Turkish house sales see slight decline in May

House sales in Türkiye dipped slightly in May compared to the same month last year, according to the Turkish Statistical Institute (TURKSTAT). A total of 110,588 houses were sold, representing a 2.4% decrease.
13.06.2024 10:45:51 / English News

Istanbul remained the leader in terms of sales volume with 18,814 houses sold, followed by Ankara (9,861) and Antalya (6,306). Bayburt, Ardahan, and Hakkari reported the fewest sales figures.

Looking at a broader timeframe, house sales for the January-May period also showed a slight decrease of 3.4% year-on-year, reaching 465,761 units.

Mortgage Sales Slump

Mortgaged house sales witnessed a significant decline in May, dropping 63.9% compared to May 2023. Only 9,909 houses were sold with mortgages, constituting just 9% of total sales. This trend continued for the first five months of 2024, with mortgaged sales falling 58.7% year-on-year to 44,602.

Other Sales Rise

In contrast, non-mortgaged house sales displayed a positive trend. May saw a 17.3% increase year-on-year, reaching 100,679 units. This category accounted for the vast majority (91%) of all house sales in May. The January-May period also reflected a growth of 12.6% year-on-year for non-mortgaged sales, totaling 421,159 units.

First-Time Buyers Up Slightly

First-time homeownership saw a moderate increase in May, with 35,558 houses sold, representing a 3.3% year-on-year rise. This segment captured 32.2% of the total sales in May. For the January-May period, first-time sales showed a modest rise of 1.8% year-on-year, reaching 147,899 units.

Second-Hand Market Dips

The second-hand housing market experienced a decline in May. Sales figures dropped 4.9% year-on-year to 75,030 units, accounting for 67.8% of total sales. The January-May period mirrored this trend with a 5.6% year-on-year decrease, resulting in 317,862 second-hand sales.

Foreign Buyers Down

House sales to foreign buyers witnessed a significant decrease in May. Only 2,064 houses were sold to foreigners, representing a 34.8% drop compared to May 2023. Foreign sales accounted for a mere 1.9% of the total in May. Antalya, Istanbul, and Mersin were the top destinations for foreign buyers.

Year-to-date figures for foreign buyers also reflected a substantial decline of 45.8%, with only 9,021 houses sold in the first five months of 2024.

Russians Top Foreign Buyer List

Among foreign nationalities, Russians led the pack in May with 437 house purchases, followed by Iranians (207) and Ukrainians (171). (ILKHA)