This article was last updated on June 6, 2022
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USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…The Real Estate Investors Association (GYODER) evaluates the sub-segments of the real estate sector quarterly, ‘GYODER Indicator’ Turkish Real Estate Industry 2022-1. Published its quarterly report. ‘GYODER Indicator’ 2022-1, prepared by GYODER with the contributions of Ziraat GYO. According to the Quarterly Report, house sales in the first quarter of 2022 reached 320 thousand 63 units, an increase of approximately 21.6 percent compared to the previous quarter. Looking at the months, March achieved the highest sales figure of the quarter with the sales of 134 thousand 170 units. In the first quarter, first sales increased by 17.5 percent on a quarterly basis to 94 thousand 437 units, while second-hand sales increased by 23.5 percent to 225 thousand 626 units. The share of first sales in total sales fell to its lowest level with 28.6 percent as of March.
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House Purchasing Power Index Turkey dropped to 68
The Housing Purchasing Power Index, on the other hand, decreased by 27.4 percent compared to the previous quarter and decreased by 26.1 percent compared to the same quarter of 2021, to 68. The index, which has been hovering above 100 in the 4th quarter of 2020, has been one of the notable headings of the GYODER Indicator, with its sharp decline as of the first quarter of 2022.
Evaluating the report, GYODER Vice Chairman of the Board of Directors Neşecan Çekici emphasized that the results are an important prediction for institutions providing housing loans, real estate project developers and loan users. Indicating that there is an important data for finding solutions to the problems related to housing access for housing needs, Çekisi said, “Individuals with average income in Turkey own real estate with the use of loans in addition to their own savings. In this index, it is an important economic evaluation that measures whether a family or individual can own a house by using a 120-month mortgage loan. Values below the value of 100, which is seen as the reference point in the index, indicate that it is not possible to own a house by using a housing loan in the current financial conditions. In 2022, this value was announced as 68 percent.” said.
Real estate investments of foreigners will continue
According to the report, 14,344 residences were sold to foreigners with an increase of 45 percent compared to the previous quarter. According to these data, the share of foreigners in total sales rose to 4.5 percent this year. In the first quarter’s housing sales to foreigners, Istanbul was in the first place with a share of 41.7 percent, and Antalya was in the second place with a share of 24 percent. According to the nationalities of the country, the highest purchase was made by Iranian citizens with a share of 15.6 percent.
Regarding the issue, Neşecan Çekici, Vice Chairman of the Board of Directors of GYODER, emphasized that according to the data in the report, the demand of foreigners will continue, and real estate purchases made especially for citizenship and residence permits will increase these rates. Çekici noted that increasing the right to citizenship from 250 thousand dollars to 400 thousand dollars with the regulation made in April will not change the demand trend.
First-hand home sales plummet
In 2022, the first sale of 461 thousand 523 houses, which constitutes 30.9 percent of the total sales, was realized. While there was a 33 percent increase in second-hand sales compared to the previous quarter, a total of 1 million 030 thousand 333 second-hand houses were sold in 2021.
In the first quarter, first sales increased by 17.5 percent on a quarterly basis to 94 thousand 437 units, while second-hand sales increased by 23.5 percent to 225 thousand 626 units. Thus, the share of first sales in total sales reached its lowest level with 28.6 percent as of March.
In the first quarter, when the housing loan interest rates were similar to the same period of the previous year, 68 thousand 342 mortgaged sales were made with an increase of 44.7 percent. Other sales, on the other hand, increased by 16.6 percent compared to the same period of the previous year and amounted to 215 thousand 721 units. Mortgage sales, which make up 21.4 percent of total sales, showed an increasing trend in the first quarter compared to the previous year with this rate.
At the end of March 2022, the volume of housing loans amounted to 311 billion TL. The share of housing loans in total consumer loans, which was 40 percent in March 2021, decreased by 1.3 points to 38.7 percent as of March 2022.
REIT index breaks record in first quarter
According to the report, the domestic investor ratio of 37 REITs, whose market value rose to 117 billion TL between January and March, was 88% and the foreign investor ratio was 12%, with an increase of 2 percentage points. In the first quarter, where the dividend distributed was calculated as 174 million TL, the institutional investor rate (50.3 percent) and the individual investor rate (49.7 percent) were almost equal. In the ranking of foreign investors investing in REITs, the USA, Netherlands, United Kingdom, Bahrain and Jersey took place in the top 5.
The market size of REIFs exceeded 16 billion liras
The market size of Real Estate Investment Funds in Turkey, on the other hand, increased by 23.5% as of the first quarter of 2022 and exceeded 16 billion TL. Compared to the same quarter of 2021, the REIF market size has grown by 82.2% in the last one-year period. In addition, a total of 84 real estate funds received investment, including those whose issuance period continues and which received investment for the first time.
The increase in office rentals exceeded 100 percent
Leasing transactions realized in the first quarter of 2022 reached a total area of 123 thousand 424 square meters, increasing by 2 times compared to the same period of the previous year. On the other hand, in the first quarter, 85 percent of the lease agreements were made on a square meter basis and 82% on the basis of units, and new leases. According to the report, in the first quarter, only 29 percent of the deals on a square meter basis were made in the Central Business Area (CBD).
The current shopping mall supply has reached 14 million square meters
According to the report, the current shopping center supply in Turkey has reached the level of 14 million square meters in 453 shopping centers. According to the evaluations, there are approximately 895 thousand square meters of leasable area under construction in 30 shopping centers throughout Turkey, and with the projects planned to be completed by the end of 2024, the total supply is expected to reach 14.9 million square meters throughout Turkey.