Home Uluslararası Turkey: December housing prices increase by 59.59% year on year

Turkey: December housing prices increase by 59.59% year on year

by tarimendeksi

In the acceleration of the increase in housing prices, we observe the effects of the increase in construction costs, together with the factors coming from the exchange rate and inflation. The demand environment in the shrinking housing stock also increases the price volatility in the housing market. While the changes in housing supply and demand, especially after the Covid-19 pandemic, affect prices through financing costs and household demand; In the next stage, together with the volatility in the exchange rates, the current prices in many regions increased significantly. The constraints in the housing supply and at this point, housing prices and rents, which exceed the purchasing power due to inflation, are at the center of this. Factors such as the demand shock from local households in housing demand, rising costs and financing factors in housing acquisition are effective in the general construction sector recession. While the increase in TRY interest rates tried to balance the exchange rate, the demand for housing also stagnated due to the increase in loan costs in the long run. We will continue to monitor the exchange rate risks and the cost management of private banks for the impact of mortgage driven sales.

 

It is also useful to look at the sectoral stagnation effect in terms of housing loan interest rates. In the context of increasing financial volatility with the Covid-19 epidemic, serious incentive mechanisms were put into use to help economies overcome the shock of the closure. Lira interest rates were increased again in the tightening policies implemented for the temporary period to control the price stability risks stemming from the exchange rate. We expect the effect of exchange rate volatility and construction costs to be effective in the increase in housing prices.

Kaynak Tera Yatırım-Enver Erkan
Hibya Haber Ajansı

You may also like

Leave a Comment