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What will happen in Bursa’s real estate market? Will prices go up or down? Is Bursa still a hotspot for foreign investors? How is Turkey’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Bursa, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
1) Rental yields in Bursa's suburbs will drop as city living becomes more popular
Suburban areas of Bursa are expected to see a drop in rental yields as more people choose city life.
The city's population is on the rise, with projections showing it will hit 2,143,000 by 2025. This trend highlights a strong move towards urban living, as Bursa's population has been climbing steadily since the 1950s. People are drawn to the city for its vibrant lifestyle and opportunities.
In Bursa's city center, rental yields are notably higher, ranging from 6.38% to 7.49%, with an average of 6.87%. This indicates a strong demand for city-center apartments, likely because of the appealing city amenities and lifestyle. The city's investment in infrastructure and public transport makes urban living even more attractive.
Real estate market trends show that buyers are increasingly interested in city properties. There's a growing demand for affordable housing in urban areas, driven by the higher rental price growth in city centers compared to the suburbs. This pattern is similar to what's happening in other major Turkish cities like Izmir.
As more people flock to the city, suburban areas might see a decline in rental yields. The allure of city life, with its conveniences and opportunities, is hard to resist. This shift is reshaping the real estate landscape in Bursa.
Sources: World Population Review, TenantCloud, Macrotrends, Global Property Guide
2) More foreign buyers will invest in Bursa’s real estate because of its cultural charm and investment opportunities
Foreign buyers are increasingly targeting Bursa's real estate market due to its rich cultural appeal and promising investment potential. In recent years, Turkey has seen a notable rise in foreign property purchases, especially in cities like Istanbul. This trend suggests that other Turkish cities, such as Bursa, are also becoming attractive to international investors.
Bursa is celebrated as a cultural capital of Turkey, boasting an 8500-year history and numerous cultural attractions. These include the Grand Mosque, Yesil Mosque, and Uludag National Park, which have drawn a growing number of tourists. This surge in tourism highlights the city's cultural allure, making it an appealing destination for foreign buyers interested in culturally significant locations.
Moreover, Turkey has introduced various incentives to attract foreign property buyers, such as residency permits and tax benefits. While these incentives are often associated with Istanbul, they are applicable to other cities like Bursa, enhancing its appeal to international investors. Additionally, Bursa's economy is diversifying, with strong sectors like tourism and manufacturing contributing to its growth, offering a stable environment for investment.
Sources: TTN Worldwide, Go Türkiye
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.
3) European investors will turn to Bursa’s real estate market as an alternative to Istanbul
In recent years, Istanbul's real estate market has become increasingly expensive, with property prices rising significantly. For example, in 2023, the average house price in Istanbul increased by 66.7% to TRY 44,387 per square meter. This sharp rise has made Istanbul less affordable for many investors.
Meanwhile, Bursa is gaining attention due to its growing tourism industry, which is boosting demand for accommodations. The city offers a variety of lodging options, from cozy guesthouses to luxurious resorts, catering to different preferences and budgets. This increase in tourism is a positive sign for potential real estate investors.
Additionally, Bursa is improving its infrastructure and transportation links, making it more accessible. There have been discussions about developing high-speed trains in Bursa, which would enhance its connectivity with other major cities. This improved accessibility is likely to attract more investors to the area.
European investors are also looking to diversify their portfolios by exploring emerging markets like Turkey. Bursa, with its moderate property price growth and lower overall costs compared to Istanbul, presents a promising opportunity for better returns on investment. This trend of diversification is supported by reports and surveys indicating European investors' interest in less saturated markets.
Sources: Encounterstravel.com, Global Property Guide, PwC
4) Property prices on the outskirts of Bursa will drop as urban sprawl reduces their appeal
The outskirts of Bursa are expected to see a drop in property prices as urban sprawl makes these areas less desirable.
With Bursa's urban population growing rapidly, more people are choosing to live in the city center. In 2023, Bursa's metropolitan area had over 3 million residents, with many settling in urban districts like Osmangazi, Yıldırım, and Nilüfer. This shift is causing a decrease in demand for suburban properties.
Suburban areas are facing challenges like strained infrastructure and public services, leading to increased traffic congestion. These issues make suburban living less attractive, pushing potential residents towards the city center where amenities are more accessible.
Consumer surveys and demographic studies often reveal a preference for urban living due to the availability of amenities and services. Bursa, known as "Yeşil Bursa" for its parks and gardens, offers these green spaces more readily to urban dwellers, further driving the preference for city life.
This shift in living preferences is likely to result in a downturn in suburban property values. As more people opt for the convenience and lifestyle of urban areas, the outskirts become less appealing, impacting property prices negatively.
Sources: World Population Review, City Population, Wikipedia, Global Future Cities
5) Luxury property prices in Bursa will adjust as supply exceeds demand
In recent years, the luxury real estate market in Bursa has been showing signs of a potential price correction. One of the key indicators is the declining sales figures in the luxury segment. For example, in the three months ending April 30, 2024, luxury home sales in various regions dropped by 17.8% year over year, which is a much steeper decline compared to non-luxury homes that fell by only 5.4%.
This trend suggests that the demand for luxury properties is slowing down significantly. Additionally, real estate agencies have reported a cooling off in luxury home sales, attributing it to factors like rising interest rates, soaring inflation, and an uncertain economic outlook. These economic conditions have made luxury properties less affordable, further reducing demand.
Moreover, there are reports of increased time on the market for luxury listings, as seen in regions like Bangkok, where luxury hotel supply is pushing supply to record highs. This could indicate a similar trend in Bursa, where an increase in luxury property supply might lead to longer selling times and potential price adjustments.
Sources: Joyce Rey Blog, Maybank KE
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6) Rental yields in Bursa's city center will rise as young professionals move there for work
Rental yields in the city center of Bursa are likely to increase as more young professionals move to the area for work. This trend is driven by several factors that have been observed over the past few years. First, Bursa has been experiencing strong internal migration due to its fast-evolving industrial development, which has significantly increased employment opportunities. This has attracted a growing number of young professionals to the area, boosting the demand for rental properties.
The service sector in Bursa has also become more dynamic, enhancing its image as a source of employment opportunities. This dynamism is expected to drive up demand for rental properties, particularly in urban areas like the city center. Additionally, the rapid population growth in Bursa over the past 35 years, largely due to internal migration, indicates a high demand for housing, including rental properties. This demand is a key factor that can drive up rental yields.
Moreover, Bursa is becoming a more sought-after location for property investment due to its growing appeal, driven by both internal and external migration towards the city. This trend is likely to increase rental yields as more professionals move into the area. Furthermore, the influx of new business developments and corporate offices in the city center is attracting more young professionals, increasing the demand for rental properties and thereby driving up rental yields.
Sources: Global Future Cities Programme, Global Property Guide
7) Rental yields in Bursa's new residential complexes will rise due to modern amenities and security features
Rental yields in newly developed residential complexes in Bursa are expected to keep rising, and there are several reasons for this trend. First, the urban population in Turkey, especially in cities like Bursa, has been growing. In 2023, the urban population growth rate was nearly 1%, which means more people are moving to cities and looking for modern housing options.
Another important factor is the increase in property prices in Bursa. This indicates that investors are willing to pay more for properties that offer modern amenities and security features. For example, in 2024, the average gross rental yields in Turkey, including Bursa, were over 7%, with some areas showing even higher yields. This suggests that properties with these features are in high demand and can command higher rents.
Additionally, newly developed complexes in Bursa have been experiencing higher occupancy rates. This is a clear sign that renters are attracted to these modern housing options. Areas like Karşıyaka and Konak, known for their modern amenities, have high occupancy rates, which further supports the idea that these features are driving demand.
Sources: Trading Economics, Global Property Guide
8) Bursa’s property prices will keep rising due to its strategic location and economic growth
Bursa's residential property prices are expected to keep rising, and there are several reasons for this trend. First, the city has seen a significant increase in property transactions, largely due to its growing popularity as a tourist and cultural hub. In 2023 and 2024, Bursa attracted millions of visitors, including a substantial number of foreign tourists, which has driven demand for real estate.
Another key factor is the increasing foreign investment in Bursa's real estate market. The city's rich cultural and historical background, combined with its natural beauty, makes it an attractive destination for investors from around the world. This influx of foreign capital is likely to continue pushing property prices upward as more people look to invest in Bursa's promising market.
Moreover, the Turkish government's investment in infrastructure projects has significantly enhanced Bursa's connectivity, particularly with Istanbul. Improved transportation links make Bursa more accessible, attracting both domestic and international investors. This increased accessibility is expected to further boost property prices as the city becomes a more convenient and appealing place to live and invest.
Additionally, Bursa's strategic location between Istanbul and other major cities, along with its growing industrial and manufacturing sectors, contributes to its robust economic growth. This economic stability attracts investors, driving up property prices as more people seek to capitalize on the city's economic potential.
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.
9) Affordable housing prices in Bursa will rise steadily as demand from first-time buyers increases
In recent years, the demand for affordable housing in Bursa has been on the rise, largely due to several key factors. One of the most significant drivers is the Turkish government's initiative to support first-time homebuyers with a low-interest campaign. This program, which reduces the interest burden by 70%, has made it much easier for new buyers to enter the housing market, increasing the demand for affordable homes.
Additionally, Bursa has been experiencing a notable increase in population and urbanization. As more people move to the city, the demand for housing naturally grows, particularly among first-time buyers looking for affordable options. This demographic shift is a crucial factor in the rising demand for housing in the region.
Moreover, Bursa's economic growth has led to increased disposable income among its residents. This economic stability makes the city an attractive place for homeownership, further driving up demand. The combination of these factors, along with the government's supportive policies, has created a favorable environment for a steady increase in housing prices.
Sources: Daily Sabah, Properstar
10) Demand for rentals near universities in Bursa will rise as more students move in
The influx of university students in Bursa is expected to boost demand for rental properties near educational institutions for several reasons.
First, the increasing enrollment numbers at universities in Bursa, such as Bursa Uludağ University, indicate a significant student population. This large number of students naturally drives the demand for rental properties as they seek accommodation during their studies. Additionally, the global trend of rising demand for student accommodation, with over $31.5 billion invested in 2022, suggests that Bursa could experience similar growth in demand.
Moreover, students generally prefer living near their universities. They look for amenities like high-speed WiFi, 24-hour security, and fitness centers, which are often available in rental properties close to campuses. This preference further increases the demand for such properties. Furthermore, many universities face challenges in providing sufficient on-campus housing due to high costs, pushing students to seek off-campus rentals.
Another factor is the rising rental prices near educational institutions. The student housing sector has seen strong rent growth, with average rents reaching record highs. This trend is driven by the increasing demand for housing near universities, indicating that rental properties in these areas are highly sought after.
Sources: CrowdStreet, ICEF Monitor, Wikipedia
11) Investors will be drawn to Osmangazi's historic district as it undergoes revitalization and restoration projects
The historic district of Osmangazi is poised for a revitalization, attracting investors interested in restoration projects. One of the key reasons is the rising property values in the area, which have been increasing due to its economic and cultural development. This trend signals a growing interest from investors, particularly in historical properties.
Additionally, the local government has been actively supporting restoration efforts through increased incentives. The Bursa Metropolitan Municipality, under the leadership of Mayor Alinur Aktaş, has shown a strong commitment to urban transformation, especially in historical areas. This governmental support is crucial in encouraging investment in restoration projects.
Moreover, the growing interest in cultural heritage tourism is another significant factor. The Panorama 1326 Bursa Conquest Museum, for instance, has attracted a large number of visitors, highlighting the area's cultural significance. This surge in tourism not only boosts the local economy but also underscores the potential for further investment in the district's historical sites.
Sources: Railly News, Agenda 21 Culture, Council of Europe
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12) Property values will rise along new metro lines in Bursa as the transit system expands
The expansion of Bursa's metro system is likely to increase property values along the new transit lines, as seen in other cities. For example, in Bangalore, India, the Namma Metro expansion significantly boosted real estate values, with properties near metro stations experiencing increased demand and potential appreciation in value.
Similarly, in Washington, D.C., houses within a quarter mile of a Metro station sold for 8.6% more than those farther away. A study by the American Public Transportation Association and the National Association of Realtors found that properties near public transit stations saw median sales price increases of four to 24 percentage points higher compared to those farther away.
Real estate analysts in Bangalore have noted that metro expansions enhance the allure and accessibility of properties along new transit lines, making them rewarding investments. This trend is supported by urban planning research, which emphasizes transit-oriented development, accelerating price growth around transit hubs.
Sources: Assetz Property, Freddie Mac, AASHTO Journal
13) Property values in Bursa will rise as new parks and green spaces are built nearby
New parks and green spaces in Bursa are boosting property values in nearby neighborhoods.
Imagine living next to a beautiful park; your home could be worth 20% more just because of that. Even if you're in the city, being within a quarter mile of a park can still bump your home's value by 10%. This isn't just a fluke; it's a trend backed by solid data.
Research from the National Recreation and Park Association shows that being close to a park or playground can increase home prices by eight to 20 percent. Why? Because these green spaces offer more than just a pretty view. They provide recreational opportunities and a sense of peace, which are big draws for families.
Homebuyers are catching on to this trend. Many are actively seeking properties near parks, valuing the mental health benefits and the chance for outdoor activities. It's not just about the house anymore; it's about the lifestyle that comes with it.
In Bursa, this trend is particularly noticeable. The city's commitment to expanding green spaces is making neighborhoods more attractive and, in turn, driving up property values. It's a win-win for both the community and potential homeowners.
So, if you're thinking about buying a property, consider the proximity to parks. It's not just a nice-to-have; it's a smart investment that could pay off in the long run.
Source: Anywhereis.re
14) Eco-friendly residential projects in Bursa will grow due to tax incentives for green buildings
Tax incentives for green buildings in Bursa are likely to lead to an increase in eco-friendly residential developments for several reasons. First, the European Bank for Reconstruction and Development (EBRD) has shown strong support for green infrastructure in Bursa, providing significant funding for projects like water treatment plants and reservoirs. This aligns with the city's commitment to sustainable development and sets a precedent for further eco-friendly initiatives.
Additionally, Turkey has been making strides in eco-friendly construction practices, as evidenced by the growing number of LEED-certified projects. This trend indicates a national shift towards sustainable architecture, which is crucial given that the construction sector accounts for a large portion of the country's electricity consumption. By reducing carbon emissions through sustainable design, Turkey is setting the stage for more green developments.
Moreover, the media's focus on the benefits of green buildings and the increasing number of construction companies specializing in sustainable developments highlight the growing awareness and demand for eco-friendly living options. Companies like Dorce Prefabrik are already producing eco-friendly solutions, contributing to the momentum of sustainable construction practices in the country.
Sources: EBRD, Constructive Voices, AA
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Turkey. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Investment property profits in Bursa will be affected by stricter short-term rental regulations
Stricter regulations on short-term rentals in Bursa could significantly impact the profitability of investment properties. One reason is the increased enforcement of regulations, similar to what was seen in Mission, Kansas, where new rules required short-term rental owners to pay a license fee and obtain a license from the city. This kind of enforcement can lead to additional costs for property owners, reducing their overall profitability.
Another factor is the decline in short-term rental listings, as observed in various U.S. cities like Austin and Phoenix. Even though there was an increase in Airbnb listings in 2023, some cities experienced a slump in demand, leading to fewer listings. If Bursa follows this trend, property owners might face reduced occupancy rates, directly affecting their rental income.
Investor concerns also play a role. In cities with many short-term rental units, like Phoenix, the lack of regulation led to empty units and a significant drop in host revenue. If Bursa implements stricter regulations, investors might worry about similar outcomes, potentially leading to decreased profitability.
Case studies from cities like New York City show that tightening regulations on Airbnb rentals can affect home prices and long-term rental markets. This suggests that stricter regulations in Bursa could make short-term rentals less attractive, impacting investment property profitability.
Sources: Mission, Kansas News, New Silver, Money.com
16) Demand for properties in Mudanya will grow as more people want coastal living near the city center
Properties in the Mudanya area are becoming increasingly popular as more people look for coastal living with easy access to the city center.
One big reason for this trend is the rising property prices in central Bursa. With apartment prices hitting TRY 47,965/m² and houses at TRY 69,502/m², many buyers are looking for more affordable options. Mudanya offers a great alternative, combining reasonable prices with a coastal vibe.
Since the pandemic, there's been a global shift towards coastal living. People are craving a better quality of life, and Mudanya delivers. Thanks to improved transportation links, residents can easily enjoy both the beach and the buzz of the city center.
Government investment is also playing a role. The Global Future Cities Programme is enhancing Mudanya's appeal by improving urban management and transportation infrastructure in Bursa. This makes Mudanya an even more attractive place to live.
On top of that, Mudanya is seeing a growth in amenities and services. New shops, cafes, and recreational facilities are popping up, adding to its charm for those seeking a coastal lifestyle.
With all these factors combined, it's no wonder that Mudanya is becoming a hotspot for property buyers. The area offers a unique blend of affordability, lifestyle, and convenience that is hard to resist.
Sources: Global Property Guide, Global Future Cities Programme, Properstar, Ebla Group
17) Sustainable residential communities will grow in Bursa due to environmental initiatives
In recent years, Bursa has made significant strides in environmental initiatives, which are paving the way for more sustainable residential communities. In 2023, the European Bank for Reconstruction and Development (EBRD) provided a substantial loan to Bursa Water and Sewage Administration to enhance water infrastructure, ensuring energy-efficient and sustainable water resources for the city.
This commitment to green infrastructure is part of a larger program with a financing volume of €5 billion, indicating a long-term dedication to sustainable projects. Additionally, the development of Bursa's Green City Action Plan in 2024 marked a crucial step towards sustainable urban development, focusing on priority infrastructure investments and policy interventions to tackle environmental challenges.
Moreover, Bursa Malaysia's transition towards renewable energy, such as installing rooftop solar systems and utilizing Renewable Energy Certificates, highlights the city's investment in green energy. These efforts are complemented by educational programs promoting sustainability, which aim to inspire individuals to contribute to reducing greenhouse gas emissions.
Sources: Bursa Sustainability Report 2023, EBRD Green Cities, EBRD News
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.