Historic Momentum in Turkish Real Estate Market
According to data released by the Turkish Statistical Institute (TÜİK), Turkey’s real estate market has entered 2025 with remarkable strength. In the first quarter alone, a total of 694,628 properties were sold, breaking an all-time record across all property types.
Among these, 335,786 units were residential properties, reflecting a 20.1% year-over-year increase compared to the first quarter of 2024. This means nearly 48% of all property transactions in Turkey were residential sales, demonstrating strong consumer and investor appetite despite ongoing economic challenges.
The Best Q1 Since 2020
Mustafa Hakan Özelmacıklı, Chairman of the Board at Altın Emlak Global, noted that these figures represent the strongest first-quarter performance since 2020.
“This confirms the recovery that began in 2024 is gaining momentum in 2025. Despite high mortgage interest rates, we’re seeing a surge in property purchases using housing loans. This shows buyers are eager to take advantage of current price levels and credit availability,” he said.
Second-hand home sales remain dominant, accounting for 70% of all residential transactions, while mortgage-backed sales rose to 16.4%, marking the highest share in the last 20 months.
Why Now Is a Strategic Time to Invest
Özelmacıklı also emphasized that a combination of rising construction costs and an expected drop in housing loan interest rates could push property prices even higher in the coming months.
“This is a window of opportunity for investors. Those considering a real estate purchase should act soon. The current market conditions are still favorable, but they may become more difficult in the near future,” he warned.
The underlying message is clear: With inflation still a concern and construction costs steadily increasing, early investment may protect against future pricing pressures.
Housing Demand Remains Strong Nationwide
The surge in transactions isn’t just concentrated in major metropolitan areas like Istanbul, Ankara, and Izmir. The housing demand is being felt nationwide, driven by urban migration, demographic growth, and long-term supply shortages.
Özelmacıklı stressed that Turkey needs nearly 1 million new housing units per year and that ensuring safe and resilient housing stock is critical in a country frequently exposed to seismic activity.
“For the real estate sector to thrive and contribute to urban safety, it must grow in a stable and sustainable way,” he said.
Positive Signs in Construction Cost Index
While construction materials and labor costs continue to rise, the pace of increase is slowing. Özelmacıklı referenced the Construction Cost Index, which rose by 23.94% year-over-year in March 2025, a significant deceleration from previous months.
He cited comparative figures: the index rose 41.4% in August 2024, but slowed to 26.6% by January 2025, indicating a cooling trend.
“This trend suggests a stabilization in the cost structure, which could support more predictable project development and pricing,” he explained.
Real Estate Is Rebounding — and Investors Are Taking Note
Turkey’s real estate market is clearly rebounding, with first-quarter figures reinforcing a broader pattern of recovery. While macroeconomic challenges persist, property remains a reliable and tangible investment, especially in markets where demand outpaces supply.
At a time when global investors are diversifying portfolios and seeking inflation-proof assets, Turkey’s real estate sector is once again emerging as a high-potential opportunity.
