Türkiye’s housing market has reached historic levels in 2025, with sales in the first ten months marking the highest figures ever recorded for the same period.
Analysts point to soaring rental prices, high but easing mortgage rates, alternative savings-based financing, relocation trends and earthquake-driven safety concerns as the main reasons behind rising demand.
October alone saw 164,306 transactions, the strongest monthly performance of the year and the second-highest October on record after 2024. Between January and October, 1.29 million homes changed hands, setting a new benchmark for ten-month sales. Experts now expect total transactions to surpass 1.5 million by year-end, a milestone that would establish a new annual record.
Momentum has been building steadily since late 2024, with housing sales rising for 13 consecutive months.
Market observers point to several factors fueling this demand.
Chief among them is the surge in rental prices, which have consistently outpaced housing prices since 2021. By October 2025, the average rent in Istanbul exceeded 30,000 Turkish Liras ($709), pushing many households to consider ownership as a more viable option. Reports from Endeksa and Emlakjet highlight that nearly 70 percent of tenants saw their rental budgets increase over the past year, prompting relocation or purchase decisions.
Although mortgage interest rates remain elevated, they have eased slightly, making loans more attractive compared to soaring rents. Many first-time buyers are supplementing their financing by liquidating savings in gold or automobiles to secure down payments.
At the same time, the expansion of savings-based financing models has provided an alternative to traditional credit. Following regulatory oversight by the Banking Regulation and Supervision Agency (BDDK) and the entry of public institutions such as Emlak Katılım into the system, participation in savings-financing schemes has grown rapidly.
Another notable trend is the willingness of buyers to move beyond their immediate neighborhoods or even cities. Whereas in previous years households resisted relocating, today the priority is to escape high rents and achieve homeownership, even if it means settling in Istanbul’s outer districts or other provinces.
Safety concerns have also played a role. The devastating earthquakes in Kahramanmaraş in February 2023 and tremors felt in Istanbul have kept seismic risks top of mind.
Many homeowners are selling older properties and investing in newer, safer buildings, a shift that aligns with ongoing urban transformation projects and sustains demand for new housing.
New home sales have been particularly strong, with 397,507 units sold in the first ten months — the best performance in seven years.
