Abdulaziz Al-Kashif, Chairman of the Board of Omran Trk Company, stated that Turkey’s real estate sector may witness a significant recovery if interest rates drop to 25%. He added:
“If interest rates reach 25%, market activity will begin. We believe this could happen by 2026.”
Al-Kashif also pointed out that the rise in education costs is partly due to increasing real estate prices. He said:
“Household budgets are heavily consumed by education, rent, and food. Real estate has an indirect impact on rising education costs, as people working in this sector also face rent increases.”
Interest Rates and Market Conditions
Al-Kashif explained that the difficulty in accessing financing led to a slowdown in sales during May, June, and July. However, he expects a recovery in August and September. He also mentioned that total home sales by the end of the year could reach between 1.5 to 1.6 million units.
He added that the current market mainly serves the upper and upper-middle-income segments, while projects targeting the middle class remain insufficient. This may cause pricing pressure as demand increases.
Sales Distribution by Month:
• January 2025: 112,173 units sold
• February 2025: 112,818 units sold
• March 2025: 110,795 units sold
• April 2025: 118,359 units sold
New vs. Resale Property Sales:
• New properties: In January 2025, 32,785 units were sold, a 29.8% year-on-year increase
• Resale properties: In January 2025, 79,388 units were sold, a 44.2% year-on-year increase
Sales to Foreign Buyers:
In January 2025, 1,547 units were sold to foreign buyers.
Outlook for the Rest of 2025:
Based on the strong performance in the first four months, residential real estate sales in Turkey are expected to exceed 1.6 million units by the end of 2025, reflecting a notable recovery in the real estate market.
A Traditional Shift from Gold and Deposits to Real Estate
Al-Kashif said that investors in Türkiye often shift from gold and deposits to real estate when returns from the former become unattractive. He explained:
“When citizens feel that deposit returns are no longer sufficient or that they’ve made enough profit from gold, they begin turning to real estate. This is a recurring behavior in the market.”
Decline in Building Permits Signals a Supply Crisis
He pointed out a clear decline in building permits, warning of a potential supply crisis if demand rises again. He said:
“If the drop in building permits continues while demand returns, we may face a supply gap, which could cause future bottlenecks.”
Turkish Real Estate Investments Abroad Don’t Impact Local Market
Al-Kashif confirmed that Turkish real estate investments abroad are not significant enough to negatively affect the local market. He clarified:
“High rental taxes in Europe limit investment opportunities there. On the contrary, rental yields in Istanbul have become attractive, with payback periods dropping from 25 years to between 15 and 18 years.”
Financial Results and Omran Trk Projects
Al-Kashif said that Omran Trk ended 2024 with strong financial results, noting:
• In January 2021, their first project “Al-Moruj” was fully sold.
• In February 2024, 90% of the Cennet Yalova project was sold.
• In January 2025, construction began on the Cennet Çınarcık project.
Current Project Portfolio Value:
“Cennet Yalova” Project – Çınarcık, Yalova
Omran Trk’s second project in Çınarcık, Cennet Yalova, is a new concept offering a fully serviced residential complex including:
Swimming pool, Jacuzzi, sauna, steam room, Turkish bath, parking garage, and designated children’s play areas.
Project Features:
• Land area: 10,800 m²
• Includes 9 commercial units and 144 residential units
• Villas, duplexes, and apartments ranging from 1+1 to 4+1
• Unit sizes range from 50 m² to 311 m², built to the highest engineering and design standards
• The project boasts large terraces overlooking the green areas, the Marmara Sea, and the Çınarcık mountains
“Cennet Çınarcık” Project – Çınarcık, Yalova
Omran Trk launched the Cennet Çınarcık project in Çınarcık. This project marks a significant milestone in the company’s history, as it incorporates improvements over the Al-Muroj and Jannah Yalova projects with higher standards in finishing, views, and construction speed.
Project Features:
• Land area: 8,715.21 m²
• Comprises 7 buildings with modern architecture inspired by global design
• Floor height: 3.4 meters, with 4 to 5 residential floors per building
• Includes 133 apartments in various layouts
• From 1+1 to 4+1, with unit sizes ranging from 50 m² to 400 m²
• Fully equipped kitchens and underfloor heating in all units
• Spacious terraces with views of green areas
• Direct views of the Marmara Sea, Istanbul, and back views of the green Çınarcık mountains
Sales Terms: Installment plans up to 24 months
Prices (including VAT):
• 1+1 starting from $104,100
• 2+1 starting from $193,000
• 3+1 starting from $364,000
• 4+1 starting from $357,000
Call to Reduce VAT on Commercial Rentals
At the end of his statement, Al-Kashif called for a reduction in the Value-Added Tax (VAT) on commercial rentals, considering that such a move would strengthen lease agreements for businesses and benefit both parties-landlord and tenant-fairly