Record-Breaking Expectations in the Housing Market: The Real Boom Will Come in 2026

A New Wave in the Housing Market

The Turkish housing market is preparing for record-breaking sales in the final quarter of 2025. Yet experts say the real leap forward will take place in 2026. As interest rate cuts accelerate in December, the housing sector is expected to enter a dynamic growth phase — one that will open a window of opportunity not only for homebuyers but for the overall economy. Sector leaders agree that if financial stability and sound planning are maintained, 2026 could mark a new era of economic expansion in Turkey.

Falling Interest Rates Fuel Momentum

Mortgage rates, which reached as high as 3.80% earlier this year, have dropped to around 2.69% in public banks. Financial analysts expect an even sharper decline in December and January, predicting rates could fall below 2% by mid-2026. Such levels are projected to spark a major surge in housing sales. Developers are preparing new campaigns, while banks are expanding “joint credit” options to make home purchases more accessible.

Experts also point out that investors with gold savings are likely to shift toward real estate as interest rates fall, further driving demand. With 2025 already showing strong momentum, the industry is poised for a record-breaking year-end — but the real boom will come in 2026.

Investors Turning from Gold and Forex to Real Estate

As interest rates decline, economic experts expect savers to move away from gold and foreign currencies, redirecting their capital into property. Real estate is once again emerging as a “safe haven” during uncertain times, while the appeal of traditional savings accounts continues to fade.

Confidence Returns to the Market

The recent three-month rise in Turkey’s consumer confidence index signals renewed optimism. Financial experts emphasize that while rate cuts alone cannot transform the economy, the return of trust is already encouraging investment. “People are starting to invest again — and that’s the strongest indicator of a healthy economy,” they note.

A Broader Economic Revival Ahead

According to reports, the downward trend in housing loan rates is expected to continue through late 2025 and early 2026, with a sense of real relief likely to set in by mid-2026. This positive outlook in interest rates is anticipated to boost not only the housing sector but also overall economic activity.

One construction executive summarized it well: “We’re already seeing early signs of recovery in the last quarter of 2025. But the real growth will begin in the first half of 2026. As rates continue to drop and new financing models take hold, the market will breathe again.”

The Ripple Effect: Multiple Sectors to Benefit

The anticipated rise in housing sales won’t just lift the real estate market. It will also energize a wide industrial chain — from construction materials to furniture, home appliances, logistics, and beyond. Demand is expected to increase across key industries such as cement, iron, ceramics, glass, paint, and electrical equipment, signaling a broader industrial revival.

Experts highlight that each new home triggers a powerful economic cycle affecting more than 260 sub-sectors. When a new house is completed, it’s not only the construction company that benefits — furniture makers, appliance producers, curtain and carpet sellers, heating and cooling providers, textile firms, and transport companies all gain from the ripple effect. (ekonomim)

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