How did real estate sales in major cities in Turkey affected by the earthquake in Kahramanmaraş ? And how does that affect Istanbul Real Estate sales and rents?

 

Life has stopped in the earthquake zone and there are still concerns about the safety of houses in other provinces. Home sales fell by 18% YoY in February, hitting their lowest level since May 2021, when lockdowns were imposed due to the coronavirus. Isaac Hassoone said, “If an earthquake measuring 6 or more on the Richter scale hits Istanbul, prices for all old buildings will fall by 40-50%, and for all new buildings, they will rise by 60-70%. I have been saying this for 30 years. When an earthquake measuring 6 or more hits Istanbul, no one will be able to maintain the prices of all new buildings, and they will rise.”

Citizens organized a campaign on February 24th, prepared by middle-income earners to become homeowners, but it did not have a positive impact on sales last month. However, an increase in sales is expected in March with the campaign, as the loan interest rate has dropped to 0.69% and the repayment term has been extended to 15 years. According to industry representatives, the increase in housing loans by the BRSA will also have an impact in the coming days.

Latest developments in the housing sector

Sales of homes on bank loans decreased by 12.7% in February to reach 17,377, while the share of credit sales was 21.7%. Other types of sales, such as cash and promissory notes, decreased by 19.3% to reach 62,674. The share of other sales in total home sales was 78.3%.

On the other hand, zero housing sales continued to maintain their weight in sales. In February, zero home sales decreased by 18.8% to reach 23,476. Meanwhile, second-hand home sales decreased by 17.7% to 56,555. The share of used housing sales in total sales increased to 70.7%.

Cities with the highest price increases

In Endeksa’s analysis, it was mentioned that the impact of the earthquake on the real estate market in major cities was very low, and the price increases were somewhat in line with expectations.

Based on this, the city of Mugla had the highest increase in home sales prices among the major cities before and after the earthquake, while Ankara had the highest increase in rents. While home prices offered for sale in Mugla increased by 13%, rents increased by 20%. In Ankara, rents increased by 26% and home prices offered for sale increased by 11%. Rents increased by 13% in Istanbul and 16% in Izmir, while home prices offered for sale increased by 12% in Istanbul and 10% in Izmir.

foreign sales

The statistics from the Turkish Statistical Institute (TUIK) show that home sales to foreigners decreased by 27% in February compared to the same month the previous year, reaching 3,350 sales. This also marked the lowest level of foreign property sales in the last 21 months. Antalya topped the list of foreign property sales with 1,261 homes sold, followed by Istanbul with 1,133 and Mersin with 225. Russia ranked first among foreign buyers in Turkey, purchasing 1,183 homes in February, accounting for 35% of total foreign purchases. Iran came second with 446 homes, followed by Iraq with 173 and Ukraine with 142.

The decline exceeded 60 percent in 11 cities

The decline exceeded 60% in 11 cities, according to a report by Harriet. The drop in sales in 11 provinces was much higher than the country’s average, and the total sales in these 11 cities, which were 12,992 in January, fell to 5,132 in February, a monthly decrease of 60.50%. In February of last year, 12,009 homes were sold in 11 cities. This indicates that the annual decline exceeded 57%.

Buyers, especially Russians, remain concerned, and appetite for property has declined significantly, particularly in Istanbul, which is vulnerable to earthquakes, compared to Antalya, where the decline was relatively less. In reference to the fact that demand from foreigners has dropped after $400,000, Hakan Bokak, the general manager, said that foreigners’ demands for property have decreased by 40-50% with the earthquake. Bokak added that foreigners are now requesting a report on the earthquake around the building they are purchasing. He also explained that rumors of an earthquake in Istanbul at any moment also affect foreigners, who have started moving towards the north of Istanbul, such as the areas of Beykoz and Sarıyer Madden, where low-rise villa projects are far from earthquake risk.

Bokak pointed out that companies in the sector are trying to overcome this drop in sales by focusing on local demand, such as encouraging citizens to own a second home, and providing flexible payment options. They are also trying to promote Turkey’s advantages such as the climate, tourism, and culture.

• The chairman of ISTANBUL REAL ESTATE company Behzat Simsek stated that. Due to the danger of an earthquake in Istanbul, Russian buyers have slowed down their decision to purchase homes in the city. He also mentioned that they have generally noticed a decrease in demand in February. But this year’s demand has decreased by 25-30% more than usual. Buyers are now asking more questions when making a purchase decision, such as which areas are safer and farther away from danger. In this case, low-rise buildings with a sturdy foundation are recommended, with a preference for buildings that have been built in the last 5 to 10 years

Buyers are now asking more questions when making their decision to purchase a home. Which area is better and which area is far from danger? In this case, we recommend low-rise buildings with sturdy foundations, and priority should be given to buildings built in the last 5 to 10 years. More information about Real Estate latest news, and information about Istanbul properties.