There is a big increase in real estate prices in Turkey! Prices are expected to gradually increase by up to 50 percent.
Despite the negative impact caused by the novel coronavirus pandemic. 499,316 housing units were sold across the country last year and a historic record was set. In June 2020, losses were offset in the first half of the year when state banks reduced the loan rate to 0.64 percent for new homes and 0.74 percent for the second decade. Representatives of the real estate sector said: “The increase in commodity prices over the last six months is very difficult for us, and the increase dearly cost in projects to be held in the new year will be reflected gradually on prices, and this year prices are inevitable to rise.
The increase should be 50%
Nazmi Durbakim, President of the Istanbul Real Estate Developers Association (INDER), said: “The real cost increase has not been reflected in prices since August 2018 due to market conditions. He noted that increases in the past months have forced producers to increase prices. Looking back last year, the average cost increase is 80 percent.
And some products are more than that. Now every real estate developer will price according to the new cost, where the price increase must be 50 percent.
Mr. Durbakim added, that this will not happen at once, we will see a gradual increase. He said the cost of construction in square meters of the house except for the land today amounted to 4,000 Liras.
” According to the new property price index ‘REIDIN-GYODER,’ real estate prices rose by 8.23% in October, 8.03% in November, and 7.72% in December compared to the same period last year, so we will certainly see a significant increase in property prices in Turkey.
Altan Elmas, president of the Association of Housing Developers and Investors (KONUTDER), noted that there is an increase in commodity prices from around the world. “There has been an average 70 percent increase in commodity prices in the last six months. This situation has increased the prices of many serial-impact materials.
The rise in commodity prices is reflected in some materials by 20 percent and 30 percent in others. For example, iron prices in the last six months, the price of a ton has risen from $500 to $750. When price increases in the domestic market were added to the exchange rate effect, they resulted in a serious increase in costs.”