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Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (MPC) lowered the policy rate by 425 basis points at its meeting on July 25 from 24% to 19.75 %. The decline in borrowing costs as a result of this decline brought out the expectation of reviving demand and growth.
According to the information published in the monthly bulletin by the Banking Regulation and Supervision Agency as of the end of June, cash loans to the construction sector amounted to TL 224 billion (47 billion short-term; TL 177 billion medium and long-term).
The volume of non-performing loans is around 15 billion TL and NPL ratio is 6.69% (average of all sectors is 4.57%). It is important to remember that the risk of default always exists.
Similarly, it is important to allow developers to produce projects in the market by having equity capital rather than a demand-driven financing model. On the other hand, in this environment where the real estate sector's access to finance is shrinking,
In fact, for the integration of real estate and capital markets within the scope of the Capital Market Legislation that came into force in 2012, some major precautions were implemented. Practices such as real estate investment funds and real estate certificates have shown that individuals or investors can earn income only as a real estate owner in a physical environment, as well as by investing in real estate-based capital market instruments.