Even if the interest in domestic real estate market is low, the sector is to recover in the next 1, 1.5 years period. Urban transformation and demand for housing in Turkey would never end because of population growth and basic needs.
Today, there are about 6 million risky structures involved in the process of urban transformation. We need around 650 thousand housing per year. Although the sector is still on the boil, we need to focus on the future demands.
Considering the first 6 years of urban transformation, we should start the “Second Urban Transformation Period” by issuing regulations about zoning, project planning, lack of neighborhood, financing structure and restriction of building-oriented transformations.
I am very optimistic that we will turn the urban transformation process into an opportunity to plan our cities in a good way.
We need to work on smart and sustainable cities to pursue a life without keeping the real estate sector on the agenda within 20 years.
With the help of new regulations, we will strengthen the Ministry of Environment and Urbanization, which takes important steps to overcome the current issues to strengthen the real estate sector with the support of all relevant ministries.
I believe Turkey’s economy will grow in the mid-long term into a much stronger position than ever before, as previously proved the resistance against many negative factors. It will continue to grow and develop in 2019 and beyond.
As GYODER, we keep representing Turkey by taking part in international trade fairs and meetings. As a sector representative, we will be more proactive in 2019.
Real estate sector has always a potential for development and provides significant support to the Turkish economy. In 2018, we took important steps as the sector representatives to cultivate productivity.
After the deduction of the Land Registry fees and VAT and the reduction of interest on housing loans; GYODER, İNDER, and KONUTDER got together to become “the union of forces”. We have extended the deadline of the campaign that started on May 15th until June 30th. 20% discount for all cash and mortgage sales and 5% advance payment campaign, housing loan support at 0,98% provided by banks sped up the real estate sector.
Afterward, on 29 August, led by the Republic of Turkey’s Ministry of Environment and Urbanization, a new campaign called “Winning Time for Turkey” was introduced. This huge campaign exciting the real estate sector contributed to the sector and the national economy by facilitating citizens to have a property.
1,375,398 residential units swapped hands in 2018. This number was 1,409, 314 in 2017. Despite the economic fluctuations, housing sales in 2018 decreased by only 2,4 percent compared to 2017.
To ensure that our sector adapts to the developing world, we supported it by current regulations. In 2018, as soon as we introduced new regulations, foreign investors boosted the real estate sector.
The sale of property to foreigners is crucial for this sector and for the economy. Foreign sales scaled up to 6,000 on a monthly basis. The sales rate for 2018 was approx. $6 billion dollars.
In 2018, the increase in interest rates on mortgage loans had a negative impact on those who wanted to be homeowners. Because of the increase in interest, bonded sales increased. Besides the campaigns, developer companies offered interest-free long-term options to their buyers with their own financing models.
Our expectation from the government is to support the real estate industry by applying tax regulations that will encourage home buyers.