Turkey’s 2024 Housing Market Boom

A Record Year for Turkish Real Estate

Turkey’s real estate market experienced remarkable growth in 2024, with housing sales increasing by 20.6% compared to the previous year. A total of 1,478,025 properties changed hands across the country, demonstrating the market’s resilience and continued demand despite economic fluctuations.

This article provides an in-depth look at the factors driving this growth, regional trends, foreign investment patterns, and the shifting dynamics of mortgage financing in Turkey’s booming property sector.

Turkey’s Housing Market Performance in 2024

According to the Turkish Statistical Institute (TÜİK), December 2024 alone saw a 53.4% increase in home sales compared to the same month in 2023, with 212,637 transactions recorded.

This significant surge was largely fueled by:

• Lower interest rates: The Turkish central bank cut interest rates by 250 basis points to 47.5%, following 18 months of monetary tightening.
• High demand for residential properties: As inflation stabilized, homebuyers re-entered the market, creating strong momentum.
• Increased urban migration: Major cities, particularly Istanbul, Ankara, and Izmir, saw sustained housing demand due to economic opportunities.

Foreign Investment in Turkish Real Estate

While domestic sales surged, housing sales to foreign buyers declined by 32.1%, totaling 23,781 units in 2024. This downward trend reflects shifts in investor sentiment, geopolitical tensions, and economic factors impacting international buyers.

Key Statistics on Foreign Sales:

• December 2024: 2,418 properties were sold to foreign buyers, marking a 17.2% annual increase.
• Annual Share: Foreign transactions accounted for 1.6% of total home sales, a decline from previous years.

Top Locations for Foreign Property Buyers:

Despite the decline, certain regions remained highly attractive to foreign investors:

1. Istanbul: 8,416 units sold (leading the market)
2. Antalya: 8,223 units sold (a top coastal investment hub)
3. Mersin: 2,112 units sold (an emerging hotspot)

Top Nationalities Investing in Turkey:

The most active foreign buyers in 2024 were:

• Russian Citizens: 4,867 homes purchased (largest foreign investor group)
• Iranians: 2,166 homes purchased
• Ukrainians: 1,631 homes purchased

In December 2024, Russian investors remained dominant, purchasing 438 units, followed by Iranians (239 units) and Ukrainians (181 units).

Why the Decline in Foreign Sales?

• Geopolitical Uncertainty: Regional instability affected foreign investor confidence.
• Regulatory Adjustments: Turkey tightened its real estate regulations for foreigners, making property purchases more complex.
• Currency Fluctuations: The depreciation of the Turkish lira impacted investment returns.

Surge in Mortgage-Backed Housing Sales

Key Insights on Mortgage Sales:

• December 2024: Mortgage sales skyrocketed by 285.3% year-over-year, reaching 23,277 transactions.
• Full-Year 2024: Mortgage-financed home sales dropped 10.8%, with a total of 158,486 units sold.

Mortgage Share in Total Sales:

• December: 10.9% of all home sales were mortgage-backed.
• Full-Year 2024: 10.7% of transactions involved mortgage financing.

Why the Fluctuation?

• Lower interest rates spurred mortgage applications in the short term.
• Economic uncertainty led to a more cautious approach from banks and borrowers.
• Government housing incentives influenced buyer behavior in favor of cash transactions.

First-Hand vs. Second-Hand Property Sales

First-Hand Property Sales Growth

• December 2024: First-time home sales rose 49.5% year-over-year, reaching 76,629 units.
• Annual 2024 Growth: A 27.6% increase, with 484,461 units sold.
• Market Share: First-hand sales accounted for 36% of total home sales in December and 32.8% for the full year.

Second-Hand Property Sales Surge

• December 2024: Sales increased 55.7%, reaching 136,008 transactions.
• Annual 2024 Growth: A 17.4% increase, totaling 993,564 units.

This reflects strong demand for affordable, ready-to-move-in properties, particularly in urban centers.

Future Outlook for Turkey’s Housing Market

Market Trends for 2025

Turkey’s real estate sector is poised for continued growth, but several factors will influence its trajectory:

Interest Rate Policies

• Future monetary decisions will dictate mortgage affordability and homebuyer sentiment.
• Lower rates could further boost demand, while rate hikes may slow sales momentum.

Foreign Investment Regulations

• Reforms in property acquisition laws for foreigners could either attract or deter investors.
• Simplified residency and citizenship processes may revive international interest.

Urban Expansion and Smart Cities

• Government-backed mega projects (e.g., Istanbul Canal, new business districts) will shape future demand.
• Investments in smart cities and green developments could attract a new wave of tech-savvy homebuyers.

Affordable Housing and Government Initiatives

• Subsidized home loans and low-income housing projects are expected to increase accessibility for first-time buyers.

Turkey’s 2024 housing market boom has set a strong foundation for sustained growth in 2025. While foreign investment has slowed, domestic demand remains robust, fueled by interest rate adjustments, mortgage activity, and urban expansion. As Turkey positions itself as a global real estate hotspot, savvy investors should monitor emerging opportunities in both residential and commercial property markets.

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