In this period when buying a house is becoming more difficult and landlord-tenant fights are increasing, it seems like there is literally "no place to stay" for citizens.
While new houses cannot be produced, existing houses are becoming increasingly distant from citizens due to exorbitant prices.
The housing crisis that Turkey is stuck in is deepening in every aspect. In this period when buying a house is becoming more difficult and landlord-tenant fights are increasing, there is also a negative atmosphere on the investment side of the housing market. According to TÜİK's August housing sales statistics, housing sales decreased by 1.1 percent compared to the same month last year, falling to 122 thousand 91.
Things are getting worse in the housing market, where there was a 15.5 percent decrease compared to the January-August period last year. The government's negligence in the construction sector and housing market, which it has been laxing for years, and mistakes in economic management have ignited the housing crisis.
Economists who spoke to Milli Gazete explained the mistakes made and explained future expectations.
“HOUSE SHOULD NOT TURN INTO AN INVESTMENT INSTRUMENT”
Economist Oğuz Demir stated that in the housing crisis, the production side of the business should be considered first.
"In the past, a large part of Turkey's investment went to housing due to high demand and low interest opportunities. That's why housing prices went up rapidly. Therefore, we experienced a period in which prices increased tremendously at a time when the demand for housing increased. Now, when you look at it from the perspective of someone who wants to buy a house, let's say he found a house to buy at a low price in a high price environment, if he takes out a loan this time, his repayment will be high. As a result, there has been an imbalance on both the supply and demand sides of the housing market in the last 2 years. When housing became an investment tool throughout Turkey, people with money bought 4-5 houses. But housing is a right, housing should not have turned into an investment tool," he said.
Oğuz Demir pointed out the problems in economic management and said, "In an environment where the financial system is also bad, not a single leaf is moving anymore due to the crisis in the housing market. I foresee that this stagnation in the housing market will continue with the government's current interest policy. Social housing projects and low-interest loan opportunities are being discussed to solve the housing crisis. We do not know under what conditions this will happen. If these plans are implemented effectively, there may be a boom in low-priced housing. However, as we said, I do not think there will be much activity in this environment in the next 6 months and 1 year. On the other hand, the repayment of low-interest housing loans will be very high. Because housing prices are very high and the interest burden is not at a proportionally affordable level."
“THE INVESTORS WERE NOT GIVEN ANY OTHER OPPORTUNITY”
Housing expert and economist Hatice Kolçak emphasized that mistakes in economic policies increase housing prices and said, "The rise in production costs and the fluctuation in the exchange rate also had an impact on housing prices, but when we go back to the past, we encounter the problem of 'cheap loans'. With the start of cheap loans given in 2020, housing prices started to hit the ceiling. The fuse of the housing problems we are experiencing now was ignited during that period. Demand was increased with interest rates such as 0.69 and 0.79. Later, during the high inflation process that started in 2021, investors turned to housing. The investor was left with no other opportunity. The reason for the activity in the housing market from 2021 to mid-2022 was investors, not people in need. Later, as investors' interest turned elsewhere, housing prices remained at exorbitant levels and now we are facing a crisis."