money in savings should think twice. It may become impossible to buy back the homes sold at favorable prices.”
MORTGAGE HOME SALES INCREASED
Mortgage home sales in September increased by 87.4% compared to the same month last year, reaching 15,825. The share of mortgage sales in total home sales was 11.2%. In the January-September period, mortgage home sales decreased by 42.6% compared to the same period last year, totaling 92,310.
In September, 3,685 first-hand mortgage home sales took place, while in the January-September period, this number was 21,702. Other home sales in September increased by 32.8% compared to the same period last year, reaching 125,094. The share of other sales in total home sales was 88.8%.
