KPMG Turkey: Nationwide Housing Sales in Turkey Increased by Over 20% in Q3 2024
According to KPMG Turkey's report on the construction and real estate sectors in Turkey for the third quarter of 2024, housing sales across the country reached 402,000 units, reflecting an increase of 20.3% compared to the same period last year, while mortgaged sales surged by 87% compared to the same month last year. On the other hand, the housing price index saw a decline in real terms, and the number of housing loans disbursed decreased.
The "Construction and Real Estate Sectoral Outlook Report" prepared by KPMG Turkey indicates that the construction sector, which finished 2023 with a real growth rate of 7.2% in Turkey, is expected to maintain a positive growth trend in projections for 2024 and beyond as previously forecasted. Similarly, the infrastructure sector in Turkey, which recorded a real growth of 4.7% in 2023, is anticipated to continue growing in projections up to 2030.
Additionally, approximately 60.5% of companies operating in the Turkish construction sector stated in the third quarter of 2024 that there were no factors restricting their operations. Financial issues remain the primary constraint, accounting for an average of 30.8%, while insufficient demand followed with an average of 16.9%, maintaining its rank among factors limiting operations as in previous periods.
Commenting on the report, Savaş Görkem Yapan, the Sector Leader for Construction and Real Estate at KPMG Turkey, remarked, "The growth observed in the housing sector in the third quarter aligns with the current dynamics of the market, but the remarkable increase in mortgaged sales and housing loan usage clearly demonstrates the impact of economic parameters on the sector. Additionally, the declining housing price index in real terms indicates that some challenges still persist. During this period, financing issues and insufficient demand emerge as the main difficulties faced by the sector."
Increase in housing sales In the third quarter of 2024, housing sales in Turkey reached 402,000 units, reflecting a 20.3% increase compared to the same period last year. In September 2024, mortgaged sales and second-hand housing sales each increased by 87.4% and 33.1%, respectively, compared to the same month last year. Consistent with previous results, Istanbul remained the city with the highest housing sales, totaling 59,000 units, followed by Ankara with around 37,000 units and İzmir with approximately 21,000 units in the third quarter of 2024.
Decline in the housing price index As of the end of September 2024, the housing price index in Turkey stood at 148, indicating a nominal increase of 27.4% compared to the same month in 2023. However, the index turned negative in real terms as of February 2024 and maintained this trend, recording a decrease of 14.7% compared to the same month last year.
Decrease in the number of housing loans disbursed In the second quarter of 2024, the amount of housing loans disbursed decreased by 14% compared to the previous quarter, and the number of loans disbursed fell by 17%. The average size of housing loans was recorded at 945,000 TL, while the total balance of housing loans increased by 1% compared to the second quarter of 2024, reaching 405 billion TL.
Hotel occupancy rates also increased in the third quarter According to the report, accommodation facilities in Istanbul exhibited a similar occupancy rate of 62.6% in the third quarter of 2024 compared to the same period last year. In the Antalya region, the occupancy rate reached around 96%, driven by favorable climate conditions and high demand from both domestic and international markets. Nationwide, hotel occupancy rates increased compared to the previous quarter, reaching an average of 69.6% in the third quarter of 2024. The total tourism revenue for this quarter was approximately $23 billion, with an average spending of $1,001 per person.