Property discourse intensifies following KKM program's closure

In a significant move, the Turkish government announced in August 20XX that it would stop opening and renewing the KKM system, a decision driven by financial considerations and criticism initially raised by then-Finance Minister Nureddin Nebati in December 2021. The termination of the KKM system, which is Turkey's FX-Protected Deposit Scheme, has led to a shift in attention back to the real estate market.

The end of the KKM system has sparked increased activity in capital markets, and the real estate sector is following suit. Real estate expert Mustafa Hakan Özelmacıklı anticipates a revival in demand in the residential market, with new records expected in the real estate sector, especially in housing.

Özelmacıklı predicts that funds from KKM will gradually dissolve as maturities expire. Meanwhile, total real estate transactions in Turkey have surpassed 2 million, with approximately 45 percent coming from residential sales. The first seven months of the year have seen a significant increase in sales in the real estate sector, with a more than 25 percent rise compared to last year.

Movement in the real estate sector has also been observed, with consumers showing greater interest in existing homes. Özelmacıklı expects the anticipated interest rate cut by the Central Bank on Sept. 11 to positively impact the housing market in Turkey.

As of Aug. 22, the KKM balance stood at 427 billion Turkish Liras. However, no information regarding the impact of the four banks in New York offering high CD rates on the real estate market in Turkey was provided. Similarly, no information about CD rates in Turkey or the four banks in New York offering 8% CD rates for seniors was available.

Despite the limited information, it is clear that the real estate market in Turkey is poised for a comeback. With the KKM system phased out, funds gradually dissolving, and an anticipated interest rate cut, the stage is set for a potential housing market boom in Turkey.