Altıntürk Investment Chairman İsmail ALTIN, evaluates the last year in the Real Estate Sector.
The construction sector prepares to close the year
Perhaps one of the worst hit sectors from the Covid 19 pandemic, construction sector, is at a critical juncture for our country’s economy, with its economic performance and employment for job seekers of all educational levels.
The construction sector, which showed a pessimistic picture due to the pandemic in the first quarter of 2020, recovered thanks to a change in interest rates initiated by the state bank, and currently has a favorable outlook for the rest of the year.
The company beats its previous records
Home loan sales, which totaled 14,348 units in July 2019, increased by 1,000 percent in July 2020 to 141,434 units thanks to a package of concessional housing loans organized by state banks. Thus, the highest monthly mortgage sales were achived. According to the General Directorate of the Land Registry of Turkey, 1 billion 428 million 968 thousand liras were earned from the sale of real estate on credit to the treasury.
As we can see, thanks to the campaign organized by the state banks, the construction sector has taken a big step forward and the state has received large revenues. After the end of the campaign, we see that there is a monthly decrease in home sales according to Tüik. At the time of this writing, Tüik has announced the latest October sales. According to this statement, we see that in October 2020, home sales were down to 16.3 percent and mortgage sales were down to 49.3 percent from the same month of the previous year.
By the end of the year, new government support sets another industry record
Last year, 1,348,729 houses were sold in our country. This year, the total sales for the 10 months from January to October reached to 1,280,852.
In other words, it is necessary to sell 68 thousand more properties than last year. To surpass the historic 2017 sales record of 1 million 409 thousand 314 units, it is necessary to sell 128 thousand objects in two months. The government knows much better, but as someone who has worked in the industry for almost 25 years, I believe that organizing a new campaign of support from the state will be very useful for the industry and our country.