Turkish homebuyers in wait-and-see mode

Potential homebuyers in Türkiye currently are taking a wait-and-see approach, anticipating that banks will eventually turn on the credit taps after the May 14 elections.

As demand has weakened, some property owners are reducing their asking price in an attempt to find a buyer.

Prices of houses offered on the market for sale have declined by 5 percent, daily Milliyet reported.

People are increasingly turning to gold and foreign currencies as safe investments instead of property, which also led to a decline in house prices in the market, according to people from the industry.

Those who currently buy houses are betting that prices will skyrocket after the elections.

"The situation of pent-up demand in the real estate market ahead of the polls is not unusual. People want a predictable market," said Nazmi Durbakayım, the president of the Istanbul Constructors' Association (İNDER).

Still, there is a supply shortage, he added. "Even if a potential buyer finds a house, access to bank credit is very limited, and interest rates on housing loans banks offered are high," he explained.

It is not a question of who will win the elections, said Hakan Akdoğan from a real estate consultants' association. "People just wait for the elections to be over. This is the case not only for potential buyers but also developers."

Home sales in Türkiye plunged more than 21 percent in March from a year ago to 105,476, while mortgage-financed sales fell 16.5 percent.

In the first quarter of 2023, more than 283,000 homes were sold in Türkiye, pointing to an 11.5 percent decline from a year ago.