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Turkish house sales may decline 20% this year.

February 26, 2014

House sales may fall as much as 20% y/y this year due to higher interest rates, developments in domestic politics, and base effect, general manager of TSKB Real Estate Appraisal, Makbule Yonel Maya, told Reuters.

Companies may launch new projects after the March local elections, Maya said.

Data of the statistics institute TUIK showed that 1.16mn houses were sold in Turkey last year, representing a 64.9% y/y increase. In January this year, house sales increased only 0.2% y/y to 87,639 units.

On a related note, a report titled, Turkish Construction Sector, by Yapi Endustri Merkezi suggests that house sales volume could be around 1mn units this year which points to a 14% decline compared to 2013.

Can Fuat Gurlesel, who presented the report, said that the construction industry was expected to grow 5% this year after an estimated expansion of 6% in 2013. Turkey's construction sector had grown 18.3% in 2010 and 11.3% in 2011, Gurlesel noted, adding that the expansion rate was 7.4% in the first nine months of 2013. Public's construction expenditures rose 38.8% but private sector construction expenditures shrank 3.5% over the same period, Gurlesel said. This year's expansion in the construction sector will be driven by private sector investments, according to the Report.

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Source: IntelliNews - Weekly Reports

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