by The Turkish real estate market witnessed remarkable growth in 2024, reaching 1.48 million house sales, a 20.6% increase compared to 2023. December alone recorded a historic peak with 212,637 sales—a 53.4% jump from December 2023. This article explores the trends driving Turkey’s housing market and what it means for investors.
Key Trends in Turkey's Property Market
First-Time Homebuyers Surge
First-time homebuyers significantly contributed to the market growth. In 2024, first-time home sales rose by 27.6%, totaling 484,461 units—36% of all sales. This trend highlights the growing appeal of property ownership among Turkish citizens.
Foreign Buyers Decline
While domestic sales soared, foreign purchases dropped by 32.1% in 2024. Russians dominated this segment, with 4,867 properties purchased, followed by buyers from Iran (2,166) and Ukraine (1,631).
Impact of Monetary Policies
Turkey’s Central Bank cut interest rates by 250 basis points in December 2024, reducing the key rate to 47.5%. This sparked a 285.3% year-on-year increase in December’s mortgaged sales, though annual mortgaged sales fell by 10.8%.
Regional Sales Insights
The distribution of sales varied across Turkey, with major cities like Istanbul and Ankara leading the activity. Understanding these regional dynamics is crucial for investors aiming to maximize returns.
Why 2024 Was a Record Year for Turkey’s Housing Market
- Domestic demand surged due to affordable financing options.
- First-time homebuyers drove a significant portion of the market.
- Changes in monetary policy provided a short-term boost to mortgaged sales.
What This Means for Investors
Turkey’s real estate market in 2024 presented opportunities for domestic and international stakeholders. However, with foreign investment declining, focusing on domestic demand could yield better returns.
