Real Estate

Experts expect a 60% increase in house prices

Costs peaked in construction, which is one of the sectors most affected by the pandemic. According to the data of the Turkish Statistical Institute (TUIK), there was an annual increase of 42.13% in August. The index increased by 0.93% in August 2021 compared to the previous month. Construction materials constitute the largest share in costs. Experts expect a 60% increase in house prices due to rising costs. KONUTDER President Altan Elmas, who participated in the Emlak Hunter program published in A Para, said that the biggest reason for the increase in housing prices was the increase in construction costs.

COST INCREASED BY 100%

Noting that the construction costs have increased by 100%, Elmas said, “Iron, which was ₺7,300 last month, was ₺8,300 today. It was ₺6,700 2 months ago. When the consumer buys a house, they pay some cash in advance. We make 36 monthly installments with zero interest. Some interest rates may be high. But when the interest rates fall below 1%, housing prices increase by 30%.” Emphasizing that the supply in the market is very low and finding housing is a problem for the consumer, Elmas said, “I recommend projects that are under construction or close to completion to the consumer.”

INCREASES 4% EVERY MONTH

Noting that it is a suitable period for the consumer to buy a house, Elmas said, “In any case, the cost increases will be reflected in the price. There is a figure that needs to be reflected in the 60-65% cost in front of us. Of course, this is not a figure that can be reflected in 1 month, 2 months. From now on, the prices of the houses will increase by 5% every month.” Pointing out that the prices have increased by 4% on a monthly basis for the last 3 months, Elmas reminded that real estate prices in the world have increased by 20%.

2022 WILL BE THE YEAR OF PRODUCTION

Noting that 2022 will be the year of production in housing, Elmas said: “Next year, we may not see a project launch every day as in 2016-2017, but it will be a more reasonable period. The houses we all have are almost gone. There are licenses obtained. We will start offering them to consumers one at a time.”

Source: Sabah / Translated by Irem Yildiz

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