Turkey has been a country which pays attention to construction and real estate industry since 1980’s. Thanks to construction studies which gains more speed with big momentum in recent years particularly, interest in real estate industry maintains its liveness. Considering that Turkish companies is one of the most important players of global construction market, we can tell that it is key player of construction and real estate industry both at home and abroad.
Now, let us review the growth experienced in real estate industry by taking year 2017 as basis.
1.409.000 Housings were sold in 2017
Sale of total 1.408.314 pcs housing was actualized as of December 2017. If we think this figure was 1.341.453 in 2016, we can say that a growth of 5.1% has taken place at in real estate industry in 2017.
1.289.320 housings were sold in 2015, 1.165.381 in 2014. In other words, it is likely to observe that interest in real estate industry of Turkey has increased regularly.
Bank Credit Plays Big Role in Sale of Housing
As type of payment that people use in purchasing housing, we can quote bank credit. By means of housing loans with low interest having the maturity of 5 years, 10 years and even 20 years, people may become homeowner just as paying rental.
For instance, Ziraat bank applies 0.9 % interest rate for housing credits with 25-60 month maturity. Halkbank offers %0.89 housing credit for 25-48 months. Since it is possible to take out loan nearly from all banks which operate in Turkey, the people who want to buy house with mortgage prefer buying house, reviewing the credit option which is the most appropriate to their own budgets.
TOKİ Steers the Sector
Public Housing Administration established in 1984 is an institution in charge of meeting increasing housing demand in planned manner by urging housing production sector. Especially based on the principle of social benefit, it ensures becoming house owner of millions of persons with affordable prices and appropriate payment options. For TOKİ which has constructed total 800.112 housing in 81 provinces of Turkey till 2017, we can call it as “market maker” of real estate industry.
2017 sets a record for selling Housing to Foreigners
Housing sales to foreigners go up regularly in Turkey. Especially 2017 become an important year in terms of that. Because, 22.2% increase has realized in 2017 compared to former year and total 22.234 housing has been sold to foreigners.
İstanbul takes the first place for housing sales with 8182 houses followed by second one, Antalya with 4707 houses and third one, Bursa with 1474 houses.
Iraq citizens have purchased total 3805 housing in 2017. Iraq is followed by Saudi Arabia with 3345 housing, Kuwait with 1691 housing and Russia with 1331 housing.
We can say that the incentives like tax deductions and right of citizenship applied to foreigners have become efficient.
İstanbul is at the Position of Attraction Centre
İstanbul is principal sector of real estate industry. It is the city found attractive by both domestic and foreign investors.
In general, 1 out of 5 housing sales in Turkey is made in İstanbul. Istanbul where 18.5% of Turkish population have been living will maintain being focal point of Turkey in forthcoming years thanks to job, education, health, natural and historical beauties it presents. Sector experts envisage that interest in Istanbul will continue and especially number of foreigners who purchase housing in Istanbul will increase gradually.
Growth Target in 2018 is 5%
It is anticipated that growth rate of real estate industry in 2018 will be 5%. With offering new financing models to public, medium and lower income groups particularly will have possibility to purchase housing too. Considering that no serious increase has happened in housing prices in spite of 19% increase in construction materials compared to former year, we can tell that 2018 will be very eligible year to become house owner.