The increase of housing credit balance was 32,2 billion liras between 1 January-26 July due to the low interest loan campaigns; the highest increase of the credit balance was in 2017 with 27,6 billion liras. Thereby, all-time annual record has been broken in 6 months.
According to the data from Banking Regulation and Supervision Agency (BDDK), the housing credit balance was 188,5 billion liras at the end of 2018 and the credit balance increased to 198,7 billion liras at the end of the 2019. It increased to 211 billion liras in the first 4 months of 2020.
With the normalization period and recovery of the construction industry; in order for people to buy their delayed housing demands, banks have greatly decreased the interest rates of housing credit. In this way, the increase in the housing credit usage became 19,6 billion liras in May and July and the housing credit balance of banks increased to 230,9 billion liras.
If it weren’t for the self-seeking opportunists, the credit balance could have been much higher.
Nizameddin Aşa, the president of İstanbul Chamber of Real Estate Agents, said that the attention regarding real estate have increased by 50 percent due to the low interest rate campaigns; people who delayed their housing or want to get rid of rental payment bought houses. He added:
‘’ In this period, as I mentioned before, some opportunist landlords and realty companies have increased housing prices by 25 percent. If it weren’t for the one-sided opportunists, the credit balance and the number of sold houses could have been much higher. I support the idea that these opportunists should be imposed sanctions immediately.’’
‘’Credit amount of per person have increased to 218 thousand liras.’’
Sinan Türkkan, The CEO of Artyol Engineering, said that according to the data of the Banks Association of Turkey the average credit amount of per person was 170 thousand liras in 2019. He continued:
‘’ We think that the General Directorate of Land Registry and Cadastre sold 93 thousand 704 mortgaged houses in July; hence, there was an increase in credit amount by 19 billion 618 million liras in this month. When we split this credit amount for per person, we can see that it increased to 218 thousand liras.”
‘’The number of the mortgaged house sales will be more than 100 thousand.’’
Toros Cumhur, the director of Era Turkey:
‘’ According to the industry-specific data, the campaigns started on July, recovered the real estate industry 3-4 more times more. According to the data of BDDK, housing credit volume increased 11,5 billion liras in July; this increase was more than the total volume of 2019. All-time annual record has been broken in 6 months.
The total number of sold mortgaged houses will be more than 100 thousand in July. The housing sales that are made on July will be an all-time record too. These records actually show that the expected demand is recovered in the real estate sector and people are able to buy a house due to the convenient interest rates.”
‘’We are expecting the sale number to be 1,4 million at the end of the year.’’
Selçuk Çelik, the CEO of NEF, said that the campaigns that are offering very convenient prices provided the sector with acceleration and recovered the expected housing demand. He continued:
‘’Even though there was a slow down due to the Covid-19, we still expect an increase in the number of the sales in July. We even could be the estate leader of Europe with a number of 1,4 million sales at the end of the year.”
Çelik also mentioned the digital sales during the pandemic:
‘’We obtained 373 million liras of turnover with 305 sales in July. 81 million liras of these sales was made on Nef Online.’’
source: AA / translated by bazaar team