Turkey’s Housing Market Slows in November 2025

Turkey’s housing market showed clear signs of cooling in November 2025, as sales declined both month-on-month and year-on-year, extending the slowdown that began in October. While cumulative figures for the year remain strong, the latest monthly data point to weakening momentum, particularly in mortgage-backed transactions, first-home sales, and foreign demand.

According to compiled data, total home sales in November 2025 fell to 141,100 units, marking a 7.8% decline compared to the same month last year and a 14.1% drop from October. The contraction suggests that tighter financial conditions, high borrowing costs, and reduced affordability continue to weigh on demand as the year draws to a close.

Mortgage Sales Remain Under Pressure

Mortgage-backed home sales continued to lag, reflecting the impact of elevated interest rates and stricter credit conditions. In November, mortgaged sales totaled 21,499 units, representing a 1.4% decrease year-on-year and an 8.6% decline month-on-month.

Despite some improvement earlier in the year, mortgage activity remains historically subdued, indicating that most buyers are still relying on cash purchases or alternative financing. The limited recovery in mortgage lending underscores the persistent disconnect between housing prices and household borrowing capacity.

First-Time Home Sales Decline Sharply

First-home sales also weakened noticeably in November. Initial (new-build) home sales fell to 46,589 units, down 5.4% compared to November 2024 and 15.1% compared to October.

The sharper monthly decline highlights the challenges facing developers, particularly in an environment of rising construction costs, slower demand, and constrained financing. While new housing supply remains essential for long-term market balance, near-term demand appears to be softening.

Foreign Demand Continues to Erode

Sales to foreign buyers declined for another month, reinforcing a longer-term downtrend. In November, home sales to foreigners dropped to 1,943 units, reflecting a 9.7% annual decline and a 7.7% monthly decrease.

Among foreign buyers, Russian citizens remained the largest group, purchasing 310 homes during the month. However, even this traditionally strong segment has shown signs of moderation as regulatory changes, currency dynamics, and geopolitical factors reshape foreign interest in Turkey’s property market.

The ongoing contraction in foreign sales suggests that external demand is no longer acting as a buffer for the domestic housing market, unlike in previous years.

Strong Performance on a Cumulative Basis

Despite the November slowdown, year-to-date figures remain robust. Over the first 11 months of 2025, total home sales reached 1,434,133 units, representing a 13.3% increase compared to the same period last year.

Within this cumulative performance:

• First-home sales rose by 8.9%

• Mortgage-backed sales surged by 53.5%, reflecting a low base effect from the previous year

• Foreign sales declined by 11.1%, highlighting a structural shift in international demand

These figures indicate that while the market has cooled in recent months, overall activity in 2025 has been significantly stronger than in 2024, particularly in the domestic segment.

Momentum Weakens After October Peak

The November data confirm that the housing market’s momentum has weakened following a strong run earlier in the year. After peaking around late summer and early autumn, sales began to decline in October and continued falling in November, suggesting a seasonal slowdown compounded by economic factors.

High interest rates, cautious consumer sentiment, and expectations of future price adjustments appear to be encouraging buyers to delay purchase decisions, especially in credit-dependent segments.

Outlook: A Market at a Crossroads

Looking ahead, the trajectory of Turkey’s housing market will depend heavily on monetary policy, inflation trends, and credit conditions. A sustained easing in interest rates could revive mortgage demand, while persistent tight financial conditions may keep transaction volumes under pressure into early 2026.

For now, the data paint a picture of a market that remains strong on an annual basis but fragile in the short term. The continued decline in foreign sales and the sharp monthly drops in November suggest that the sector may be entering a period of consolidation rather than expansion.