Significant increase in house sales – Latest Economy News

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Housing sales across Turkey increased by 16.2% in May compared to the same month of the previous year and became 59 thousand 166. Istanbul had the highest share in house sales with 11,356 house sales and 19.2%.

According to the number of sales, Istanbul was followed by Ankara with 5 thousand 653 house sales and 9.6% share, and İzmir with 3 thousand 298 house sales and 5.6% share. The provinces with the lowest number of house sales were Ardahan with 7 houses, Hakkari with 11 houses and Bayburt with 26 houses, respectively.

MORTGAGE SALES DECREASED

According to the statement made by the Turkish Statistical Institute, mortgaged house sales in Turkey in May decreased by 42.9% compared to the same month of the previous year and became 10 thousand 560. The share of mortgaged sales in total house sales was 17.8%.

Istanbul ranked first in mortgage sales with 2,210 residential sales and a 20.9% share. While there were no mortgaged house sales in Hakkari and Şırnak provinces, 1 mortgaged house was sold in Ardahan.

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Significant increase in home sales

48 thousand 606 HOUSES CHANGED HANDS

Other house sales increased by 49.8% in Turkey in May compared to the same month of the previous year and became 48 thousand 606. In other house sales, Istanbul ranked first with 9,146 house sales and a share of 18.8%. The share of other sales in total house sales in Istanbul was 80.5%. Ankara ranked second with 4,277 other house sales, followed by Izmir with 2,560 house sales. The province with the lowest other house sales was Ardahan with 6 houses.

18 thousand 204 residences were sold for the first time

The number of houses sold for the first time in Turkey increased by 8.0% in May compared to the same month of the previous year and became 18 thousand 204. The share of the first sale in total house sales was 30.8%. On first sales
While Istanbul had the highest share with 3 thousand 153 house sales and 17.3%, Istanbul was followed by Ankara with 1156 house sales and İzmir with 858 house sales.

Significant increase in home sales

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40 thousand 962 HOUSES CHANGED HANDS IN SECOND HAND

Second-hand house sales across Turkey increased by 20.2% in May compared to the same month of the previous year and became 40,962. In second-hand house sales, Istanbul ranked first with 8 thousand 203 houses and a share of 20.0%. The share of second-hand sales in total house sales in Istanbul was 72.2%. Ankara ranks second in second-hand house sales with 4,497 house sales.
İzmir followed with the sale of 2 thousand 440 residences.

Significant increase in home sales

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DECREASED 3.8% IN JANUARY-MAY PERIOD

In the January-May period, house sales decreased by 3.8% compared to the same period of the previous year to 418 thousand 79, while mortgaged house sales decreased by 54.3% to 75 thousand 290, and other sales types increased by 27.0% to 342 thousand 789. In this period, first-time houses sold decreased by 8.2% to 127 thousand 786, second-hand housing sales decreased by 1.8% to 290 thousand 293.

1776 HOUSING SALES TO FOREIGNERS WERE REALIZED

Housing sales to foreigners increased by 106.5% compared to the same month of the previous year and became 1,776. In the housing sales to foreigners, Istanbul took the first place with 818 sales in May. Antalya was followed by Antalya with 341 house sales, Ankara with 106 house sales, Mersin with 80 house sales and Sakarya with 75 house sales, respectively.

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Significant increase in home sales

IRAQ CITIZENS RANK FIRST

In the January-May period, house sales to foreigners increased by 24.9% compared to the same period of the previous year and became 15 thousand 740.

In May, Iraqi citizens bought 239 houses from Turkey. Iraqi citizens were followed by Iran with 231 residences, Russian Federation with 119 residences, Afghanistan with 98 residences and Germany with 87 residences, respectively.

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Real estate developer: 20% increase in real estate prices… and two reasons for not being satisfied

05:30 AM

Wednesday 09 June 2021

Books – Mohamed Abdel Nasser:

Mohamed Khaled Al-Assal, CEO and Managing Director of Misr Italia Real Estate, said that real estate prices will witness an increase during the coming period, at a rate ranging between 15% to 20%, for several reasons, the most important of which is the recent rise in building materials prices, and the increase in purchasing power during the second half of 2021.

Al-Assal added, in exclusive statements to Masrawy, that the decline in bank interest and investment certificates will increase investment in real estate, and thus increase the demand for purchase, which makes prices rise.

He stressed that the rise in real estate prices will be more tangible at the beginning of next year, pointing out that the company has not announced the implementation of any price increase during the remainder of 2021, and the increase will take place from the beginning of next year.

And about the Central Bank’s new initiative for real estate financing, Al-Assal said that the companies that will benefit from this initiative that have a stock of fully finished units, which were not sold in previous periods.

He continued: The terms of the initiative do not apply to any of our units, as all units are sold before their implementation, and the unit price limits exceed the prices in the new initiative, which amount to one million and 400 thousand.

He pointed out that the price per square meter in the Vinci project in the New Administrative Capital recorded 13,000 pounds during the current period, which is witnessing the launch of two new phases of the project.​

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Mortgages for millionaires: why buyers of expensive housing take loans :: Money :: RBC Real Estate

If in budgetary segments mortgage is the main or even the only available tool for solving the housing issue, then in premium it is one of the alternatives that they use so as not to withdraw money from their own business.

Mortgages are very popular among homebuyers in the mass segment, but there is also an increase in demand for home loans among wealthy borrowers. And if the average size of a mortgage loan in Russia is 3 million rubles, then in expensive segments we are talking about an amount ten times higher – loans can exceed a billion rubles.

We will tell you why wealthy people take out a mortgage and how long it takes to pay it off.

Demand for mortgages in the expensive segment

The general decline in mortgage rates, which took place in 2020, had an impact on all segments of the housing market, including expensive new buildings, prices for which start from 500 thousand rubles. for 1 sq. m. According to Savills analysts, the share of mortgage transactions in the premium new construction market in Moscow in the first quarter of 2021 was 26%. For comparison, in the first quarter of 2020 and 2019, this indicator was at the level of 18%.

Knight Frank experts also note the increase in mortgage transactions among buyers of expensive real estate. “Previously, the share of mortgage loans in the high-budget segment was insignificant, but it is increasing every year. Now the premium class market has begun to grow due to the addition of a new supply, and at the moment the share of mortgage loans reaches 30%. The indicator is lower in transactions with elite real estate, as well as the number of buyers, ”said Andrey Solovyov, regional director, director of the city real estate department at Knight Frank.

Interest in mortgages among wealthy buyers is also noted in Sberbank. According to the press service, in January – May 2021, the bank issued three times more mortgage loans from 50 million rubles than a year earlier: 2.5 billion against 875 million rubles. The share of such loans in the bank’s total mortgage portfolio remains small – 0.2%.

The number of transactions in the expensive segment of housing is in the tens and hundreds, and not thousands, as in more affordable segments. According to Savills, in the first quarter of 2021, 308 transactions were concluded in premium new buildings in Moscow, of which about 80 were mortgage.

Maximum Mortgage Loan Amounts

Large mortgage loans, the amount of which is several times higher than the market average, are extremely rare, since buyers of such real estate usually have the opportunity to do without borrowed funds. According to the Equifax credit bureau, large loans are a fraction of a percent in the total volume of mortgage loans. Nevertheless, in 2021 there were mortgage loans for 50-75 million rubles, issued traditionally in the Moscow region.

The maximum mortgage loan issued in 2021 was 390 million rubles, and the historical record among individuals was 1.9 billion rubles, RBC-Real Estate reported in the United Credit Bureau (OKB). If in the first quarter of 2020 168 mortgage loans were issued for which the collateral exceeds 50 million rubles, then in the first three months of 2021 – 280 (+ 66%), the OKB calculated. The share of such loans remains insignificant – 0.05% in the first quarter of 2020 and 0.07% in the same period of 2021. About 63% of mortgage loans with collateral of 50 million rubles or more. issued in Moscow, another 7% – in St. Petersburg.

Don’t want to take money out of business

If in more budgetary segments the mortgage is most often the main tool for solving the housing issue (the borrower cannot accumulate the entire amount, but can accumulate an initial payment), then in the premium segment it is often unprofitable for the buyer to use his own funds (for example, to pull them out of the business). “It is more profitable for businessmen to buy housing on credit at a low interest rate than to withdraw money from business, where the profitability is higher. In addition, VIP clients of some banks can take advantage of special conditions and programs that allow them to lower the base rate, ”explained Andrey Soloviev from Knight Frank.

Often, a mortgage in the high-budget segment is taken if the buyer liked the apartment, but at the time of purchase there is no full amount of free money, the expert added. The option of buying inexpensive compact housing for investment purposes is also popular – for rent or resale.

The maximum mortgage loan in 2021 was issued in the amount of 390 million rubles, and the historical record among individuals was 1.9 billion rubles.

The maximum mortgage loan in 2021 was issued in the amount of 390 million rubles, and the historical record among individuals was 1.9 billion rubles.

(Фото: fizkesshutterstock)

Take a mortgage for 18 years, pay off in two years

The main feature of mortgages in high-end segments is that wealthy borrowers pay off mortgages much faster than buyers in comfort or standard classes. Knight Frank estimates that the average maturity of a mortgage loan in the high-end segment is two to five years. For comparison, according to Dom.RF, the average mortgage maturity in Russia is seven to nine years.

“Borrowers in the premium segment, as a rule, seek to repay loans ahead of schedule, using bonuses, premiums or the sale of other real estate,” said Knight Frank, director of the city real estate department. According to him, the banks themselves are quite flexible in issuing such mortgages and are ready to provide loans at low interest rates.

The average term of a mortgage transaction on the market for elite new buildings in Moscow is now 216 months (18 years), but it is often canceled within five years. Usually, when a house is put into operation, the borrower is already trying to completely close the loan, which is about two to three years, confirmed Anatoly Dovgan, director of the Savills Market Monitoring and Evaluation Department in Russia.

According to Savills, the average budget for a mortgage deal among buyers of premium new buildings in Moscow is RUB 65 million. For comparison, the average size of a mortgage in Moscow is 6.5 million rubles, or ten times less. “We considered organizing a mortgage transaction for a client who chose an apartment worth 350 million rubles. He had individual conditions from banks, but in the end he decided to buy with his own funds, ”Anatoly Dovgan said.

Another feature is that wealthy borrowers tend to make a large amount of the down payment: from 30% and more. According to Knight Frank, the average deal budget in the first quarter of 2021 in new premium class buildings was RUB 77 million. (+ 24% per year), and in the deluxe class – up to 197 million rubles. (+ 17%). That is, the amount of the initial payment is from 20 million rubles.

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