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فارسیStating that 2020 will be a year of balancing in the sector, Housing Investment Experts pointed out that with the melting of stocks, the prices will tend to rise again over time and therefore the best time for real estate purchase is coming.
The crisis period, which has been going on for 3 years in the real estate sector, decreases its effect gradually especially with the discounts in housing and deposit loan interest rates. Indicating that 2020 will be a year of balancing in the sector, Luxury Housing Specialist Sühran Aras pointed out that with the melting of stocks, prices will tend to rise again in time and therefore the best time for real estate purchasing is coming.
Securing in the sector with the new Regulation
“The sector has experienced a very serious crisis period in the real estate sector starting from the end of 2016 and until the 3rd quarter of 2019. Besides the crisis and election processes in the economy, the projects that our contractors unconsciously took place. The Ministry of Urbanization issued a regulation on the classification and registration of building contractors, and contractors who met the criteria specified in this regulation were told that job opportunities would be created in the sector and only those who met these conditions could enter the auctions. Unfortunately, the companies that did not have the accumulation of knowledge caused this. With this regulation, strategic planning and profitability targets, which can now make the right risk analysis, The companies that make it right will survive, so we are entering 2020 with these companies, so I think that the confidence index in the sector will be raised again.
Decrease in mortgage loan interest rates may continue
It should be emphasized that discounts on housing loan rates and decreases in deposit loan rates have fueled the real estate sector. We started to see the effects of this from the 3rd quarter of 2019. In the last quarter, sales began to catch up with last year’s levels. Therefore, I think that we will enter the year 2020 more comfortably with these incentives and supports provided by the state. However, as of December 31, 2019, the reductions in the rates of Deed Fee and VAT will end. My prediction in this matter is that it will continue with these two discounts. Because the real estate sector is one of Turkey’s leading sectors and within 250 embodies the side branch. Therefore, this sector should not stop and should not be interrupted. Likewise, I think that new discounts will continue in housing loan rates and deposit rates. Previously, only state banks Vakıfbank, Halkbank and İşbank had reduced to less than 1%, but recently, with the decrease in interest rates of private banks to less than 1%, a serious movement started in the sector. With the dollar remaining stable, buyers who follow a wait-and-see policy are on the market and are buying.
Approximately 121,000 real estate owners in Istanbul will pay Valuable Housing Tax
The only factor that can have a negative impact on the investors in the sector at present is the new Precious Housing Tax. As it is known, the state will tax every year from real estates with a value over 5 million TL. This will affect the luxury housing segment very seriously. There are some tax rates to be charged here. Those who have an immovable property in the 5 million – 7.5 million TL band will pay 3 per thousand, those in the 7.5 million – 10 million TL band will pay 6 per thousand, and those in the 10 million will pay 10 per thousand. There are approximately 121,000 of properties that meet these standards in Istanbul. The state will follow this matter as follows. Real estate valuation departments affiliated to the land registry offices will be established and they will implement the housing market tracking system within their own body. These boards will bring the value of all real property in Turkey map. According to these maps, these taxes will be collected on a regular basis every year from apartments over 5 million TL. The application will start with the declarations to be made in February 2020. These payments will take place in February and August each year in two equal installments.