Istanbul, April 17 – Istanbul has officially claimed the top spot in Turkey’s housing market, with the average price of a residence soaring to 4.8 million lira. This development comes despite ongoing real losses against inflation, as property values continue their upward trajectory across the country. The latest data indicates that Istanbul has surpassed Mugla, previously the most expensive city, solidifying its position as the leader in both sales and rental markets.
Housing Prices Continue to Climb Amidst Real Losses
According to the latest Residential Property Price Index released by the Central Bank, housing prices in Turkey increased by 2 percent month-on-month and 26.4 percent annually in nominal terms in March. However, the real (inflation-adjusted) value of housing decreased by 3.4 percent in March, marking the 25th month of real losses in the last 26 months. This trend indicates that housing has been losing value against inflation for over two years.
Istanbul Overtakes Mugla as Most Expensive City
The Central Bank also released first-quarter unit housing prices for 2026. The average price per square meter nationwide rose to 48,322 lira in the first quarter of 2026, up from 45,447 lira in the last quarter of 2025. This brings the average price of a 100-square-meter apartment across Turkey to 4,832,200 lira.
The top of the list has seen a significant change. In the last quarter of 2025, Mugla led with a per-square-meter price of 76,618 lira, but it has now fallen to second place with 79,255 lira. Istanbul is the new leader, with an average price per square meter of 79,396 lira, up from 74,100 lira in the previous quarter.
Rapid Closure of the Gap by Istanbul
This means that the average price of a 100-square-meter apartment in Istanbul has risen to 7,939,600 lira. During the pandemic, Mugla was significantly ahead, as the desire to escape urban centers drove up prices in coastal regions. However, with a decrease in this demand, Istanbul began to close the gap last year and has now taken the lead in the first quarter of 2026. The cheapest housing can be found in Agri, with an average price of 1,989,000 lira. Mardin, Adiyaman, Sirnak, and Malatya are also among the lowest-priced cities.
Central Anatolia Sees Highest Annual Increase
In March, the highest annual increase in housing prices was observed in the ‘Nevsehir, Nigde, Aksaray, Kirikkale, Kirsehir, Kayseri, Sivas, Yozgat’ region, with a 31.5 percent rise. Ankara, which has become a center for migration after recent earthquakes, followed with a 30.4 percent increase. The ‘Bingol, Elazig, Malatya, Tunceli, Van, Bitlis, Hakkari, Mus’ region ranked third with 29.8 percent.
Istanbul saw a 27.8 percent increase, placing it fifth, while Izmir’s increase of 24.3 percent was below the national average. The lowest annual increase was recorded in the Edirne, Kirklareli, Tekirdag region, at 21.1 percent.
Rental Market Sees Real Gains of 2.7 Percent
While real losses persist in the sales market, rental prices continue to rise. The New Tenant Rent Index for March showed a 2 percent increase month-on-month and a 34.4 percent annual increase in nominal terms. Real rental prices increased by 2.7 percent. The highest rental increase, at 40.5 percent, was observed in the ‘Erzurum, Erzincan, Bayburt, Agri, Ardahan, Kars, Igdir’ region. Istanbul followed with 39.4 percent, while ‘Bolu, Kocaeli, Sakarya, Yalova, Duzce’ recorded 39.1 percent, Ankara 37.7 percent, and Izmir 35 percent. The lowest annual increase in rents was 25.7 percent in the ‘Hatay, Kahramanmaras, Osmaniye’ region.
Average Rent in Turkey Reaches 24,188 Lira
In March, the average unit rent across Turkey was 241.88 lira, meaning the average rent for a 100-square-meter apartment is 24,188 lira. Istanbul also leads the rental market, with an average rent of 40,512 lira for a 100-square-meter apartment. Major cities dominate the top of the rental price list. The cheapest average rent, at 10,000 lira, is found in Mardin.
Source: posta.com.tr
