Turkey Property Sales January 2025: 40% Surge Signals Booming Real Estate Market

Record-Breaking Start for Turkish Real Estate in 2025

The Turkish housing market began 2025 with significant momentum. Property sales in January reached 112,173 units. This represents a 39.7% increase compared to the same month in 2024. This figure marks the second-highest January sales volume ever recorded in Turkey. The surge suggests strong domestic demand and a recovery in market confidence despite broader economic pressures.

Analyzing the 40% Growth in Property Transactions

Several factors contributed to this sharp rise. Analysts point to a "low base effect" from January 2024, when sales were unusually sluggish. However, the 2025 data shows genuine growth across multiple segments.

New vs. Second-Hand Market Performance

The market remains split between primary and secondary sales. New home sales reached 32,785 units, growing by 29.8% year-on-year. Second-hand properties continue to dominate the market with 79,388 transactions. Buyers often prefer second-hand homes due to their immediate availability and established locations in city centers.

The Surprising Surge in Mortgage-Backed Sales

Mortgage sales saw an explosive increase of 182.8% compared to the previous year. A total of 16,726 properties were purchased using bank loans in January 2025. This growth is surprising given the high interest rate environment in Turkey.

Despite the triple-digit percentage increase, mortgaged sales only account for 14.9% of the total market. In a typical low-interest environment, this share often exceeds 50%. Industry experts suggest that if mortgage rates drop toward 1% per month, the market could see even higher transaction volumes.

Regional Powerhouses: Istanbul, Ankara, and Izmir

Turkey’s major cities remain the primary engines of the real estate sector. Istanbul led the country with the highest volume of transactions. The city's appeal is driven by massive urban regeneration projects and its status as a global business hub.

Ankara has emerged as a favorite for investors seeking high returns. The capital city currently offers the shortest investment payback period in the country, averaging just 12 years. Izmir also maintains strong demand, particularly for those seeking a balance between urban life and coastal proximity.

Foreign Investment Trends and Top Buyer Nationalities

While domestic sales are booming, foreign property acquisitions saw a decline. Sales to non-residents fell by 24.9% in January 2025, totaling 1,589 units. Foreign transactions now represent only 1.4% of the total market share.

Russian citizens remain the top buyers among foreigners, accounting for 248 purchases in January. They are followed by buyers from Iran, Iraq, and Ukraine. Istanbul remains the most popular destination for international buyers, followed by the Mediterranean hub of Antalya and the rising port city of Mersin.

Investment Outlook: Payback Periods and Rental Yields

Real estate remains a preferred hedge against inflation in Turkey. According to the Emlakjet Return Index, payback periods are shrinking in major metropolitan areas. This trend is fueled by rising rental prices outpacing property price growth in certain districts.

• Ankara: 12-year payback period (14% improvement YoY).
• Istanbul: 16-year payback period (6% improvement YoY).
• Izmir: 16-year payback period (11% improvement YoY).

Challenges Facing the Market in 2025

The market faces several hurdles despite the strong start. Construction costs continue to rise due to global material prices and local inflation. This puts pressure on developers to increase prices for new projects.

Inventory levels are also a concern. In popular districts of Istanbul and Ankara, the supply of high-quality housing is struggling to keep up with demand. If supply does not increase, price appreciation may accelerate, potentially pricing out some domestic buyers.

Future Outlook for Turkish Property

Market analysts predict that Turkey could exceed 1.5 million total property sales by the end of 2025. This growth depends on the stability of the Turkish Lira and potential government incentives for first-time buyers. The shift toward suburban living and earthquake-resistant housing continues to redefine buyer preferences across the country.

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