Türkiye’s housing market recorded its highest sales on record in 2025, with nationwide transactions rising 14.3 percent compared to the previous year to reach 1.69 million units, data from the Turkish Statistical Institute (TÜİK) showed on Jan. 20.
Mortgage-financed sales surged by 49.3 percent year-on-year to 236,668 units in the January–December period. Their share of total sales stood at 14 percent for the year, compared with 11.4 percent in December alone.
New home sales also showed strong growth, increasing 11.6 percent annually to 540,786 units, accounting for 32 percent of total transactions in 2025.
In contrast, sales to foreign buyers declined by 9.4 percent compared with 2024, totaling 21,534 units. Among foreign nationals, Russians purchased the most homes with 3,649 units, followed by Iranians with 1,878 and Ukrainians with 1,541.
Analysts and industry experts highlighted several key factors that fueled home sales in Türkiye last year.
One of the strongest drivers was the sharp increase in rental costs across major cities. Escalating rents pushed many households to consider homeownership as a more stable and long-term solution, despite rising property prices.
Although mortgage rates remained high, they began to ease compared to previous years. In addition, government-backed financing programs and alternative savings-based financing models made it easier for buyers to enter the market.
Earthquake risks played a significant role in shaping demand. Families sought newer, safer housing stock, particularly in urban areas, as seismic safety became a priority following recent tremors.
Meanwhile, housing prices in Türkiye closed 2025 with a real decline, yet the average price of a 100-square-meter home surpassed 4.5 million Turkish Liras ($104,000).
The Residential Property Price Index recorded an annual increase of 29 percent in nominal terms but a 1.4 percent decrease in real terms in December 2025, the Central Bank announced earlier this week.
In Istanbul, the average price of a 100-square-meter home exceeded 7.4 million liras. In İzmir and Ankara, average prices stood at 4.96 million liras and 4.13 million liras, respectively. At the top of the list was the province of Muğla, where prices climbed above 7.6 million liras.
Ahmet Büyükduman, Managing Partner at Istanbul Real Estate Valuation (İGD), said: “Between mid-2023 and early 2025, prices fell by 20 percent in real terms. In 2025, they remained flat. For 2026, we expect a shift to the positive side. My forecast for the end of 2026 is that price growth will exceed inflation by 8 to 10 points.”
