Turkey Property Sales January 2025: 40% Surge Signals Booming Real Estate Market
The Turkish real estate market kicked off 2025 with remarkable momentum, as Turkey property sales January 2025 surged by 39.7% year-on-year (YoY), reaching 112,173 units—the second-highest January figure on record.
The Turkish real estate market kicked off 2025 with remarkable momentum, as Turkey property sales January 2025 surged by 39.7% year-on-year (YoY), reaching 112,173 units—the second-highest January figure on record. This growth underscores Turkey’s resilience amid economic fluctuations and highlights emerging opportunities for local and international investors. Let’s dive into the numbers shaping this dynamic market.
Year-on-Year Growth: Turkey Property Sales Soar by 40%
January 2025 marked a stellar start for Turkey’s property sector, with total sales climbing to 112,173 units, a 39.7% increase compared to January 2024 14. Key drivers include:
- New vs. Second-Hand Sales: 32,785 new homes sold (+29.8% YoY), while second-hand properties dominated with 79,388 transactions.
- Low Base Effect: Analysts attribute part of the growth to weaker performance in early 2024, amplifying 2025’s positive figures.
Mortgage Sales Skyrocket Despite High Interest Rates
Despite elevated interest rates, mortgaged property sales exploded by 182.8% YoY, totaling 16,726 units. However, this segment still represents just 14.9% of total sales, far below the typical 50% seen in healthier markets. Experts like Ramadan Kumova of KONUTDER argue that lowering mortgage rates to ~1% could further boost demand.
Regional Highlights: Istanbul, Ankara, and Izmir Lead Demand
Turkey’s metropolitan hubs remain investment magnets:
- اسطنبول: Topped sales with 239,213 transactions in 2024, driven by urban regeneration and luxury developments.
- أنقرة: Recorded the shortest investment payback period (12 years), making it a top choice for ROI-focused buyers.
- Coastal Regions: Sales in areas like Antalya rose 10% in 2024, fueled by tourism and citizenship incentives.
Foreign Investment Trends: Russians Remain Top Buyers
Foreign property sales dipped by 24.9% in January 2025, but Russians maintained their lead with 248 purchases. Key trends include:
- Citizenship by Investment: The $400,000 threshold continues to attract global buyers, though foreign transactions accounted for just 1.4% of total sales .
- Top Cities for Foreigners: Istanbul (611 sales), Antalya (469), and Mersin (118)
Shorter Payback Periods Attract Investors
Emlakjet’s Return Index highlights shrinking payback periods in major cities:
- أنقرة: 12 years (-14% YoY).
- Istanbul & Izmir: 16 years (-6% and -11% YoY).
These improvements reflect rising rental yields and property values, particularly in central districts.
Challenges and Future Outlook
While the market thrives, challenges persist:
- Inventory Shortages: Developers warn of dwindling stock, urging increased construction to meet demand.
- Foreign Investment Decline: Sales to non-residents fell 32.1% in 2024, though December saw a 17.2% rebound.
- Inflation Risks: Construction costs and property prices may rise further if inflation persists.
Analysts predict 1.5 million+ annual sales if current trends hold, driven by suburban demand and government incentives.
Key Takeaways
- Historic Growth: January 2025 sales surged 40% YoY, signaling strong domestic confidence.
- Mortgage Boom: Loans fueled 182.8% growth, but lower rates could unlock further potential.
- Metropolitan Hotspots: Istanbul, Ankara, and Izmir dominate transactions and ROI metrics.
- Foreign Interest: Russians lead despite overall declines; citizenship incentives remain pivotal.
- Sustainable Growth: Payback periods and rental yields improve, attracting long-term investors.
More:
Turkish Statistical Institute (TurkStat) 1, Emlakjet ROI Report 1.
