2026 Housing Market Analysis: Turkey’s housing and real estate market drew strong attention in 2025, supported by rising sales and solid demand. As the new year begins, investors are focused on one key question: What direction will home prices and sales take in 2026?
According to sector experts, 2026 may become a year in which sharp fluctuations ease and a more balanced market structure stands out.
Home Sales Closed 2025 on a Strong Note
According to housing sales statistics published by the Turkish Statistical Institute (TurkStat), home sales maintained an upward trend throughout 2025. Overall sales increased compared to 2024.
Market sources say domestic buyers played the leading role in this momentum. The growing desire to own a home instead of renting, along with the search for inflation protection, were among the main drivers supporting demand.
What Will Happen to Home Prices in 2026?
Industry representatives expect home prices to keep rising in 2026. However, the pace of growth may become more controlled compared to the previous year.
In particular, during the second half of the year, price increases are expected to become more visible not only in nominal terms but also in real terms. This is widely seen as a sign that the market is moving toward a healthier structure.
Mortgage Interest Rates Will Be a Key Factor in 2026
One of the most critical issues for the housing market in 2026 will be interest rates. In 2025, mortgage rates climbed to high levels, pushing many buyers away from credit-based purchases.
In 2026, expectations point to a gradual decline in interest rates. Experts believe that lower rates could encourage middle-income buyers to return to the market.
During the first half of the year, cash buyers may retain strong bargaining power. In the second half, market activity could increase as access to financing improves.
A New Era for Property Taxes and Title Deed Costs
In 2026, updated property tax assessment values have become a key issue for homeowners and investors.
Although tax rates have not changed directly, higher assessment values may lead to an increase in annual property tax payments. Similarly, related transaction costs such as title deed fees may also rise.
The main goal of this update is to establish a more realistic and market-aligned valuation system for real estate assets.
2026 Housing Market Analysis
What Will Foreign Investors Do in 2026?
Foreign demand for residential property in Turkey has remained more limited compared to previous years, but interest has not disappeared entirely.
Cities such as Antalya and Istanbul continue to stay on the radar of international buyers. Coastal cities offering more accessible pricing, such as Mersin, are also increasingly highlighted as rising investment locations.
In addition, Turkey’s citizenship-by-investment program is expected to continue in 2026 with the same requirements. These include the minimum USD 400,000 investment threshold and a three-year holding period.
Top Cities for Real Estate Investment in 2026
Experts note that investment opportunities are likely to continue in both major metropolitan areas and emerging markets in 2026.
The leading cities include:
- Istanbul: Strong liquidity and high transaction volume
- Antalya: A powerful rental market and steady foreign demand
- Izmir: Balanced rental yields and high quality of life
- Mersin: More affordable entry points and growth potential
Overall Outlook for 2026: A More Balanced Market
After a strong sales performance in 2025, Turkey’s housing market is entering 2026 with more optimistic expectations. Experts suggest that sales may remain close to 2025 levels.
However, the key difference in 2026 could be the market’s shift toward a less volatile and more predictable structure.
For this reason, investors are advised to clearly define their goals, conduct detailed regional research, and build a strong financing plan.
