A360
Key Takeaways✦ Atlas AI
01
February 2026 recorded the highest-ever housing sales for that month in Turkey, indicating a strong market rebound.
02
Mortgaged sales saw a significant increase, suggesting improved access to financing and potentially stabilizing interest rates.
03
The market is currently characterized by high demand for more affordable and pre-owned properties.
04
Industry sentiment is optimistic for the second half of the year, based on these early positive indicators.
Atlas AI
ANKARA – Turkey's housing market experienced a record-breaking surge in February 2026, with home sales climbing 5.9% year-on-year to an unprecedented 124,549 units, according to data from the Turkish Statistical Institute (TurkStat). This robust performance, the highest February figure ever recorded, was primarily fueled by a dramatic 42.3% jump in mortgaged sales as financing conditions improved. The rebound marks a sharp reversal from a 4.7% sales decline in January.
The strong February results brought total housing sales for the first two months of the year to 236,029 units. This figure represents a modest 0.6% increase compared to the same period in 2025, effectively erasing the early-year deficit and setting a positive tone for the market.
Mortgage Market Fuels Growth
The primary engine behind the February boom was a dramatic recovery in mortgaged sales, which totaled 25,035 units. This significant year-on-year increase pushed the share of mortgaged transactions to 20.1% of the total market, a level not seen in 33 months.
[ANALYSIS] Analysts attribute this sharp rise to a period of relative stabilization in consumer loan interest rates, which had previously suppressed buyer activity. Following a prolonged period of monetary tightening to combat inflation, improved predictability and slightly better access to bank financing have encouraged buyers who were previously sidelined to re-enter the market.
Shift Towards Second-Hand Properties
The data also reveals a clear trend in consumer preference, with a strong and sustained demand for affordable and second-hand properties. While new construction sales are a vital part of the market, the bulk of transactions continues to be in the resale segment, reflecting ongoing affordability challenges for many households.
[CONTEXT] This shift suggests that while overall demand is robust, the primary driver is value-seeking buyers rather than a speculative boom in the luxury or new-build sector. High construction costs have kept prices for new units elevated, pushing many first-time buyers and families towards the more accessible second-hand market.
Economic Outlook and Industry Confidence
The housing rebound occurs against a backdrop of Turkey's wider economic efforts to manage inflation and restore stability. The performance of the real estate sector, a key pillar of the Turkish economy, is often viewed as a leading indicator of consumer confidence and broader economic health.
Industry experts, cited by local media, interpret the February figures as an encouraging signal for the second half of the year. They project that if interest rates remain stable and consumer confidence continues to build, the market could see sustained momentum, further bolstering the construction industry and related sectors.
