Turkey needs 375,000 residences every year

ISTANBUL - Anatolia News Agency

Turkey needs an average of $20-25 bln per year to construct 375,00 residences. Hürriyet photo

Some 375,000 new residences must be constructed each year over the next two decades to meet growing demands, according to Chairman of the Association of Real Estate Investments Companies (GYODER) Işık Gökkaya.

“Turkey needs to construct 375,000 residences per year in order to have 7.5 million residences in the next 20 years,” Gökkaya told Anatolia news agency on Oct. 19. “Such a figure implies that we need an average [financial] source of $20-25 billion per year.”

“At the present time, there are 24 real estate investment partnerships in Turkey. This figure is too low for a country like Turkey. Their portfolio is worth around 12 billion Turkish Liras. When you consider Turkey’s real estate market, this amount is not much … The construction sector must be institutionalized and we have an important process ahead of us such as the provisional transformation,” he said.

“On the one hand, we lower interest rates and say that the interest on residential loans would go down and, on the other hand, we increase expenses for a title deed,” Gökkaya added.