Housing Market in Turkey: Domestic Sales Rise While Foreign Demand Falls

In the first quarter of 2025, 335,786 residential properties were sold in Turkey, marking a 20.1% increase compared to the same period in 2024, according to Turkish Statistical Institute data.

Meanwhile, foreign demand continued to decline by 19.5%, with foreign buyers purchasing only 4,578 properties. The complex economic environment and political tensions, including the arrest of Istanbul’s mayor, continue to weigh heavily on the real estate sector.

In March 2025 alone, 110,795 property transactions were recorded (+5.1% year-on-year), with Istanbul, Ankara, and Izmir leading the market. Mortgage-backed sales also rose sharply by 41.5%, indicating a slight recovery in financing confidence.

However, the new-build market weakened slightly in March (-3.2%), while secondary market sales surged (+9.1%), signaling a shift in buyer preferences towards more affordable options.

Foreign purchases accounted for just 1.4% of total sales, with Russians, Iranians, and Ukrainians topping the list of buyers. Nonetheless, the interest from international investors is steadily declining.

Turkey still holds competitive advantages: relatively low property prices compared to the EU, high rental yields (up to 8% per year), strong tourism infrastructure, and extensive urban renewal programs. However, economic risks are growing, including severe inflation (65.1%), lira depreciation, rising construction costs, and tightened rental regulations.

Political instability further exacerbates the situation, especially after the March 2025 arrest of Istanbul mayor Ekrem İmamoğlu, triggering mass protests and another wave of lira weakening. As a result, experts emphasize that while Turkish real estate remains accessible, investors must proceed with maximum caution.