TSKB Gayrimenkul Değerleme Publishes “H1 2025 Housing Market at a Glance” Report

TSKB Gayrimenkul Değerleme A.Ş. has released the findings of its "2025 First Half Housing Market at a Glance" report. According to the report, housing sales in the first half of 2025 increased 27%, reaching 691,893 units and accounting for 49% of total sales. The share of mortgaged sales was recorded at 15%.

The housing price index entered an upward trend for the first time in 16 months on a monthly basis, exceeding inflation. Meanwhile, the share of sales to foreigners fell to the lowest level in 11 years, the number of licensed residential units was 143,626, and limited growth was observed compared to 2023 when disregarding the increase in construction activities linked to earthquake-resistant factors in units that received occupancy permits. In June 2025, the materials index showed annual growth of 23.58%; the downward trend that had persisted for 14 months continued, and annual growth in construction costs remained below inflation.

Housing sales and mortgaged sales
Housing sales, which had declined over the previous two years, showed 27% growth in the first half of 2025. 15% of sales were completed with mortgages. This rate, following the 9% low in the first half of 2024, still ranks among the lowest levels of the past 10 years. Sales per business day showed steady momentum during the first six months of the year and rose compared to the previous two years.

The share of housing sales in total sales rose to 49% and reached the highest level since 2020. 691,893 housing sales were completed in the first six months. Total sales transactions recorded at the land registry also showed 15% growth.

Housing prices returned to growth after 16 months
Real-term changes in the housing price index have been in negative territory on an annual basis since February 2024. However, consistent with rising demand, a recovery in prices was observed. For the first time in 16 months, the index exceeded inflation on a monthly basis and an upward trend began.

Sales to foreigners at lowest level in 11 years
In the first six months of 2025, the share of sales to foreigners in total sales fell to the lowest level in 11 years. In Istanbul, Ankara and Yalova, the share remained below 1% with limited decline, while Antalya experienced approximately 4 percentage points of decline to 8.4%, and Mersin fell by approximately 2 percentage points to 3%.

Growth in licensing and occupancy certificate numbers
Licensing numbers, which increased in 2024 due to construction activities in the earthquake zone, fell 19% in the first quarter of 2025. The number of licensed residential units was recorded at 143,626 units. Despite this decline, 8% growth was achieved compared to 2022 and 2023. The number of units receiving occupancy certificates fell 26% compared to the first quarter of 2024, while showing 3% growth compared to 2023.

Construction costs declined
The materials index showed annual growth of 23.58% in June 2025 and continued the downward trend that had persisted for 14 months. The labor cost index fell 46.8 points following high growth in June 2024 and was recorded at 31.99% in June 2025. The cost decline trend that began in the second half of 2024 continued in the first half of 2025.

You can access the full report here.