Turkey’s Real Estate Market in 2025: Prices Climb, Sales Surge Amid Domestic Demand

The Turkish real estate market is showing renewed momentum in 2025. Local buyers are driving demand, mortgage transactions are rising, and property prices continue to grow—especially in major urban areas. Meanwhile, foreign transactions are declining, and economic uncertainty persists despite government efforts to stabilize the market.

454,000 Sales in Four Months, Foreign Transactions Down

From January to April 2025, a total of 454,145 properties were sold in Turkey—up 27.9% compared to the same period in 2024, according to TÜİK. However, sales to foreign nationals dropped by 13.5%, totaling 6,018 units. April alone saw 118,359 sales (+56.6% YoY), with the largest volumes recorded in Istanbul (18,645), Ankara (10,889), and Izmir (7,014). The smallest markets were Ardahan (37), Tunceli (75), and Bayburt (88).

Mortgage Transactions Nearly Double

In the first four months of 2025, 69,194 mortgage-backed deals were registered, up 99.4% year-on-year. Of these, 16,388 involved new-build properties. Non-mortgage sales totaled 384,951, growing 20.1% and comprising 84.8% of all deals. In April alone, mortgage deals jumped 147% to 17,465—4,245 of which were for new properties.

Secondary Market Dominates, New Builds on the Rise

The primary market saw 134,509 new home transactions (+19.7% YoY), while secondary market sales soared to 319,636 (+31.6%), making up 70.3% of all deals. In April, new-home sales rose 43.8% to 34,633, and resales increased 62.6% to 83,726.

Foreign Interest Focused on Istanbul, Antalya, Mersin
Despite an overall year-to-date decline, April saw a 13.2% increase in foreign transactions, totaling 1,440 units. Russians led the way with 276 purchases, followed by Iranians (128) and Ukrainians (120). Istanbul (529 deals), Antalya (497), and Mersin (117) were top destinations.

Housing Prices Continue to Rise

According to Endeksa, the average price per square meter in Turkey reached ₺20,706 ($530) in February 2025. The average home price hit ₺2.15 million ($55,000). Prices rose 34.55% year-on-year, with sharper increases in:

Yalova: +87.9%

Ankara: +63.6%

Antalya: +59.3%

Istanbul: +51.2%

Key drivers include higher construction costs, robust local demand, and the use of real estate as a hedge against inflation.

Outlook: Growth Likely in Key Cities

Analysts at Global Property Guide expect prices to continue rising in high-demand cities like Antalya, Istanbul, Mersin, and Alanya, driven by construction material inflation, limited land supply, and capital preservation motives. However, high inflation distorts the real rate of return: “Prices are rising, but real gains are more modest.”

Macroeconomic Backdrop: Inflation, Volatility, and Tight Monetary Policy
In March, Turkish assets slumped following the arrest of Istanbul’s opposition mayor. The central bank raised interest rates and purchased $13 billion in FX to stabilize the lira, keeping the overnight rate at 49%. Inflation fell to 36.1% annually in April, with projections suggesting a drop to 30% by year-end.

Finance Minister Mehmet Şimşek said that lower oil prices, easing dollar strength, and policy adjustments could help reduce inflation and stimulate economic activity.