People want to buy a lifestyle

“people want to buy a lifestyle”

arsaVev Chairman of the Board Bülent Öztürk said, “This situation is actually the result of the sector undergoing a natural balancing process. The rapid price increases we have experienced in the real estate market in recent years occurred due to the narrowing of supply and the sudden rise in demand, especially with the pandemic period. However, this rise diverged from the general dynamics of the economy at some point. The fact that credit rates are quite high and access to financing is difficult has also brought us to this point. In a high-interest environment, buyers act more selectively; this changes the quality of demand. The reason why branded residences continue to gain value is that today people want to buy not just a house, but a lifestyle. They prefer projects that are safe, earthquake-resistant, and enriched with social facilities.”

“social housing brings balance to prices”

Evaluating the 500 thousand social housing project, Öztürk made the statement, “I think social housing projects will not reduce housing prices in the short term, but will balance the market for certain regions and housing types in the medium and long term. Social housing projects are built to meet the housing needs of our citizens in the low-income group who cannot own a home. Therefore, they cannot be expected to pull down the prices of branded or upper-middle segment housing.”

will private companies build rental housing?

Öztürk said, “The main reason why the construction sector has not played an active role in the production of social rental housing until now was that the economic model was not clear. Now, with the government drawing a framework on this issue—that is, introducing regulations such as incentives, land allocation, and tax advantages—the construction sector has started to say 'we are in too.' I think this support can continue with a sustainable model.”

“it is not realistic to expect a drop in rents”

Addressing those who claim that rents will decrease with the departure of immigrants, Öztürk said, “It is not realistic to expect a sharp drop in rents. The departure of some Syrians, Russians, or foreigners affects only a small portion of the total rental demand. Our real problem is the inadequacy of supply. New housing production is not sufficient; our existing rental stocks are old and scarce. Our household size is decreasing, and while we need additional stock against our already insufficient stock, we cannot produce the necessary supply. For this reason, even if there is a slight decrease in demand, it does not affect rental prices much. In short, rents will not fall in the short term; however, they may gradually stabilize as supply increases.”

which districts in istanbul have reached price saturation?

Öztürk made the assessment, “Price saturation is indeed being experienced in some regions in Istanbul. Especially some districts of Beşiktaş, Nişantaşı, central points of Kadıköy, certain parts of Ataşehir, and areas of Sarıyer with a high density of branded projects have now reached their peak in terms of investment value. In these regions, the cost of acquisition is very high, and the medium-term return is low. In contrast, regions whose access has increased with metro and transportation lines but have not yet been branded—for example, the north of Başakşehir, the surroundings of Çekmeköy, some neighborhoods of Sancaktepe, the Arnavutköy line, and the Tuzla-Pendik axis—offer more profitable opportunities in the medium term. Regions that have good transportation but still low prices should not be evaluated by transportation alone. The population profile of the region, social facilities, and projects planned in its vicinity are also very important for value appreciation.”