Increase in Housing Prices in Konya

24 Aug 2021
Increase in Housing Prices in Konya

Total house sales in Turkey in May increased by 16.2 percent compared to the same month of the previous year and became 59 thousand 166. This increase is mainly based on the base effect. Last year because of the restrictions for pandemic such as lock-down and travel bans last year, the housing sales figures in April and May hit the bottom. While the number of houses sold for the first time in the first five months of this year was 127.786, the share of second-hand sales in total sales was 69.4 percent.
Housing Prices in Konya
Housing prices in Konya increased by 32.7 percent annually. Flatfly, global house searching platform, declared the report which they have prepared upon local housing prices in Turkey. According to this report, the on –sale housing prices increased 31.7 percent in Selçuklu province. The average prices of houses with four rooms is 336.500 TL in Selçuklu in May. While the prices of flats for sale in Karatay increased by 33.2 percent compared to the previous year, the average sale price for 4-room flats in May was 314,500 TL. Housing prices in Meram increased by 26.9 percent in the last year. The average price of 4-room flats in Meram in May is 335,000 TL. The housing prices increased 45,3 percent in Akşehir last year. The average price of 4-room flats in Akşehir in May is 341,250 TL.
The prices of flats for rent in Konya increased by 14,0 percent last year. The highest increase was recorded in Beyşehir. Rental house prices in Beyşehir increased by 28.5 percent compared to the previous year. While the prices of rental houses in Selçuklu have increased by an average of 12.5 percent in the last year, the annual rate of increase in rental house prices in Karatay has reached the level of 17.0 percent. Meram rental house prices increased by 10.0 percent compared to last year.
Numbers of House Sales in Konya
Total house sales in Konya in May increased by 25.2 percent compared to the same month of the previous year and became 1565. Mortgaged house sales in May decreased by 54.4 percent compared to the previous year and amounted to 165. The share of mortgage sales in total housing sales in Konya was 10.5 percent in May.
Within the scope of other sales types, a total of 1,400 houses changed hands in Konya in May and increased 57.7 percent compared to the same month of the previous year. The number of new houses sold in Konya increased by 8.0 percent in May compared to the same month of the previous year and became 491. The rate of the new house sales is 31.4 percent in the total house sales numbers. In second-hand house sales, 1,074 houses changed hands in May.
In the first five months of the year, the total number of houses sold in Konya decreased by 3.8 percent compared to the same period of the previous year and decreased to 10.142 units. Mortgage housing sales decreased by 65.6 percent compared to the same period of the previous year and became 1,077. While the number of new houses sold in Konya in the January-May period was 3.186, this figure indicated a decrease of 11.2 percent.
While the number of the houses sold in Konya in 2019 was 34.614, it reached to 37.196 by increasing 7.5 percent in 2020. While new house sales were 14,664 in 2019, this figure decreased by 10.9 percent to 13,69 in 2020. Mortgage housing sales in Konya amounted to 11 thousand 285 units in 2020. Selçuklu had the highest house sales rates last year. 15.238 house were sold in Selçuklu last year.
Investments in Housing
Istanbul, Izmir, Bursa and Ankara were in the first four places in the list of the number of buildings for which construction permits were given last year. The number of buildings granted construction permits in the first quarter was 3.095 in Istanbul, 2.390 in the second place, 2.199 in Muğla, in the third place, and 1470 in Antalya, in the fourth place. The number of building permits issued in the first quarter increased by 270 percent compared to the previous year, and Sakarya became the city with the highest increase in the number of building permits. While the number of building permits issued in Muğla in the first three months of last year was 692, this year the number of licenses increased by 217 percent to 2,199. With this increase rate, it ranked third after Istanbul and Izmir in the number of building permits for the January-May period. Antalya, another coastal city, is among the cities that are among the top in the number of building permits issued. The cities on the coast line attracted the attention with the increase in the number of building permits. Because of the pandemic conditions, many families, living in the cities, preferred to leave their lives behind and live in coastal areas. The demand for residences in the coastal areas rose so much that the prices of both rental and sale houses increase. However, the residences in these areas were sold so quickly and easily. The builders, who does not want to miss the chance, started to build new houses in these coastal cities. In the same period, the number of  building permits for detached houses increased 201.8 percent.
Costs of Building
The construction cost index announced by the Turkish Statistical Institute had increased by 25 percent annually throughout 2020. As of April, the construction cost index increased by 35,5 compared to the same month of the previous year. It is seen that the increase in construction costs continues with the ongoing loss in value of TL. For this reason, it is foreseen that, the rise in the building prices will continue because of the costs.

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