House price index
The Turkish real estate market index is expected to continue rising in 2026. 2025 was a record year in terms of transaction volume. Real estate remains the traditional and principal form of savings in the country.
Number of transactions
Total transaction volume has recovered to roughly 1.5 million units — a level comparable to 2020–2022, indicating that the sharp decline of 2023 has run its course. Notably, the recovery took place under tight monetary policy and limited mortgage financing.
Activity of foreign buyers
Foreign demand remains subdued in 2025: the share of transactions involving foreign buyers is holding at around 1–2%, confirming a structural cooling of the foreign segment amid regulatory pressure and macroeconomic risks. This trend is expected to continue in 2026.
In 2025 the share of foreign buyers in total real estate transactions in Turkey fell to roughly 1.5%, matching the levels of 2016–2017 and pointing to a structural decline in the role of foreign demand driven by macroeconomic and regulatory factors.
Share of foreign buyers by country
In 2024 the combined share of foreign buyers from Iran, Russia and Ukraine stood at 38.3%, broadly in line with previous years. However, a clear overall decline in interest in the country is evident.
Domestic demand trends
Domestic demand remains the main driver of market growth. 2025 was a record year despite waning interest from foreign buyers.
Urbanisation
A key driver of domestic demand is the ongoing process of urbanisation and the migration of the local population to the major urban centres: Istanbul, Ankara and Izmir. Since the potential for urbanisation is far from exhausted, further growth in domestic demand and rising population concentration in these cities are expected over the next five years. An additional factor accelerating this concentration is the crisis in the textile industry and the closure of large plants in the country's smaller towns.
Inflation and domestic dynamics
The main driver of property price growth is inflation of the Turkish lira. Historically, buying real estate in Turkey has been the key way to protect capital from currency devaluation. At the same time, the sharp price surge previously seen in coastal regions (2018–2022) has redirected demand towards other parts of the country where prices remain relatively more affordable.
The Ankara market deserves particular attention, showing the most stable and consistent price growth trend. It is the only major city whose price dynamics have never depended significantly on foreign demand, while still matching the growth rates of the traditionally popular coastal regions. As a result, Ankara did not experience the noticeable price correction that affected popular destinations such as Antalya, Alanya and even Istanbul in 2023.
Most popular cities
Ankara has never been among the most popular Turkish cities for foreign buyers, and demand for its property has therefore never depended on foreign demand.
Price growth in 2025
Ankara's growth has slowed but the city retained the outright lead in 2025. Growth rates in Istanbul and other major cities are lagging behind inflation.
Average price per m²
At present Ankara's price level is below even that of Mersin — the city with the lowest prices among the major cities on Turkey's Mediterranean coast.
Growth drivers
Ankara's price growth potential is therefore underpinned by the significant price gap relative to the country's other popular cities.
Additional factors
Another significant factor is the high level of seismic activity, with the risk particularly relevant for Istanbul and Izmir. The Turkish authorities are implementing a programme to gradually relocate industrial capacity to less seismically vulnerable regions. Ankara and Konya stand out among them, thanks to developed infrastructure, an available workforce and convenient access to logistics networks. The combination of these factors creates unique conditions for sustained growth of Ankara's real estate market over the next 3–4 years.
In 2025 Turkey's real estate market posted a recovery in transaction volumes and confirmed its overall resilience, yet the structure of this recovery differs fundamentally from previous cycles. Domestic demand became the market's main driver, while the role of foreign buyers has declined substantially and no longer has a meaningful effect on price dynamics. Total transaction volume recovered to roughly 1.5 million units, comparable to 2020–2022 levels and indicating that the sharp decline of 2023 has run its course. Notably, the recovery occurred under tight monetary policy and limited mortgage financing, underlining the protective role of real estate for local households in a high-inflation environment.
Price dynamics remained positive in nominal terms in 2025, but in real terms the market largely stagnated. Price growth in Turkish lira was driven primarily by inflationary inertia rather than by a fundamental shortage of supply. In dollar terms, some regions — above all tourist destinations — underwent price corrections.
Regional divergence has intensified: Ankara stands out as the only major market showing signs of real growth, while Istanbul continues to display high liquidity with limited price momentum. Antalya and Alanya, meanwhile, have come under pressure from weaker foreign demand and the accumulated overheating of previous years.
In 2025 the foreign segment of the market entered a definitive phase of structural contraction. Transaction volumes involving foreign buyers fell to mid-2010s levels, and their share of the overall market declined to roughly 1.5%. Despite continued interest from individual countries, foreign demand has ceased to be a systemic growth driver and has largely lost its ability to support prices, particularly in resort regions. This has widened the gap between the primary and secondary markets and led to larger resale discounts.
Under the baseline scenario, Turkey's real estate market is expected to enter a phase of stabilisation in 2026. A significant increase in transaction volumes is unlikely: the market will probably remain in the 1.45–1.55 million unit range. Prices will continue to rise in nominal terms, but at a moderate pace largely offset by inflation. In real terms the market is likely to remain close to flat, and in dollar terms individual regions may continue to move sideways or see mild corrections.
No significant recovery in foreign demand is expected in 2026: its share will probably remain in the 1–2% range.
In 2026 Turkey is not a market of rapid growth or of large-scale speculative strategies aimed at capital gains in foreign currency. It nevertheless retains its investment appeal for selective strategies focused on domestic demand, the purchase of liquid assets at a discount and long-term capital preservation in local currency.
The most resilient markets are likely to be the capital region and economically diversified cities, while tourist regions will remain more volatile and sensitive to shifts in external demand. Overall, Turkey's real estate market is entering a phase of maturity that requires investors to be highly selective, to understand regional specifics in depth and to hold realistic return expectations.
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