Alarm Bells Are Ringing for the Housing Sector: A Situation Similar to 2018 May Occur

Imbalance Between Housing Prices and Demand

Ferhat Keten stated that housing prices are at a high level compared to world averages and said, “There is not enough demand to finance housing projects.” Keten stated that the inflation in Turkey has made the situation in the housing market difficult and the price increases have made buying a house even more difficult.

Housing Problem Turning into a Crisis

The housing problem experienced throughout the world and the serious increases in rental and sales prices are also felt in Turkey. Keten said that after the earthquake last year, the demand for transition from old buildings to new buildings increased, and this affected rental and sales costs. Linen, “At the end of the day, in a period where there is no financing and sales are quite limited, many projects are starting, but there is no demand for housing to finance it. We are entering a complex period,” he said. he said.

Precautions for Developers

Keten Group President stated that it is essential for developer companies to make long-term cash flow plans in this difficult period. Reminding that similar crises experienced in 2018 could take a long time due to legal disputes, Keten warned that such risks may increase in the next 1-2 years. Keten emphasized that sector representatives and investors should be careful and drew attention to the importance of taking precautions before the crisis.