Op. Dr. Kenan Kalı, Chairman of Gözde Group, called the Central Bank’s rate cut merely a first step and predicted further reductions, stating: “Parallel to the rate cuts, home prices will start climbing over the next few months.”
Kalı advised would-be buyers to act within the next two months, stressing that the upward trend in housing prices will accelerate with the arrival of autumn.
Because bank deposits have recently offered high real returns, investors have kept their savings there, Kalı noted. “Now it’s time to turn those deposit earnings into investment. By the end of summer, investors will see that housing prices have risen sharply. Housing stock has dwindled, and the Central Bank’s decision has already set price increases in motion. Anyone planning to buy should make the most of the coming two months, if they can. Prices will remain somewhat attainable when schools open in autumn, but buying will become far harder in winter. Budgets will no longer stretch to new builds. Developers themselves face extremely high construction costs. As demand rises, homes will be listed at increases approaching 40 percent. By the end of 2025, a home priced at 6 million TL today could reach 8 million TL. The most favorable moment to buy is now; tomorrow’s prices will be higher than today’s.”
“Floor Areas Must Shrink”
To make homes more affordable, unit sizes must decrease, Kalı argued:
“We’re not the world’s richest country, so we must plan our housing expenditure carefully. I don’t think it makes sense for two people to live in a 200-square-meter apartment; it’s wasteful. People should choose smaller homes that meet their needs. Small units will attract more demand in the future because they’re easier to buy, sell and rent—and their running costs are lower. Occupancy is about 98 percent for small units, but can fall to 65 percent for large ones. On the same plot, build 170 homes instead of 100 so that 170 families find shelter. Housing is one of Turkey’s most pressing problems. We must stop pouring money solely into concrete and invest more in technology and informatics.”
“TOKİ Should Also Produce Land for Affordable Housing”
Land costs are another major factor driving up prices, Kalı said:
“Turkey espouses a social-state model, and the government is already active on land issues, producing a significant number of homes through TOKİ. However, TOKİ should also produce land and release it to the sector. Suitable new plots should be opened on Treasury land. Around half of the cost of a home comes from the land. Half of the country’s existing housing stock also needs redevelopment. After the earthquake, construction and labor costs soared. Turkey has some of the world’s highest land prices. Continued investment to close the housing gap is essential for our country. As Gözde Group we’re building simultaneously at seven locations in İzmir. I have great confidence in our nation’s dynamism; we kept investing even when sales were at their lowest. We see this not only as business, but as a social responsibility.”