It is widely considered that the real estate sector is facing a credit crunch. Most of the companies in the construction sector, which is the locomotive of the economy, accept that the boom in land prices as well as the increase in the prices of iron, cement and steel have led them to experience tough times. The companies claim that there will be a drastic rise in house prices soon.
Prices in the secondhand house market have dropped by 30 percent, which means that an apartment that was worth YTL 200,000 ($326,744) can be purchased for less than YTL 150,000 ($122,529) in cash. “One of our customers who bought an apartment for $185,000 in 2005, awaits to sell the same flat for $170,000 today,” said a real estate agent.
“The real estate sector will pick up in September as usual even though it is in stagnation at present,” said Nabi Cücük, chairman of Reha Medin Real Estate Agency.
The sale of more luxurious apartments, which are called A and A Plus, did not experience a negative trend in the last two years. There are apartments for each income group. Prices start from $50,000-60,000 and go beyond millions of dollars.
