Finance minister to meet with housing sector executives

ISTANBUL

Treasury and Finance Minister Nureddin Nebati is expected to hold a meeting with representatives of the companies operating in the housing sector.

The meeting comes amid reports in local media suggesting that home prices started to increase after the government announced a financing package that is designed to provide cheaper housing loans.

In a statement last week, Nebati said that officials recorded home prices posted on the internet before the financing package was unveiled to compare how they changed after the new loan scheme was announced.

“We identified those who increased the prices excessively; we will not let anyone exploit the situation and make easy money,” he said.

At the meeting of the representatives of construction companies, Nebati is expected to warn against unreasonable price hikes in the housing market.

He is expected to stress that the purpose of the new loan scheme is to help people buy homes in favorable conditions and protect potential homebuyers against the volatility in prices.

Officials from the Treasury and Finance Ministry, Trade Ministry and municipalities will conduct inspections in the housing market, according to the daily Milliyet.

The government on May 9 announced measures to provide cheaper housing loans. According to the scheme, loans with a monthly rate of 0.99 percent and a maturity period of 10 years will be provided to first-time homebuyers for houses worth up to 2 million Turkish Liras ($130,000).

Under a second scheme, dubbed “Broader Housing Financing Package,” loans with a monthly interest rate of 0.89 percent and 10 years of maturity will be provided to those who convert their foreign exchange savings to Turkish Lira or sell their gold to the Central Bank to purchase houses worth up to 2 million liras.