Turkey housing market shifts toward new builds amid falling foreign demand

The Turkish housing market is undergoing a structural shift as buyers increasingly favor new constructions over older properties. In the first half of the year, first-hand home sales reached 221,487 units, marking a four-year high. This trend is driven by concerns over earthquake safety, high maintenance costs, energy inefficiency, and rising building fees in older structures.

In Istanbul, buyers are opting for newer developments in growing districts like Başakşehir rather than paying high prices for aging apartments in central areas like Kadıköy. This shift allows consumers to acquire more modern and safer housing within similar budget constraints.

Simultaneously, demand from foreign investors has declined. According to Turkish Statistical Institute (TÜİK) data, home sales to foreigners fell by 9.2% in the first half of the year to 9,083 units, representing just 1.6% of total sales. This slowdown is attributed to global economic conditions, exchange rate fluctuations, and expectations regarding citizenship requirements. The luxury segment, particularly properties priced above 30 million TL, has seen a significant slowdown in hubs such as Istanbul, Bodrum, and Antalya.