In comparison to February 2023, there has been a nationwide increase of 17.33%, 17.43% in Muğla province, and 13.99% in Bodrum in terms of sales quantities. Similarly, compared to the preceding month, Turkey witnessed a growth of 16.93%, Muğla province exhibited a growth rate of 39.00%, and Bodrum specifically showed a growth rate of 32.52%. The upward trajectory in housing prices, which commenced during the pandemic, concluded with a decline over the past 11 months. However, the sector, which experienced a downward trend for 12 consecutive months, demonstrated an increase for the first time this month, signaling a potential reversal.
Anticipations include a 500 basis point increase in the policy interest rate at the third meeting of the Monetary Policy Committee (MPC) of the Central Bank of the Republic of Turkey (CBRT) in 2024. Despite fixed returns on deposit interest rates, some buyers opt to assess short-term uncertainties, at least until the elections, utilizing deposit interest rates.
Rising prices, limited credit access, high interest rates, and credit constraints contribute to a demand-supply imbalance among consumers. The impact of interest remains relatively low at around 9.4% for mortgage sales.
Demand-price imbalance persists due to sellers indexing their prices to foreign currency, leading to constant increases in list prices and challenges in credit accessibility. Particularly in our micro-region, investment-driven purchasing is nearly absent.
According to housing sales data released by TÜİK (Turkish Statistical Institute), the average decline in sales volume over the past year implies an expected decrease in prices due to decreased demand. However, reasonably priced products continue to attract buyers in the market, contrasting with a decline in inflated-priced products reflecting the rise in construction cost index. Foreign sales remain limited nationwide, totaling only 1800 units, insufficient to stimulate the market. Property owners intending to sell should ensure their products are among the top 3 correctly priced items in the market to facilitate sales, given the current market conditions.
In our Regional Directorate, the price difference between exit and closing figures in transactions conducted in February was approximately 9.3%. Buyers looking to position themselves ahead of post-election scenarios persist in making purchases. Prospective buyer candidates are advised that real estate remains a secure asset in the long term.
In the present market, where return rates on interest rates, belief in currency stability, and stock market attractiveness persist, the micro-region, with its diverse social and financial advantages, will continue to offer benefits to Bodrum buyers, enhancing Turkey's lifestyle allure.
Shelter remains a fundamental human need, prompting buyers to make purchases despite market constriction in Turkey, seeking competitively priced products to hedge against inflation. Deposit interest rates fail to protect money from inflation erosion, prompting believers in tangible assets to invest in inflation-resistant real estate.
A comparison of the first two months to the previous year reveals a continued decline in quantities.
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