Turkish Housing Sales Decline in March; Russians Lead Foreign Buyers

Turkish real estate data for March reveals a complex market picture, with overall housing sales experiencing a year-on-year decline. While the first-hand market showed a modest uptick, the second-hand market saw a significant contraction, indicating a potential shift in buyer preferences or market dynamics.

The financing side of the housing market presents an interesting contrast. Mortgage-backed sales surged by nearly 36% in March, suggesting that easier financing conditions or a greater reliance on loans are driving a portion of the market. However, this increase was offset by a decline in non-mortgage sales, pointing to a broader slowdown in overall transaction volumes.

Foreign investment in Turkish real estate also appears to be cooling, with sales to non-citizens dropping by 20% in March. Notably, citizens of the Russian Federation were the leading foreign buyers, followed by those from Iran and Germany. This trend warrants close observation, especially given geopolitical and economic factors that can influence international property investment.

Beyond residential properties, the commercial real estate sector also experienced a downturn. Workplace sales fell by 10.5% year-on-year in March, with both new and existing properties seeing declines. Despite this, mortgage-financed workplace sales saw a substantial increase, mirroring the trend in the housing market. The overall decrease in commercial transactions suggests a cautious business environment or a slowdown in expansion plans.