According to new values, mortgage loan popularity in Turkey's real estate industry is dropping. REIDIN-GYODER New Home Price Index research values suggest that there was a significant drop in the amount of credit use in 'branded' housing project purchases.
New Home Price Index increased by 0,39% compared to the previous month and 3,68 compared only to the same period in the previous year. The surge was %80,10 in terms of time passed since January 2010 which is the beginnig of the index. Through this growth, the index rate reached 180,1%.
Shift From Credit Use
Down payments in March 2018 were recorded as 38% and mortgage loan use amounted to 21%, while the use of bonds was 41%. The amount of down payment use dropped minimally in comparison with February 2018 as 1%, while bank credit application rate, partly due to high interests, dropped by a drammatic 10%. Bond application frequency, on the other hand, increased by 12%.
It was stated that 8% of branded housing project purchases was made by investors from foreign countries. It was also underlined that most (%44) of the real estate foreigners bought were 1+1 types.
Interest Rate Affects Business
Feyzullah Yetgin, Chairman of The Association of Real Estate and R.E. Investment Companies (GYODER), has stated that the real estate industry is directly affected by rising mortgage loan interests; while REIDIN Ceo Kerim Alain Bertrand has stated that interest slows purchase despite the rise in housing inflation index.