housing, real estate

New record for home sales in Turkey

Home sales in Turkey grew 124% in July, thanks to low-interest loans. Mortgages soared more than 900%.

Home sales in Turkey soared last July by 124.3% compared to the same month last year, according to the latest data announced by the Turkish Statistical Institute (TÜİK), thanks to incentives and loans at low interest rates introduced by various public banks to revive the economy due to the coronavirus crisis.

In total, 229,357 homes were sold last month, compared to 190,012 that were sold in July 2019; commenting on these figures, the Minister of Treasury and Finance of Turkey, Berat Albayrak, confirmed on Monday that this is the highest data recorded in sales of real estate, thanking the State credit institutions that have provided mortgage loans at low interest.

“The construction sector, which affects 250 subsectors, continues to gain momentum. Home sales reached their best in July and have broken a historical record,” said Albayrak, underlining the importance of the construction sector for job creation and for the Turkish economy.

Last June, Ziraat Bankası, VakıfBank and Halkbank announced a series of mortgage loans at interest rates at historic lows – 0.64%, and with a grace period of up to 12 months – to help counteract the effects of the crisis created for the COVID-19 pandemic. In addition to incentives to buy a home, public banks announced low-interest loans for the purchase of cars and domestically made products, and for vacation expenses in destinations in Turkey.

According to TÜİK, the majority of real estate sales in July took place in Istanbul, which accumulated 17.2% of total sales with 39,432 homes sold; it was followed by Ankara with 26,885 (11.7%) and İzmir with 15,614 (6.8%). In addition, the signing of mortgages for the purchase of houses in Turkey skyrocketed by 900.6% in July, and the percentage of houses that were bought with a mortgage reached 57% (130,721).