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Yes, the analysis of Istanbul's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Kadıköy? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Beşiktaş or Şişli where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Istanbul Property Pack.
Will property prices increase in Istanbul in 2025?
Yes, property prices in Istanbul are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Istanbul remains one of the hottest cities globally for both domestic and international investors.
Sure, there are some economic bumps like inflation and rising interest rates, but the main drivers behind Istanbul’s price growth aren’t going anywhere.
Demand, especially in the prime central areas, still outstrips supply by a mile, making any major price dips a long shot. And let’s not forget—Istanbul’s status as a cultural, financial, and historical hub keeps drawing in buyers from around the world.
Signals pointing to a property price increase in Istanbul
Here are some factors suggesting prices could increase:
The ongoing urban transformation projects in Istanbul are expected to continue into 2025, leading to the redevelopment of older areas and increasing the value of properties in these regions.
Istanbul's strategic location as a bridge between Europe and Asia continues to attract international investors, boosting demand for real estate in the city.
The Turkish government's incentives for foreign property buyers, such as citizenship through investment, are likely to sustain high levels of international interest in Istanbul's real estate market.
Infrastructure improvements, including new metro lines and the expansion of Istanbul Airport, are expected to enhance connectivity and accessibility, making properties in the city more attractive.
The growing population in Istanbul, driven by both domestic migration and international arrivals, is expected to maintain strong demand for housing.
The limited availability of land for new developments in central Istanbul is likely to keep supply constrained, supporting price increases.
The cultural and historical appeal of Istanbul continues to draw tourists and expatriates, increasing demand for short-term rental properties and boosting property values.
Signals pointing to a property price decrease in Istanbul
Here are some factors suggesting prices could fall:
Economic instability and high inflation rates in Turkey could impact consumer purchasing power, potentially reducing demand for real estate.
Rising interest rates may make mortgage financing more expensive, discouraging potential buyers and slowing down the property market.
Political uncertainties and regional tensions could deter foreign investors, leading to a decrease in demand for properties in Istanbul.
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If property prices go up in Istanbul, how much would they increase by?
If real estate prices in Istanbul were to rise in 2025, the increase would likely be between 5% to 10% of their 2024 values.
Typically, real estate in dynamic, emerging markets like Istanbul appreciates by approximately 5% to 10% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Nişantaşı for 2,000,000 Turkish Lira today, don't be surprised if it's priced between 2,100,000 and 2,200,000 Turkish Lira this time next year.
To give you a better understanding, here is a table that shows 7 types of Istanbul real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 7%, and 10%.
| Type of Property | Average Price in 2024 (₺) | Price in 2025 (5% increase) | Price in 2025 (7% increase) | Price in 2025 (10% increase) |
|---|---|---|---|---|
| Historical Apartment (60 sqm / 646 sqft) | ₺1,500,000 | ₺1,575,000 | ₺1,605,000 | ₺1,650,000 |
| Modern Apartment (75 sqm / 807 sqft) | ₺2,000,000 | ₺2,100,000 | ₺2,140,000 | ₺2,200,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | ₺4,500,000 | ₺4,725,000 | ₺4,815,000 | ₺4,950,000 |
| Studio (30 sqm / 323 sqft) | ₺750,000 | ₺787,500 | ₺802,500 | ₺825,000 |
| Loft (80 sqm / 861 sqft) | ₺2,500,000 | ₺2,625,000 | ₺2,675,000 | ₺2,750,000 |
| Townhouse (150 sqm / 1,615 sqft) | ₺6,000,000 | ₺6,300,000 | ₺6,420,000 | ₺6,600,000 |
| Investment Property (50 sqm / 538 sqft) | ₺1,200,000 | ₺1,260,000 | ₺1,284,000 | ₺1,320,000 |
Everything you need to know is included in our Property Pack for Istanbul
If real estate prices go up in Istanbul, which areas are likely to see the biggest increases?
Today, people who want to move to Istanbul seek a blend of historical charm and modern amenities, which Karaköy offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Kadıköy has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Istanbul market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Karaköy | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Nişantaşı | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Istanbul. |
| Moda | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Levent | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Bebek | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Galata | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Cihangir | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Kadıköy | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Üsküdar | Medium-High | Its proximity to central Istanbul, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Balat | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Etiler | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Sultanahmet | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Istanbul
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Istanbul?
In 2025, Istanbul real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Istanbul, such as Beylikdüzü and Çekmeköy, are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Istanbul, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Istanbul's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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