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Turkey introduces unconventional way to control property prices

They create a special investment fund to increase housing supply

Май 30, 2024 13:21 161

Turkey introduces unconventional way to control property prices  - 1

The strong inflation that has hit Turkey in recent years has had a detrimental effect on real estate prices. For this reason, the Turkish authorities intend to create a special investment fund. Its goals are twofold: to increase the supply of housing and to help lower the prices of this real estate asset.

„With this investment fund, we will contribute to the financing of the city's transformation, as well as increase the housing budget," said the former Minister of Finance, Mexmet Shimsheĸ.

With this unconventional measure, the Turkish authorities are of the opinion that they will be able to control the non-market growth of apartment prices and rents and thus become affordable again for a wider range of people.

In 2022, Turkey introduced a price cap as a result of a significant increase in housing rents, but the desired result was not achieved. Last summer, market participants witnessed a drastic jump in monthly rent. Prices per square meter of living space also saw a significant increase. People with low and even middle incomes who wanted to buy a new home suffered the most. As of May 2023, the growth of offer prices on an annual basis reached a record 101%.

Sales prices also recorded growth, with the highest being in Antalya and the neighbors of the famous Turkish resort of Burdur and Isparta – 195%. In Odpin, Teĸipdag and Kĸlapeli, the increase is 174%, and in Izmir – 170%. B Anĸapa and Istanbul housing also continue to increase significantly in price.

You can see detailed statistics on average property prices in Bulgaria by cities and neighborhoods HERE