Citizens who cannot afford large homes boost the construction sector with smaller apartments
An increasing number of Turkish citizens who cannot afford large homes are turning to 1+1 and 2+1 apartments, stimulating the construction sector. İbrahim Aydın, President of the Ankara Chamber of Construction Artisans, stated, “The high cost and square footage of 3+1 and 4+1 apartments push citizens toward smaller, more affordable housing options. We expect this trend to continue next year, and the strong demand positively impacts production and employment in the sector.”
Housing Sales Show Growth Despite Monthly Fluctuations
Data compiled shows that in October, housing sales in Turkey decreased slightly by 0.5% compared to the same month last year, reaching 164,306 units. However, in the first 10 months of 2025, total sales increased by 16.2% year-over-year, reaching 1,293,033 units. Istanbul led the sales with 26,305 units in October, followed by Ankara with 14,681 and Izmir with 8,678.
The shift toward smaller apartments has been particularly notable in major cities like Istanbul, Ankara, Izmir, and Antalya.
KKM End Sparks Renewed Interest in Real Estate
Aydın pointed out that one reason for the recent uptick in housing demand is the end of the Currency-Protected Deposit (KKM) system, which encouraged investors to turn toward real estate. Lower- and middle-income citizens are increasingly choosing 1+1 and 2+1 apartments, which are more affordable in terms of price per square meter.
Land Costs Remain a Major Challenge
Highlighting construction costs, Aydın noted, “Approximately 50% of construction expenses in Turkey come from land. Reducing these costs is crucial. We believe that municipalities and related institutions should provide land for contractors and prepare the necessary infrastructure. Regulatory adjustments are also needed for high fees and permits.”
Social Housing and Post-Earthquake Reconstruction Support the Sector
Construction continues across Turkey while recovery efforts for the Kahramanmaraş earthquakes are underway. Social housing projects are also contributing to sector activity. Aydın explained, “The recent slowdown in rental increases is partly due to the registration for 500,000 social housing units. The benefits of these projects for the country and citizens will become more visible over time.”
Meeting Turkey’s Annual Housing Needs
Aydın stressed that Turkey needs around one million new homes per year, which should be met through collaboration between the government and the private sector.
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