As the rising costs in the housing sector raise prices, the demand of those who want to invest in real estate is turning to small houses such as 1+1 and 2+1, which can be rented and sold at lower prices and faster.
Gamador Construction Chairman of the Board Murat Karaarslan stated that real estate investment has always been an unchanging safe harbor and said that input costs have affected consumer preferences in housing in recent years.
Karaarslan pointed out that the increase in the cost of iron, cement, land, labor and similar input costs seriously increased the housing prices, and stated that the preferences of those who buy houses for both residence and investment have changed.
Pointing out that houses with small square meters come to the forefront in housing purchases, Karaarslan said, “People are turning to houses with small square meters, such as 1+1 and 2+1, which they think of as a start, and they look for larger houses with the savings they provide. These types of houses are easier to sell and seem to be a more attractive investment tool in terms of rental depreciation compared to large houses.”
Karaarslan, who said that the effects of the COVID-19 epidemic and the reduction of restrictions brought dynamism to the construction and real estate sectors, noted that Ankara was one of the cities that were positively affected by this.
Karaarslan said, “The density of projects offering alternative living spaces to consumers, well-designed and with sustainable sales performance is very high in Ankara. This situation, which is a great advantage for those living in the capital, is also one of the most important reasons for the real estate activity in the city.”
Karaarslan stated that large families also consider heating, cleaning and dues expenses in their housing choices, and that those who want to buy 3+1 and 4+1 houses prefer to invest in smaller houses compared to their peers.
“Cooperatives will come to the fore in the housing sector”
Kerem Nukte Gayrimenkul Ankara Director Muhammet Dinc stated that 1+1 and 2+1 small houses in the housing sector started to be sold quickly during the construction phase and said, “The increase in preference for 1+1 and 2+1 houses with small square meters may become permanent. These types of houses are also easier to sell. Those who want to buy a house make a quick decision when they look at the rental income of small square meter houses when they evaluate for investment.”
Noting that the so-called cooperative system in the housing sector can also become modern and come to the fore again, Dinc said:
“Contracted projects for certain groups will become widespread by providing financial advantages. In this system, a group of owners who cannot buy a ready-made flat due to high prices come together. The idea of buying a flat from the ground up has a common denominator. They buy land to secure themselves in terms of property. They make agreements with reliable producer companies in return for flat. Thus, they both acquire flats at very affordable prices and secure themselves with gradual land delivery.”
Pointing out that one of the important issues in the housing sector is interest rates, Dinc said, “Annual interest rates of around 10% and below 1% on a monthly basis are sustainable figures for the real estate sector. When we apply this, we have experienced an increase in demand in the sector many times before.”
Emphasizing that real estate never loses value, Dinc added that there may be periodic recessions or economic difficulties, but as a result, real estate is always a profitable investment tool.
Source: Trthaber / Translated by Irem Yildiz