August home sales grow by 6.8% compared to the same period last year
In a significant boost for the Turkish real estate sector, August 2025 saw a surge in housing market activity. The Residential Property Price Index (RPPI) rose by 2.5 percent month-on-month, accelerating from the 0.98 percent increase in July. This positive trend was reflected in the annual RPPI, which showed a 31.4 percent increase, albeit a slight decrease from the previous month's 32.87 percent.
The increase in the RPPI was evident across many cities, with Istanbul and Ankara leading the way. Residential property prices in Istanbul climbed 30.2 percent year-on-year, while in Ankara, they rose by 41.1 percent. Izmir also experienced a significant increase of 31.9 percent.
The surge in the housing market was not limited to price growth. Mortgage-financed sales surged 45.2 percent in August, and overall home sales increased by 6.8 percent on an annual basis. This resulted in a total of 143,319 homes changing hands during the month.
The most active city in terms of home sales was Istanbul, with 21,814 units sold, followed by Ankara with 12,419 units and Izmir with 7,695 units. New home sales also saw a growth of 4.8 percent year-on-year, reaching 43,916 units.
However, sales to foreign nationals saw a decline of 13.2 percent year-on-year, totaling a little more than 13,000 units. The three leading countries of origin for foreign real estate purchases in Istanbul were Iran, Iraq, and Russia.
Despite the strong growth in the housing market, there was a slight decrease in real terms, with the annual RPPI showing a 1.2 percent decrease in August. Mortgage-financed sales represented 13.8 percent of all transactions, suggesting that a significant portion of the market is still driven by cash sales.
The strong performance in August has contributed to a 21.3 percent increase in total house sales for the first eight months of 2025, compared to the same period in 2024, with a total of 978,070 units sold. This positive trend is expected to continue, boding well for the Turkish real estate sector.
