THE INCREASE OF RESIDENCES’ PRICES
The reason of the rise of the priceof the recidenses can be listed in five subheads as below.
- Building Plot Cost: Especially in some places, the lack of plain ground leads to expensive prices. People buy even rough ground for highly expensive prices. An other reason of this situation is the big number of the real estate agencies. This situation provides ground owners various choices so that they do not prefer to sell their lands with more appropriate prices.
- Cost Of Construction: The large numbers of contracters results in large numbers of workers. This condition causes rise in the number of subcontracters and meterial producers. As a result of these situations the price of the products increase a lot, e.g. this year the price of the cement increase aproximately 40%.
- Demand: With the arose of the mortage loan system, many people who are afraid of eartquakes and not comfortable with their homes decided to buy new houses. This situation causes increase in the amount of house needed. The long queues in front of the sales offices force the contracters to markup.
- Low Interest: The low interest of the mortage loan encourages many people to buy a house. A family with a 1500TL income can buy a house because of the low interest of the mortage loan.
- Social Pressure: The arose of many new and secure projects grabs people’s attention a lot.
The other reasons fort he increase in the houses prices in Turkey is the increase in the population and the ongoing war in Syria and Iraq. Many people had to live their countries and among those people, a great amount have decided tol ive in Turkey. They prefer to have a house in a safe place in Turkey. This situation is one of the most basic reason for the present high costs.