New Home Sales Hit Four-Year High: Prices Soar in Istanbul’s Core Districts

A New Era in Zero-Construction Sales

First‑hand housing sales surged to 221,487 units in the first half of the year, marking the highest level in four years; this can be attributed to earthquake concerns, high maintenance fees, energy inefficiency, and renovation costs, alongside competitive pricing.

Price Surge in Istanbul

In some central districts of Istanbul, two zero‑construction apartments can be purchased for the price of a 30‑40‑year‑old flat, signaling an unexpected uptick in housing demand.

Why Zero‑Constructs?

■Earthquake Concerns: Higher safety standards in risk‑prone areas drive investors toward secure builds.

■Maintenance and Energy Costs: New structures offer lower fees and better energy efficiency compared to older units.

■Renovation Expenses: Lower costs of refurbishment make zero‑construction more attractive.

■Housing Policies: State‑backed mortgage rates and incentives support zero‑purchase.

Investor Profile

■Young Families: Seeking first homes, they gravitate toward zero‑construction.

■Investors: Anticipating value appreciation and rental yields, they expand zero‑property portfolios.

■Foreign Investors: Interest rises in Istanbul’s central areas.

Market Implications

■Rising housing demand pushes real‑estate prices up, heightening the risk of tightening interest rates.

■The construction sector faces cost pressures from rising material prices.

■Housing‑credit demand increases liquidity needs for banks.

Dr. Aslıhan Demir: The rapid uptick in Turkey’s housing market demands a balanced growth strategy amid potential tightening of monetary policy. Reducing maintenance and energy costs could stabilize demand in the long run.