In November, Türkiye experienced a notable shift in its housing market: after 21 consecutive months of decline, house price growth finally turned positive in real terms (adjusted for inflation), according to a Tuesday report from the Central Bank of the Republic of Türkiye (CBRT). This reversal occurred because the annual rise in the Residential Property Price Index (RPPI) exceeded the national inflation rate.
The latest data reveals that house prices increased by 2.7 % on a monthly basis, while the year‑over‑year growth reached 31.4 % — slightly outpacing November’s headline inflation rate of 31.1 % by 0.3 percentage points.
Among the country’s three largest urban centres, Ankara led in monthly price growth with a 3 % rise in November, followed by Istanbul (2.5 %) and İzmir (2.4 %). In annual terms, price gains varied across these cities:
- Ankara: 37.9 %,
- Istanbul: 31.7 %,
- İzmir: 31.6 %.
Housing Sales: Mixed Trends
Despite a year‑on‑year drop in November, the overall housing market remained resilient. Sales fell by 7.8 % compared to the same month last year, with total transactions dipping to 141,100 units.
However, cumulative sales from January to November showed solid growth, rising by 15.4 % to reach 1.43 million units. This expansion was largely fueled by second‑hand property transactions, which surged by 15.4 % to 990,037 units. New home sales also increased, climbing by 8.9 % to 444,096 units.
In terms of regional performance:
- Istanbul retained its position as the largest housing market, with 24,234 transactions in November;
- Ankara followed with 12,706 sales;
- İzmir recorded 8,540 transactions.
Mortgage Lending And Foreign Demand
The mortgage market continued to strengthen, with 207,519 homes purchased using loans in the first eleven months of the year — a 53.5 % increase compared to the same period in 2024. This uptick was driven by reduced borrowing costs after the Turkish central bank lowered its policy rates, thereby boosting loan demand.
Meanwhile, sales to foreign buyers declined in November, with only 1,943 properties sold to non‑Turkish citizens — a 9.7 % drop from November 2024. The largest share of these purchases was made by Russian nationals, with buyers from Ukraine and Germany also featuring prominently.
Foreign interest in Türkiye’s housing market has been volatile in recent years, shaped by a combination of factors: global financial conditions, fluctuations in exchange rates, and changes in domestic regulations related to property purchases for residency or citizenship purposes.
