Expectations of rising real estate prices in Turkey

Representatives of the real estate sector said that housing prices will rise during the coming period due to rising costs.

According to the representatives of the sector, quoted by the local Turkish newspaper, Al-Akhbar, the new price lists will appear in the upcoming projects, indicating that prices will gradually increase by up to 50 percent.

Despite the negative impact of the Corona epidemic, one million 499 thousand and 316 homes were sold across the country last year, setting a historic record.

And they said: "In the projects that will be held in the new year, the cost increase will be gradually reflected in the prices. The companies that have new projects will set the prices according to the cost."

Nazmi Durbakim, head of the Istanbul Builders Association (İNDER), said that the real cost increase began in August 2018 but was not reflected in prices due to market conditions, but the recent price hike has forced a price increase.

He added, "The prices will witness a gradual increase in the new projects, as the cost of a square meter of a house excluding land has reached four thousand pounds."

According to the REIDIN-GYODER New Home Price Index, which was developed on homes produced by real estate companies, prices increased by 8.23% in October, 8.03% in November and 7.72% in December compared to the same period last year.

He pointed out that the price of a ton of iron reached 3 thousand and 350 pounds in June of last year, and exceeded 5 thousand pounds in December, while it rose to 5 thousand and 730 pounds in the first days of January.

The price per cubic meter of C35 concrete also increased from 195 lira in June last year to 255 today, as the cement bag was purchased for 17 lira in June and 22 lira in January.

In turn, the head of the Housing Developers and Investors Association, Altan Almas, said: "In 6 months, the price of one ton of iron increased from 500$ to 750$, so the prices of ready-made projects sold today cannot be the same as those that will be built again."

He pointed out that the rate of increase differs in each region, "the balance of supply, demand and interest in the market will also be decisive factors."