Türkiye closed 2025 with strong transaction momentum: total house sales rose 14.3% year‑on‑year to 1,688,910 units. Liquidity remained concentrated in the “big three” provinces—İstanbul (280,262), Ankara (152,534), and İzmir (96,998)—which drives both resale speed and rental market depth, driven by domestic demand as a hedge against inflation. However, foreign investment dropped to its lowest level in nine years due to stricter regulations and high prices.​

Key Market Statistics (2025)

1. Foreign Investor Analysis

Foreign buyer activity continued its downward trend, contracting by nearly 10%.

• Top Nationalities:
• Top Destinations for Foreigners:
• Reasons for Decline: Stricter citizenship-by-investment due diligence, high property prices in hard currency terms, and regional geopolitical tensions.

2. Volume & Value

• Transaction Volume: Beyond housing, total real estate activity (including land and commercial) reached 3.33 million transactions.Homist-Turkish-Property-Market-Report-2025.pdf​
• Financial Value: The Land Registry generated TRY 168.15 billion in fee revenue (+74.9% YoY), reflecting higher nominal property values.Homist-Turkish-Property-Market-Report-2025.pdf​
• Market Size: The residential market valuation is estimated at approximately USD 71 billion.​

3. Sales Composition

• Cash is King: 86% of all housing sales were cash transactions, as mortgage rates remained prohibitive (averaging ~40%) for most buyers.
• Used vs. New: Second-hand sales dominated with 68% of the market (1.15 million units), while new developments accounted for 32%.

4. Outlook for 2026

• Forecast: Sales are projected to stabilize between 1.55 – 1.70 million units.
• Trends: Inflation is expected to cool, potentially lowering mortgage rates and boosting credit-based sales, while foreign interest may remain muted without policy changes.

Practical playbook

• Underwrite returns in real terms: benchmark expected rent growth and resale value against inflation, not just nominal price moves.
• Prioritise liquidity, then yield: target districts with consistent transaction depth (often within the big three provinces), then align rental strategy (long‑term vs short‑stay) to local regulation and tenant demand.
• Treat purchases as compliance projects: rigorous title‑deed checks, earthquake safety verification, disciplined valuations, and clear banking/FX execution are as important as the headline deal.

2025 rewarded active market participation and disciplined underwriting. For foreign buyers, success comes from focusing on liquidity, regulatory compliance, and real (inflation‑adjusted) returns rather than headline nominal gains.

Download Full Report here

Check forecast for 2026 here.

Homist Turkey Team: +90 506 030 8008 | www.homist.tr

Disclaimer: Prepared by Homist for informational purposes only. Not investment, legal, or tax advice. Market conditions and figures may change. Always verify with official sources and consult a licensed advisor before making decisions.