Turkey’s Housing Market Hits Record High in July 2024
In a remarkable turn of events, Turkey’s housing market experienced a significant surge in July 2024, marking the highest monthly sales for the year. According to the Turkish Statistical Institute (TÜİK), housing sales soared by 16.0 percent compared to the same month in 2023, reaching an impressive total of 127,088 units. This figure not only represents the highest monthly sales of the year but also marks the best July performance since 2020.
Strong Performance Across Major Cities
The provinces leading the surge in housing sales were Istanbul, Ankara, and Antalya. Istanbul topped the list with 19,047 units sold, followed by Ankara with 11,364 units and Antalya with 6,659 units. These cities have consistently shown robust demand, reflecting their status as key economic and cultural hubs in Turkey. On the other end of the spectrum, the provinces with the lowest number of sales were Ardahan with 61 units, Hakkari with 64 units, and Bayburt with 77 units.
Record July Sales Amid Challenging Conditions
The record-breaking sales in July come as a surprise, given the ongoing challenges in accessing housing loans. Despite these difficulties, the market showed resilience, achieving its highest July sales since 2020, a year when a housing loan campaign offering a 0.64 percent interest rate significantly boosted the market. The current surge indicates a strong underlying demand, even in the absence of such incentives.
Mortgage Sales Decline Despite Overall Growth
Interestingly, despite the overall increase in housing sales, mortgaged house sales saw a decline. Only 11,496 of the 127,088 sales were made through mortgages, representing a 20.9 percent decrease compared to July 2023. The share of mortgaged sales in total housing transactions dropped to 9.0 percent, highlighting the ongoing challenges in the credit market.
First-Hand Housing Sales Lead the Growth
A significant driver of the overall growth was the increase in first-hand housing sales. In July 2024, first-hand housing sales rose by 28.9 percent year-over-year, reaching 40,784 units. This category accounted for 32.1 percent of all housing sales in the country. Second-hand housing sales also contributed to the growth, increasing by 10.8 percent compared to the previous year, with 86,304 units sold. The share of second-hand housing in total sales stood at 67.9 percent.
Foreign Buyers Show Renewed Interest
Another notable trend in July 2024 was the renewed interest from foreign buyers, despite a year-over-year decline. Sales to foreigners decreased by 16.1 percent compared to July 2023, totaling 2,350 units. However, this figure marks the highest level of foreign sales since October 2023. Antalya led the way with 878 sales to foreigners, followed by Istanbul with 752 and Mersin with 218. The share of housing sales to foreigners in July was 1.8 percent of the total.
Conclusion
July 2024 stands out as a milestone for Turkey’s housing market, with record sales reflecting both domestic and international demand. While challenges remain, particularly in the mortgage market, the strong performance across major cities and the increased interest in first-hand housing signal a robust market. As the year progresses, it will be interesting to see if this momentum continues and how the market adapts to the evolving economic landscape.
