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Turkey's home sales increased by 20.6% in 2024, reaching 1.48 million properties, with December alone seeing a 53.4% year-on-year rise after the central bank reduced its key interest rate to 47.5%. However, sales to foreigners dropped by 32.1%, with Russians purchasing the most homes (4,867), followed by buyers from Iran (2,166) and Ukraine (1,631). Mortgaged sales surged 285.3% in December but declined 10.8% for the year, accounting for 10.7% of total sales. The market's growth reflects strong domestic demand despite falling foreign interest, influenced by lower borrowing costs and monetary policy adjustments aimed at boosting housing affordability and investment.
In 2024, Turkey witnessed a significant rise in home sales, recording a 20.6% increase compared to the previous year, according to data released by the Turkish Statistical Institute. This surge resulted in a total of approximately 1.48 million residential properties being sold throughout the year. Of these, 212,637 transactions took place in December alone, marking a remarkable 53.4% year-on-year growth for that month. Advertisement
Despite the overall growth in home sales, property purchases by foreign nationals experienced a notable decline of 32.1% during the same period. Russians emerged as the largest group of international buyers, acquiring 4,867 homes in 2024. They were followed by buyers from Iran, who purchased 2,166 properties, and Ukraine, with 1,631 transactions recorded.
December's sharp increase in sales coincided with a monetary policy adjustment by the Central Bank of Turkey. In that month, the central bank reduced its key interest rate by 250 basis points, bringing it down to 47.5%. This marked the first rate cut in nearly two years, reversing an 18-month cycle of monetary tightening. The interest rate reduction was aimed at stimulating consumer demand amidst signs of easing inflation and may have contributed to the surge in December home sales.
The report also highlighted contrasting trends in mortgaged home sales. While mortgaged sales in December showed a dramatic increase of 285.3% compared to the same period in the previous year, the overall figure for 2024 painted a different picture. Throughout the year, mortgaged home sales decreased by 10.8%, accounting for just 10.7% of total sales. This mixed trend underscores the fluctuating dynamics within the country's real estate market, influenced by both domestic economic policies and global factors.
Turkey's housing market continues to reflect the broader economic landscape, where rising interest in residential properties is tempered by challenges such as affordability and changing buyer demographics. The combination of domestic monetary policies and international buyer behaviour will likely remain key factors shaping the future of Turkey's real estate sector. These developments highlight the market's complexity, demonstrating how economic decisions, such as interest rate cuts, can significantly impact buyer activity and sales outcomes.
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