Newsletters
Demand for houses for sale climbed to its highest level in two years in August in Türkiye, while interest in rental properties declined, as year-to-date sales surged 21.3% to 978,078 units.
According to a recent report by the country’s largest online sales platform, sahibinden.com, the demand index for homes for sale rose 5.6% compared to the previous month.
Strong demand was also reflected in sales figures, as Turkish Statistical Institute data released on Tuesday showed that the market maintained momentum in August with a 6.8% increase, reaching 143,319 units.
Most transactions involved second-hand properties, with new homes accounting for 30.6% of total sales.
According to the Turkish Statistical Institute (TurkStat), mortgage-backed sales jumped 45.2% in August to 19,712 units, supported by the central bank’s recent interest rate cuts. Between January and August, mortgages nearly doubled by 84.6%, but still made up only 13.8% of total sales.
In contrast, sales to foreigners continued their downward trend in August, falling 19.8% to 1,810 units. Russians, Iranians, and Germans remained the leading buyers.
Since the beginning of the year, total house sales to foreigners dropped 13.2% to 13,077 units.
The Housing Developers and Investors Association (KONUTDER) Chairman Ziya Yilmaz noted the rising share of mortgage-backed and first-hand sales in total transactions, underlining that the ongoing interest rate cuts reaching more favorable levels would contribute positively to overall sales.
He also highlighted the need to reverse the decline in foreign purchases, stating, "The global market for housing sales to foreigners is worth $400 billion and is expected to reach $600 billion within the next five years. For Türkiye to secure a stronger share of this expanding market, the sector must increase international promotion efforts and strengthen incentives targeting foreign investors."
Meanwhile, the Residential Property Price Index (RPPI) by the Turkish central bank indicated that housing prices continued to rise in August, up 2.5% month-on-month and 31.4% year-over-year.
However, this growth was offset by inflation of 32.95% in the same month, translating into a 1.2% real decline in value.
Among the country’s three largest cities, only the capital Ankara saw prices increase above inflation with a 41.1% rise, followed by Izmir at 31.9% and Istanbul at 30.2%.
3 min read
2 min read
