Istanbul’s Mortgage Sales Rise as Home Loan Interest Rates Decrease
Property sales flourished again in October for the third month in succession. The numbers demonstrated that various Turkish house purchasers have grabbed the chance to obtain cheap loans following decreases in financing interest rates to purchase homes.
The data released by the Turkish Statistical Institute (TurkStat) showed housing sales figures, the number of houses sold in October countrywide increased by 19.6 percent in comparison to the earlier month and by 25.1 percent compared to the same month last year, extending 130,274 in total.
Mortgaged property sales rised by 71.8 percent in comparison to the same month of the former year, reaching 48,110. The portion of mortgage sales in total housing sales rank at 36.9 percent at the same period.
Real estate business representatives said the 25 percent rise in the property sales and 72 percent increase in the mortgaged house sales in October were mainly due by the increase in the loan usage rate from 75 percent to 80 percent along side with the decrease in the interest rates.
‘The Government now plays a more active role’
Chairman Nazmi Durbakayım Istanbul Constructors Association (İNDER) said the financing rates on home loans began to fall as of mid-August with Ziraat Bank leading the way, reviewing that the home loan utilization rate was raised from 75 percent to 80 percent alongside the conclusion taken in September.
Taking note both the decline in interest rates and the expansion in the home loan usage rate from 75 percent to 80 percent have expanded mortgage house sales specifically and total sales in general, as a result moving the money to the real market, Durbakayım said the increase is critical in this regard since 2 million individuals work in the construction development sector and this part influences 200 sub-sectors.
Clarifying these developments are setting residents who need to purchase long-term housing in movement, Durbakayım said nationals surmise that political solidness will be reflected in financial stability as well.
Durbakayım says the government seems to be more active in economic activities, and Turkish nationals realize that government will indicate more dynamic responses in any occasion that will be experienced.
‘Challenges in the division were transformed into opportunities’
President Melih Tavukçuoğlu of Anatolian Side Building Contractors Association (AYİDER) said the construction development sector has been experiencing a difficult period like all sectors in Turkey, and the July 15 coup attempt and the conflicts taking place at the nation’s borders as well as worldwide issues reflected adversely on the country.
Focusing on that the construction development sector transformed the crisis into an opportunity as the new year is coming to an end, Tavukçuoğlu said by giving an air of confidence in the economy and campaigns, housing sales have risen without any slowdown, and the impacts of the upward pattern in housing was reflected in the September and October sales in addition.
Reviewing that total and mortgage house sales expanded in October in comparision to the same month a year ago, Tavukçuoğlu said the 71.8 percent increase in mortgage sales shows that housing stocks have run out.
Bringing up that interest rates fell underneath 1 percent and that the home purchasers profited from this opportunity as an affect of the president’s require for the banks to actualize interest rate cuts after the coup attempt, Tavukçuoğlu said residents taking advantage of the suitable bank loan interest rates got mortgages for lower costs, including that the sector will close the year with 2015’s sales figures.
‘Nationals took action in their postponed purchases’
Demir Insaat Chairman Hamit Demir said a genuine area of society in Turkey need home purchases, and that the Mortgage house interest rate cuts have set this segment into movement.
Proposing that they have dependably been in favor of interest loan rate cuts since these rates do not reflect economic markers and cannot double the inflation rate, Demir said the cuts at long last began in August with the president’s call and citizens took action in their delayed purchases.
Makro Insaat Chairman Ercan Uyan said the specific checks left by the campaigns can be followed to the sector and economy in regards to the declared sales figures, focusing that despite a slight slowdown has been knowledgable about the request in terms of local investors due to the rise in the dollar exchange rate, this circumstance has expanded the foreign investors’ enthusiasm in the sector.
Uyan said they understood TL 300 million worth of sales just in their business sales offices in the course of the last two-month period and that investors are aware of the situation, in addition foreigners who follow the Turkish real estate markets saw the immersion in the exchange rate and did not miss this moment.