House prices to be under spotlight

House prices to be under spotlight

House prices to be under spotlight

President Recep Tayyip Erdoğan has instructed that home prices should be closely followed, as the government unveiled a package to provide cheaper housing loans.

There have been media reports suggesting that home prices have increased after the new financing package was announced. The matter was discussed at a meeting of provincial heads of the ruling Justice and Development Party (AKP), chaired by Erdoğan earlier this week.

“Inspections will be tightened,” Erdoğan told party officials, asking them to coordinate efforts with the relevant ministries and authorities.

The government on May 9 announced measures designed to provide cheaper housing loans to fight the surging housing prices.

According to the scheme, loans with a monthly rate of 0.99 percent and a maturity period of 10 years will be provided to first-time homebuyers for houses worth up to 2 million Turkish Liras ($130,000).

Under a second scheme, dubbed “Broader Housing Financing Package,” loans with a monthly interest rate of 0.89 percent and 10 years of maturity will be provided to those who convert their foreign exchange savings to Turkish Lira or sell their gold to the Central Bank to purchase houses worth up to 2 million liras.

Meanwhile, a presidential decree, which makes changes in the citizenship by investment in real estate program, has been published in the Official Gazette.

The new regulation increased the minimum amount required to be invested in properties by foreign nationals to obtain Turkish citizenship from the current $250,000 to $400,000.

The new regulation will come into force one month later.

The decree also stipulates that foreign nationals who join the private pension system with at least $500,000 or equivalent foreign exchange and stay within the system for three years will be entitled to obtain Turkish citizenship.