Newsletters
House prices in Türkiye remain subdued below inflation, as the year-over-year increase stood at 25% in July and accounted for a 5.1% loss in real terms, central bank data showed Tuesday.
The downturn comes as tight monetary conditions continue to weigh on market activity, with average housing loan rates climbing back above 40% in mid-June, making home financing more expensive for buyers.
The Residential Property Price Index (RPPI) rose 1.5% from June, as prices increased 2.7% in Istanbul and 2.2% in Ankara, while Izmir recorded a 0.5% decline. Compared with a year earlier, prices were up 27.7% in Istanbul, 26.6% in Ankara and 23.1% in Izmir.
Prices of homes built within the past two years were up 26.9% from a year earlier, while the index for older properties gained 25%. The average price per square meter reached ₺51,850 ($1,082) in the second quarter of 2026, up 30.6% from a year earlier.
The New Tenant Rent Index, which tracks rental prices for newly signed leases, advanced 1.9% from the previous month and 28.4% over the year in July, though it was 2.6% lower after adjusting for inflation.
Rents in Istanbul and Ankara increased 1.7% and 2.2%, respectively, from the previous month, while Izmir saw a 1.8% drop. On an annual basis, rents climbed 32.4% in Istanbul, 28.6% in Ankara and 26.4% in Izmir.
The weaker housing market was also reflected in sales, as 123,603 homes changed hands across Türkiye in July, down 17% from a year earlier. First-hand transactions dropped 8.6% to 42,529, while second-hand deals slid 20.8% to 81,074.
Mortgaged purchases, meanwhile, jumped 23.7% year-on-year to 23,888 in July as alternative housing-finance schemes gained a bigger role. Other transactions, which mostly cover purchases made without mortgage financing, declined 23.1% to 99,715. Between January and July, mortgaged sales climbed 30.9% to 166,682, while other sales were down 11.7% at 656,437.
From January through July, 823,119 homes changed hands, marking a 5.5% decrease from the same period in 2025. First-hand transactions edged down 0.8% to 264,016, while second-hand purchases were 7.5% lower at 559,103.
Foreign buyers moved against the broader trend in July, purchasing 2,120 homes, up 1.9% from a year earlier and accounting for 1.7% of all transactions. Over the first seven months, however, purchases by foreigners were 7.3% lower than a year earlier at 11,203.
Set as preferred source
Set as preferred source
0 min read
2 min read
