At its first meeting of 2026, the Central Bank of Turkey reduced the key interest rate by 1 percentage point — to 37%.
Despite market expectations for a more aggressive cut, this decision became a historical marker. The current interest rate level is the lowest since November 2023. This is a clear signal: the period of “extremely expensive money” is coming to an end, and the economy is entering a phase of stimulation.
Key factors behind the decision:
Inflation easing: Core indicators at the end of 2025 demonstrated a stable downward trend.
Cautious optimism: The regulator confirmed the overall direction toward disinflation, despite volatility in food prices.
Turkey Outpaces Global Leaders in Growth Rates
International financial institutions are simultaneously improving their forecasts for the Turkish economy.
The International Monetary Fund (IMF) increased its GDP growth forecast for Turkey for 2026 from 3.7% to 4.2%, and for 2027 — to 4.1%. The World Bank holds a similar position, revising its forecast for 2026 upward to 3.7%, and for 2027 — to 4.4%.
For context: projected global growth in 2026 is around 3.3%. Turkey is developing significantly faster than the global average, outperforming the United States (forecast 2.4%) and approaching China’s indicators (4.5%).
Real Estate Market Analysis: Prices, Inflation, and Records
December 2025 data confirm that the market has shifted from a “seller’s frenzy” to a “buyer’s market”.
Real Value vs Nominal Value
Housing market indicators for the past year are as follows:
Nominal price growth amounted to approximately 29%.
However, adjusted for inflation, real prices declined by 1.4%.
This means that overheating has faded. In megacities such as Istanbul, Ankara, and Izmir, month-to-month price declines of 0.1–0.2% have been recorded. For investors, this is an ideal moment: prices have stabilized, and developers have become far more flexible regarding discounts and installment conditions.
Historic Sales Record
Despite price correction, interest in properties remains extremely high. 2025 ended with an absolute record: 1,688,910 real estate transactions were completed in the country, which is 14.3% more than the previous year. This confirms the status of Turkish real estate as a primary defensive asset.
Why 2026 Is the Last Chance to Buy at Current Prices
There are three factors that will inevitably push prices upward in the near future:
Cost base: The cost of materials and logistics has increased by more than 50% over the past two years. Developers will not be able to hold prices for long without losing margins.
Supply deficit: Stricter seismic safety regulations have slowed the issuance of construction permits, which will create a shortage of primary housing within a year.
Capital rotation: As bank deposit yields begin to decline following the Central Bank’s rate cuts, capital will return to real estate, triggering a new wave of price growth.
If you are interested in real estate at prices that will no longer exist in the coming years due to the rapid increase in construction costs, now is the best time to make a decision.
Leave a request for a free consultation in the online chat on our website. Stay Property experts will select liquid properties that are still holding their old price levels.