Türkiye's October 2025 House Sales Soar to New Heights Amid Economic Challenges

Türkiye's October House Sales Reach 164,306, Highest Since Dec 2024

In an unexpected turn of events, Türkiye's housing market surged in October 2025, achieving 164,306 house sales, the highest monthly level since December 2024. This increase comes despite a slight year-on-year decrease of 0.5%. According to Daily Sabah, the housing market's resilience is attributed to the recent central bank rate cut to 39.5%, which injected momentum despite higher borrowing costs. Istanbul led the sales with 26,305 transactions, followed by Ankara and Izmir.

New vs. Second-Hand Sales: A Detailed Breakdown

The housing market dynamics in Türkiye have shifted significantly, with a notable divergence between new and second-hand home sales in October 2025. New home sales experienced a decline of 4.9%, reflecting the challenges facing developers and new construction projects. In contrast, second-hand home sales rose by 1.8%, becoming the preferred option for many homebuyers. The increased demand for existing homes suggests a strategic shift among buyers, as they navigate the complexities of current market conditions. This trend is further compounded by the central bank's monetary decisions, which aim to stabilize the market while promoting sustainable growth.

Mortgage-Financed Sales Rise 11.5% as Borrowers Seek Opportunities

Mortgage-financed sales in Türkiye saw an impressive 11.5% increase, accounting for 14.3% of all transactions in October 2025. This surge indicates a growing confidence among borrowers to leverage financing options despite elevated interest rates. As reported by TÜİK, the government's housing loan incentives have significantly contributed to this growth. These incentives have made mortgage financing more attractive, encouraging both first-time buyers and seasoned investors to enter the market. The central bank's recent rate cut has further supported this trend, making borrowing slightly more affordable for potential homeowners.

Istanbul, Ankara, and Izmir: Regional Leaders in Housing Sales

In October 2025, Istanbul continued to dominate Türkiye's housing market with 26,305 sales, followed by Ankara with 14,681 and Izmir with 8,678. These cities remain attractive to both domestic and international investors due to their strategic locations and robust economic activities. According to Bugün Kocaeli, Ankara recorded the highest annual increase in housing prices at 38.4%, highlighting its growing appeal. In contrast, Aydin, Denizli, and Mugla saw the lowest price increases, indicating regional disparities in market dynamics.

Ankara recorded the highest annual increase in housing prices at 38.4%, highlighting its growing appeal.

Analyzing the Impact of Central Bank Policies on Türkiye's Housing Market

The central bank's decision to cut interest rates to 39.5% has been pivotal in sustaining Türkiye's housing market, despite the broader economic challenges. As detailed by Hürriyet Daily News, the average home price stands at 4.5 million Turkish Liras, with varying impacts across different regions. While nominal prices have increased, real price adjustments remain a concern due to inflation. The bank's policies aim to strike a balance between stimulating growth and managing inflation, guiding the market towards a stable recovery.

Prospects for Türkiye's Housing Market: A Forward-Looking Perspective

Looking ahead, Türkiye's housing market presents both opportunities and challenges. The central bank's rate cut could continue to fuel sales, particularly in mortgage-financed transactions. However, inflation and economic uncertainties remain potential obstacles. RealEstateAbroad.com analysis suggests that strategic investments, particularly in cities like Istanbul and Ankara, could yield significant returns. Investors are advised to monitor economic indicators closely and remain adaptable to policy shifts that could influence market dynamics.

• Focus on cities with high sales growth: Istanbul, Ankara, and Izmir.
• Consider second-hand properties for better investment potential.
• Stay informed on central bank policies influencing interest rates.
• Analyze inflation-adjusted returns when investing.