Turkey’s Housing Market Rebounds

Turkish home sales reached their highest monthly level of 2026 in April, even as inflation, expensive credit and weaker foreign demand continued to weigh on the market. The rebound was driven by mortgage-backed transactions and new homes, while overseas buyers kept retreating after years of price inflation and tighter residence-permit conditions.

April became the strongest month of 2026

Turkey’s housing market accelerated in April 2026. Daily Sabah, citing the Turkish Statistical Institute, reported that 126,808 homes were sold nationwide, up 2.6% from 123,569 transactions a year earlier. It was the highest monthly figure so far this year and marked a recovery after a weaker first quarter that followed the record sales volume recorded in December 2025.

The increase was modest but important for a market still shaped by interest rates, inflation and household purchasing power. Turkish households have long used real estate as a hedge against currency depreciation, with housing and gold remaining two of the main tools for protecting savings during periods of high consumer inflation.

Mortgages returned as a demand driver

The biggest shift in April was the sharp rise in mortgage-backed transactions. Credit-financed home sales jumped 40.5% year on year to 25,771 units. They accounted for 20.3% of all transactions during the month. For Turkey, this is an important signal: even with borrowing costs still high, some buyers are returning to the market, either expecting gradual financial easing or trying to lock in prices before further nominal increases.

Yeni Şafak, citing official data, said Istanbul remained the country’s largest market in April with 23,852 transactions, followed by Ankara with 11,680 and Izmir with 7,215. The geography confirms the concentration of demand in Turkey’s biggest cities, where housing remains both a consumer asset, an investment vehicle and an inflation hedge.

New homes outperformed resale property

New homes significantly outpaced the resale segment in April. First-hand sales rose 9.6% year on year to 40,306 units. Second-hand sales slipped 0.3% to 86,502 units. As a result, new homes accounted for 31.8% of total transactions, while existing homes made up 68.2%.

The structure suggests that some demand is shifting toward new housing, where buyers may obtain developer payment plans, newer construction standards and better-quality stock after the 2023 earthquake. For developers, this is a positive signal, but it does not yet point to a full construction boom: high financing costs, land prices, materials and labour costs continue to limit new project launches.

Foreign buyers keep pulling back

Foreign demand remains the weakest part of the market. Overseas buyers purchased 1,516 homes in April, down 1.1% from a year earlier. Russians, Chinese and Iranians were among the largest buyer groups. In January–April, sales to foreigners fell 11.6% year on year to 5,681 units.

The decline is not a one-off correction. International Investment previously noted that foreigners bought 1,353 homes in March 2026, down 20% from a year earlier, with their share of the total market at only 1.2%. In January–March, foreign purchases fell 14.9% to 4,165 units; Russians, Iranians and Germans were the most active buyer groups.

The reasons remain consistent: rapid price growth in previous years, weaker investment yields, longer payback periods, changes to residence and citizenship rules, and competition from other markets. This is especially relevant for Antalya, Alanya, Mersin and Istanbul, which benefited heavily from international demand during the previous cycle.

Nominal prices rise, real prices fall

Higher sales do not mean housing has become more affordable for local buyers. Inflation continues to distort the picture. Global Property Guide notes that in early 2026, Turkey’s housing market still recorded nominal price growth, but inflation-adjusted prices continued to decline. According to the Central Bank of the Republic of Turkey, the Residential Property Price Index rose 26.36% year on year in February 2026, but fell 3.93% in real terms.

In Istanbul, the index increased 27.99% in nominal terms but declined 2.69% after inflation. Ankara posted nominal growth of 29.69%, equivalent to a real decline of 1.40%. Izmir recorded a 25.82% increase, but prices fell 4.34% in inflation-adjusted terms. This means sellers see prices rising in lira, while buyers continue to face pressure on affordability if their incomes do not grow at the same pace.

Commercial property also gained momentum

The April recovery was not limited to housing. Turkey’s statistical agency has begun including commercial property in its monthly real estate data, and the segment also recorded growth. New commercial property sales rose 14.3% year on year to 4,301 transactions, while second-hand commercial sales increased 8.7% to 11,393.

That matters for capital flows. In a high-inflation economy, investors look for assets that can preserve value and generate rental income. Commercial property, however, remains more exposed to small-business conditions, tourism, retail spending and financing costs. April’s growth therefore points to renewed activity, but not necessarily to a sustained recovery in yields.

What April data mean for investors

For investors, the April figures show that Turkey’s property market is moving in several directions at once. Domestic demand is improving because of mortgages and accumulated deferred demand. New homes are benefiting from payment plans and clearer quality standards. The resale market remains much larger but weaker. Foreign demand keeps declining compared with the peak years.

The most resilient assets are likely to be in large cities and liquid districts with stable domestic demand, tenants and infrastructure. More vulnerable purchases are those relying mainly on foreign buyers, quick resale gains or short-term rental demand in tourist regions. In 2026, buyers need to look beyond headline transaction growth and focus on real inflation-adjusted prices, construction quality, legal clarity, district liquidity and payback periods.

As reported by experts at International Investment, April’s rise in Turkish home sales should not be read as the start of an unconditional new boom: the market has revived, but it is supported by inflation expectations, a mortgage rebound and households’ desire to protect savings. The critical risk is that foreign demand continues to weaken, real prices are falling and affordability for local buyers remains under pressure. If credit conditions do not improve sustainably, higher transaction volumes may prove to be a defensive response to inflation rather than a sign of healthy market expansion.