Türkiye house sales hit year-to-date peak as mortgaged purchases surge

Türkiye’s residential property market reached a year-to-date peak in house sales during June, with a notable surge in mortgage-backed purchases, according to official statistics released on Friday. The Turkish Statistical Institute (TurkStat) reported that total home sales rose nearly 16% compared to the same period last year, reaching 129,979 units in June. This marked the strongest monthly performance of 2026 and represented the highest June figure in four years. Newly constructed homes saw the largest increase, climbing 23.1% year-over-year to 43,406 units sold. Secondhand home sales also rose, though at a slower pace, increasing by 12.5% to 86,573 units. A striking feature of the data was the dramatic growth in mortgaged home sales, which surged 72.1% compared to the previous year, totaling 25,993 units. These transactions made up 20% of all home sales, highlighting a growing appetite for property among buyers willing to take on debt despite high borrowing costs. However, the overall picture for the first half of the year showed a slight decline. Cumulative home sales through June fell 3.1% compared to the same period in 2025, amounting to 699,516 units. Despite this, mortgaged sales over the first six months rose significantly by 32.2%, reaching 142,794 units. Separate data from the Central Bank of the Republic of Türkiye (CBRT) revealed that nationwide house prices rose 24.5% annually in June. While this increase appears substantial, it lagged behind the country’s annual consumer inflation rate, which stood just above 32%. This disparity indicates a continued erosion in real house prices, meaning homeowners are effectively losing purchasing power even as nominal prices climb. Sales to foreign buyers saw a 20.1% increase in June, reaching 2,015 units. However, the first half of the year recorded a 9.2% drop in these transactions, bringing the total to 9,083 units. Industry analysts attributed the June rebound to both pent-up demand and the completion of transactions deferred during the Eid al-Adha holiday in May. Ziya Yılmaz, chair of the Housing Developers and Investors Association (KONUTDER), stated that the June results underscored the resilience of housing demand. He noted that some transactions delayed in May were finalized in June, contributing to the strong numbers. Yılmaz also highlighted the increase in new home sales as a positive signal, suggesting improved confidence in new housing projects. Nevertheless, he pointed out that new home sales still constituted roughly one-third of the market, far below pre-2020 levels. Mustafa Kemal Şahin, head of the Real Estate Marketing and Sales Professionals Association (GAPAS), echoed similar sentiments, stating that the June figures indicated a gradual return of postponed demand to the market. He emphasized that the rise in new home sales was especially encouraging, pointing to renewed trust in developers and new housing initiatives. However, he acknowledged that high interest rates and constrained access to financing had dampened the first-half performance. Industry representatives expressed cautious optimism, noting that a more enduring recovery would hinge on easier access to financing, reduced mortgage rates, and supportive policies aimed at boosting new housing supply, particularly for first-time buyers. Developers have increasingly turned to offering installment plans and interest-free financing directly to consumers, presenting an alternative to traditional bank mortgages. Inflation trends also played a role in shaping the housing market dynamics. The CBRT maintained its one-week repo rate at 37% for a third consecutive meeting, monitoring the impact of the ongoing Iran conflict. Although headline inflation had risen sharply in April and May due to supply shocks linked to the conflict, June brought signs of a moderation. Annual inflation eased slightly to 32.1% from 32.6% in May, with monthly consumer price increases slowing to 0.99% from 1.7%. Since the start of the conflict, the CBRT has paused its easing cycle initiated in late 2024 and implemented measures that pushed the Turkish lira overnight rate to the 40% ceiling. In its latest quarterly inflation report, the bank revised its end-2026 inflation forecast upward to 24% from 16%, citing the persistent influence of the Iran war on short-term inflation. The CBRT anticipates a gradual decline in inflation moving forward.