In November 2021, home sales reached the highest number of sales in the last 16 months. Sector representatives are of the opinion that the gains in investments such as gold and foreign currency are directed towards housing.
Duygu Erdoğan – Housing sales in Turkey increased by 59 percent in November compared to the same month of the previous year and became 178 thousand 814. According to the housing sales data announced by the Turkish Statistical Institute (TUIK), this high sales rate in November was the highest monthly figure of this year so far. In addition, the number of house sales in November represents the highest monthly sales of the last 16 months.
Sales in November 2021 were the 4th highest monthly rate of all time. Previously, monthly records were seen with 229 thousand 357 thousand in July 2020, 202 thousand 74 in December 2019, and 190 thousand 12 in June 2020, respectively. Due to the increase in construction costs and the high course of foreign currency, the expectation of higher prices for the houses to be built in the future directs the consumer to invest in the existing houses.
On the other hand, industry representatives gold and foreign currency He states that the earnings on investments such as such are directed to the purchase of housing.
Credit utilization has increased
Housing sales in the January-November 2021 period decreased by 9.2 percent compared to the previous year and became 1 million 265 thousand 353. Bank loan sales, known as mortgaged house sales, increased by 61 percent in November compared to the same month of the previous year. This increase was supported by the move of public banks, which reflected the Central Bank’s interest rate cuts as housing loan interest rate cuts.
As of October 26, the public banks’ interest rates were lowered to 1.29 percent and then to 1.20 percent, which increased the use of loans. Other housing sales, namely cash and company deferred purchases, increased by 58.4 percent compared to the same month of the previous year.
This month also brought a significant increase in the sales of first hand, that is, new houses. The number of first-hand housing sales increased by 52 percent compared to the previous year and became 55 thousand 706. Second-hand house sales increased by 62.4%.
‘It’s a safe haven’
Builders’ Association (IDER) President Nazmi Durbakalım commented on the November data as follows:
“one. and the cash cycle in mortgage sales under the second hand category is volatile. Mortgage sales in the first 11 months fell to the lowest level in recent years (about 19.7 percent), showing that home buyers are not under high interest rates. When we look at it from a different perspective, it would not be wrong to say that 80 percent of the sales are in cash and that most of the second-hand residences are paid in cash. Summary of this; It is a very serious resource transfer to the real estate sector from alternative investment instruments such as foreign currency, gold and time deposits.
The volatility and risky nature of investment instruments has led investment owners to real estate, known as a safe haven. We think that investors who predict that the sudden increase in foreign exchange will end next month will turn to real estate faster.”
First record of the year from foreigners
Housing sales to foreigners increased by 48.4 percent in November compared to the same month of the previous year and became 7 thousand 363. The share of house sales to foreigners in total house sales was 4.1 percent.
Istanbul took the first place in house sales to foreigners with 2,922 house sales. Antalya was followed by Antalya with 1,917 sales, and Ankara with 428 sales, respectively. The sales figure of 51 thousand 352 units, which was reached in the 11-month period with the sale last month, also brought the first record in the sector. The expectation of the sector is for this number to exceed 57 thousand in 2021. It is stated that the short-term rapid increase in the foreign exchange also supports this expectation. Previously, levels of 41 thousand 298 in 2020 and 45 thousand 967 in 2019 were exceeded.
