Mortgaged housing sales surge in Turkiye

The number of housing sales across Turkey increased by 76.1 per cent in October compared to the same month last year, reaching 165,138. This number was recorded as the highest level reached after December 2022.

According to the data of the Turkish Statistical Institute (TurkStat), housing sales across Turkey increased by 76.1 per cent last month compared to the same period in 2023, reaching 165,138, the highest October figure of all time. While the highest October figure was seen last month, the previous peak was 146,536 units in October 2018.

One of the striking statistics in October was seen in credit sales. Mortgaged housing sales increased by 278.2 per cent in October compared to the same period last year, reaching 21,095. The share of mortgaged sales in total housing sales was 12.8 per cent, and despite the increase, it remained below the long-term average. In the January-October period, housing sales increased by 11.9 per cent compared to the same period in 2023, reaching 1,112,374. On the other hand, the highest housing sales figure of the last 22 months was reached in October.

Housing Developers and Investors Association (KONUTDER) Board Chairman Ramadan Kumova said, "Behind the serious demand explosion lies the real decline in housing prices since the beginning of 2024." Nef Board Chairman Erden Timur said that they also saw the highest figure in the last 22 months in October and that second-hand housing sales increased by 66.5 per cent to exceed 107 thousand.

Timur, who stated that the fact that bank loan sales remained at 21 thousand units showed that the market was turning to cash or producer financing options, said, "In the 8 years between 2013-2020, our average annual bank loan sales alone were 423 thousand. As of the 10 months of 2024, this figure will be 113 thousand. It is not difficult to predict that an incentive to be given here and a reduction in interest rates will reflect on the sector. There is serious pending demand, home ownership has decreased to 55 per cent. In Europe, one million units were sold last year in England and France, which we can call Turkey's rivals. We reached 1 million 112 thousand in 10 months. We have already secured leadership in the European housing market."

?smail Özcan, the Chairman of the Association of Real Estate Marketing and Sales Professionals (GAPAS), stated that investors who do not see any attraction in other financial instruments are turning to real estate and that the expectation of a value increase in housing has started to rise. Özcan said, "We are also seeing an increase in mortgage sales. The rapid increase in rent has led to a return to the mentality of 'I will take out a loan and pay instalments instead of paying rent'. On the other hand, the decrease in the number of rental apartments is leading those looking for housing to buy. A sales figure of 1.3-1.4 million may be reached by the end of the year."

EgeYap? GYO General Manager Didem Güne? stated that the highest October figure in history was reached and said, "The highest to date was approximately 147 thousand in October 2018. Today, the record was broken by exceeding 165 thousand. Of the 165 thousand sales, 144 thousand were sales without bank loans. Approximately 58 thousand were sales of zero housing. The effect of the accumulated demand is very big in this." Fuzul Topraktan Board Chairman Faruk Akbal also made the following statement, "The movement in the pending demand shows us that it is the right time to buy a house. I think this momentum will continue to increase."