Cities with the highest housing returns in Turkey announced
Real estate investment, which stands out as a hedge against inflation, has begun to lose this characteristic due to high loan interest rates. According to March data, annual housing price increases in many cities across the country remained below the CPI, causing buyers to lose money in real terms. While housing is now primarily being purchased for residential purposes, here are the cities that have gained and lost value against the CPI...
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In March, housing sales totaled 105,394 units. While total sales remained close to monthly averages, the low trend in mortgage-backed sales continued due to high interest rates. Last month, only 12,880 homes were purchased using a mortgage. It is stated that in most cash transactions, purchases by those who liquidated their gold and foreign currency holdings were influential.
According to data from the real estate platform Endeksa, as of March, housing prices in Turkey have increased by an average of 57% over the last year. The average square meter sales price was calculated at 25,111 TL. While housing prices rose at different rates in every city, when compared to annual inflation, there were cities that surpassed the CPI figure as well as those that lagged behind.
The main cities that experienced value increases above the 68.50% CPI figure and provided real gains to buyers, along with their annual value increase rates, are listed as follows:
-Hatay; 84 percent
-Ordu; 79 percent
-Muğla; 78 percent
-Eskişehir; 75 percent
-Elazığ; 75 percent
-Ankara; 70 percent
-Sakarya; 70 percent
-Aydın; 69 percent
The main cities where value increases remained below the annual CPI are listed as follows:
-Kocaeli; 60 percent
-Yalova; 59 percent
-Samsun; 58 percent
-Şanlıurfa; 57 percent
-Gaziantep; 57 percent
-İstanbul; 56 percent
-İzmir; 56 percent
-Kayseri; 56 percent
-Çanakkale; 54 percent
-Mersin; 52 percent
-Bursa; 50 percent
-Diyarbakır; 50 percent
-Antalya; 46 percent
-Adana; 36 percent
According to information in Türkiye Gazetesi, industry analysts, “Housing has moved away from being an investment tool in recent months. High loan interest rates are also a factor in this. It is observed that the vast majority of current housing purchases are transactions made for residential use. Since loan demand is at rock bottom, household savings are being utilized in the purchases that do take place. There are those who sell gold and foreign currency to turn to housing. At the same time, those who could not afford the housing they needed due to rapidly rising prices over the last two years are trying to find a way to purchase during this period when prices are trending sideways or downward,” they stated.