The latest data from the Turkish Statistical Institute (TurkStat) showed that home sales in December 2021 rose by almost 114% year-on-year to 226,503 units, while during 2021 sales reached a total of 1.49 million units, the second highest annual sales figure ever.
Strong consumer demand for homes is prompting construction companies to launch new projects to build thousands of homes this year, Hurriyet said. With strong demand, companies that previously went on hold due to rising costs and the adverse effects of the COVID-19 pandemic are now gearing up for a number of billions of Turkish lira projects in 2022 to take advantage of real estate demand.
Demand for homes has skyrocketed because people have turned to buying real estate, which they consider a safe investment, the publication points out. These investments are expected to address the current supply problems in the housing market.
Turkey needs 700,000 to 800,000 houses each year, but in recent years, housing supply has fallen far short of demand, said Nazmi Durbakayim, head of the Istanbul Contractors Association (INDER). Some potential homebuyers have shown pent-up demand in recent months, he said, adding that the number of homes currently under construction is insufficient.
In addition, he stressed that consumer demand for real estate has increased since last November, and demand is likely to continue in 2022 as exchange rates stabilize.
However, companies that have acted very cautiously over the past three years intend to invest in 2022, according to Altan Elmas, chairman of the Association of Home Developers and Investors (KONUTDER).