Property sales soar in Turkey thanks to cheaper loans, tax incentives

ANKARA

A total of 128,923 properties were sold across Turkey in March, marking a 10 percent year-on-year increase due to cheaper loans and tax incentives. 

Data from the Turkish Statistics Institute (TÜİK) showed on April 24 that the mortgaged sales amounted to 50,424 units in March with a 30 percent increase compared to the same month of 2016. 

“The main reason behind the rise in property sales in March was the rise in cheaper loan campaigns by banks. State-run lenders’ loan rates particularly fueled sales … And the government’s tax incentives played a role as well,” said a senior executive from the Industrial Development Bank of Turkey (TSKB), Makbule Yönel Maya, as quoted by Reuters. 

The government recently cut value-added tax (VAT) and title deed fees in property sales. It also zeroed the stamp duty in these transactions. 

In a bid to revive the sector, a number of real estate developers also launched a campaign enabling potential buyers to make deals for up to 0.85 loan rates and 240-month installments for loan repayment. 

Maya also noted that the referendum process also accelerated the sale. 

“Potential buyers wanted to make purchases ahead of the April 16 referendum. This also triggered sales in March,” she said, adding that some deceleration is expected ahead of the month of Ramadan, which will start in late May.  

According to TÜİK data, a total of 325,780 properties were sold across Turkey with a 7.4 percent increase compared to the same period of 2016. 

In March 2017, some 1,578 houses were sold to foreigners with a 1.1 percent year-on-year decrease, data also showed. 

Most house sales were made to Iraqi citizens with 323 units, followed by Saudi Arabian citizens with 148 units, Kuwaiti citizens with 139 units, Russians with 115 units and Afghans with 112 units.

Istanbul was the most popular province for foreigners with 579 sales in March, followed by the Mediterranean resort of Antalya with 313 sales and the northwestern province of Bursa with 124 sales.