You’ll be able to forecast the course of the investment you’ll make in Turkey using Residential Property Price Index established by Central Bank of Turkey every year. Real estate sector is a rapidly developing sector in Turkey. And it is shown as an investment tool that provides the fastest return on investment. All these sectoral determinations are based on scientific and concrete statistics.
Having access to the growth rate and values of the property market in Turkey through a reliable resource will allow you to make profit in all your investments, personal or corporate.
What is Residential Property Price Index in Turkey?
Residential Property Price Index is an index that measures changes in residential property prices in Turkey. The real estate sector in Turkey is a rapidly growing tool with a high investment value. Having knowledge about the data about the rapidly growing sector is an impressive factor.
Knowing more about the residential property price index, which is decisive in the real estate sector in Turkey, will allow you to be a robust investor. Having extensive knowledge about how the Residential Property Price Index in Turkey is calculated will answer your question.
Residential Property Price Index in Turkey began in 2010. Housing prices in Turkey are determined based on the data released by the Central Bank of Turkey. The prices of all houses on sale vary depending on the values determined in 2010.
How is Residential Property Price Index Determined?
So, how is Residential Property Price Index calculated? The answer to this question is not complicated. Central Bank of Turkey uses banks that provide housing loans based on the houses on sale. The determination is made according to the housing valuation report issued by the experts of the banks providing housing loans. Depending on the valuation made by the experts, the house values data are obtained electronically.
The new Residential Property Price Index is applicable to new residential buildings in Turkey. There are factors that enable the values to change in the property market. But these factors are also changing. It is necessary to eliminate the confusion within the Residential Property Price Index. For this reason, there’s a method established by the Central Bank of Turkey. This method is simple. Houses with similar structure and similar features are grouped. An average value was established for these groups. Prices are determined according to these average values.
Variation of Residential Property Price Index in Turkey | An Increase of 2.30 percent in February!
According to Residential Property Price Index data released by the Central Bank of Turkey, an increase has been observed. According to February 2020 data, Residential Property Price Index increased by 2.30%. If we examine the same month of the previous year, an increase of 13.94% occurred. This is a nominal value. The real value that has come out after calculation of the inflation values is 1.40%.
Provinces with the highest annual change;
Antalya, Burdur, Isparta 22.45%
Zonguldak, Bartın, Karabuk 22.06%
Cankiri, Kastamonu, Sinop 20.41%
Provinces with the lowest annual change;
Istanbul 10.12%
Artvin, Giresun, Gumushane, Ordu, Rize, Trabzon 11.10%
Adana, Mersin 11.52%
Is It the Right Time to Buy Residential Property According to Statistics?
According to statistics, now is the right time to buy property in Turkey, even in the world. It’s exactly the right time to buy a house, especially in Istanbul! The reason for this is that housing prices in sqm have decreased by 6% in the last three years. But in general, prices are predicted to increase by 8% in Turkey within the next 6 months. The highest increase is expected in the Antalya region.
In fact, after the global pandemic crisis, there’s been an increase in the sales of detached houses. It is predicted that the number of people who prefer to live a more isolated life in quieter areas will increase. In the light of this data, it is certain that it is the best time to buy a house.
In regions where housing stocks are high, the values decrease. In addition, it has been analyzed that foreign investors tend to invest in real estate with decreasing interest rates of housing loans. Furthermore, according to the statistics, the regions with the highest increase in value are Bahcesehir, Basaksehir, Basin Ekspres, Maslak and Buyukcekmece. There are spot-on districts in Istanbul for those who will invest in real estate.
Given the housing stocks and their values, the most profitable districts are:
Housing Prices will Increase in the Next 6 Months
With the decrease in housing stocks, depreciation periods will start to decrease. It is observed that construction companies have recently entered into a period of recession in the case of housing projects. For this reason, making an appropriate choice among the existing housing projects in this profitable period will provide you with high returns in the long term.
As Projescope team, we have brought together the most profitable and suitable options for you. You can choose the house that best suits your standards and budget by reaching us.
Given the property values and the period of return on investment, it’s clear that there’s been a decrease in buying and selling rates. Accordingly, the tendency to rent has increased. BUT THIS SITUATION HAS CAUSED A REVERSE IMPACT.
With the rapid increase in the demand for the properties for rent and the increase in inflation, rental prices have increased rapidly. For this reason, considering that the housing prices will increase in the next 6 months, buying a house instead of renting will decrease your costs in the long term. The fall in prices and the decrease in housing interest rates should be exploited as opportunities.
