Property Prices Are Falling Because Of The Empty Houses

When urban buildings are reconstructed and the construction of new housing projects is underway, there is an increase in the density of residential real estate in the regions and the accumulation of excess. However, while the price of new real estate is declining, prices for other houses are also declining. In some areas of Istanbul, the decline in residential property prices reached 7%. 3% in Umraniye, 4% in Fikirtepe, 7% in Bakirkoy, 7-8% in Bahcelievler and 6-7% in Zeytinburnu.

Prices are also declining for real estate rental. Representatives of the sector say that the rental rates, which grew to 5 thousand liras last year, now amount to 3 thousand 500 lire. Pointing out that more and more zones are turning into a construction site, real estate agents criticize "so many apartments are built and to whom we will sell as many houses." In addition, sector representatives said that housing projects are sold at a high price, which makes access to property difficult.

According to the Istanbul Chamber of Commerce (ITO), house prices in Istanbul last month fell by 0.60 percent. The annual increase remained at the level of 7.28 percent.

TGM General Director of Trend Real Estate Hakan Erilkun said that the price reduction is both general and regional. Stressing that this should not mean that real estate sales are slowing, Erilkun said: "The excess supply led to the erosion of prices, as well as shares. This is a small fluctuation observed before rapid growth. "