Turkey’s Housing Surge: 130,025 Homes Sold in May — What Investors Must Know

Turkey’s property market is firing on multiple cylinders — and that matters for buyers

In May 2025, 130,025 homes were sold across Türkiye, a 17.6% increase on the same month a year earlier, according to the Turkish Statistical Institute (TÜİK). That headline number puts property Turkey back on many investors’ radars, but the story beneath the total is layered: a rebounding domestic market, quieter but resilient foreign demand, rising nominal prices and a monetary backdrop that keeps mortgage affordability in check.

I write as a market watcher who follows flows of capital and buyer behaviour across borders. We see opportunities and real risks. Below I unpack the data, explain what it means for real estate investment and for buyers considering property Turkey this year, and offer practical checks you should make before signing a contract.

Market snapshot: May 2025 in detail

TÜİK’s May release is striking for its scale and for where the activity is concentrated.

• Total homes sold in May 2025: 130,025 (up 17.6% year-on-year).
• Istanbul led the country with 22,103 sales, followed by Ankara and İzmir.
• Foreign nationals bought 1,487 properties in May, a figure that has broadly stabilised after 2024’s retreat.

What this tells us is simple: domestic demand is carrying the market. The volume is high enough that even a fall in certain buyer groups has not dented overall sales. For investors, that means rental markets supported by local tenants are as important as coastal holiday lettings that depend on foreigners.

Who is buying: foreign demand is cooling but far from gone

Foreign purchases received lots of attention during the pandemic and the run-up to 2024. Data for early 2025 show a slower pace versus past highs, but demand remains. TÜİK and market reports point to the following patterns:

• Sales to non-Turkish buyers fell 11.5% year-on-year in March 2025, to 574 units that month.
• Russians were the single largest foreign cohort in March, buying 275 homes.
• Other active groups include Iranians, Ukrainians and buyers from Gulf states.

That mix matters because each group chases different product types. Gulf and Russian buyers tend to aim for coastal homes and rental-ready properties. EU or Western buyers often look at lifestyle purchases inland. The decline in foreign sales last year has been offset by strong local activity, but foreigners still underpin segments such as luxury Mediterranean villas and short-term rental stock.

Prices and real returns: nominal gains versus inflation

Headlines have been dominated by price growth. The Central Bank of the Republic of Türkiye’s quality-adjusted Residential Property Price Index rose 31.95% year-on-year in January 2025, keeping nominal gains in double digits for a fifth consecutive year.

But real returns look different when inflation is taken into account. Inflation fell to 35% in May, which is lower than earlier peaks but still very high. That means:

• Nominal housing prices are climbing strongly, outpacing many peers in the OECD.
• Real appreciation has slowed, once inflation is accounted for. Buyers paying in euros or dollars can find different value than domestic lira buyers.

For international buyers thinking about Turkey as a hedge against currency depreciation, the mix of local inflation, lira volatility and price growth creates both opportunity and ambiguity. Pay close attention to the currency you use to price and finance a purchase.

Monetary policy and mortgage costs

The Central Bank froze its benchmark rate at 46% in June 2025, maintaining a tight stance. That has helped steady the lira. At the same time, the fall in headline inflation to 35% in May has analysts talking about a possible, gradual easing of rates later in the year.

CBRT-watchers now expect a rate-cut cycle to potentially begin in Q4 2025 if inflation continues to cool. If that happens, mortgage costs could fall and mortgage-backed demand may rise. For buyers today this creates two practical considerations:

• If you plan to finance domestically in lira, current mortgage rates are high and will keep monthly costs elevated until cuts materialise.
• Euro- or dollar-denominated payment plans, when offered by some developers, can protect foreign buyers from lira moves but shift currency risk.

We advise modelling both scenarios: what you pay now with high rates, and how your outgoings change if rates fall 200–600 basis points over the next 12 months.

Supply, urban renewal and the construction pipeline

Supply data show a market that is still building. Full-year deliveries rose 20.6% to 1.48 million units in 2024. At the same time, the government’s seismic resilience programme is set to shape construction volumes for years.

• A national target to retrofit or rebuild 7 million residential units by 2030 is expected to channel significant capital into construction and refurbishment projects.
• Authorities and developers are also pushing “green” building standards and denser development along urban rail corridors in Ankara, İzmir and the Marmara region.

Those programmes are a double-edged sword. They create demand for construction services and new units, which supports developers and allied industries. But they also signal that a non-trivial share of existing stock is subject to heavy regulatory change. Buyers should therefore ask whether a property is included in seismic-renewal plans and how that could affect future demolition, compensation or retrofit requirements.

Coastal tourism and buy-to-let dynamics

Tourism has been a powerful force behind coastal markets. Turkey recorded record tourism receipts of $61.1 billion in 2024, and Antalya alone registered 15 million international arrivals last year. That translated into higher nightly rates and stronger yields for short-term rentals, especially in the high season.

Investors chasing buy-to-let returns should note:

• Short-term rental revenues are concentrated in summer and in a few coastal hotspots. Off-season performance varies.
• Higher yields have drawn more investors into buy-to-let condos, boosting local competition for seaside inventory.
• Municipal rules on short-term rentals can change quickly; local licensing issues and limits on Airbnb-style listings are part of the regulatory risk profile.

If you target coastal rentals, factor in management fees, seasonal vacancy, maintenance (salt air damages) and the likelihood of increased local regulation.

Who wins: investor profiles and where to look

Turkey’s market is layered.