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What is happening in Ankara’s real estate market? Are prices on the rise or decline? Is Ankara still attracting foreign investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the city. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Ankara real estate market daily. That’s why we’ve crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
1) Central Ankara will see higher rental yields as demand for city living rises
Rental yields in central Ankara are on the rise as more people flock to city living.
In 2023, real estate prices in Ankara jumped by 30.42% in US dollars, marking a significant upward trend. Over the past two years, prices have surged by more than 135%, signaling a booming demand for housing. This surge is a clear indicator that rental prices are likely to follow suit, making it a hot spot for potential property investors.
Ankara's population is another driving force. With an estimated population of 5,477,090 in 2024, the city is bustling with life. This high density means more people are looking for places to live, especially rentals. Young professionals and students are particularly drawn to central areas, adding to the rental demand.
Owning a home in Ankara is becoming increasingly expensive, nudging more people towards renting. As property prices continue to climb, renting becomes a more viable option for many. This shift is evident in the real estate market, where areas like Çankaya and Keçiören boast rental yields of 8.07% and 10.19%, respectively.
For those considering investing in Ankara's rental market, these numbers are promising. The combination of rising property prices and a growing population suggests that rental demand will only increase. This trend is particularly noticeable in central districts, where the hustle and bustle of city life attracts a steady stream of renters.
Sources: Global Property Guide, World Population Review, Altop Real Estate
2) Luxury property prices in central Ankara will keep rising due to limited supply
Luxury property prices in central Ankara are on the rise due to a limited supply of available properties.
In central Ankara, land for new developments is scarce, making it tough for developers to find new sites. This scarcity drives up the costs of building new luxury properties, so the prices of existing ones keep climbing as demand outstrips supply.
The Turkish government has also put restrictions on new construction in certain areas, adding more challenges for developers. These restrictions make it even harder to increase the supply of high-end properties in central Ankara.
Looking at historical data, house prices in Ankara jumped by 94.3% year-over-year in October 2023. This trend is likely to continue as the demand for luxury properties stays strong, fueled by economic growth and rising foreign investment.
Central Ankara's luxury market is particularly attractive to foreign investors, who see it as a stable and lucrative opportunity. This influx of international interest further tightens the market, contributing to the ongoing price surge.
With limited land, government restrictions, and strong demand, the luxury property market in central Ankara is set for continued price increases. The combination of these factors creates a perfect storm for rising prices, making it a hot spot for potential buyers.
Sources: Global Property Guide, Damas Group
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Turkey versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
3) Residential property prices in Ankara will stabilize following a period of rapid growth
Ankara's residential property prices have been on a rapid rise, but signs point to stabilization soon.
Recently, the pace of price increases has slowed, hinting at a shift. In 2023, Ankara saw a 30.42% jump in real estate prices, but this surge is losing steam. This slowdown suggests that the market might be finding its balance, offering potential buyers a more predictable landscape.
The Turkish government is also stepping in to help stabilize the market. They've put a 25% cap on rent increases since July 2021, aiming to keep the housing market fairer. Plus, they're offering financing options for first-time buyers, making it easier for newcomers to enter the market without facing skyrocketing costs.
On the supply side, new residential developments are popping up more quickly thanks to advancements in construction technology. This means more homes are available faster, which helps ease the pressure on demand. When there are more homes to choose from, prices tend to level out.
Interest rates are another factor to watch. As they rise, mortgage affordability takes a hit, which can cool down the demand for buying properties. Fewer people rushing to buy means less competition and potentially more stable prices.
For those considering a move to Ankara, these trends could mean a more stable and predictable market in the near future, making it a potentially good time to explore buying options.
Sources: Altop Real Estate, Central Bank of the Republic of Turkey, Business and Economics Research Journal
4) Affordable rental units will maintain stable yields due to high demand
Ankara's population has been steadily growing over the past few years, with noticeable increases in 2023 and 2024.
Young people are flocking to Ankara, drawn by better job opportunities and escaping high unemployment elsewhere. This movement is boosting the demand for affordable rentals, especially since Ankara has always been a magnet for internal migration.
However, the supply of new affordable rentals isn't keeping up. High construction costs and financial instability among builders are causing a shortage, which means rental prices are either stable or rising, with yields around 8.19%.
Government reports highlight a housing shortage in cities like Ankara, which only increases the demand for rentals. Many young professionals prefer renting because buying a home is tough with high property prices and interest rates.
Experts and market analyses agree that the demand for affordable rentals in Ankara will stay strong. Historical data shows stable yields in this market, making it a smart investment choice.
Sources: Macrotrends, Global Property Guide, Business Turkey Today
5) Virtual reality tours will become more prevalent in property buying
Virtual reality tours are now a key part of buying property, and there's a good reason for it.
Back in 2023, the AR VR Software Market was valued at $32.5 billion, and it's only expected to grow. This boom in VR technology is making waves in real estate, with VR projected to contribute $2.6 billion by 2025. It's not just about the numbers; it's about how people want to shop for homes these days.
Imagine being able to walk through a house without leaving your couch. That's what 77% of potential buyers are after, preferring virtual reality for remote property viewing. In fact, 67% of home buyers wanted a virtual tour when checking out listings, and half of them liked it better than just looking at photos. Real estate agencies are catching on, offering more virtual tours to meet this demand.
Virtual tours aren't just a gimmick; they change how buyers behave. Listings with these tours get 87% more views, and people spend more time exploring them. It's all about convenience and saving time, which is a big deal for busy buyers. The pandemic pushed this trend even further, making VR a staple in real estate.
Sources: PhotoUp, Markets and Markets, Numalis, 360 Photographers, LandVault
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6) Foreign buyers will increasingly target Ankara properties due to favorable exchange rates
The Turkish lira's depreciation has made real estate in Turkey more appealing to foreign investors.
In December 2024, the exchange rate was over 34.95 USD/TRY, a figure that has historically been favorable for those buying from abroad. This has led to a noticeable uptick in interest, especially in Ankara, where real estate agencies are seeing more inquiries from international clients.
Ankara is becoming a hotspot because its property prices are generally lower than in Istanbul, offering more affordable options. This makes it an attractive choice for those looking to diversify their investments in emerging markets like Turkey.
Experts predict that the Turkish lira will remain favorable for foreign investors, potentially stabilizing in the coming years. This could further enhance the purchasing power of international buyers, drawing even more interest.
Testimonials from those who have already invested highlight the benefits of these favorable exchange rates, making Turkish real estate an attractive option.
With the current economic climate, it's expected that foreign interest in Ankara will continue to grow, driven by these advantageous conditions.
Sources: Esales International, Altop Real Estate, The Luxury Playbook
7) Updated property tax laws will affect rental investment profitability
Changes in property tax laws can really shake up the profitability of rental investments.
Imagine owning a rental property in Ankara, where the standard tax rate for residential real estate is 0.1%. But if you're in a major city, that rate jumps to 0.2%. This bump in taxes can eat into your net rental income, meaning less money in your pocket after covering taxes and other expenses. Even if your rent stays the same, your profits might shrink.
In response to rising property taxes, landlords might feel the pinch and consider hiking up rents to keep their profit margins intact. However, this move could backfire, making their properties less appealing to potential tenants who are shopping around for the best deal.
Looking at the numbers, gross rental yields in Ankara have been on a rollercoaster ride. In Q3 2023, they averaged 7.15%, but by Q2 2024, they climbed to 8.19%. These ups and downs hint that property tax changes could sway these yields. If taxes go up, the net yield, which is your actual profit after all expenses, might take a hit, making rental investments less enticing.
For those eyeing property in Turkey, it's crucial to keep an eye on these tax shifts. They can directly affect how much you earn from your rental properties, and staying informed can help you make smarter investment decisions.
Sources: Global Property Guide, Taxes in Turkey
8) Certain neighborhoods will attract more foreign buyers for their cultural and educational amenities
Foreign buyers are increasingly drawn to certain neighborhoods in Ankara because of their rich cultural and educational offerings.
In 2023, Ankara saw a surge in property interest from countries like Iraq, Iran, and Afghanistan. This isn't just about real estate; these buyers are captivated by what the city offers beyond just homes.
Ankara Yıldırım Beyazıt University is becoming a magnet for international students, especially for the 2024-2025 academic year. This rise in student numbers highlights Ankara's growing reputation as an educational hub, which in turn influences property buying decisions.
International schools like Bilkent Laboratory & International School (BLIS) are expanding, showing Ankara's dedication to quality education. Programs like the International Baccalaureate offered here are highly valued by international families, making the city even more appealing to foreign buyers.
These educational institutions are not just schools; they are part of what makes Ankara attractive. They provide a sense of community and opportunity for families from abroad, adding to the city's allure.
As these neighborhoods continue to develop, they are likely to become even more popular with foreign buyers seeking both cultural richness and educational excellence.
Sources: CCT Investments, AYBU, BLIS
We have made this infographic to give you a quick and clear snapshot of the property market in Turkey. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Foreign investment in Ankara will increase as international relations get better
Ankara's international relations have improved significantly, paving the way for increased foreign investment.
In 2024, Ankara made headlines by approving Sweden's NATO membership, a move that strengthened its diplomatic ties with Western countries. This decision is seen as a strategic step to create a more welcoming environment for foreign investors, who are keen on stability and strong international partnerships.
Last year, Turkey attracted 5.7 billion U.S. dollars in foreign direct investment, with the services sector being the biggest magnet. This shows a growing interest in the Turkish market, especially in sectors that drive economic growth. The World Bank hints at even more potential for growth, thanks to these improved international relations.
Turkey is also working hard to align its trade policies with the European Union, negotiating favorable trade agreements that make it a hot spot for foreign investment. With free trade agreements with 38 countries, including major economies, Turkey is enhancing its economic ties and becoming a more attractive destination for international businesses.
These trade agreements not only boost trade but also offer a stable and predictable business environment, which is crucial for attracting foreign investment. Investors are drawn to places where they can foresee the business climate, and Turkey is positioning itself as one of those places.
As Ankara continues to strengthen its international relations and economic policies, the city is poised to see a rise in foreign investment, making it an exciting prospect for potential property buyers looking for opportunities in a growing market.
Sources: Trading Economics, Statista, Trade.gov, Trade.gov.tr, Istanpol
10) Demand for accessible, senior-friendly housing will rise with the growing elderly population
The growing elderly population will increase demand for accessible and senior-friendly housing.
In Turkey, people are living longer, with life expectancy expected to hit 77.044 years by 2025. This means more folks will need homes that suit their needs as they age. In Ankara, the number of people aged 65 and over is on the rise, hinting at a future where more seniors will need safe and accessible housing.
The senior housing market is changing fast, thanks to a higher demand for specialized care and tech advancements. This shift shows a need for homes that blend living spaces with healthcare services. Many see senior housing as a smart investment, and media often highlights the challenges seniors face in current housing, like poor accessibility and safety, pushing the demand for better options.
Urban planners are working on age-friendly communities, aiming to make spaces safe and accessible for everyone. This includes housing that meets the needs of older adults. Local senior groups are vocal about what they need, pushing for homes that focus on accessibility and senior-friendly features.
Sources: CEIC Data, UNECE, NIC MAP Vision
11) High-end rental yields will rise with growing demand from expatriates and diplomats
Ankara is now a major hub for international diplomacy and business.
With Türkiye's rise as the third-largest diplomatic player globally, just behind China and the US, Ankara's diplomatic presence has expanded significantly. This has attracted more expatriates and diplomats to the city, making it a bustling center for international relations.
The influx of embassies and international organizations has led to a surge in demand for high-end rental properties, especially in diplomatic districts. Ankara's strategic location and ongoing infrastructure development make it an attractive spot for real estate investment, further boosting the need for luxury accommodations.
Investors find Ankara appealing due to its competitive property prices and high rental yields. The Turkish government's investor-friendly policies, including residency options for property buyers, have also played a role in increasing foreign investment in Ankara's real estate market.
As Ankara continues to grow as a diplomatic and international business center, the demand for high-end rental properties is expected to rise. This is largely driven by the influx of expatriates and diplomats seeking luxury accommodations.
Sources: AA, CCT Investments
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12) Suburban property prices may dip slightly as urban centers become more accessible
In Ankara, public transportation has seen major upgrades, making city travel a breeze.
With a robust network of buses, metro lines, and trains run by EGO, getting from the suburbs to the city center is now much easier. The AnkaraKart, a contactless smart card, has made commuting even simpler, cutting down travel times and boosting the appeal of urban living.
Four metro routes and the Ankaray line are at the heart of this transformation, reducing commute times significantly. This convenience is drawing more people to consider city life, as it offers a smoother daily routine.
The Turkish government is pouring resources into urban development, like the extension of the Dikimevi – Natoyolu Metro line. These projects aim to enhance urban mobility and ease traffic, making city life more attractive to potential residents.
As urban centers become more accessible, some suburban areas might see a slight dip in property prices. This shift is due to the improved ease of reaching the city, making urban living a more viable option for many.
These changes are reshaping the real estate landscape, with urban areas becoming increasingly desirable. The improved quality of life in the city is a key factor, drawing interest from those looking to move closer to the action.
Sources: Turkish Airlines Blog, EBRD Board Report, TenantCloud Blog
13) Ankara will see a younger population as students and young professionals relocate to the city
Ankara is buzzing with students and young professionals, making it a youthful city.
Thanks to its universities, more students are flocking to Ankara for their education. This influx naturally brings a younger vibe to the city, as these students settle in and become part of the community.
The tech and service sectors are booming here, offering plenty of job opportunities for young professionals. Fields like artificial intelligence and software engineering are particularly hot, drawing in fresh talent eager to kickstart their careers.
Government initiatives, like the "Growing and Prospering the Entrepreneurship Ecosystem in Ankara" project, are a big deal. They support young entrepreneurs, boosting youth employment and innovation in the city.
Affordable housing is another key factor. With a $50 billion housing initiative, the Turkish government is making it easier for young adults to own homes, helping them put down roots in Ankara. Improved public transportation and infrastructure also make life easier and more appealing for the younger crowd.
The city is alive with cultural and entertainment venues, plus a vibrant nightlife scene. These cater specifically to younger audiences, adding to Ankara's allure and making it a great place to live and have fun.
Sources: Macrotrends, Built In, Ankara Entrepreneurship Project, Daily Sabah
14) Property values in Altındağ will increase as historical sites are restored and promoted
Altındağ is buzzing with restoration projects, thanks to significant investments from the Turkish government.
These efforts are not just about preserving history; they aim to attract more tourists and locals to the area. As more people flock to Altındağ, the demand for property is expected to rise, potentially driving up property values.
Tourism in Ankara is on the upswing, with a growing interest in cultural and historical sites. As Altındağ's restoration projects wrap up, they are likely to draw even more visitors, boosting business activity and making the area more appealing to property buyers.
Media coverage has been crucial in spotlighting Altındağ's restoration efforts. This positive attention can ignite public interest and attract investors, which in turn can further elevate property values.
Real estate market reports often show a strong link between restoration efforts and rising property values, a trend observed in other cities with similar projects. Altındağ is poised to follow this pattern, making it a promising area for potential buyers.
Sources: Turkish Minute, Properstar
We made this infographic to show you how property prices in Turkey compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
15) Affordable housing projects will moderately raise prices in outer districts
In 2023 and 2024, the demand for affordable housing in Ankara's outer districts has surged.
This trend is fueled by the Turkish government's ambitious social housing project, which aims to provide a substantial number of homes and residential plots. As more people look for affordable options, property prices in these areas are expected to rise moderately.
The government is sweetening the deal with incentives like affordable interest rates and payment plans. Imagine paying as little as $125 a month over 20 years. This makes the outer districts more appealing to potential buyers, which could nudge property prices upward as demand increases.
Construction is booming in these areas, with numerous affordable housing units being built. While this increases the housing supply, it also makes these districts more attractive, contributing to a moderate price rise. We've seen similar trends in Istanbul, where such projects led to significant price hikes.
For those considering a move, these outer districts offer a unique opportunity. The combination of new housing and government incentives is creating a buzz. It's a chance to get in on the ground floor before prices climb further.
So, if you're thinking about buying property, keep an eye on these developments. The outer districts of Ankara are becoming a hotspot, and the time to act might be now.
Sources: Daily Sabah, Xinhua News, TEPAV
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.