The expectation of an increase in interest rates by the Central Bank has led to a 20% decrease in housing prices. Currently, this decline has been reflected in apartments in Beşiktaş, but real estate agents have stated that if the interest rate increase continues, the decline in housing prices will spread throughout Turkey.
With Mehmet Şimşek being appointed as the Minister of Treasury and Finance in the new cabinet, attention has turned to the monetary policy of the Central Bank. There is an expectation in the market that the Central Bank will raise interest rates in its first meeting. This anticipation of interest rate hikes has reduced demand for housing, which has been seen as an investment instrument in recent times. The decline in demand has resulted in a decline in prices. Apartment prices in Beşiktaş, Istanbul, have dropped by 20%. It is predicted that an increase in interest rates will cause a decrease in housing prices overall. Real estate agents have reported that they have been unable to sell properties for about two months.
“If the interest rate hikes continue, the decline in housing prices will continue”
Real estate agent Şerafettin Başaran, who noted the decline in housing prices in Istanbul’s Beşiktaş district, said, “The expectation of the Central Bank raising interest rates has led to a decline in housing prices. Currently, there is a 20% decrease in housing prices. I believe that if interest rate hikes continue, the decline will spread throughout Turkey. Currently, there is very little demand for housing. An increase in interest rates will further trigger this. The stagnation was present even before the elections, and it continues now. We receive very few phone calls. I haven’t been able to sell apartments for about two months. Homeowners come with offers like ‘sell my apartment at this price.’ We provide market evaluations to potential buyers to determine the price.”
Source Uğur Çetin – Furkan Serttaş/İHA