Housing sales in Turkey plunge by 35.6% in April
House sales in Turkey in April witnessed a staggering 35.6% drop compared to the same period last year with only 85,652 units sold throughout the country, leaving real estate experts and investors reeling from the shocking decline, according to data from the Turkish Statistical Institute (TUIK.)
This significant downturn raised concerns about the future of the housing sector, as industry leaders scramble to find remedies for this unprecedented setback.
Istanbul, Ankara, and Izmir, as the nation's major urban centers, bore the brunt of the crisis, yet they remained at the forefront of housing sales. Istanbul, despite its economic might and population density, experienced a substantial decline, with sales plummeting to 13,944 units and capturing a modest 16.3% market share. Ankara followed suit, witnessing a notable decline to 10,000 units sold and securing an 11.7% market share, while Izmir struggled with only 4,960 units sold, claiming a modest 5.8% market share.
The resilience of these key cities mitigated the impact to some extent, but the overall downward trajectory remains a significant cause for concern.
The TUIK report also shed light on the beleaguered mortgaged housing sector, a vital component of the overall market. The data revealed a distressing 32% decline in mortgaged housing sales for April compared to the previous year, resulting in a total of 21,769 units sold.
The share of mortgaged sales in the overall housing market stood at 25.4%, further emphasizing the magnitude of the downturn. From January to April, mortgaged housing sales plunged by 19.7%, with only 80,591 units sold compared to the same period last year.
Moreover, within the mortgaged sales segment, a meager 7,388 units were classified as first-hand sales in April alone. When examining the January to April period, first-hand mortgaged sales amounted to 25,552 units, underscoring the distressing trend of reduced new buyers entering the market.
Adding to the industry's challenges, housing sales to foreigners also witnessed a severe blow, plummeting by a staggering 60.3% in April compared to the previous year. Only 2,557 units were sold to international buyers, constituting a mere 3% share of total housing sales for the month. Antalya, a popular destination for foreign investors, managed to clinch the top spot despite the downturn, with 1,024 units sold.
Istanbul followed with 792 units sold, while Mersin claimed third place with 186 units sold. The figures highlight the growing difficulty in attracting foreign buyers to the Turkish property market.
Russian citizens emerged as the largest group of foreign investors, purchasing 817 housing units in Turkey during April. Iranian buyers followed with 377 units, while Ukrainian and Iraqi nationals bought 136 and 124 units, respectively.