Despite record nominal prices, the real cost of housing in Turkey continues to decline.
According to Endeksa's August 2025 report, nominal prices for apartments and houses in Turkey increased by 29.1% year-on-year. However, adjusted for inflation, the real value of real estate fell by 3.1% over the year, indicating a decrease in purchasing power and a reduction in the real value of assets. Sales increased on the back of lower interest rates, but this growth has not yet been supported by real price increases.
The main trend of the market is negative dynamics in real terms. Despite the apparent boom in nominal prices (an increase of 29.1% per year), inflation completely offset it and led to an actual reduction in the cost of real estate as an asset for investors.In August, monthly nominal price growth was 1.7%, but in real terms they decreased by 0.3%.
A similar situation is observed in the rental market: an annual increase in rates of 30.7% turned into a real decrease of 1.9%.
At the same time, buyer activity continues to grow: in August, 143,319 properties were sold, which is 6.8% more than a year earlier. In the first eight months of 2025, the total number of transactions reached 978,070, showing an increase of 21.3%. The most significant increase was demonstrated by mortgage sales, which increased by 84.6% in January-August. Their share in total sales increased from 9.5% last year to 14.4% this year.
Ankara leads in nominal price growth among large cities, plus 39.0% over the year and 4.3% in real terms. The average price per square meter here was 30,794 lira.
In Istanbul, the nominal price increase fully coincided with the national average of 29.1%, which led to a real decrease of 3.1%. At the same time, Istanbul remains the most expensive city with an average price per square meter of 52,597 liras and an average apartment price of 6 million liras.
In Izmir, prices rose by 28.9% in nominal terms, while in real terms they fell by 3.2%. The average price of an object in the city has reached 5.6 million liras.
Antalya recorded the most significant decline in real terms, minus 5.9% with nominal growth of 25.3%. The average price of housing here was 4.9 million liras.
Gerkem Oguch, CEO of Endeksa, attributes the recovery in the market to lower interest rates, but emphasizes that this has not yet affected the real price increase. "As interest rates continue to decline, we expect prices to rise in the coming period," he said.
Source: Endeksa
