Real estate sales in the Turkish market
In Turkey, the house sales grew (5%) in August 2019, compared to the previous year (August), which reached (110,538) houses. As usual, Istanbul took first place, with (14.4%) of the total house sales in Turkey.
Ankara, the political capital, took second place with a share of (9.7%), followed by Izmir with (5.5%), according to the data published by the Turkish Statistical Institute.
Istanbul’s sales also witnessed a significant rise in August, which reached about (15,881) houses with a monthly growth of (57.8%) compared to the previous month’s sales.
In August (2019), the first house sales saw a decrease of (17.7%) compared to August of 2018, with (40,634) houses, while Istanbul had the highest share of the total sales in Turkey (14.8%), followed by Ankara, and Izmir.
For the second-hand house sales, Istanbul also occupied the highest share of the total second-hand house sales, with (62.1%), followed by Ankara with (7,600) houses, and Izmir with (4,031) houses.
House sales to foreigners in Turkey
In August, the house sales to foreigners recorded (3,604), however, saw a decrease of (34%) compared to the previous August (2018). Istanbul occupied the highest share of the total house sales, recording (43%), followed by Antalya (656), Bursa (228), Ankara (213), and Yalova (169) houses.
Nationalities most buying real estate in Turkey
According to the Turkish Statistical Institute, Iraq again recorded the highest share of house sales in August, with (675) houses, while Iran took second place with (469) houses. Followed by Russia, Kuwait, and Germany with (248), (159), and (149) houses, respectively.
The latest changes in the economic indicators affecting the real estate market
The fundamental economic indicators play an important role in affecting house sales and prices:
- A decrease in the interest rate
Since the central bank raised the interest rate to relatively high levels, recording a maximum rate of (24%) in mid-September (2018), which contributed in controlling the deterioration of the Turkish lira and restoring the stability of purchasing power, the central bank has gone back to its expansionary monetary policy which based on the low-interest rates. The interest rate is reduced to (19.75%) by (425) basis points at the end of July 2019.
The low-interest rate is one of the important factors that contributed to reducing the cost of borrowing, which in turn promotes domestic and foreign investments, including real estate investment.
- Low inflation
The low inflation rate is a crucial factor that reflects positively on the standard of living and the purchasing power of the Turkish lira. It also enhances the country’s stability and encourages higher demand for properties by local citizens and foreigners alike.
Recently, the inflation rate represented by the consumer price index witnessed a significant improvement, recording (15.01%) in August, after it recorded (25.24%) in October last year.
- Exchange rate stability
The recent decline in the exchange rate of the Turkish lira, which stabilized around (5.72) against the dollar, has encouraged foreign investors to increase the real estate investment in Turkey, as the depreciation of the Turkish lira greatly makes property prices much more competitive compared to property prices in other countries. This, in turn, leads to increase house sales to foreigners in Turkey to record levels that have not achieved before.