Empiric studies on residential prices "The example of Alanya"

With the increase in tourism in Alanya that is one of the important coastal cities of the Mediterranean, the purchase of second housing has become attractive for foreigners. The fact that foreigners preferred their second residence in Alanya caused significant developments in the construction sector. The quality and properties of the housing have been changed, increasing demand has been reflected in prices. The study was divided into two sections to investigate multiple factors. In the first part, the long-term relationship between variables was investigated by using house prices, number of houses sold to foreigners and EURO / TRY exchange rate monthly data in April 2015-2018 period to determine the long-term relationship, Johansen Cointegration Analysis was applied and short term and causality relationships between variables were analyzed by applying Vector Error Correction Model (VECM). As a result of Johansen Cointegration test, it is determined that the variables are cointegrated and there is a long term relationship between them. This led to the establishment of VECM. In VECM which the target variable is house prices, the number of houses sold to foreigners and exchange rate variables were determined to be the cause of the long-term and short-term variables. In the second part of the study, the effect of foreigners' purchase of housing in Alanya on house prices was investigated using HFM that used in studies investigating the effect of house which is a heterogeneous property in literature on prices. Distribution of house purchases by foreigners in neighborhoods has been obtained from the Alanya Municipality Real Estate Directore and 3587 homes for sale in Sahibinden.com. 377 housing units from different neighborhoods were determined by Stratified Sampling method and the relation between the properties and the price of the house was revealed by HFM method. Linear model, semilogarithmic model is used as functional form. House properties and neighborhood variables were analyzed by HFM method than consequently, the semi-logarithmic form was considered appropriate. As a result, Square-meter of the house, the age of the house is in the range of 0-5, 6-10, whether it is furnished, whether in the site, floor location, number of bathroom, the residential area is located in Saray and Dinek neighborhood was found to be statistically significant and have a positive effect on price. Also, the residential area is located in Mahmutlar neighborhood was found to be statistically significant, too but unlike others have a negative effect on price