The Central Bank's interest rate policies continue to create fluctuations in the housing market. Rising interest rates make it difficult to obtain housing loans, while the attractiveness of deposit interest rates is driving investors away from housing.
This situation has led to a slowdown in housing sales and an increase in demand for rental properties.
While the homeownership rate has fallen to 55 percent, the supply-demand balance in the rental housing market has been disrupted. As rents rise rapidly, negotiations between tenants and landlords continue. Rent increase rates can reach up to 50 percent.
HOUSING INVESTMENT DISADVANTAGEOUS IN THE SHORT TERM
From an investment perspective, the appeal of housing appears to have diminished. For example, while the monthly rental income of a 7 million TL house is 40 thousand TL, the same amount can generate a monthly return of 250 thousand TL when deposited in a savings account.
ARSAVEV Chairman of the Board Bülent Öztürk states that the bottleneck in housing prices is temporary. Although Öztürk notes that price per square meter is at cost levels and remains low due to interest rate pressure, he predicts that housing prices could increase by 2 to 3 times as the market picks up.
Öztürk states that the real inflation in Turkey is around 50 percent and that the inflation-adjusted return on housing varies between 5 and 10 percent, adding that prices could rise by 100 or even 150 percent in the next few years.
News Source: 12punto
