Posted on 25 February 2010
House sales in Turkey rose 24% year-on-year in the nine months ending September last year, according to new data from the Real Estate Investing Partners Association (GYODER). The body put the rise down to a reduction in title deed fees and value-added tax (KDV), as well as promotions by developers.
The number of mortgages also increased in the third quarter of the year, rising 65% year-on-year to 96,808 loans with a total value of TRY6 billion.
In a statement GYODER cautioned that weakening supply on the back of last year’s massive 19% contraction in the construction industry (two and a half times the economic contraction), would stunt growth this year. GYODER’s chairman, Turgay Tanes, at a press conference.
“The contraction in 2009 is expected to leave in its place limited growth in 2010,” he said.
That being said: it is a well known fact that weak supply can have a positive effect on prices, as has been seen in the UK housing market since April last year. Tanes also predicted a “slight increase” in foreign investment into the country next year, rising to a total of $10-12 billion.
“The real revival in the sector will take place in 2012,” said Tanes.
“With an increasing population and advancing urbanization, the need for housing will rise.”