Urban planner Buğra Gökçe shares insights on housing prices

Gökçe listed the reasons why housing prices are not falling point by point.

Buğra Gökçe's post, titled "Housing sales are falling, but housing prices are not.

So why?", is as follows: 

"Across Turkey, housing sales in January decreased by 17.8 percent compared to the same month of the previous year, reaching 80,308. 

Housing sales to foreigners in January decreased by 50.5 percent compared to the same month of the previous year.

Mortgaged housing sales across Turkey in January showed a 63.5 percent decrease compared to the same month of the previous year.

Second-hand housing sales also fell by 21.6 percent in the same period.

Even though the housing market is experiencing its worst days in 30 months, housing prices are not falling.

The annual real housing price increase was 6.5 percent. Despite high inflation, the increase continues, but the rate of real housing price growth is slowing down.

Construction costs continue to rise. The increase in costs is also reflected in price hikes. We can say that housing production will decrease in the near future due to the rise in construction costs,  and this will create pressure on housing prices.

There is a slowdown on the demand side. Our people do not have the money. Except for a minority with high capital, it is not possible to buy a home. Today, the monthly installment for a 2.5 million lira housing loan at public banks is 98 thousand lira. Since the number of people who can make such a payment is limited, demand has contracted. Despite the shrinking demand, there is no improvement in prices.

In the coming period, an increase in rents can be expected due to the decline in housing sales. Since homes cannot be purchased, the demand for rental housing will increase. 

If the same rent-oriented policies continue, Turkey will continue to experience a deep housing and shelter crisis.

Starting from our cities, we must establish a new management approach to overcome the crises created by the political power and protect our cities.

Saying 'full speed ahead' in Istanbul also means making a new political climate possible in Turkey.

News Source: 12punto