May 18 2018

Turkish home sales drop for third month

Turkish sales of homes dropped 9.9 percent on a yearly basis in April as mortgage lending slumped.

It was the third month of decreases, according to data published by the Turkish Statistical Institute on Friday. Sales made via mortgage lending slid 36 percent, it said. Just six homes were sold in the southeastern city of Hakkari.

Turkey’s housing industry is under stress after interest rates surged amid a slide in the lira to a record low and as inflation remained in double digits. The government is seeking to revive the industry with tax cuts and reductions in interest rates on mortgages charged by state-run banks.

Home sales to foreigners increased an annual 26 percent, the institute said. Purchases by citizens of Iraq, Saudi Arabia, Kuwait and Iran led the growth.

The construction industry has spurred economic growth in Turkey over the past decade. Many of President Recep Tayyip Erdoğan’s closest business allies have become increasingly involved in the sector. House builders have begun offering discounts on prices and borrowing rates to offload stock.

Turkish homes sales
Turkish homes sales. (Source: Turkish Statistical Institute)