Authored by the expert who managed and guided the team behind the Turkey Property Pack
Yes, the analysis of Istanbul's property market is included in our pack
Istanbul's property market offers compelling investment opportunities across diverse districts, with rental yields ranging from 6.91% to 11.70% and property prices varying dramatically from $49,514 in Esenyurt to $171,886 in Kadıköy for one-bedroom apartments.
As of June 2025, the market shows robust nominal growth of 29.6% year-over-year, though real-term values have declined by 8.8% after inflation adjustment. Peripheral districts like Beylikdüzü and Esenyurt are experiencing the highest population growth and rental yields, while central areas like Kadıköy and Şişli offer stable tenancy with lower but consistent returns.
If you want to go deeper, you can check our pack of documents related to the real estate market in Turkey, based on reliable facts and data, not opinions or rumors.
Istanbul's real estate market presents diverse investment opportunities with peripheral districts offering higher yields (9-12%) compared to central areas (6-8%).
Foreign investors can purchase property without restrictions, with total investment costs including 4% transfer tax and annual maintenance averaging $1,335 for a 70 sqm apartment.
| District | Average Price (1-bedroom) | Gross Rental Yield | Time to Rent | Population Growth |
|---|---|---|---|---|
| Esenyurt | $49,514 | 9.60% | Less than 1 week | High |
| Beylikdüzü | $54,348 | 11.70% | Less than 1 week | 67% (10-year) |
| Maltepe | $120,249 | 7.55% | 1 week | Moderate |
| Şişli | $140,000+ | 9.38% | 1 week | Stable |
| Kadıköy | $171,886 | 6.91% | 1 week | Stable |
What's the average price per square meter in the main districts of Istanbul right now?
Istanbul's property prices vary dramatically across districts, with the city-wide average reaching TRY 55,503 ($1,520) per square meter as of June 2025.
Premium central districts command the highest prices, with Kadıköy leading at $171,886 for a one-bedroom apartment, followed by Maltepe at $120,249. These established neighborhoods offer proximity to business centers, cultural amenities, and excellent transportation links.
Mid-range districts like Şişli provide strong value propositions around $140,000 for comparable properties, while peripheral areas present significant affordability advantages. Beylikdüzü offers one-bedroom apartments at $54,348, and Esenyurt provides the most accessible entry point at just $49,514.
The price disparity reflects infrastructure quality, location centrality, and development maturity. Central districts benefit from established metro connections and proximity to employment hubs, while peripheral areas are experiencing rapid development and population influx.
These price variations create diverse investment opportunities, from high-yield peripheral investments to stable central district holdings with lower but consistent returns.
How much have property prices increased or decreased in each district over the last 3 to 5 years?
Istanbul's property market shows strong nominal growth but declining real-term values when adjusted for Turkey's high inflation rates.
City-wide nominal price increases reached 29.6% year-over-year as of January 2025, representing robust growth in Turkish Lira terms. However, when adjusted for inflation, real-term property values declined by 8.8% year-over-year, indicating that properties haven't kept pace with Turkey's elevated inflation rates.
Peripheral districts have outperformed central areas in terms of growth rates, with Beylikdüzü showing particularly strong appreciation due to massive population shifts and infrastructure development. The district has experienced 67% population growth over the past decade, driving sustained demand and price increases.
Central districts like Kadıköy and Şişli have shown more moderate but stable growth patterns, benefiting from their established status and consistent demand from both local and international buyers. These areas typically experience less volatility but also lower appreciation rates compared to emerging peripheral districts.
The divergent performance reflects Istanbul's westward population shift, with new residents gravitating toward modern developments in previously underdeveloped areas while central districts maintain their premium positioning.
What is the current rental yield in each area, both gross and net?
| District | Gross Rental Yield (Q1 2025) | Net Rental Yield (Pre-Tax) | Monthly Rent Range |
|---|---|---|---|
| Beylikdüzü | 11.70% | 9.5% | $450-550 |
| Esenyurt | 9.60% | 7.5% | $380-450 |
| Şişli | 9.38% | 7.5% | $1,100-1,300 |
| Maltepe | 7.55% | 6.0% | $750-900 |
| Kadıköy | 6.91% | 5.5% | $990-1,200 |
How long does it typically take to rent out a property in each neighborhood?
Istanbul's rental market moves quickly across all major districts, with most properties securing tenants within one week of listing.
Peripheral high-yield districts like Esenyurt and Beylikdüzü typically rent out in less than one week due to strong demand from young professionals and families seeking affordable housing options. These areas benefit from rapid population growth and limited rental supply relative to demand.
Central districts including Kadıköy, Şişli, and Maltepe usually secure tenants within approximately one week. Despite higher rental prices, these neighborhoods maintain consistent demand from professionals working in business districts and expatriates seeking established areas with amenities.
The rapid rental absorption reflects Istanbul's housing shortage, with the city's population of 16.24 million creating sustained rental demand. Additionally, 25% of households in central districts are single-person units, contributing to steady rental market activity.
Seasonal variations are minimal, as Istanbul's diverse economy maintains year-round rental demand unlike vacation-dependent markets.
What's the occupancy rate and tenant turnover for rental units in the most popular districts?
Istanbul's rental market maintains high occupancy rates across all major investment districts, with tenant turnover patterns varying by location and price point.
Central districts like Kadıköy and Şişli experience low tenant turnover rates, with tenants typically staying 2-3 years due to proximity to employment centers and established amenities. These areas maintain occupancy rates above 95% due to consistent demand from professionals and expatriates.
High-yield peripheral districts such as Esenyurt and Beylikdüzü show very high occupancy rates exceeding 96%, driven by affordability and population growth. However, these areas experience moderate tenant turnover as residents often upgrade to larger properties or move closer to city center as their circumstances improve.
Maltepe demonstrates balanced characteristics with high occupancy rates and moderate turnover, appealing to both young professionals and established families. The district's metro connectivity helps maintain stable tenant demand.
Overall market dynamics favor landlords, with the housing shortage ensuring minimal vacancy periods and strong negotiating positions for rental increases aligned with inflation.
How much capital is typically required to enter each of these markets, including taxes and fees?
Total investment capital requirements vary significantly across Istanbul districts, with peripheral areas offering accessible entry points while central districts require substantial capital commitments.
For Esenyurt, the most affordable option, investors need approximately $51,500 total capital, including the $49,514 average property price plus 4% transfer tax ($1,981) and administrative costs around $1,000. This makes it highly accessible for first-time investors.
Beylikdüzü requires about $56,500 total investment, combining the $54,348 property price with mandatory transfer taxes and fees. The slightly higher entry cost is offset by the district's superior rental yields of 11.70%.
Mid-range districts like Maltepe demand approximately $125,000 total capital, while Şişli investments typically require $145,000-150,000 including all costs. Kadıköy, being the premium central district, necessitates around $179,000 total investment for a standard one-bedroom apartment.
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Additional considerations include currency exchange costs for foreign investors and potential financing arrangements, though most international buyers purchase properties with cash to avoid Turkish mortgage complexities.
What are the typical annual maintenance and management costs for an investment property in Istanbul?
Annual property maintenance and management costs in Istanbul average $1,335 per year for a standard 70 square meter apartment, though expenses vary by district and property type.
Property tax represents a significant annual cost at 0.2% of property value in metropolitan areas like Istanbul. For a $100,000 property, this equals $200 annually, while premium properties face proportionally higher taxes.
Aidat (monthly maintenance fees) typically range from $50-150 monthly depending on building amenities and location. Luxury developments in central districts command higher fees due to premium facilities like gyms, concierge services, and enhanced security systems.
Professional property management services charge 8-10% of rental income, providing tenant sourcing, rent collection, maintenance coordination, and legal compliance. For a property generating $6,000 annual rent, management costs would be $480-600.
Additional annual expenses include building insurance ($100-200), minor repairs and maintenance ($200-400), and utility connection fees. Properties in newer developments typically have lower maintenance costs compared to older buildings requiring more frequent repairs.
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Are there major upcoming infrastructure or development projects planned in specific districts?
Istanbul's infrastructure development pipeline includes major projects that will significantly impact property values and investment potential across multiple districts.
New metro line expansions are underway, particularly benefiting peripheral districts like Beylikdüzü and Esenyurt by improving connectivity to central business districts. These transportation improvements typically drive 15-25% property value increases within 500 meters of new stations.
Istanbul Airport expansion continues, with additional terminals and increased flight capacity planned through 2026. This development particularly benefits northern districts and creates new employment opportunities in surrounding areas.
The Kanal Istanbul project, despite legal challenges, remains in planning phases and could dramatically alter western district dynamics if implemented. Surrounding areas may experience speculative investment and infrastructure upgrades regardless of the canal's final status.
Urban transformation (kentsel dönüşüm) projects are actively proceeding across older neighborhoods, with thousands of buildings scheduled for renewal. These projects typically increase local property values by 30-50% upon completion while temporarily disrupting rental markets during construction phases.
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What are the crime rates and quality of municipal services across the city's neighborhoods?
Istanbul has experienced significant improvements in public safety, with property crimes decreasing by 27.6% in January 2025 compared to the previous year.
Central districts like Kadıköy, Şişli, and Beyoğlu maintain enhanced security measures with increased police presence and modern surveillance systems. These areas benefit from higher municipal budgets and prioritized public safety investments.
Peripheral districts such as Esenyurt and Beylikdüzü have implemented community policing initiatives and neighborhood watch programs. While historically having higher crime rates, these areas show improving trends as local governments invest in security infrastructure and community development programs.
Municipal services quality varies significantly by district wealth and administrative capacity. Central areas offer superior services including faster emergency response times, better street maintenance, and more frequent garbage collection. Peripheral districts are rapidly improving but may still experience service gaps during peak population growth periods.
Maltepe and similar mid-tier districts generally provide balanced service quality with adequate police coverage and municipal responsiveness, making them attractive for families seeking security without premium central district costs.
What are the population growth rates and demographic trends by district?
Istanbul's population reached 16.24 million in 2025, growing by 1.18% year-over-year, with dramatic variations in growth patterns across different districts.
Beylikdüzü leads population growth with an extraordinary 67% increase over the past decade, driven by new residential developments and improved infrastructure. This rapid expansion creates sustained rental demand and supports property value appreciation.
Esenyurt and similar peripheral districts experience substantial population influx as residents migrate from city center seeking affordable housing and modern amenities. These areas attract young families and professionals priced out of central neighborhoods.
Central districts like Kadıköy and Şişli show stable or slightly declining populations as residents move to larger properties in suburban areas. However, these districts maintain high property values due to consistent demand from professionals and expatriates.
Demographic trends show 25% of central district households are single-person units, supporting studio and one-bedroom apartment demand. Meanwhile, peripheral areas attract larger families seeking multi-bedroom properties with better space-to-price ratios.
What are the rules and costs around foreign ownership and property taxes in Turkey?
Turkey permits unrestricted foreign property ownership, making Istanbul accessible to international investors without nationality-based limitations or ownership caps.
The primary upfront cost is the 4% transfer tax, typically paid by buyers, calculated on the property's official valuation. For a $100,000 property, this equals $4,000 in transfer taxes plus approximately $1,000 in administrative fees and legal costs.
Annual property taxes range from 0.1% to 0.4% of assessed value, with residential properties in metropolitan areas like Istanbul taxed at 0.2%. A $150,000 property would incur $300 annual property tax obligations.
Capital gains taxation applies to properties sold within five years of purchase, ranging from 15% to 40% depending on holding period and seller's tax residency status. Properties held longer than five years are generally exempt from capital gains taxes.
Foreign investors face no additional restrictions on rental income, though rental earnings are subject to Turkish income tax rates. Property purchases can be completed remotely through power of attorney arrangements, streamlining the acquisition process for international buyers.
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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.
How liquid is the market—what's the average time to sell a property in different areas of Istanbul?
Istanbul's property market currently favors buyers, with average selling times varying significantly between central and peripheral districts.
Central districts like Kadıköy and Şişli typically see properties sell within 2-4 months due to consistent demand from both local and international buyers. These established areas maintain liquidity through their reputation, amenities, and transportation connectivity.
Peripheral districts such as Esenyurt and Beylikdüzü may require 4-6 months for sales completion, though this is improving as these areas gain recognition and infrastructure development continues. The longer selling times are offset by higher potential returns and lower entry costs.
Market liquidity varies seasonally, with spring and early fall typically showing faster transaction times across all districts. Winter months may extend selling periods by 2-4 weeks as buyer activity temporarily decreases.
Property condition and pricing strategy significantly impact liquidity. Well-maintained properties priced competitively within 5% of market value typically sell 30-50% faster than overpriced or poorly maintained alternatives. Foreign-owned properties generally maintain good resale potential due to Turkey's investor-friendly policies and Istanbul's international appeal.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Istanbul's real estate market offers compelling opportunities for investors seeking high rental yields and capital appreciation potential, particularly in rapidly developing peripheral districts.
Success requires careful district selection based on individual investment goals, risk tolerance, and capital availability, with peripheral areas favoring yield-focused strategies and central districts supporting stable, long-term wealth preservation.
Sources
- Global Property Guide - Turkey Price History
- Global Property Guide - Turkey Rental Yields
- Pera Property - Turkey Housing Price Growth
- The Wandering Investor - Istanbul Real Estate Investment Guide
- Pera Property - Turkey Property Taxes 2024
- Tekce Exclusive - Turkey Real Estate Taxation Guide 2025
- Tranio - Turkey Property Maintenance Costs
- Daily Sabah - Istanbul Crime Statistics 2025
- Hurriyet Daily News - Istanbul Population Shifts
- MacroTrends - Istanbul Population Data