Construction costs outrunning house prices in Turkey: official July 2026 data on real prices, sales and foreign demand.

Construction costs now outrun house prices: what July 2026 official data means for investors

Official July 2026 releases from the Central Bank of the Republic of Türkiye (CBRT) and TurkStat (TÜİK) show a split market. Lira asking prices are still rising. After inflation, and relative to the cost of building a new unit, values are weaker. For an investor who thinks in hard currency, the nominal headline is the wrong starting point.

This article was created with AI assistance and reviewed and edited by Samaram's human editorial team.

What the official numbers show

The CBRT Residential Property Price Index (2023=100) stood at 234.8 in July 2026. It rose 1.5 percent month on month and 25.0 percent year on year in nominal terms. In real terms the same index fell 5.1 percent.

TurkStat's Construction Cost Index rose 28.33 percent year on year and 1.15 percent month on month in July. Building a new home therefore became more expensive faster than completed homes rose in price.

Sales were 123,603 units in July, down 17 percent from July 2025. January-July sales reached 823,119 units, down 5.5 percent from the same period in 2025.

Istanbul, Ankara and Izmir

In July the annual index rose 27.7 percent in Istanbul, 26.6 percent in Ankara and 23.1 percent in Izmir. Month on month, Istanbul was up 2.7 percent, Ankara up 2.2 percent and Izmir down 0.5 percent. Izmir was the softest of the three large cities in that month.

Mortgages and foreign buyers

Mortgaged sales rose to 23,888 in July, up 23.7 percent year on year. In the first seven months they reached 166,682, up 30.9 percent. Domestic buyers who can obtain credit are returning. Non-mortgage sales remain weaker.

Foreigners bought 2,120 homes in July, up 1.9 percent, or 1.7 percent of all sales. January-July foreign purchases were 11,203, down 7.3 percent. In July Istanbul recorded 889 foreign purchases, Antalya 661 and Mersin 128. Russia, Iran and Ukraine led by nationality.

Investor reading

Domestic demand still sets prices. Foreigners are a thin slice of the market. Lira capital gains are not keeping up with inflation. For a cash buyer pricing in dollars or euros, that can mean more room to negotiate on selected stock — not a blanket discount. Building quality, earthquake performance and rental liquidity still matter more than a national average.

For developers, a cost-price gap squeezes new supply. That can tighten the pipeline of good-quality units later. It also limits how far existing sellers can cut prices without selling below replacement cost.

Conclusion

The July 2026 official series describes a market with weaker unit sales, rising nominal prices, falling real prices and construction costs running ahead of sale prices. That is not a forecast. Investment decisions should be made in hard currency, by location and by building quality — not by the lira year-on-year headline.