Housing loans grow higher than others, raising share in GDP: Association
ISTANBULHousing loans are growing higher than others and have great potentials for further growth, the head of a top banking association has said.
Hüseyin Aydın, the head of the Banks Association of Turkey (TBB), said the share of these loans in the country’s gross domestic product (GDP) increased to 7 percent with a 2 percentage point of hike in 2016.
Housing loans reached 168 billion Turkish Liras in 2016, with an average of 21 percent of yearly growth between 2011 and 2016, according to the TBB statement released on March 15.
The real annual growth was announced at 12 percent.
Total loans hit 1.8 trillion liras at the end of January, according to official data.
Aydın noted housing loans grew higher than the EU average.
“We expect the demand for these loans to see further growth. To achieve this, financing opportunities should be improved,” he added.
The share of housing loans in private loans rose to 39 percent with a 7 percent of year-on-year increase, according to the statement.
The number of borrowers increased from 1.3 million in 2011 to 2.2 million in 2016.
While the average loans increased from 57,000 liras to 75,000 liras in the mentioned period, the average installment dues remained at 90 months.