Residential property sales in Turkey bounced back in September following three months of decline, official data showed Wednesday, with foreigners ratcheting up their purchases.
A total of 147,143 residential properties changed hands last month, according to the Turkish Statistical Institute (TurkStat) data, marking the highest level in the last 13 months.
In contrast to last year’s upward trend that was mainly driven by cheap credit, as the central bank lowered its policy rate to fend off the impact of the coronavirus pandemic and state banks ramped up lending, the tight monetary policy rise that increased the borrowing costs has weighed in on sales this year.
The Central Bank of the Republic of Turkey (CBRT) had raised its policy rate – the one-week repo rate – to 19% to tackle inflation, before delivering a 100-basis-point cut last month.
Sales had exceeded 100,000 units in March, before slightly falling to around 95,000 in April. The trend was further disrupted by a strict nationwide lockdown that covered the first half of May to curb the rise in daily COVID-19 cases.