House prices in Türkiye heat up with fastest surge in 8 months

House prices in Türkiye accelerated once more in March, with the Residential Property Price Index increasing by 2.03% month-on-month and 32.34% year-over-year, marking the highest annual increase since August 2024, according to the Central Bank of the Republic of Türkiye (CBRT).

However, in real terms, adjusted for inflation, housing prices posted a 4.2% annual decline, the central bank’s figures showed.

Among the country’s three largest cities, the index rose in March by 2.5% in Istanbul, 1.9% in Ankara, and 3.8% in Izmir compared to the previous month. On an annual basis, prices increased by 30.7% in Istanbul, 38.6% in Ankara, and 32.5% in Izmir.

House sales continue 9-month streak in growth

According to the Turkish Statistical Institute, the number of residential property sales across Türkiye rose by 5.1% year-over-year in March, reaching 110,795 units. In the first quarter of 2025, total sales approached 336,000 units, representing a 20.1% increase from the same period last year and marking the ninth consecutive month of annual growth.

Between January and March, housing transactions reached 335,786, making it the second-highest first-quarter total recorded since January 2020.

Istanbul led the market with 19,820 homes sold in March, followed by Ankara with 10,203 units and Izmir with 7,513.

Mortgage-financed home sales surged by 41.5% year-over-year in March, totaling 18,225 transactions. This uptick is attributed to declining mortgage interest rates. Mortgaged sales accounted for 16.4% of all residential transactions during the month.

In the first quarter, mortgaged home sales jumped by 87.3% year-over-year to 51,729 units.

Foreign home sales hit 8-year low

Home sales to foreign buyers fell sharply in the first quarter, dropping 19.5% year-over-year. While 5,685 properties were sold to foreign nationals in the same period last year, this year’s figure declined to 4,578—the lowest first-quarter result since 2017, when just 4,270 units were sold.

In subsequent years, sales to foreign buyers steadily increased, peaking in 2022 with a record 14,344 transactions.

Istanbul remained the top destination for foreign buyers, accounting for 635 units sold. It was followed by Antalya with 496 units and Mersin with 141.