Türkiye’s housing market expands in February, driven by mortgage-financed sales

ANKARA

Housing sales in Türkiye increased in February, with total transactions climbing 5.9 percent year-on-year to 124,549 units, according to data released by the Turkish Statistical Institute (TÜİK) on March 13.

Mortgage-backed home sales surged 42.3 percent to 25,035, reflecting stronger demand for financing.

New home sales rose 5.9 percent to 37,785, while existing home sales advanced 6 percent to 86,764.

The share of new home sales in total housing transactions was 30.3 percent, while existing home sales accounted for 69.7 percent.

In the first two months of 2026, total home sales reached 236,029, up 0.6 percent compared with the same period a year earlier. Mortgage-financed sales in the January–February period jumped 29 percent to 45,298.

Foreign demand, however, weakened. Sales to overseas buyers fell 2.9 percent in February to 1,506 units, accounting for 1.2 percent of total transactions. In the first two months of the year, foreign purchases dropped 12.1 percent to 2,812.

In February, Russians led the market with 191 units, followed by Iranians with 131 and Iraqis with 106.

Last year, 1.69 million homes were sold in Türkiye, representing a strong 14.3 percent increase compared with 2024. Mortgage‑financed transactions surged 49 percent to around 237,000 units, underscoring the strength of credit‑driven demand.

Meanwhile, sales to foreign nationals slipped, with 21,534 homes purchased in 2025 — a 9.4 percent decline from the previous year.

Commercial property sales showed a different trend. February transactions declined 1.1 percent year-on-year to 15,069, while mortgage-backed commercial property sales soared 62.8 percent to 692, according to TÜİK data on March 13.

Over the January–February period, total commercial property sales fell 7.2 percent to 28,336.

Separate TÜİK data highlighted resilience in construction activity. The construction production index rose 8 percent in January compared with a year earlier.

Building construction increased 8.1 percent, civil engineering advanced 8.8 percent and specialized construction activities grew 7.1 percent. On a monthly basis, the overall index edged up 0.9 percent.