Some 94,000 homes sold in May, market contracts 31 percent

ISTANBUL

Türkiye’s housing market recorded a sharp slowdown in May, with total home sales across the country falling 31.2 percent year-on-year to 93,333 units, according to data released by the Turkish Statistical Institute (TÜİK) on June 18.

In the previous month, 126,000 homes had been sold, up 2.6 percent compared to the same month of last year. May was the weakest month for housing sales so far in 2026.

Mortgaged home sales decreased 2.8 percent year-on-year to 19,754 units in May.

Home sales to foreign buyers also fell 27 percent compared to the same month of last year, totaling 1,387 units. Russian citizens purchased the highest number of homes in May with 268 units, followed by Iranians with 125 units and Ukrainians with 88 units.

In the January-May period, total home sales across Türkiye declined 6.6 percent year-on-year to 569,537 units.

Mortgaged home sales rose 25.8 percent compared to the same period of last year, reaching 116,801 units during the first five months of 2026.

Meanwhile, home sales to foreign buyers during the January-May period fell 15.1 percent year-on-year to 7,068 units.

Experts argue that several factors play a role in the decline in  housing sales.

Market observers say that despite a relatively limited decline in mortgage-backed sales, high borrowing costs and restricted access to housing finance continued to weigh on buyer demand.

Some experts suggest that expectations of lower interest rates in the coming months may have encouraged a “wait-and-see” attitude among consumers. Buyers anticipating more favorable financing conditions could be delaying transactions, putting additional pressure on current sales volumes.

Meanwhile, housing developers have postponed their investment plans and also adopted a wait-and-see approach. However, this picture is expected to change in the near future.

Tarık Ongun, board member of Nurol GYO, believes that the appetite for new housing production will increase again.

He also pointed to high interest rates, credit restrictions and insufficient purchasing power as the main factors making it difficult for consumers to buy newly built homes.

“We foresee credit conditions easing and access to housing becoming easier in 2027 and 2028. New housing investments that have been on hold are expected to be materialized soon,” said Ongun.

Ongun emphasized that there is an annual need for 800,000 housing units and significant pent-up demand in the market.

“Projects that will help meet this demand are expected to come online soon. For buyers, the real decline in housing prices presents an opportunity — provided they have the financial means,” he said.

“Our expectation is that in 2027 and 2028, lending conditions will improve, purchasing power will recover and access to housing will become much easier as a result,” he said.