Pointing out that the real-estate sector is experiencing stagnation, FCTU Chair Gülçin Bekem notes that this lull is putting downward pressure on both sale and rental prices.
Bekem says rents for residential and commercial spaces should, in principle, rise faster than CPI, yet the rents set this year remain lower because of current market conditions.
Gülçin Bekem explains: “People’s purchasing power has a limit—both for rents and for purchases. Posting properties at prices above their real value makes no sense; such homes simply don’t rent or sell. Therefore, a balance has to be struck between supply and demand, and that has suppressed both rent and sale figures. Year on year, rents have risen by at most 25–30 percent, while selling prices have increased by even less.
There is no shortage of rental housing. On the commercial side, some businesses have moved to smaller offices or shops, or else have closed down. Occupancy rates in commercial properties have fallen from about 90 percent to 70 percent this year. High interest rates have made it hard to obtain loans, so people are not as eager to buy as before; investors prefer second-hand homes in the 5- to 8-million-lira range.”
Every District Now Has an Alternative
Bekem observes that certain districts close to İzmir’s centre are seeing stronger demand: “At the top of the list is Buca. It’s very close to the centre, and because land costs are lower, rents and home prices are more affordable, so it is preferred. The same is true for İzmir’s northern axis, namely Ulukent–Menemen. In fact, you could say that Buca has become an alternative to Gaziemir and Bornova, while Ulukent is an alternative to Karşıyaka. Torbalı and Ayrancılar have also been in vogue recently. In short, every district now has a nearby alternative.”
Hard to See Where the Market Is Heading
Emphasizing that political and economic developments worldwide are making it harder to see the future, Gülçin Bekem says: “Some political developments at home and abroad, and the ongoing wars overseas, are straining economies. The real-estate and construction sectors have also been affected. From this standpoint, it’s difficult to speak about tomorrow.
If we enter a period of stability and interest rates start to fall, the second half of the year will be more positive, which will invigorate the construction sector and the trades linked to it. Some construction firms with strong equity are continuing to develop projects and build. Continuous production is important for our country and its citizens.
When the markets ease and credit becomes accessible, it means there will be homes to buy. In our sector, companies and people who are well equipped, experienced and, most importantly, have a fighting spirit will continue to stand. In this business, being combative and keeping oneself motivated are as important as experience.”