In December, the Turkish residential real estate sector showed significant nominal growth: prices increased by 27.2% year–on-year and by 1.6% month-on-month. However, when analyzing the inflation-adjusted indicators, the picture looks different. In real terms, the value of real estate decreased by 2.9% over the year and by 0.7% compared to the previous month.
Currently, the average cost per square meter of living space in the country is fixed at 37,800 Turkish lira ($869). The average home in Turkey now costs a buyer 4.7 million Turkish lira ($108,100), while the average payback period for such investments is about 14 years.
Record Sales Figures And The Mortgage Sector
December was marked by high activity of buyers: 254,777 properties were sold, which is 19.8% higher than the results of the same period last year. Overall, 2025 was a historic year for the Turkish market, reaching a record sales level of 1.69 million homes, which is 14.3% more than in 2024.
Special attention should be paid to the mortgage lending segment. In December, the number of mortgage-backed transactions increased by 25.2%, amounting to 29,149 units or 11.4% of total sales. In 2025, mortgage sales showed an impressive 49.3% increase, reaching 236,668 units.
Analytics And Expert Forecasts Of Market Development
Gerkem Ogyut, CEO of Endeksa, emphasizes that 2025 was a turning point, setting an absolute maximum in terms of transaction volume. Despite the fact that the secondary market continues to dominate, leveraged sales have shown the most dynamic growth.
The current situation is characterized by a nominal increase in purchase and rental prices, but the real decrease in cost, adjusted for inflation, indicates a stabilization of the market after a rapid jump in 2022. Experts note that high demand has not yet put critical pressure on prices, but the expected easing of credit policy and lower interest rates may provoke a new round of real appreciation of real estate in the near future.
Regional Leaders Of Real Estate Price Growth
Among the 30 provinces with the largest volume of transactions, Diyarbakir, Samsun and Batman became the leaders in terms of profitability for investors.
- Diyarbakir recorded an impressive annual price increase of 44.7%, which in real terms (adjusted for inflation) is 10.5%. A square meter here costs an average of 31,886 Turkish liras ($733), and the average house costs 4.9 million Turkish liras ($112,700).
- In Samsun, nominal growth was 37.4% (4.9% in real terms) at a price of 33,478 liras ($770) per meter and 3.8 million liras ($87,400) per object.
- Batman Province also showed a 36.7% increase in face value, with a square meter valued at 24,691 lira ($568) and a house valued at 3.6 million lira ($82,800).
Provinces With Minimal Growth And Negative Dynamics
The least active price dynamics was observed in Hatay, Gaziantep and Mugla.
In Hatay, with nominal growth of 15.9%, real prices fell by 11.5%, setting the cost of a meter at 25,426 liras ($585) and the price of a house at 3.8 million liras ($87,400). In Gaziantep, the real decrease was 7.4%, with an average price of 26,203 lira ($603) per meter.
Mugla retains the status of the most expensive region in the country: the average price per square meter here reaches 77,319 Turkish liras ($1,778), and the average cost of a house is a record 9.8 million Turkish liras ($225,400). Despite the high price tag, in real terms, real estate in Mugla has fallen in price by 6.9% over the year.
The Situation In Turkey's Megacities
Ankara became the leader among the four largest cities in terms of price growth, with a nominal increase of 33.6% and a real increase of 2.0%. In the capital, a square meter of housing will cost 34,055 liras ($783), and an average house will cost 4.4 million liras ($101,200).
In Istanbul, with a nominal increase of 29.3%, a real decrease of 1.3% was recorded; the price per meter is 57,874 lira ($1,331), and for a house – 6.6 million lira ($151,800). Izmir showed a real decrease in prices by 4.7% at a cost of 48,154 lira ($1,108) per meter and 6.0 million lira ($138,000) per house.
In Bursa, the real drop was 4.5%, where the average meter costs 32,294 lira ($743), and the object as a whole costs 4.3 million lira ($98,900).
The rental market in Turkey grew by 26.2% year-on-year in nominal terms, while prices remained stable on a monthly basis. However, inflation adjusted these figures downwards: in real terms, rents fell by 3.6% over the year and by 0.8% over the month.
Currently, the average rental price per square meter in the country is 229 Turkish lira ($5.27). Thus, the average monthly rent for housing in Turkey now stands at about 25,380 Turkish lira ($584).
