Turkey real estate market shows real price decline amid record office rents

The Turkish real estate market showed mixed trends in July 2026. While nominal property prices continued to rise, real prices—adjusted for inflation—experienced a decline. Nationwide, the average residential sales price reached 5,212,875 TL, with a square meter price of 41,703 TL. This represents a nominal annual increase of 23.3%, but a real annual decrease of 6.6%. Total housing sales fell by 17% compared to the previous year, with 123,603 units sold, largely driven by a 20.8% drop in the second-hand market.

Regional data highlights significant variations. Muğla recorded the highest square meter prices at 87,244 TL, while Ordu saw the highest annual price growth at 32.4%. In major cities, Ankara led in annual price increases among the largest provinces at 28.7%, followed by Istanbul at 26.5%. In Istanbul, prime office rents reached a record $52 per square meter in the second quarter of 2026, driven by limited supply and high demand in central districts like Levent-Etiler.

In response to rising costs, TOKİ announced new housing opportunities, offering 2+1 and 3+1 apartments and commercial spaces through auctions. These units feature flexible payment plans, including a 25% down payment and terms up to 120 months, with some starting prices below 1 million TL to assist low and middle-income families.