Turkish homebuyers faced with rising costs
The costs of buying a house in Turkey are on the rise as banks charge more for mortgages.
The expense of borrowing to purchase a home is increasing despite calls by the government for banks to charge less for lending as inflation slows.
Rates banks charge on a five-year mortgage are as high as 1.5 percent monthly, according to Patronlar Dunyasi, a Turkish website focusing on business and the economy.
The cheapest loan over five years carries an interest rate of 1.16 percent monthly, according to a survey conducted by the website.
Turkish President Recep Tayyip Erdoğan has criticised banks for charging high rates of interest and making excessive profits. The government is considering a scheme to help people become homeowners via an indirect financial scheme. It hasn't provided further details.
Construction has been an important driver for economic growth in Turkey, which reached an annual 11 percent in the third quarter. Inflation slowed to 10.4 percent in January from 11.9 percent in December, still more than three times the average for major emerging markets.