Home sales increase after months of decline

ANKARA

Türkiye’s housing market bounced back in February as home sales showed an annual increase after months of decline, data from the Turkish Statistical Institute (TÜİK) have shown.

In February, a total of 93,902 homes were sold across the country, pointing to a 17.3 percent increase from the same month of last year. 

Home sales declined constantly between August and December 2023. The contraction in the housing market continued into the first month of 2024, when residential property sales plunged 17.8 percent year-on-year.

Home sales last month also exceeded the sales in January when more than 80,000 properties changed hands.

Mortgaged home sales, which plunged 49 percent in February from a year ago to around 8,900 units, accounted for only 9.4 percent of all home sales. In the first two months of 2024, mortgage-financed home sales were down more than 56 percent year-on-year to 14,700.

Interest rates on housing loans started to rise after July 2023 when the rates were below 30 percent. The rates gradually climbed in the following months in line with the Central Bank’s rate hikes, touching 42.85 percent in November last year. The rate on home loans was 40.88 percent as of March 1, according to data from the Central Bank.

Istanbul was once again the hottest property market in the country. According to TÜİK data, 16,344 homes were sold in the mega city in February, accounting for 17.4 percent of all home sales in Türkiye.

The capital Ankara ranked second with an 8.8 percent share or 8,300 sales, followed by the western city of İzmir, where 5,168 homes were sold last month.

Home sales to foreign nationals, however, continued its downward path in February. Last month, foreigners bought only 1,846 homes in Türkiye, marking a steep 44.9 percent decline from a year ago.

Istanbul was foreign homebuyers’ favorite destination. Foreigners purchased 691 residential properties in the city in February, down from 1,133 in the same month of 2023.

Foreign nationals’ purchase of homes in the Mediterranean city of Antalya plunged 48 percent year-on-year to 659 units.

Foreigners also bought 151 homes in the southern province of Mersin.

Russians topped the list of foreign homebuyers. Russian nationals bought 395 homes in Türkiye in February.

Iranians and Iraqis ranked second and third at 200 and 112, according to the numbers from TÜİK.

Ukrainians and Germans bought 112 and 105 homes in the country, respectively.

In the first two months of 2024, home sales to foreign nationals declined by 48 percent year-on-year to 3,907 units.