TURKEY REAL ESTATE REPORT FOR THE YEAR 2024

Prices, Trends and Expectations

While housing prices for sale in Turkey increased by 25% in nominal terms in 2024, there

was a 14% decrease in real terms when the effect of inflation is taken into account. Prices

either remained stable or decreased in real terms on a monthly basis throughout the year;

however, an upward increase was observed in the last two months of the year as the market

regained momentum.

General Situation in the Housing for Sale Market

• The average housing square meter sales price in Turkey increased to 29,724 TL, while the

average housing price increased to 3.8 million TL.

• The payback period for housing investments was recorded as 14 years.

• According to TÜİK (Turkish Statistical Institute) data, housing sales increased by 20.6%

compared to the previous year, reaching 1 million 478 thousand 25.

• Compared to 2023, mortgage sales decreased by 10.8%, while first-hand sales increased

by 27.6%.

A real downtrend that has not been seen in the housing for sale market for a long time was

experienced throughout 2024.

Although a real decrease of 14% was recorded as of the end of the year, the impact of the

astronomical price increases experienced in the second half of 2022 and early 2023 is still  felt.

At that time, the annual nominal increase reached 178% and the real increase reached 52%.

While the market started to revive as of 2024, 2025 is expected to be quite active. The

removal of the 25% increase limit applied to rents makes housing an attractive investment

tool again, while the interest rate cuts and new housing campaigns signaled at the end of the

year may increase demand even more. This will trigger the start of a new upward trend in

housing prices.

Cities That Stand Out in the Housing Market for Sale in 2024

Gaziantep: It is the metropolitan city that showed the highest price increase in 2024.

• Among cities with a population of more than 2 million, Gaziantep stood out with a 33%

nominal price increase. However, when inflation is adjusted, this rate indicates a 9% real

decrease.

• Average square meter price: 21,605 TL, average housing price: 3.4 million TL.

Prices decreased in real terms in major cities

• While prices increased by 28-29% nominally in İzmir, Ankara and Adana, there was a 12%

real decrease due to inflation

• Average square meter prices:

o İzmir: 38,579 TL

o Ankara: 25,482 TL

o Adana: 22,147 TL

Prices increased in nominal terms in İstanbul, decreased in real terms

• Annual nominal increase: 23%, real decrease: 15%.

• Average square meter price: 44,755 TL, average housing price: 5.1 million TL.

Muğla and Antalya were the provinces that lost the most value

• Muğla: Nominal increase 19%, real decrease 19%. Average housing price 8 million TL.

Antalya: Nominal increase 20%, real decrease 18%. Average housing price 4.3 million TL.

Rental Housing Market in 2024

• Rental housing prices  increased by 41% in nominal terms, while decreasing by 3% in real

terms.

Average rent across the country increased to 20,000 TL.

The highest rent increases were in İzmir and Ankara

• Nominal increase: 52%, real increase: 4%.

Average rent: 21,000 - 24,000 TL.

The highest rents were in Muğla and İstanbul

• Muğla: Nominal increase 58%, real increase 8%. Average rent: 26,000 TL.

• Istanbul: Nominal increase 44%, real decrease 1%. Average rent: 25,000 TL.

Antalya was the province with the biggest decrease in rents.

Nominal increase 36%, real decrease 7%. Average rent: 19,500 TL.

Conclusion: What is the Real Estate Market Like as We Enter 2025

With the removal of the 25% limit on rents and the increase in new housing supply, more

activity is expected in the market in 2025. It is likely that the sales market will revive and

prices will move upwards with the effect of interest rate cuts and housing campaigns. The

transition period from 2024 to 2025 may be quite advantageous for those who want to makehousing investments.