Bridge, June 2021

When we analyze the annual housing sales figures, it is seen that the annual housing need of our country that cannot be delayed is1.350.000 (±10%). Approx. 1.500.000 houses were sold in 2020.

The increase in housing prices last year led to confusion among our people. Why prices increased so much in the pandemic, when we implemented lockdown measures even on our religious and national holidays, the question of whether housing prices will again increase began to occupy an important place in the minds of home buyers.

While the 2020 inflation within the scope of the pandemic was 14.60%, there was an increase of 30.44% in housing prices according to the housing price index.
It is observed that two main reasons were effective in the increase: the first one is the realization of the surplus housing production in the past years, change in the supply-demand balance in favor of demand due to the meltdown in the excess supply, the effect of which
we felt after 2016, while the second reason is that the increase in the construction materials and labor cost above inflation began to be reflected in the prices.

When we compare the GDP per capita and the Housing Price Index (HPI) data for the last 10 years, by taking the 2010 data as 100 basis points;
It is observed that both indices followed a parallel course until 2016, the increase in GDP per capita increased after 2016, the KPI values between 2016 and 2018 followed a more horizontal course compared to previous years, and there has been a rapid increase since 2019.