House Sales in Türkiye Increased by 16% in July: Istanbul and Ankara at the top again

Turkish Statistical Institute (TurkStat) published by the housing sales data for the month of July 2024, reveals that housing sales in Türkiye showed a significant increase. Sales, which increased by 16% compared to the same period of the previous year, were recorded as 127 thousand 88 in July. This increase draws attention as the highest monthly house sales figure in 2024.

Istanbul, Turkey's largest city, stood out as the province with the highest house sales. While 19 thousand 47 houses were sold in Istanbul, 11 thousand 364 houses were sold in the capital Ankara and 6 thousand 659 houses were sold in Antalya. These data once again confirm the leading position of big cities in the housing market.

However, looking at the January-July period covering the first seven months of 2024, total house sales decreased by 0.5% compared to the same period of the previous year and were recorded as 672,162. In this period, changes in economic conditions and market dynamics point to a general stagnation in house sales.

There was a significant decline in mortgaged house sales in July. Mortgaged sales, which decreased by 20.9% compared to the same period of the previous year, were realised as 11 thousand 496. This figure has a share of 9% in total house sales. The decrease in mortgaged house sales is considered as a result of the increase in loan interest rates and the tightening of financing conditions. In January-July period, mortgaged house sales decreased by 53.8% yoy to 62 thousand 911. While 2 thousand 786 of the mortgaged sales in this period were first hand sales in July, 14 thousand 962 of the mortgaged sales in January-July period were recorded as first hand sales.

Looking at other house sales, 21.7% increase was observed in July and 115 thousand 592 houses were sold in this category. The share of other sales in total house sales was 91%. In January-July period, other house sales increased by 13% compared to the same period of the previous year and were recorded as 609 thousand 251. This increase shows that the vitality in other sales continues despite the decrease in mortgaged sales.

First-hand house sales also experienced a remarkable increase in July. First-hand house sales, which increased by 28.9% compared to the same period of the previous year, reached 40 thousand 784 and its share in total sales was 32.1%. In January-July period, first-hand house sales increased by 5.6% and reached 214 thousand 108. These data reveal that new houses are still in strong demand in the market and this segment continues to be attractive for investors and first-time homeowners.

Second-hand house sales also increased by 10.8% to 86,304 in July. This segment had a share of 67.9% in total house sales. However, in January-July period, second-hand house sales decreased by 3.1% to 458 thousand 54. This decline can be explained by the fluctuations in market conditions and the temporary decline in demand for second-hand houses.

On the other hand, house sales to foreigners decreased by 16.1% in July compared to the same period of the previous year and a total of 2 thousand 350 houses were sold to foreigners. The share of sales to foreigners in total sales was 1.8%. Among the foreigners who bought the most houses, Russian Federation citizens ranked first with 485 houses; followed by Ukrainian citizens with 171 houses and German citizens with 162 houses. The provinces most preferred by foreigners were Antalya with 878 house sales, Istanbul with 752 house sales and Mersin with 218 house sales.

These data can be considered as an important indicator in terms of understanding the dynamics of the housing market in Turkey and the preferences of different buyer groups. The interest of both local and foreign buyers shows that there are various opportunities and challenges in the Turkish housing market.