BDDK Plans to Cut Limit on Housing Loan
Companies have been intensifying their efforts to find new competition methods as buying a home becomes harder with a number of anticipated new regulations to the construction sector in Turkey. A shocked plans to cut the current limit as 75 percent on housing loans by another 15 percent has announced by Turkey’s Banking Regulation and Supervision Agency (BDDK). Nowadays, Home loans cannot exceed 75 percent of the total value of the property. For example the bank can only finance a maximum of TL 75,000 as a home loan if a customer requests a loan from a bank to buy a property worth TL 100,000.
This decision will underline that housing prices have expected to increase in the months to come and hinder sales in construction projects, representatives from the sector have argued. Over the past few years, the construction sector has by far been the leading industry driving exceptional growth in the economy. In 2010, Turkey’s construction sector displayed an impressive comeback following a contraction of 16.1 percent in 2009 over 2008.
In the first three months of 2010, Turkey’s economy grew by 11.7 percent over the same period of 2009. Meanwhile, the growth in the construction sector in the same period stood at 8 percent.
