Turks flock to real estate, shatter Q1 sales record

Real estate sales across Türkiye—including residential units, land, farmland, commercial properties and business premises—started the year strong and maintained their momentum in February and March. The total number of transactions reached 694,628 in the January–March period, breaking the all-time first-quarter record.

According to data compiled by Anadolu Agency, overall sales increased by 8.3% in the first quarter compared to the same period last year. The previous record was set in the first quarter of 2023 with 683,399 transactions.

In January, property sales rose 20.2% year-on-year to 238,938 units. February saw a 7% increase with 232,756 sales. However, sales dipped slightly in March, falling 0.8% from the previous year to 222,934.

Revenue from title deed transactions also surged, rising 72.5% year-on-year to reach ₺28.8 billion ($758 million) during the period.

Demand driven by affordability and inflation concerns

Turkish sector leaders commenting on the data pointed to a combination of economic shifts and demographic trends as key drivers behind the record-breaking sales. They emphasized that declining interest rates, high rental prices, and inflationary concerns have pushed both individual buyers and investors toward real estate.

Mustafa Ekiz, head of the Real Estate and Construction Platform, said the market benefited from a broad-based boost led by strong housing demand.

“Falling interest rates, expectations of further price increases, and high rental costs have prompted many citizens to purchase homes,” Ekiz noted.

He added that declining returns from deposits and a stabilization in foreign exchange rates had encouraged investors—especially those who profited from gold—to see housing as an opportunity. “For a while now, real estate prices have been rising below the rate of inflation, meaning they’ve been falling in real terms. This has accelerated pent-up demand,” he said.

Ekiz emphasized that housing demand in Türkiye remains robust. “We have a young population. Every year, newlyweds, divorcees, university graduates moving out, and first-time employees generate around 800,000 units of new housing demand. Seeing this, developers have started to act. We’ve also accelerated our own projects.”

He predicted that if interest rates continue to decline through the summer, the upward momentum in sales could continue, potentially leading to new records. “In this respect, monetary policy will be key,” he said.

Ismail Ozcan, head of the Real Estate Marketing and Sales Professionals Association (GAPAS), said the industry had anticipated this level of activity.

“Much of the current demand comes from previously postponed purchases,” Ozcan explained.

He said savings parked in various financial instruments have increasingly been redirected into real estate, especially as low returns on foreign currency holdings made property investment more appealing.

“Right now, it’s mostly investors making purchases,” he said. “But if interest rates fall further, we may see a surge in owner-occupied purchases from the middle-income segment. In that case, we could surpass last year’s numbers.”