Türkiye’s housing market reaches new high as sales soar
Strong demand, mortgage growth, and easing inflation drive resilience in real estate sector
ISTANBUL, Türkiye (MNTV) — Türkiye’s residential property market hit its strongest level of 2025 in August, with sales climbing despite elevated borrowing costs and persistent inflationary pressures, official data showed Tuesday.
According to the Turkish Statistical Institute (TurkStat), house sales rose 6.8% year-on-year to 143,319 units, surpassing July’s 142,858 and marking the highest monthly figure so far this year. The data underscored the sector’s resilience, as sales in the first half of 2025 had remained between 107,000 and 130,000 units per month.
New home sales increased by 4.8% to 43,916 units, while second-hand transactions surged 7.8% to 99,403 units. Mortgage-financed sales posted the sharpest rise, jumping 45.2% compared to the previous year to reach 19,712 units, making up 13.8% of total transactions.
Istanbul once again dominated activity with 21,814 units sold, followed by Ankara with 12,419 and Izmir with 7,695.
The figures came shortly after the Central Bank of the Republic of Türkiye (CBRT) cut its benchmark interest rate for the second month in a row, reducing the one-week repo rate by 250 basis points to 40.5% in August. The move followed a sharper 300-basis-point cut in July, as inflation eased to just under 33% but slowed less than expected.
The Turkish economy expanded by 4.8% year-on-year in the second quarter, outperforming forecasts despite a prolonged tightening cycle earlier in the year. The CBRT had previously raised rates to 46% in April amid market volatility following the arrest of Istanbul Mayor Ekrem Imamoğlu on corruption charges, before resuming gradual easing in December 2024.
Foreign home purchases, however, continued to decline, falling 19.8% in August to 1,810 units. Russians accounted for the largest share with 283 acquisitions, followed by Iranians with 155 and Germans with 118. Between January and August, foreign sales dropped 13.2% to 13,077 units.
By contrast, overall property sales for the first eight months of 2025 rose 21.3% to 978,070 units, while mortgage-based sales jumped 84.6% to 141,227. Industry representatives expect full-year sales to exceed 1.5 million units, citing ongoing demand fueled by high rents and housing prices that remain below the inflation rate.
In 2024, total home sales rose 20.6% to about 1.48 million units, returning to levels last seen in 2022.
Meanwhile, Central Bank data released Tuesday showed that housing prices continued to slow in real terms despite nominal gains. The Residential Property Price Index (RPPI) rose 2.5% month-on-month in July and 31.4% annually in nominal terms. Adjusted for inflation, however, prices declined 1.2%, marking the 19th consecutive month of real-term decreases.
Have Your Say!
Have you been affected by the issues raised in this story? Please share your experiences by emailing haveyoursay@soundvision.com.
Please include a contact number if you are willing to speak to a Muslim Network TV’s representative. You can also get in touch in the following ways:
Tweet: @MuslimNetworkTV
We must take charge of our narrative. Research indicates that 92% of their Muslim coverage is negative. Help us change that.
