Shorter rental periods and higher profits: Turkey's housing amortization duration reaches a 5-year minimum
Turkey's Real Estate Market Booms in 2025
Turkey's real estate market is experiencing a significant surge in 2025, with rising house sales, increasing rental prices, and improving investment conditions. The market is characterized by strong growth, attractive amortization periods, and flexible financing options.
House Sales
Total property sales in the first half of 2025 increased by 15.6% year-on-year, with over 1.4 million properties sold. This marks the second-highest first-half sales record in Turkey’s history, just behind 2022. Sales activity remained robust monthly, peaking in May with 263,643 sales, and the top three cities in volume were Istanbul, Ankara, and Izmir. May alone recorded 130,025 home sales, up 17.6% from May 2024.
Foreign buyer purchases dipped slightly by around 13-14%, notably from Russians, Iranians, and Germans. However, key coastal and urban areas like Istanbul, Antalya, and Mersin remain hotspots for international investment.
Rental Prices and Yields
Though detailed rental price data is limited, sources indicate rising rental yields and a positive outlook for rental investments across major Turkish cities in 2025. This increase is driven by strong urban demand and limited supply in desirable locations, aligning with the broader real estate boom.
Amortization Periods and Financing
Turkey offers flexible financing options, including developer plans accepting 50% down payments with 12 to 24-month installment periods, easing entry for buyers. Additionally, government incentives such as VAT exemptions for first-time buyers in approved projects improve affordability. Mortgage sales are booming, contributing to higher title deed fee revenues (+78%), underscoring strong lending and purchase activity.
Market Outlook
Despite some ongoing economic uncertainty, real estate remains a preferred investment and store of value in Turkey. The market growth is broad-based, covering housing, land, commercial, and office sectors. Coastal and metropolitan areas maintain strong appeal for both domestic and foreign investors.
In summary, Turkey’s real estate market in 2025 is characterized by rising sales volumes, increasing rental returns, and accessible financing options offering relatively short amortization terms. This supports continued investor interest despite a slight decline in foreign buyer activity. Nearly 700,000 houses were sold in Turkey in the first half of 2025, and the average rental price per square meter nationwide is calculated at ₺220.
- In 2025, Turkey's real estate market, particularly in cities like Istanbul, Ankara, and Izmir, witnessed a surge in house sales, with over 1.4 million properties sold, marking the second-highest first-half sales record.
- Despite a slight dip in foreign buyer purchases, mainly from Russians, Iranians, and Germans, key coastal and urban areas such as Istanbul, Antalya, and Mersin still attract international investment.
- Rental yields in major Turkish cities are increasing in 2025, driven by strong urban demand and limited supply in desirable locations, contributing to a positive outlook for rental investments.
- Turkey offers attractive financing options for real estate investors, including developer plans with 50% down payments and 12 to 24-month installment periods, as well as government incentives to improve affordability.
- Despite economic uncertainty, Turkey's real estate market continues to appeal to investors due to broad-based market growth, covering housing, land, commercial, and office sectors, primarily in coastal and metropolitan areas.
