Türkiye’s housing market remains active in 2025, but nominal price growth is lagging inflation, so real (inflation-adjusted) prices are falling.

According to the Central Bank of the Republic of Türkiye (CBRT), the residential property price index (RPPI) rose 32.82% year on year in July 2025, equivalent to a real decline of 0.52% after adjusting for inflation. Among the three largest cities:

  • Ankara led with 42.9% nominal growth and 7% in real terms
  • Istanbul rose 33.5% (almost unchanged in real terms)
  • İzmir rose 30.9% (a real decline of 1.9%)

The national average price per square metre reached TRY 39,697 (USD 1,025): TRY 63,125 (USD 1,630) in Istanbul, TRY 35,690 (USD 922) in Ankara and TRY 43,970 (USD 1,135) in İzmir.

Demand: domestic buying power, falling foreign investment

From January to July 2025, 834,751 homes were sold nationwide — up 24.2% year on year. 70% of transactions involved second-hand homes, whose sales rose 27%. Mortgage sales almost doubled (+93%) despite high interest rates; experts say rising rents are pushing people to buy.

Sales to foreigners, however, declined: only 11,267 homes were sold to foreign buyers in the first seven months of 2025 (down 12% year on year). Foreigners’ share of total transactions fell to 1.3% (from 4.5% in 2022). The main buyer nationalities were Russians (17%), Iranians (9%), Ukrainians (7%), and Germans and Iraqis (6% each).

Supply: building permits at their highest since 2017

In the first half of 2025, construction permits were issued for 460,994 homes (up 28% year on year), 95% of them in multi-unit complexes. However, occupancy permits were issued for 278,596 units — almost unchanged from last year.

The government is preparing the largest social housing programme in the history of the Turkish Republic, starting in autumn 2025: 500,000 homes will be built in all 81 provinces. At the same time, supported rental housing schemes are being drawn up.

Rental market: high but easing rent inflation

Rent inflation reached 74.3% in August 2025 (down from 100% in January), still above general inflation (33%). According to BETAM, the average advertised rent reached TRY 238.8 (USD 5.9) per square metre (+31.8% year on year). Istanbul leads with 39.3% growth (4.3% in real terms).

Gross rental yields in Türkiye averaged 7.76% in August 2025; the highest was in Adana (8.87%), followed by Ankara (8.67%) and Istanbul (8.15%), and the lowest in Antalya (6.28%).