Annual Value Increase of 195% for Residences for Sale as of End of July

In July, 93 thousand 902 housing sales took place throughout Turkey. Residential sales decreased by 38% in July compared to the previous month and 13% compared to the same month of the previous year. According to index data, the annual value of housing sales prices as of July across Turkey The increase was 195%, while the average sales price per square meter of housing across Turkey is 10 thousand 683 TL, the average housing price is 1 million 410 thousand 156 TL and the return period of housing investment is 18 years was.

The provinces with the highest value increase are Mersin, Istanbul and Antalya

According to Endeksa data, Mersin, Istanbul and Antalya were the provinces with the highest annual value growth when evaluating the first 30 provinces with the highest residential sales in July. Housing prices in Mersin increased 249% over the past year. The average sales price of residential square meters in Mersin is 9 thousand 927 TL, the average housing sales price is 1 million 469 thousand 196 TL, while the annual value increase in Istanbul is 244%, the average sales price of residential square meters is 18 thousand 653 TL, the average housing sales price was 2 million 238 thousand 360 TL. In Antalya, the annual value increase was 240%, the average housing square meter sales price was 15 thousand 845 TL, the average housing sales price was 1 million 980 thousand 625 TL.

Istanbul ranks first in housing sales with 15% share

In July, Istanbul had the highest share in housing sales with 14,350 housing sales and 15%. According to sales numbers, Istanbul was followed by Ankara with 7 thousand 417 housing sales and 8% share, and Izmir with 4 thousand 868 housing sales and 5% share. According to the index data, as of the end of July, the value increase in housing sales prices in Istanbul was 244%, the average sales price of residential square meters is 18 thousand 653 TL, the average housing price is 2 million 238 thousand 360 TL. Housing prices in Ankara increased by 188% in the last year, the average housing square meter sales price is 7 thousand 879 TL, the average housing price is 1 million 40 thousand 28 TL. In Izmir, the annual value increase is 179%, the average housing square meter sales price is 13 thousand 379 TL, the average housing price is 1 million 725 thousand 891 TL.

Residential sales to foreigners decreased by 12%

Residential sales to foreigners decreased by 12% in July compared to the same month of the previous year and amounted to 3,939. In July, the share of housing sales to foreigners in total housing sales was 4%. Antalya took the first place in housing sales to foreigners with the sale of one thousand 421 housing. Antalya was followed by Istanbul with the sale of 154 thousand houses, respectively, and Mersin with 289 housing sales.

Evaluating the data, Endeksa Co-Founder and General Manager Görkem Ögüt said: July is a month of the first in many respects and said, “After a long break, the sale of housing and housing to foreigners after a long break there was a serious decline in sales. For the first time since October 2016, Antalya took the first place in the sale of housing to foreigners by crossing Istanbul. Mersin, which has been in the top 3 for some time in value increase, was the province where the most value increase was experienced for the first time.

BDDK's regulation differentiating the credit value ratio on the basis of the amount of credit in housing loans for 1st and 2nd hand residences and eliminating the possibility of credit in housing with a value of more than 10 million for investment purposes affected the behavior of receiving housing. The investor began to monitor the market, diverting his investments to offices or different assets due to both the summer season and the limitation of credit advantages.

I think that the expectation of a decline in housing prices is also one of the reasons for the decline in housing sales. When we look at the index data, we see that the increase in housing sales prices is accelerating. According to the Endeksa data, the monthly value increase in housing sales prices peaked at 14% in April, then reached 13% in May and 11% in June. In July, the monthly value increase was 9%. In the last quarter, I think the housing market will sit on a new balance in terms of price and number of sales.”

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