Turkish Home Sales Surge After Banks Unleashed Cheap Mortgage

(Bloomberg) --

Home sales in Turkey skyrocketed as buyers rushed to take advantage of the state-led cheap mortgage campaign.

Sales more than tripled from a year ago to 190,000 in June, marking the highest figure on record for the month, according to data published by the statistics office. Mortgage sales surged 1,287% on the year, and 53% of the homebuyers took out mortgages, as opposed to 11.9% in June 2019.

The coronavirus crisis has thrust Turkey’s banks into a key role, with state-owned lenders instrumental in stabilizing the nation’s markets and helping the government finance its budget deficit. Authorities have leaned on banks to extend loans to businesses and households to avoid cash injections that could worsen the fiscal outlook.

The nation’s three largest state-owned banks began offering products including mortgages and credit for home appliances at below-inflation interest rates in June.

A total of 1,664 homes were sold to foreign nationals in the month with top buyers from Iran, Iraq and China.

©2020 Bloomberg L.P.