Here are top 3 reasons why you should buy a house in Türkiye in 2025

Türkiye’s real estate sector showed positive signals in 2024, as house sales surged by over 20%, while housing supply was bolstered by strong construction output growing by over 10%. This occurred despite slowed profits and challenges stemming from high loan interest rates, which were a result of disinflationary policies.

On the other hand, the Central Bank of the Republic of Türkiye (CBRT) signaled monetary easing by starting the interest-cut cycle following consecutive declines in annual inflation, and the Turkish government announced new state-sponsored social housing projects. Thus, the sector is likely to shine further in 2025, which might present the highest-profit investment opportunities as well as options for acquiring new living spaces, making 2025 one of the best times to purchase a house in Türkiye.

File photo shows a construction site with multiple residential buildings at various stages of completion in Türkiye. (IHA Photo)

Here are the top three indicators supporting this positive outlook, providing an overview of Türkiye’s real estate sector’s sustained growth and investment potential:

Top 3 reasons to buy a house in Türkiye in 2025

1- Strong demand

According to the Turkish Statistical Institute’s (TurkStat) “House Sales Statistics” report on December 2024;

House sales in Türkiye rose by 20.6% in 2024 compared to the previous year, reaching 1.47 million. In December alone, sales surged by 53.4% year-on-year, totaling 212,637. Meanwhile, mortgaged house sales declined by 10.8% in 2024, amounting to 158,486, with a 10.7% share of total sales.

The provinces with the highest number of house sales were Istanbul with 239,213, Ankara with 134,046, and Izmir with 80,398, while the provinces with the lowest numbers were Ardahan with 755, Hakkari with 958, and Bayburt with 999.

However, house sales to foreigners dropped by 32.1% in 2024 compared to the previous year, from 35,005 to 23,781 and accounting for 1.6% of all house sales in 2024. The provinces with the highest sales to foreigners were Istanbul with 8,416, Antalya with 8,223, and Mersin with 2,112.

House sales to foreigners increased by 17.2% in December compared to the same month in the previous year, totaling 2,064. These sales made up 1.1% of all house sales in December.

2- Low real prices

According to the CBRT Residential Property Price Index report for December 2024;

In December, housing prices increased by 1.98% compared to the previous month, and on an annual basis, prices rose by 29.4%.
When adjusted for real values, housing prices recorded a 10.4% decrease. This marked the lowest monthly price increase in the past three months.
In previous months, price increases were 2.07% in October and 2.85% in November.

Graph illustrates the trends in nominal and real (CPI-adjusted) housing prices over time. The red line represents nominal prices, while the dark blue line represents real prices adjusted for inflation. (Chart via CBRT) — The graph illustrates the trends in nominal and real (CPI-adjusted) housing prices over time. The red line represents nominal prices, while the dark blue line represents real prices adjusted for inflation. (Chart via CBRT)

Among major cities, the highest price increase was observed in Istanbul.
In December, housing prices in Istanbul rose by 2.1% compared to the previous month, followed by Ankara with a 2% increase and Izmir with a 0.4% increase.

The table shows the Residential Property Price Indices for Türkiye and its major cities—İstanbul, Ankara, and İzmir—for the year 2023 (base value = 100). (Chart via CBRT) — The table shows the Residential Property Price Indices for Türkiye and its major cities—İstanbul, Ankara, and İzmir—for the year 2023 (base value = 100). (Table via CBRT)

On an annual basis, the highest price increase was recorded in Ankara, where housing prices rose by 34.8% compared to the same period last year. Istanbul ranked second with a 26.3% increase, followed by Izmir with a 25.2% increase.

3- Strong yield potential

According to endeksa.com, a platform tracking real estate values in Türkiye:

Average sale housing prices per square meter ₺23,790 ($825) to ₺29,794, accounting for a 24.94% rise year-over-year.
The average gross area of a sale property in Türkiye is 129 square meters, with an average price of $110,964.
The amortization period for these properties is estimated at 14 years, reflecting an annual yield of 7.31%, data showed.

Meanwhile, Organisation for Economic Co-operation and Development (OECD) data also revealed that Türkiye is leading all countries in housing price increases, experiencing unprecedented growth over the past nine years, soaring from an index value of 100 in 2015 to an astonishing 1,740.7 by the third quarter of 2024.

Following a decline in annual inflation to 44.38% in December, the central bank implemented its second consecutive 250-basis-point rate cut in January. This move is anticipated to lower interest rates on bank loans, boosting sectoral activity both in terms of production and the potential increase in mortgage availability.

Considering future rate cuts as part of the central bank’s successful disinflation program, all these indicators suggest that the downward trend in real housing prices could come to an end in 2025, with sales potentially reaching record levels.