Turkish housing market shifts toward compact homes

The Turkish housing market is undergoing a structural shift driven by changing household demographics, reduced purchasing power, and financing constraints. In Istanbul, industry leaders from İNDER, KONUTDER, and GYODER report that buyers are increasingly opting for more compact living spaces. While consumers aim to maintain the number of rooms, the total square footage of apartments is shrinking; for example, 3+1 units that previously averaged 120–130 square meters are now being sought in the 90–100 square meter range.

This trend is supported by a demographic shift toward smaller households. Data indicates that single-person households now account for approximately 20.5% of all households in Turkey. This rise in demand for 1+1 and 2+1 units is further fueled by high rental prices and the need for more affordable entry points into the market.

In the Edirne region, a similar trend is visible with a high density of 1+1 rental listings. However, real estate professionals note that the overall market remains stagnant due to low purchasing power and high prices. In Istanbul, demand is primarily driven by residential needs rather than investment, as high returns from alternative financial instruments have deterred real estate investors.