Property in Altinkum

Property prices, which as a result of the global crisis have not risen for some time, mark a good opportunity for those who want to buy a home.

Prices have come to a standstill despite the rising costs as companies have experienced difficulties in selling their projects for some time. Construction companies, which cannot see their future clearly, constantly launch new campaigns to overcome the sales problems. The companies offer many opportunities to their customers, such as low deposits and interest rates, installment deferrals and rebates in cash purchases, besides the low house prices. However, the question remains, how long will the construction companies hold out? The top managers of construction companies expect prices to rise from June onwards parallel to the rising costs, and to peak in September.

Many other companies, meanwhile, warn customers to make a thorough assessment of the recent campaigns. Many companies have begun deceiving customers by first increasing prices and then offering rebates on the already increased prices, according to the companies. Some other companies make up for the rebates offered in interest rates in the overall price of the property, or they apply high installment rates to the lowered prices.

“The construction sector has entered a revival period since 2003, which is a good opportunity for the companies that produce construction materials. They attempted to increase prices by two or even three times the inflation rate. Material prices increased by 50 to 60 percent while inflation was 9 to 20 percent. Low and middle-income groups had difficulties in buying homes, while the high-income groups preferred to wait. Moreover, the housing loan interest rates, which had dropped to 0.95 percent, have now increased to 1.5 percent again,” said Erdoğan Bayraktar, chairman of the Mass Housing Administration(TOKİ), who also noted that there was an excess of housing as a result of the fact that those who had no experience in the construction sector entered this business, giving rise to a period of stagnation.

“We all expect that there will be an increase in house prices as a result of the rising costs. Now is a good time to buy a house. However, people should be selective in their purchases instead of making quick decisions. The mortgage crisis originating in the United States has also affected Turkey to some extent. However, there is still a rising supply and demand for houses in Turkey. People are waiting for prices to go down. This, however, does not seem to be possible while the demand is this high,” said Feyzullah Yetgin, CEO of the Real Estate Investment Partnership (GYO).