Real Estate Prices in Turkey Drop in Real Terms Despite Annual Growth – What Does This Mean for Investors?

The Central Bank of Turkey has released the latest Real Estate Index (KFE) data, showing an annual increase of 31.9% in January 2025. However, after adjusting for inflation, the real estate prices recorded a 7.2% decline, indicating a continued loss in purchasing power in the Turkish real estate market.

According to the data, the index increased by 4.7% compared to December, reaching 165.9 points in January.

Ankara Leads the Growth in Real Estate

Among major cities, Ankara recorded the highest monthly increase at 5.7%, followed by Izmir at 4.9%, and Istanbul at 3%. On an annual basis, Ankara saw a 36.6% rise in prices, while Istanbul and Izmir both recorded a 29.6% increase.

Opportunity or Challenge for Investors?

Despite the nominal growth, the real decline in prices highlights the impact of inflation on real estate. This could present a strategic investment opportunity for those looking to buy property in Turkey at competitive prices before potential future price hikes.

Source: Türkiye Acil