Türkiye House Prices Lag Inflation for a Ninth Month: What It Means for Foreign BuyersTürkiye House Prices Lag Inflation for a Ninth Month: What It Means for Foreign Buyers

Turkish house prices are still rising in lira terms, but more slowly than consumer prices. According to figures from the Central Bank of the Republic of Türkiye (CBRT) reported by Daily Sabah, the residential property price index rose 0.9% month on month in August and 23% year on year in nominal terms. Adjusted for inflation, it fell 6.5%, extending a real-terms decline that has now lasted nine months.

For an international buyer, that is the central tension in the market. A lira-denominated gain of 23% looks strong, but with annual inflation at 31.51% in August, as the same report notes, a property bought in lira terms has been losing ground against the general price level.

What the August figures show

The headline numbers, as reported by Daily Sabah from CBRT data:

• Index change: +0.9% month on month and +23% year on year in nominal terms.
• Real change: a 6.5% fall over the year after adjusting for inflation.
• Previous reading: the earlier month's index had risen 1.5% month on month and 25% year on year, with a 5.1% real fall.
• Big three cities, month on month: Istanbul +1.9%, Ankara +1.5%, Izmir +2.7%.
• Big three cities, year on year: Istanbul +6.3%, Ankara +24.8%, Izmir +23.3%.

The Istanbul annual figure is far below the other two cities and below the national index. We have it from one press report only, so treat it with caution and check it against the CBRT's own city series before relying on it. The CBRT publishes the data through its Residential Property Price Index page.

Rents are behaving differently

The same report says the CBRT's new tenant rent index, which tracks newly signed leases, rose 2.3% month on month in July and 26.4% year on year in nominal terms. That is a 3.9% decline in real terms. Istanbul is the exception: annual rent growth there was 34.5%, above inflation, against 28.3% in Ankara and 25.5% in Izmir.

For anyone buying to let, this suggests the rental picture is stronger in Istanbul than the national average. It does not tell you what a specific flat in a specific district would earn, and rents on a given street can diverge widely from a city index.

Why nominal and real prices diverge

Real house prices fall when the price index grows more slowly than consumer prices. That can reflect weaker household purchasing power or tighter mortgage affordability, though the CBRT data cited here do not isolate a cause. What the numbers do show is that, over the past year, Turkish housing has not kept pace with the cost of living in lira.

Foreign buyers hold a different yardstick. Many measure returns in dollars, euros or Gulf currencies, so the relevant question is how the lira moves against those currencies, alongside the lira price of the property. This article does not forecast either, and the CBRT series does not answer it.

Foreign demand: smaller volumes, larger tickets

Sales to foreigners remain a small slice of the market. Figures reported by Hürriyet Daily News, citing a study by appraisal firm EVA Gayrimenkul Değerleme, put foreign acquisitions at 397,256 square metres in the first half of 2026, down 8% from 431,439 square metres a year earlier. Within that, Gulf buyers purchased 132,202 square metres, up 109%, lifting their share from 15% to 33%.

Our most recent look at the monthly data is in Türkiye House Sales Fall 14.7% in August as Foreign Demand Holds Flat. Taken together, the picture is of a market in which foreigners are not driving prices, and where a more selective buyer pool has changed the dynamic from the boom years.

Where foreign buyers are looking

By number of transactions, the same Hürriyet report ranks Istanbul first among provinces, followed by Antalya, then Mersin, Ankara, Muğla, Izmir, Bursa, Yalova, Sakarya and Aydın. Russia led by house sales, followed by Iran, Germany, Ukraine and Iraq.

Price bands vary widely by district. A private-sector guide from Investropa gives indicative ranges, such as roughly TRY 7m to 18m in Konyaaltı, Antalya, and TRY 15m to 40m in Beşiktaş, Istanbul. These are estimates from an earlier period, not official data, so use them only to see how wide the spread is.

What this means for buyers

Lower real price growth is not a signal to buy or to wait. It is context for due diligence:

1. Compare the asking price with an official valuation and recent comparable sales, not with listings alone.
2. Count the full acquisition cost on top of the agreed price, including taxes and fees.
3. Test rental assumptions against realistic long-let figures rather than advertised yields.
4. Decide in which currency you are measuring your return.

Our due-diligence checklist for foreign buyers sets out the title, permit and contract checks in more detail.

Multi Mulk helps clients search and buy property in Türkiye, and its investor protection work covers due diligence on titles, developers and contracts. Buyers considering a purchase for citizenship purposes should know that eligibility rules change; Multi Mulk offers a free written eligibility review, and you can speak to an adviser about your own circumstances.

This article is general market information, not investment advice. Property values can fall as well as rise, and past index movements do not predict future ones.

Sources

• Daily Sabah — Türkiye's real house price decline extends to 9th month (16 Sept 2026)
• Hürriyet Daily News — One-third of foreign property sales in Türkiye go to Gulf buyers
• CBRT — Residential Property Price Index
• Investropa — Housing Prices in Turkey (2026)

Cover photo: mostafa_meraji on Pixabay.