Türkiye’s property market kicked off 2025 with record-breaking activity. Even amid high interest rates and currency concerns, domestic buyers pushed home sales sharply higher—defying expectations and signaling resilience. Here’s what you need to understand about early‑year momentum and what it means for investors.
📈 1. Market Momentum: Q1 Sales Rise 20 Percent
- Between January and March 2025, 335,786 homes were sold, a 20.1 percent increase year‑over‑year—according to Turkish Statistical Institute (TÜİK) data P.A. TurkeyTranio.
- In March alone, 110,795 units changed hands, up 5.1 percent YoY P.A. TurkeyIstanbul Real Estate.
Top Performing Cities:
- Istanbul: 19,820 sales
- Ankara: 10,203 sales
- Izmir: 7,513 sales P.A. Turkey
This surge is mostly driven by local demand and improved mortgage access, showing real confidence in domestic buyers.
💳 2. Mortgages Fueling Growth
- Mortgage-based transactions skyrocketed by 41.5 percent YoY in March, totaling 18,225 sales and representing 16.4 percent of home purchases P.A. TurkeyIstanbul Real Estate.
- In Q1 overall, mortgage purchases climbed to 51,729 units, an 87.3 percent rise from a year earlier P.A. Turkey.
Despite high interest rates, this rise suggests more buyers are willing to leverage financing to avoid escalating rent costs or to lock in rising prices.
🏡 3. Second-Hand Market Continues to Dominate
- First‑hand (new) home sales in March reached 33,307 units, down 3.2 percent YoY; whereas second-hand sales hit 77,488 units, up 9.1 percent YoY Istanbul Real EstateP.A. Turkey.
- In Q1, 235,910 second-hand homes sold (up 23.3 percent), compared to 99,876 first-hand units (up 13.2 percent) P.A. Turkey.
This shows Turkish buyers are favoring established properties—likely for affordability and availability—over new builds.
🌍 4. Foreign Buyers Retreat, But High-End Demand Persists
- Turkish property purchases by foreign nationals fell 11.5 percent in March, totaling 1,574 units, and foreign sales in Q1 dropped 19.5 percent YoY P.A. TurkeyIstanbul Real Estate.
- Top cities for foreign buyers: Istanbul (635 units), Antalya (496), and Mersin (141) P.A. Turkey.
While volume dropped, luxury and Citizenship-by-Investment (CBI) buyers—especially in Istanbul and Antalya—continue to invest selectively in high-value projects that meet CBI criteria.
📊 5. Prices Are Up, Real Value Pressured
- Türkiye’s House Price Index rose 4.66 percent in Q1 2025, bringing the average price to 37,740 TRY/sqm, up from 36,061 TRY/sqm at end of 2024 damasturk.comColliers.
- Major cities saw increases:
- Istanbul: +10.06% to 61,085 TRY/sqm
- Ankara: +11.79% to 33,272 TRY/sqm damasturk.com
- In real (inflation-adjusted) terms, housing values were down ~5.6% YoY. Nominal gains are notable, but inflation remains high—so real purchasing power growth is limited yektahomes.comColliers.
🧭 Investor Takeaways: What Does This Mean?
| Insight | Why It Matters for Investors |
|---|---|
| Q1 Sales Up 20% | Strong demand even with high rates suggests urgency |
| Mortgage Uptick | Buyers are financing now to avoid price escalation |
| Second-Hand Preference | Affordability remains a primary driver |
| Foreign Selectivity | CBI and luxury market remain active for the right buyers |
| Price Growth vs Inflation | Nominal gains positive, but real appreciation may be muted |
🔍 Why Investors Should Act Now
- Domestic demand surge demonstrates market momentum even amid macro challenges.
- Second-hand stock offers value opportunities for savvy buyers.
- Luxury supply aligned with CBI incentives remains attractive for high-net-worth foreign investors.
- With inflation pressures, locking in properties today could mean higher replacement costs tomorrow.
- At OttomanEstate, we can help you track the best deals, navigate legal steps, and structure investments strategically.
📞 Want to Dive Deeper?
Stay ahead in Türkiye’s dynamic property market. Download our city-by-city investment report or book a free consultation with our investment specialists.
