by Melih Alsaç
The real estate sector has always been a dynamic area offering great opportunities for investors. However, from time to time, there are discussions about whether there is a housing bubble or not. When we look at the current state of the market today, we can say that the claims of a housing bubble do not reflect reality. Let's examine this issue in detail.
What is a Housing Bubble?
A housing bubble is an excessive rise in housing prices that is not supported by economic fundamentals. Generally, factors such as low interest rates, excessive demand and speculative investments lead to the formation of this bubble. However, when we evaluate the current conditions in Turkey, we see that housing prices have reached a healthier level.
Is There a Bubble in the Current Market?
Recently, house prices have fallen to more affordable levels in dollar terms. Rental multiplier rates hover between 160 and 200 months, which can be considered as a healthy market indicator. In the luxury segment, there are projects with rental multiples of 300-350 months, and it may be wise to avoid such investments. However, it cannot be said that there is a bubble in the overall housing market.
Rent Increases and Market Stabilization
The rapid rent increases experienced in previous years have now come to a halt. This allows investors to make a more realistic calculation. We can clearly state that the market is sustainable in its current state and that there is no housing bubble.
Mortgage Loans and Potential Risks
If housing loan interest rates fall in the coming period, the market may experience a new dynamism. This could lead to an increase in demand, pushing up prices and creating a "bubble" in the sector. However, this is not the case at the moment. Therefore, it is important for investors to act with the right timing and get support from real estate consultants by making regional analyzes.
Conclusion A Healthy Market Structure
Under current market conditions, we can easily say that there is no housing bubble. Prices are at reasonable levels, rental multiplier rates are balanced and there is no excessive speculative activity in the market. For those who are thinking of investing, it is of great importance to act with the right analysis and shape their financial planning accordingly.
