Real estate prices rose 133 in March - Latest News.

Problems in getting loans

The problems with getting loans are still ongoing, real estate market expert Mustafa Hakan Ozelmacıklı said. People are refusing to buy houses as investments after the government announced the extension of a 25 percent cap on rent increases, he added. Sales of mortgage-financed homes fell 32% in April from a year earlier to account for 25% of total sales.

"Many people are choosing to place''their funds in deposit accounts with protection against currency risk rather than buying a house,' Ozelmachykly said, adding that real estate prices are expected to fall in real terms amid weak demand for housing. However, he predicted that rental prices would remain high and could continue to rise. "The month of May kicks off the wedding season, which means an increase in demand for rental properties. Moreover, landlords will ask for higher prices when renting out their properties to new tenants because of the 25% rent increase cap," he said.

Economy.