Housing market loses momentum as sales decline in March

ISTANBUL

Home sales in Türkiye fell by 2.1 percent year-on-year in March, totaling 113,367 units, according to data released by the Turkish Statistical Institute (TÜİK) on April 17.

This slowdown followed a 5.9 percent annual expansion in February, when more than 124,000 homes changed hands.

Mortgage-financed sales rose 35.9 percent compared to March last year, though this marked a deceleration from the 42.3 percent annual increase recorded in February. New home sales across the country grew 1.3 percent annually, while existing home sales dropped 3.6 percent compared with March 2025, TÜİK figures showed.

In the first quarter of 2026, a total of 349,396 homes were sold, reflecting a modest 0.3 percent year-on-year decline. Between January and March, mortgage-financed home sales surged 31.5 percent from a year earlier, reaching 71,276 units.

The decline in sales to foreign nationals also persisted into March. Last month, foreigners purchased 1,353 homes in Türkiye, representing a sharp 20 percent drop compared with March 2025.

In March, the highest number of sales by nationality were made to citizens of the Russian Federation with 229 units, followed by Iran with 130 units and Germany with 84 units.

In the January–March period, home sales to foreigners decreased by 14.9 percent compared to the same period of the previous year, totaling 4,165 units.

Meanwhile, housing prices in Türkiye continue to decline in real terms while rents keep rising, data from the Central Bank showed earlier this week.

In March, the housing price index increased by 2 percent monthly and 26.4 percent annually, but in real terms it fell by 3.4 percent.

The average price of a 100-square-meter home nationwide exceeded 4.8 million Turkish Liras ($107,000). In the ranking of the most expensive provinces, the western province of Muğla lost its place to Istanbul. In Istanbul, the average cost of a 100-square-meter home was 7.94 million liras as of March. Muğla followed with 7.93 million liras. In Ankara, the average price for 100 square meters rose to 4.41 million liras, while in İzmir it reached 5.25 million liras.

Rents increased by 2 percent monthly, 34.4 percent annually, and 2.7 percent in real terms, showed the Central Bank data.

Among the three largest cities, Istanbul ranked first with a 39.4 percent annual rent increase, followed by Ankara at 37.7 percent and İzmir at 35 percent. Monthly changes were 3.6 percent in İzmir, 2.4 percent in Ankara, and 2.2 percent in Istanbul.

Nationwide, the average rent for a 100-square-meter home reached 24,188 liras. Istanbul recorded the highest rents in the country, with the average rent for a 100-square-meter home rising to 40,512 lira. In Ankara, the average rent for the same size home was 22,402 liras, while in İzmir it reached 26,564 liras.