According to the REIDIN-the association of real estate investment companies (AREIC) New Housing Price Index, the down payment rate in March was 38 percent, the bank loan usage rate was 21 percent and the deed rate was 41 percent.
THE REAL ESTATE SECTOR IS AFFECTED BY INCREASING MORTGAGE INTEREST
Assoc. Dr. Feyzullah Yetgin who is the President of AREIC, said that the decrease in the use of housing loans is important both for the real estate sector and for the consumer; then he said that “As of the end of March, the interest rates on housing loans reached the peak of the last 8.5 years with a ratio of 1.23 and this ratio was 0.92 in the same period of last year. If the interest rates are raised to a level that does not force the consumer’s financial limits, the use of the housing loan will increase again.”
Kerim Alain Bertrand who is the CEO of REIDIN also assessed their March results. Bertrand used the following expressions; “In Turkey, 81 in entire Turkey in nature to include the sale Housing Price Index (TR-81) while over the same period the rate of 0.83% and last year compared to the previous month in March, an increase of 11.15% was realized. The increase in March month year inflation exceeded inflation (10.23%), even though it was below the inflation rate (0.99%), despite the rise in the inflation rate of housing prices in the first quarter of 2018. The increase in loan interest rates made it difficult for households to buy housing, I think that the price increase trend will be in line with the inflation expectation in the future periods and that real revenues will be close to zero so that the stagnation of the markets will not satisfy the capital gains and those who are expecting the return of the rent and can invest in affordable housing. ”