Turkish home sales drop 5.3 percent in third quarter

Turkish sales of homes fell 5.3 percent in the third quarter compared with a year earlier, according to a quarterly report by sector group, the Real Estate and Real Estate Investment Companies (GYODER).

Sales for the first nine months of the year fell 2.7 percent from the same period of 2017 to 1,002,391 units, the group said in the report, according to website Emlak Pencerem, which specialises in the industry.

Turkish home sales are sliding after interest rates on mortgages surged due to a currency crisis earlier this year. The lira hit a record low of 7.22 per dollar in August before recovering to trade at 5.4 per dollar this week. Still, interest rates on mortgages remain high because inflation currently stands at 25.2 percent.

Sales of homes increased by 4.2 percent in the third quarter compared with the second quarter of the year, hinting that a downturn in the industry may be coming to an end.

The drop in overall sales is however being pared by purchases by foreign citizens. Such sales jumped 58.5 percent in the first nine months from a year ago, GYODER said. Sales to foreigners constituted 12.8 percent of total sales, more than double the 6.1 percent registered in the first quarter, it said.