Market news

Turkish realty prices is seemed to not increase

29.05.2009
dd mortgageAccording to the opinion of Murat Aysan who is general director of DD Mortgage Company the Turkish realty prices will not fall down and will not rise up too.
The DD Mortgage Company was found by Deutsche Bank and Doğan Grubu. General Director of this company said about change of buyers’ priority. We have seen big demand for the new Turkish realty in the beginning of the last year. But now 1/3 of our client is asking for the month payment decrease.  First movement on the Turkish realty market was seen on May of this year. After interest rate of realty has started to decrease Turkish realty market has started to grow up.

In comparison with last year today’s customers have much more choice of property and payment methods. Nowadays property buyers can purchase it by getting credit from us or in cash. So, Turkish realty market is full of houses which are waiting for the owners. As Murat Aysan says 1/3 of his company customers are asking of month payment decrease. They are ready to pay any interest rate if only month payment amount decline.
In spite of such a situation on the Turkish realty market 30%-35% of customers buy property to live in. But unfortunately purchase for investment has started to get smaller and smaller because of rent payment decline. So, nowadays purchase realty for leasing may not bring profit.

Average of given credits is falling down

General Director of DD Mortgage has noticed that demand for the expansive realty has declined. At the same time we see the decrease of given credit average. Last year in July average of given credit was between 180.000 and 200.000 of Turkish liras. So, now it is nearly 80.000 of Turkish liras. Among of all applications for the housing credit just a few are over hundred thousands of Turkish liras. It means that we see decline of expansive property demand.

Murat Aysan has made a conclusion what should be waited from the Turkish realty market prices. He thinks that in comparison with last year prices of realty in the center districts of Istanbul seemed to not decline. In the second area of Istanbul stretching to the Avcılar and Bakırköy districts prices fall are between 5%-10%. In the third area of Istanbul starting from the Avcılar district up to Tekirdağ district prices fall are between 10%35%.  Especially decline of Turkish realty prices was seemed in the out-of-town districts where supply are very big. We think that prices will not fall down anymore but will not rise up too.                                                                                             
Interest rate of housing credit is declining. It seems to go on. According to the DD Mortgage General Director opinion interest rate per month will decline up to 1% not earlier than in 2010. Murat Aysan considers that in the end of this year interest rate will be between 1, 19%-1, 29%.  If the Turkish realty market position stays the same we may wait decrease of interest rate of housing credit.     

News was edited by “VESTA Estate”
vestaestate.com


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