“Will housing prices continue to fall? Warning from experts for 2025

In contrast to rental apartment prices in Istanbul, there has been a recent decline in the prices of apartments for sale. So, is this situation temporary, or will housing prices continue to fall? What do experts say about this? According to recent data, housing prices declined in real terms for the first time in March nationwide. The prices of apartments for sale decreased by 5.1 percent nominally compared to the same period of the previous year, but rents, on the contrary, showed an increase.

According to a report on media, rental prices rose by 55-58 percent compared to the same period last year. According to experts, the most important reason for the stagnation in housing sales is the increase in interest rates and the price gap between Istanbul and Anatolian cities…

A Real Estate Lawyer who says the market is self-realizing, notes the following; “In the past years, after consecutive elections, exorbitant figures emerged in rental and for-sale housing. Currently, two main reasons stand out for the decline in housing sales prices. The first is that the market has self-realized housing prices. The second reason for the decline is the price gap between metropolitan cities and provincial cities. For example, a property in Isparta can increase from 3 million TL to 3.5 million TL, but when a property in Istanbul increases from 10 million TL to 15 million TL, the difference becomes very high.”

“Buying a house in metropolitan cities has become a dream”

Emphasizing the stagnation replacing the increase in rental housing prices at the beginning of the year, he has said, “In February and March, prices stabilized or saw declines in some areas. This situation presents an opportunity for those who want to rent a house now. People living in metropolitan cities, especially Istanbul, want to sell their properties as soon as possible to invest in foreign currency or interest. Ten years ago, there was a 34 percent tenant – 64 percent homeowner ratio, while today this ratio has risen to 44 percent tenant – 56 percent homeowner. Buying a house in metropolitan cities has become a dream. Even the interest rates of housing loans are not affordable.”

“It will rise again in 2025”

Another Lawyer attributed the biggest reason for the real decline in housing prices to the increasing housing loan interest rates and the high returns on individual deposits.

He said, “Although there is stagnation in the housing market this year, the situation will reverse in 2025. With the Central Bank entering a process of interest rate cuts, deposit holders will withdraw from these deposits. I believe there will be a reorientation towards housing in the second half of 2025 and in 2026. In addition, the urban transformation process will also serve as a catalyst for the increase in housing prices.”

An investment specialist on the other hand used the following statements: “The increase in rental prices along with the rise in construction costs negatively affects real estate investments. This situation makes it difficult for people to attempt to own a house, and the number of those who prefer to own a house instead of paying rent is decreasing.”