Historic first quarter in real estate: Sales break records

The real estate sector, which started 2024 with a rapid pace, achieved a historic record with its performance in the January-March period. The total number of sales for residential properties, land, plots, workplaces, and other real estate reached 694,628 in the first quarter, marking the highest first-quarter figure ever recorded.

The record of 683,399 sales reached in the same period last year was surpassed this year with an 8.3 percent increase. In January, sales rose by 20.2 percent compared to the same month last year, reaching 238,938, while in February, 232,756 real estate units were sold, a 7 percent increase. In March, sales saw a slight decline of 0.8 percent compared to the previous year, totaling 222,934.

4.8 MILLION TRANSACTIONS AT LAND REGISTRY OFFICES 

According to data from the General Directorate of Land Registry and Cadastre, nearly 4.8 million transactions were processed at land registry offices in the first quarter of the year. While sales transactions accounted for approximately 695,000 of this total, other transactions were as follows:

344,000 mortgages

106,000 successions

36,000 corrections

17,000 expropriations

Nearly 15 thousand subdivisions

7.3 thousand consolidations

6.4 thousand donations

OTHER MISCELLANEOUS TRANSACTIONS: OVER 3.5 MILLION 

This heavy transaction traffic also provided significant revenue for the state. Title deed fee revenues increased by 72.5 percent compared to the same period last year, rising to 28 billion 832 million Turkish Lira.

''DEMAND IS STRONG, INVESTORS SEE OPPORTUNITY''

Mustafa Ekiz, President of the Real Estate and Construction Platform, stated that the greatest activity in the first quarter of 2024 occurred in residential sales, with other types of real estate also contributing to this rise.

Ekiz noted that signals of a decline in interest rates, expectations of renewed increases in housing prices, and high rental costs are driving citizens to purchase homes. At the same time, he mentioned that the stagnation in foreign exchange, the loss of appeal in deposit interest rates, and the fact that those who believe they have achieved sufficient gains from gold investments are turning their focus back to real estate.

"Housing prices, which have been falling in real terms for some time—meaning they have been rising below the rate of inflation—have mobilized waiting buyers. Turkey has a large young population, and hundreds of thousands of people who get married, get divorced, start a new job, or graduate from university each year create demand for housing. The annual need for new housing is around 800,000 on average. Seeing this demand, developers have accelerated their projects once again," said Ekiz, noting that his own group has also sped up new projects.

NEW RECORDS MAY COME IN THE SUMMER MONTHS 

Mustafa Ekiz stated that if the decline in interest rates continues during the summer months, the momentum in real estate sales will persist and new records could be on the horizon. Emphasizing that interest rate policies will determine the direction of the sector, Ekiz said, "Both buyers and sellers are currently focused on interest rates. If the right environment is created, this year could go down in history for the real estate sector."

News Source: 12punto