Property in Turkey Still Dominated by Cash Buyers
Property in Turkey is still predominantly purchase without mortgage finance new figures from the Turkish Land Registry General Directorate show. The data confirms that of just over 1.1 million property transactions in the first three quarters of 2009, 85% were cash transactions. Only 15% of purchasers chose to use a property loan/mortgage.
Robert Taylor of Overseas Network suggests that there are even more cash purchasers in the coastal areas. "Our data would suggest that as few as 1 in 25 buyers of property in coastal areas of Turkey use mortgage finance. We do however expect this to increase in the coming two to three years. The combination of lower property prices, lower interest rates and increased rental demand for property in coastal areas of Turkey will make it mortgages more attractive."
The figures from the Land Registry General Directorate echo these comments; the data shows that the highly populated areas of Istanbul, Ankara and Izmir have the highest take up rates on property finance ranging from 28 to 33% of all transactions.
It is also widely expected that 2009 will have had more property transactions than any other recorded year in Turkish history. "2008 saw just over 1.3 million transactions but the first three quarters of 2009 saw over 1.1 million property transactions. It is not unreasonable to expect that 2009 will have broken previous records," Taylor added.
The expected increase in availability of mortgage finance for properties in Turkey in the coming years is expected to change the number of buyers opting for it. However, it will still be a long time before buying property using a mortgage becomes the cultural norm in Turkey.
Overseas Network specialise in the sale, management and rental of property in Turkey. For more information visit www.overseas-network.co.uk
News item created: 23.2.2010