TSKB Real Estate Appraisal Inc. has published its study titled “The Housing Market at a Glance, First Half of 2026,” which examines the latest developments in the housing market. The study evaluates the current outlook of the housing market through key indicators such as housing sales, pricing trends, financing conditions, sales to foreigners, building permits, occupancy permits and construction costs while also shedding light on the sector’s dynamics for the coming period.
Commenting on the study, TSKB Real Estate Appraisal General Manager Makbule Yönel Maya said:
“Total housing sales reached 699,516 units in the first half of 2026 and maintained a strong outlook despite the high base recorded last year. Although restrictions on housing loans continued, a limited recovery was observed in mortgaged sales. Looking at the first six months of 2026, one out of every five homes was sold through mortgage financing. The impact of savings financing companies included within mortgaged sales has also begun to be felt more strongly this year.
Although first-hand sales reached their highest level in the last four years, their share of total sales remained at 32 percent. Demand for safe and newly built structures together with urban transformation activities continues to support the new housing market. However, the share of first-hand sales has fluctuated between 30 and 33 percent over the last seven years. In 2014 and 2018, when this figure reached its highest level, the share stood at 48 percent.”
Moderate Recovery in Mortgaged Sales Continues
According to the study, mortgaged housing sales increased by approximately 32 percent in the first half of 2026 compared with the same period of the previous year and reached 142,794 units.
The share of mortgaged sales in total housing sales increased from 15 percent to 20 percent. Despite this increase, it remained below the levels recorded in previous years. The remaining 80 percent of total sales were completed through non-mortgage sales methods.
First-Hand Sales Reach Their Highest Level in Four Years
First-hand housing sales reached 221,487 units in the first half of 2026, marking their highest level in the last four years. However, their share of total housing sales remained at 32 percent.
In 2014 and 2018, when this ratio reached its highest level, first-hand sales accounted for 48 percent of total sales. Since 2020, the share of first-hand housing sales in total sales has fluctuated between 30 and 33 percent.
Although continued demand for safe and newly built structures and interest in housing stock renewed through urban transformation support first-hand housing sales, it can be stated that returning to the ratios recorded before 2020 is not currently possible.
Correction in Real Housing Prices Continues
The annual change in the housing price index in real terms was positive only in November 2025 during the last 29 months and remained in negative territory in all other months.
Although the severity of the negative trend has eased in recent months, the change in real housing prices has not yet moved permanently into positive territory.
The payback period for housing based on rental income declined to approximately 16 years while this indicator followed a relatively flat course in recent months.
Decline in Sales to Foreigners Continues
The share of housing sales to foreigners in total sales declined to 1.3 percent in the first half of 2026, falling to one of its lowest levels in recent years.
While the weight of foreign demand within total housing sales decreased significantly, sales continued to be concentrated primarily in İstanbul and Antalya.
Signals of Growth in Housing Supply Are Strengthening
The number of residential units granted building permits reached 1,187,924 in 2025. In the first quarter of 2026, the number of permitted residential units increased from 169,580 to 232,252.
The number of residential units granted occupancy permits rose from 148,206 to 163,227 during the same period. This outlook indicates that new housing supply may continue to strengthen in the coming period.
Maya made the following assessment regarding the supply outlook:
“The increase in building permit and occupancy permit data indicates that new housing supply may continue to strengthen in the coming period. However, the impact of this new supply on the market will emerge gradually due to construction timelines.”
Labor Costs Stand Out in Construction Expenses
As of May 2026, the annual increase in the construction cost index reached 29.8 percent.
The annual increase in labor costs became the main driver of cost growth at 32.6 percent while the annual Producer Price Index stood at 28.9 percent during the same period.
Accordingly, the increase in construction costs remained close to producer inflation and slightly below consumer inflation.