Prices have fallen in regions where stocks and luxury home prices had increased with urban transformation in Istanbul. Especially in Anatolian side, housing sales and rentals fell in amount of 20 percent. According to experts, the supply-demand balance in housing has deteriorated.
In Istanbul, especially in the areas where intensive construction works are being done with the effect of urban transformation, and in luxury housing areas, residential sales and rental prices have decreased. Due to the number of houses is above the demand, the prices have fallen in amount of 20 percent.
The Reasons of the Fall in Prices
Experts attributed the fall in prices to 2 factors. First, as the urban transformation started, the people left their homes and looked for the temporary house. Demand increased and supply became insufficient. Of the moment, the people leave the temporary houses and begin to return the completed houses.
Artificial increases are also attributed the second reason to price decline. The projects that sold with pricing mistake are now forced to reasonable levels.
Çelik: “Surplus Property Are Accumulating in the Market”
President of Housing Development and Investors Association (KONUTDER) Ömer Faruk Çelik says that the supply-demand balance in housing has deteriorated: “Regardless of the supply-demand balance production was made with impunity in Fikirtepe, Bağdat Caddesi. As a result of this model, surplus dwellings were accumulated in certain places. The contractor, who could not sell it, had to cut the prices.