Real Estate

Turkiye’s New Home Campaign will decrease housing prices with the new model loans

Speaking about the New Home Campaign, which was announced the previous day, sector representatives stated that small and medium-sized companies will also enter production with the new model, and that the ₺2-3-5 million limits in loans will reduce housing prices by pulling them to this level.

After the announcement of the New Home housing campaign the previous day, the campaign was evaluated with the meeting held under the leadership of the presidents of Emlak Konut GYO, GYODER, KONUTDER and INDER. Evaluating the work that will start on January 16 as a new financial model for the sector rather than a campaign, Altan Elmas, President of the Housing Developers and Investors Association (KONUTDER), said, “If there were second-hand houses here, we would be talking about price increases today. However, if there is a ₺5-3-2 million limit within the scope of the campaign and the housing prices are above this, the companies will return and make discounts. It will also be an advantage for the buyers if the companies try to fit their houses into that standard. It will also be a campaign that will manage the demand as it will continue throughout the year.”

Noting that the model is important for Turkiye in this respect, Elmas said, “It is not just an advantage of 100 thousand residences. If we can manage this system, which is a reflection of the field experience of the sector, from the manufacturer to the bank and the seller, it will have gained an important mechanism in Turkiye and it can produce 100 thousand houses with this mechanism in the coming years.

All newly completed residences will be included, foreigners are out of scope

Emlak Konut GYO General Manager Hakan Gedikli stated that all newly completed residences will be included in the campaign and gave the following information: “This includes all apartments built on the street. In addition, 50, 60 and 70% completed projects will be included. For newly started projects, a commission is formed, where a guarantor agreement will be made. Thus, a more reliable structure will be provided.”

Gedikli also said that people whose monthly income does not exceed 80,000 in the first region, 65 thousand in the second region, and 45 thousand in the third region will be included in the campaign, and that foreigners are not included in the system even if they reside in Turkiye.

Based on the principle of justice

Mehmet Kalyoncu, President of the Real Estate Investors Association (GYODER), said, “It was a campaign prepared by taking the opinion of the private sector. This tripartite fiction was created based on the principle of justice instead of the principle of equality. It is important that the housing sector grows very seriously. As a sector that respects nature, attaches importance to design, attaches importance to technology and contributes to society, we see the new campaign as a model based on society.”

Small and medium-sized companies will step in

Stating that the campaign will bring a spirit to the sector again, Istanbul Builders’ Association (IDER) President Nazmi Durbakalim said, “This campaign will bring prosperity to those in need of housing. 15% of the annual housing need of 750 thousand is produced by the public. With this campaign, small and medium-sized companies will be engaged in housing production again. With this model, the worry of ‘will the project be completed’ will be eliminated and 250 sub-sectors will be revived.”

Opportunity for consumer and investor

Ziya Yilmaz, Chairman of the Board of Directors of DAP Holding, said that interest rates are rising all over the world, and that maturities of 200 to 300 months are now getting shorter: 500 thousand residences are produced, and now a new segment of 100 thousand residences is being launched. Supporting the consumer for 15 years has been a model that we have longed for years. This sector is an opportunity for consumers and investors.”

Requirement is not 40%

Will there be a discount or a delay on the down payment? Responding to the comments that a figure is stated that a person cannot exceed 40% of the income in installments and this is perceived as a condition, Hakan Gedikli said, “He said that 40% is not a condition. The point here is; installments are around 40% of buyers’ income during the payment process. While our aim is working, citizens receive a salary of ₺20 thousand, they should not pay ₺15 thousand in installments. But there is no such thing as ‘this comes up to 40%'”

“The main positive effect will be on housing production”

Nef Chairman of the Board Erden Timur stated that the campaign will make a positive contribution to the rate of home ownership and said, “We will see the real positive effect in housing production. Zero housing sales, which used to be half of the total sales in previous years, decreased to 30% in recent years. The most important reason for this was the inability to start new housing projects.” Timur stated that middle-income citizens can now buy new housing with the interest rate starting from 0.69% and staying well below the psychological limit of 1%.

Source: Ekonomim / Translated by Irem Yildiz

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