Turkey housing market shows nominal price growth amid real value decline

The July 2026 Housing Value Report for Turkey indicates a complex real estate landscape. While nominal housing prices continue to rise, with the average sale price exceeding 5.2 million TL, real values have seen a yearly decline of 6.6% when adjusted for inflation.

Ordu emerged as a significant outlier, recording a 32.4% increase in annual square meter prices and becoming the only city among the top 30 most active markets to achieve positive real growth (0.4%). Other cities with notable price increases include Ankara (28.7%), Kocaeli (28.5%), and Denizli (27.1%). Muğla remains the most expensive province, with an average housing price of approximately 11.3 million TL.

Investment dynamics are shifting as high inflation and alternative assets change buyer behavior. Investors are increasingly prioritizing rental yields, earthquake risk, and energy efficiency over simple nominal price appreciation. Additionally, the amortization period in major cities like Istanbul has shortened to approximately 12 years due to rising rents. Meanwhile, property owners face potential new tax burdens, as the threshold for the Valuable Housing Tax (DKV) is set to impact many owners in large cities due to rising property tax values.