Posted on 31 December 2009
Home sales in the first nine months of this year, were an incredible 24% higher than in the same period last year, according to the Real Estate Investing Partners Association (GYODER/
GYODER said that the cuts in title deeds fees and the Turkish equivalent to VAT (KDV) had played a part in the increased sales.
However, it has also emerged that mortgages lending was 65% higher in September this year compared to September last year. This is also very significant, because it has previously been reported that the interest rate cuts in Turkey have had an impact on the housing market, and this would seem to confirm this.
GYODER reckons that growth will slow in new Turkish home sales next year, because of the 19.5% contraction in the construction sector we have seen this year. But that all depends on whether the growth in construction was over 24% in the previous years, as to determine how many units will be coming up for sale next year, that may have been started in 2007/08.
Just over a month ago, Hurriyet daily news revealed that the Turkish property market had grown by 5% in the two months ending October, which was a massive acceleration on the 5% growth seen in the previous 8 months. This was put down to the record low interest rates; Turkey having cut its key rate more drastically than any other G20 member.
Turkey is one of the few emerging markets where foreigners can secure mortgages, if only on completed properties, and foreigners have been advised toa ct now to take advantage of the low rates, and the weak Lira,