Recent analysis of property sales in Turkey show that the recovery of the market looks promising. Official data shows that the sale of properties in May 2020 were down by 44.6% on May 2019. However, these figures did increase monthly by 19.1%, which shows the demand in the real estate sector is buoyant.
Sales figures in Turkey
TURKSTAT data has confirmed that there were 50,936 residential properties sold in May 2020. This figure was made up of 16,860 new builds and 34,000 resale houses. The largest figures came from Istanbul with 7,640 houses sold, which was a 15% share of the overall sales. Official data confirmed that Ankara the capital and Izmir located in the Aegean province enjoyed house sales of 4,939 or 9.7% and 3,096 or 6.1% respectively.
House sales in Turkey completed with a mortgage increased by 23.9%, which equated to 18,483 house sales in total. These figures made up a 36.3% share of the overall property sales in May 2020.
The future for house sales
Residential property sales were expected to pick up considerably in June due to the public lenders offering mortgage loan packages, which boasted historically low interest rates in Turkey.
At the start of June Halkbank, Ziraat Bank, and Vakifbank showcased four new loans for buyers. These loans were designed to cover all avenues where people required additional money to make their purchase. The first loan package is mortgages for new homes and banks have agreed that these mortgages can run for up to 15 years at an interest rate of 0.64%, with a grace period of up to a year.
There are loans available for purchasing vehicles, one for holiday expenses, and finally a loan for purchasing locally manufactured goods. The interest rate is also currently running below inflation to help the economy start recovering from the COVID-19 pandemic affecting the globe.
Top foreign property buyers
Data provided by TURKSTAT showed that property sales to foreigners in the first five months of this year totalled 12,734, which was down by 4,718 house sales from the same period last year. May saw foreign buyers purchase 860 houses which was down by over 3,000 year on year. Numbers are expected to rise dramatically now that international flights have resumed.
The nationality of the buyers purchasing the most Turkish properties came from Iran and they were responsible for 2,230 of the house sales. Nationals from China, Azerbaijan, Iraq and Afghanistan complete the top five.
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