HOUSE SALES IN TURKEY UP 24%
OPP NEWS MEDIA
Housing sales in Turkey rose 24% year-on-year for the first nine months of 2009 and moderate growth is predicted for 2010, according to new research.
The country's Real Estate Investing Partners Association (GYODER) reported that a cut in title deed fees and value-added tax (KDV), as well as promotions by developers, helped to sell 416,000 units between January and September.
The number of mortgages also increased in the third quarter of the year, rising 65% year-on-year to 96,808 loans with a total value of TRY6 billion.
The effects of the recession on construction are likely to hamper recovery over the coming year, said GYODER's chairman, Turgay Tanes, at a press conference. "The contraction in 2009 is expected to leave in its place limited growth in 2010," he said.
The construction sector contracted by 19.5% in 2009, around two-and-a-half times the contraction of the overall economy, said Tanes, adding that 2009 was
"a lost year". The number of municipal building permits issued for the year is also likely to fall to 420,000 from an average of 580,000 for the years 2005-2007.
However, GYODER's report said low interest rates and rising demand could help stimulate prices. Tanes also predicted a "slight increase" in foreign investment into the country next year, rising to a total of $10-12 billion.
"The real revival in the sector will take place in 2012," said Tanes. "With an increasing population and advancing urbanization, the need for housing will rise."
Housing sales in Turkey rose 24% year-on-year for the first nine months of 2009 and moderate growth is predicted for 2010, according to new research.
The country's Real Estate Investing Partners Association (GYODER) reported that a cut in title deed fees and value-added tax (KDV), as well as promotions by developers, helped to sell 416,000 units between January and September.
The number of mortgages also increased in the third quarter of the year, rising 65% year-on-year to 96,808 loans with a total value of TRY6 billion.
The effects of the recession on construction are likely to hamper recovery over the coming year, said GYODER's chairman, Turgay Tanes, at a press conference. "The contraction in 2009 is expected to leave in its place limited growth in 2010," he said.
The construction sector contracted by 19.5% in 2009, around two-and-a-half times the contraction of the overall economy, said Tanes, adding that 2009 was
"a lost year". The number of municipal building permits issued for the year is also likely to fall to 420,000 from an average of 580,000 for the years 2005-2007.
However, GYODER's report said low interest rates and rising demand could help stimulate prices. Tanes also predicted a "slight increase" in foreign investment into the country next year, rising to a total of $10-12 billion.
"The real revival in the sector will take place in 2012," said Tanes. "With an increasing population and advancing urbanization, the need for housing will rise."
