- Turkish house sales to foreigners jumped about 50% to a record level in November, data showed on Tuesday, bringing in billions of dollars in foreign exchange as a lira slump made purchases significantly cheaper for those buying with hard currency.
- At its current level of 14.2, it is more than 40% weaker than at the start of September.
- By far the highest number of foreign buyers were Iranian citizens, followed by Iraqis and Russians.
- The data also showed November mortgage sales climbed 61 per cent from a year earlier to 39,366, accounting for 22% of the total in the period.
According to figures released on Tuesday, Turkish property sales to foreigners increased by over 50% to a new high in November, bringing in billions of dollars in foreign currencies as the lira fell, making purchases much cheaper for those paying in hard currency as reported by N Business.
Annual inflation
The property market was generally upbeat in November, despite annual inflation of more than 20%, according to Turkish Statistical Institute estimates, with overall sales up 59% to 178,814 homes.
“People considering housing as a way of inflation protection was essential in the sharp sales spike in November,” said Makbule Maya, general manager of TSKB Real Estate Appraisal. “Lower state bank lending rates also had an impact.”
On Monday, the lira hit a new low of 14.99 against the dollar, reflecting a half in value this year. It is now more than 40% weaker than it was at the beginning of September, at 14.2.
New economic policy
Foreign currency inflows owing to property sales totalled nearly $8.5 billion in the 11 months to November, according to Altan Elmas, chairman of the Konutder housing developers and investors group.
“By the end of the year, we should have a total of $10 billion. Property sales to foreigners will provide the most immediate support for the new economic policy in the next years “, he stated
Despite skyrocketing inflation and considerable condemnation from economists and opposition politicians, President Recep Tayyip Erdogan has favoured drastic interest rate cuts to bolster his new programme that emphasises exports and credit.
Foreign property sales
In November, 7,363 residences were sold to foreigners, the highest monthly total since the data series began in 2013. Iranians were by far the most common foreign buyers, followed by Iraqis and Russians.
Foreigner property sales have been high this year, gaining 39.4% in the first 11 months, despite total house sales falling 9.2% year over year.
Istanbul was the most popular destination for foreigners looking to buy a home, with 2,922 sales, followed by Antalya in the south and Ankara, the capital.
The report also revealed that November mortgage sales increased by 61% year over year to 39,366, accounting for 22% of the total for the month.
Sales soared last year as a result of state banks’ cheap loans during the pandemic, forcing property developers to begin buyer marketing.
Did you subscribe to our newsletter?
It’s free! Click here to subscribe!
Source: N Business
