Istanbul Real Estate World

We evaluated the agenda of Istanbul Real Estate World, where urban transformation projects continue and new constructions are increasing. There are many things that affect the real estate industry, such as the COVID19 outbreak, interest rates, finding a home that fits the buyer's budget, construction costs. These interest rates, which caused 600 thousand units to be sold in three months across Turkey, are now quite high and have become the first factor that adversely affects the real estate sector.

The biggest obstacle to the Istanbul real estate sector taking action is rising interest rates and new building stocks that are about to run out. This will negatively affect price increases, purchasing decisions and behaviors for young and new buildings. Price increases in old and very old buildings are expected to continue for a while.

Covid-19 Outbreak Affects the Market

In the last period of Istanbul real estate world, houses in Beylikdüzü, Esenyurt and Avcılar regions are generally preferred by foreigners from Iran, Iraq, Afghanistan and Syria. Due to the increase in demand in the Beylikdüzü region and the increase in prices by land owners and construction companies, it was announced that detached villas with gardens were generally preferred in the Beylikdüzü region. This situation adversely affected the purchasing power of the Turkish people. Demand in Kızıltoprak, Suadye, Erenköy and Bostancı regions increased significantly. It has been determined that prices have increased by 100% in response to this demand and prices are expected to remain this way after the outbreak. Houses with gardens, balconies and terraces are preferred because people's lifestyles change, they work from home and spend more time at home.

Both Apartment Prices and Loan Rates are High

While the growth rate of rental apartment prices in Istanbul is 40%, this rate is over 100% in some central districts. This increase applies not only to rental apartments, but also to apartments for sale, which are much higher than they should be. Finally, prices in Istanbul Real Estate World increased by 2.91% last month and by 62.4% in the last five years. However, due to the low mortgage interest rates in recent years, homeowners were requesting loans for higher amounts. Nowadays, since the loans are high, it has become difficult to take out high amounts of credit. Everyone who was looking for a house became a complainant about this situation. It is said that moving to a new home has become very difficult now due to high rental prices, moving, real estate agents and deposit fees.

Istanbul's Place in Housing Growth in the World