File - Residential towers are seen next to the newly built Mimar Sinan mosque in Atasehir on the Asian side of Istanbul in this September 4, 2012. (REUTERS/Murad Sezer)
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Turkey's housing expansion, with almost 6 million units created in 10 years, is slowing as borrowing costs soar.Mortgage rates rose to 13.9 percent in April from a record low of 8.3 percent in June 2013, according to data compiled by Bloomberg.It will expand 2.25 percent in 2014 compared with 3.9 percent last year, according to a Bloomberg survey of 30 economists.Declining mortgage rates fueled these developments.Toki has created more than 623,000 housing units in the country since 2003, helping to create 900,000 jobs, according to its website.After Turkey's central bank in January raised its benchmark rate to 10 percent from 4.5 percent, housing sales began to drop. In the first quarter, they fell 5.9 percent to 257,853 units compared with the same period last year, data published by the statistics office show. In mid-April, HYT was selling the final 20 apartments in its 255-unit "My Family" project.The bigger apartments, priced at as much as 345,000 liras, may be on the market for six months.
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