Turkey’s construction sector continues its rapid growth throughout 2025, supported by the government and real estate financing institutions, along with strong domestic demand despite global economic challenges.
This report highlights the most significant developments that took place in October, reflecting market trends and directly influencing the decisions of both foreign and local investors.
500,000 New Social Housing Units Project
The Turkish government, through the Ministry of Environment, Urbanization and Climate Change and the Housing Development Administration (TOKİ), has launched a massive project to build 500,000 housing units across 81 provinces, aiming to provide safe and affordable homes resistant to earthquakes.
The project targets multiple social groups such as the families of martyrs, retirees, young people, persons with disabilities, and large families. For the first time, it also includes rental housing units within the TOKİ program.
Government initiatives of this scale are a powerful driver for the growth of the real estate market, especially in mid-sized cities such as Yalova (Yalova), Bursa, and Sakarya, which are witnessing growing demand for family-oriented housing.
Economic Confidence Indicators
According to the Turkish Statistical Institute (TÜİK), the economic confidence index slightly increased to 98 points in September 2025, while the construction confidence index rose by 3.6% to reach 88.3 points.
This improvement reflects optimism among local and foreign investors and confirms the sector’s structural strength despite rising raw material costs.
Real Estate Sales Up by 21.3%
During the first eight months of 2025, more than 978,000 housing units were sold in Turkey — an increase of 21.3% compared to the same period last year.
August alone recorded 143,000 sales, the highest monthly figure of the year.
Sales financed through mortgages rose impressively by 84.6%.
Meanwhile, foreign sales dropped by 19.8% to just 1,810 units in August, with Russians leading the list (283 units), followed by Iranians and Germans.
This divergence between local and foreign sales indicates a shift toward domestic demand, while coastal cities such as Antalya and Yalova (Yalova) remain attractive thanks to their modern real estate developments.
Performance of Turkish Construction Companies
Between 2020 and 2024, the total sales of Turkish construction firms increased by 800%, reaching 4.1 trillion Turkish liras.
Real estate companies achieved 361 billion TL in sales during 2024, with around 1.58 million people employed in the sector.
These figures place Turkey among Europe’s leading countries in terms of growth in construction and urban development.
New Interest-Free Housing Finance System
Minister of Environment Murat Kurum announced the launch of a new system called Emlak Katılım Tasarruf Finansman, allowing citizens to buy homes, cars, or commercial properties through interest-free financing guaranteed by the state.
The system includes two models:
- A monthly lottery model similar to TOKİ projects.
- A fixed-term savings model in which the client chooses the delivery date.
These initiatives open the door for a broader segment of citizens to own a safe and affordable home.
Legal Updates in Contracting and Engineering Supervision
Starting in 2026, the construction tracking and procurement log will be digitized through a mandatory electronic platform — a move aimed at enhancing transparency and speeding up procedures in the contracting sector.
The ministry has also allowed contractors to retain their qualification certificates even if companies merge or restructure, while cooperatives can now implement projects up to 10,000 m² under a temporary license.
New Law on the Transfer of Building Rights
A new law grants citizens whose lands fall within public service zones (such as schools, hospitals, and municipal facilities) the right to transfer their building rights to designated areas in the zoning plan.
The goal is to resolve legal disputes and compensate affected owners without direct expropriation.
All procedures will be conducted electronically through the e-Devlet system to ensure transparency and efficiency.
Production and Cost Indicators
According to TÜİK’s latest data:
- Construction output rose 24.1% year-on-year in July 2025.
- Construction costs increased 22.9%.
- Material costs rose 18.9%.
- Labor costs jumped 31%.
- The Housing Price Index (KFE) grew 31.4% annually, but after inflation adjustment, it dropped 1.2% in real terms.
These figures indicate that the market remains active, but it requires a balance between construction costs and sales prices to maintain the strength of real estate investments.
Omran Trk: A Trusted Partner in Turkey’s Real Estate Market
Amid this significant market growth, Omran Trk, based in (Yalova), stands out as one of the most prominent companies in Turkey’s real estate sector, thanks to its extensive experience and projects that combine quality, reliability, and modern design.
The company focuses on developing Yalova, a city that has become a favorite destination for Arab families and investors seeking homes that combine natural beauty and comfort.
Its projects — such as Cennet Yalova, Cennet Çınarcık, and Al-Moruj — exemplify architectural elegance and structural safety, making Omran Trk the preferred choice for investors seeking secure and stable residential returns.
With its flexible payment plans and dedicated after-sales services, Omran TRK continues to strengthen its role as a bridge of trust between Arab investors and the Turkish market.
Conclusion
All indicators confirm that Turkey’s construction sector is steadily moving toward sustainable expansion, supported by government policies, modern regulations, and new financing mechanisms.
For Arab investors, cities like (Yalova) remain ideal destinations thanks to their diverse real estate projects, proximity to Istanbul and Bursa, and the perfect blend of nature and opportunity.
Keywords:
Turkey construction sector, real estate investment in Turkey, property prices in Turkey, housing projects, real estate financing, TOKİ, buying a home in Turkey, Turkey property market 2025, Yalova (Yalova), social housing projects, Omran TRK projects, interest-free home loans.
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