"The sale of houses in Turkey decreased by18% after earthquakes."."

Sales of residential real estate in Turkey fell by 18% in February compared to last year, according to official data released on Wednesday, reflecting the impact of the catastrophic earthquakes that struck the southeast of the country last month.

In the past month, 80,031 houses were sold, reported the Turkish Statistical Institute (TurkStat), marking the lowest level since May 2021. The earthquakes with magnitudes of 7.7 and 7.6 that occurred on February 6 claimed the lives of over 48,000 people in southeastern Turkey. Additionally, they destroyed or severely damaged more than 230,000 buildings, leaving hundreds of thousands homeless, making it the most devastating event in modern Turkish history.

Concerns about future tremors, especially in Istanbul - Turkey's largest city with a population of around 16 million and the country's commercial engine - have led people to reconsider their plans for purchasing real estate. Data showed that home sales decreased by 18.1% compared to the 97,708 units sold in January. A significant portion of sales in February came from Istanbul, accounting for 18.7% or 14,980 sold homes, according to TurkStat, followed by the capital Ankara with 8,235 and the Aegean province of Izmir with 5,031 units.

Last month's disaster forced millions of people to leave 11 southeastern provinces, home to 14 million residents. President Recep Tayyip Erdoğan ordered immediate reconstruction and stated that the devastated regions will be restored within a year.

The decline in the housing market is occurring against the backdrop of reduced supply and rising prices. Households see real estate as an attractive investment tool to protect themselves from persistent inflation, which peaked at a 24-year high in October and then decreased afterward. The annual consumer price index (CPI) in February was 55.18%, a significant drop from the peak of 85.5% recorded in October of last year.

Last year, the government announced several measures to stimulate housing sales and address the issue of prices, which have more than doubled, as residents faced difficulties finding affordable housing for rent or purchase. To mitigate the effects of inflation, a cap on rent increases was established, and a large housing project for low-income families was launched.

Data from TurkStat showed that mortgage transactions in February decreased by 12.7% compared to last year, totaling 17,357 homes, which accounts for 21.7% of total sales.

According to the data, home sales in 2022 slightly decreased by 0.4% year-on-year, totaling around 1.49 million homes. Meanwhile, sales to foreigners dropped by 27% to 3,350, accounting for 4.2% of total sales in February. Russians topped the list of foreign buyers with the purchase of 1,183 homes, reflecting the fact that many are seeking financial refuge after Moscow's invasion of Ukraine and the subsequent Western sanctions. Following the Russians are Iranians with 446, Iraqis with 173, and Ukrainians with 142 homes purchased last month. Russians bought a record 16,312 homes in Turkey in 2022, tripling their purchases and making them the largest foreign buyers in the real estate market. Russian purchases accounted for nearly a quarter of all sales to foreigners, which increased by 15.2% year-on-year, reaching a record 67,490 units. Ukrainian citizens, who arrived to join relatives in the southern province of Antalya, also increased their purchases by 106.6% year-on-year, totaling 2,574 units.