Turkey falls in Europe homeownership ranking
Homeownership lags behind European average
Turkey ranked 29th out of 32 European countries in terms of homeownership, according to Eurostat data. In 2024, only 55.8 percent of households owned their homes, roughly 13 percentage points below the European Union average of 68.4 percent. Only Austria, Germany and Switzerland recorded lower rates, with Switzerland posting Europe’s lowest level at around 42 percent.
The Eurostat Housing 2025 report notes that Turkey’s low ranking reflects affordability and financing constraints rather than a cultural preference for renting.
Eastern Europe dominates the top
Central and Eastern European countries continue to lead the table. Romania tops the ranking with a homeownership rate of about 96 percent, followed by Slovakia at roughly 94 percent and Hungary at around 91 percent. These high levels are largely rooted in historical privatization and a limited role for institutional rental markets.
In contrast, Western Europe shows lower ownership rates due to mature rental sectors, extensive social housing and strong tenant protections that make long-term renting a common option.
House prices outpace incomes
Rapidly rising prices remain a core challenge in Turkey’s housing market. The central bank’s house price index showed nominal prices increasing by 29.4 percent year on year in December. In Istanbul, average prices reached 55,731 lira per square meter in the fourth quarter, according to Bizim Menkul Değerler A.Ş., valuing a typical 100-square-meter apartment at around 5.57 million lira.
That figure equals more than two decades of earnings at Turkey’s 2025 monthly minimum wage of 22,104 lira. Average annual household disposable income stood at 374,899 lira in 2024, TurkStat data show, highlighting the widening gap between incomes and housing costs.
Mortgage access remains limited
High interest rates and tighter lending standards have pushed many buyers out of the mortgage market. TSKB Real Estate Valuation estimates that only about 15 percent of home sales in the first half of the year were financed through bank loans.
Regulatory measures have added further constraints. Turkey’s Banking Regulation and Supervision Agency sharply reduced loan-to-value limits for second-home purchases, effectively capping mortgages at around 22.5 percent of a property’s value for such buyers.
Construction costs and supply pressures
Construction costs continue to rise. TurkStat data show the construction cost index increased by 34.27 percent year on year in December, while labor costs surged nearly 58 percent. A key factor has been the diversion of skilled workers to earthquake reconstruction zones following the February 2023 disasters.
At the same time, new supply is weakening. Building permits fell by 18.8 percent in the fourth quarter, signaling tighter housing supply in the near term.
Reconstruction burden and rising rents
The massive post-earthquake rebuilding effort is placing sustained pressure on national construction capacity. By October, the government had delivered 304,836 homes and aims to complete 452,983 units by year-end, according to the Housing Development Administration.
For households unable to buy, rising rents have added another layer of strain. Research by Bahçeşehir University’s Center for Economic and Social Research found average advertised rents of 339 lira per square meter in Istanbul and 240.5 lira nationwide in November.
Foreign demand hits seven-year low
Foreign home purchases also declined. Last year, foreigners bought 23,781 homes, the lowest level in seven years, accounting for just 1.6 percent of total sales. The drop reflects weaker investment appetite amid high prices, financing limits and broader economic uncertainty.
International Investment expert view
As experts at International Investment report, Turkey’s low position in Europe’s homeownership ranking underscores deep structural imbalances between housing prices, household incomes and credit availability. Without easing mortgage conditions and stabilizing construction costs, a meaningful recovery in homeownership rates is unlikely in the medium term.