Under Turkey's proportional representation system, this means the AKP will need to form a coalition for the first time since coming to power in 2002.

In another sensational result that shakes-up Turkey's political landscape, the pro-Kurdish People's Democratic Party (HDP) easily surpassed the 10-per cent barrier needed to send MPs to parliament.

Official results based on 99.9 per cent of votes counted gave the AKP 41 percent of yesterday's ballots, followed by the Republican People's Party (CHP) on 25 per cent, the Nationalist Movement Party (MHP) on 16.5 per cent and the HDP in fourth place with 13 percent.

According to the official projections, the AKP will have 258 seats in the 550-seat parliament, the CHP 132, the MHP 81 and the HDP 79.

The AKP has dominated Turkish politics since it first came to power in 2002 but has suffered from a dip in economic growth and controversy over Erdogan's perceived authoritarian tendencies.

The results wreck Erdogan's dream of agreeing a new constitution to switch Turkey from a parliamentary to a presidential system that he had made a fundamental issue in the campaign.

Latest News from World News Desk