Will real estate prices in Istanbul go up in 2025?

Last updated on June 17, 2025

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 property prices are climbing rapidly in nominal terms, but the real story is more complex when you factor in Turkey's high inflation.As we reach mid-2025, Istanbul's residential property market continues its upward trajectory with average prices hitting 55,503 Turkish lira per square meter, representing a 29.6% year-over-year increase in nominal terms—though inflation-adjusted prices actually fell by 8.8%.

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.

Quick Summary:

Istanbul property prices surged 29.6% year-over-year in January 2025, maintaining the city's position as Turkey's most expensive real estate market with average prices of 55,503 TRY ($1,520) per square meter.

Despite nominal price increases, real prices fell 8.8% when adjusted for inflation, while strong domestic demand returned with home sales up 20.4% in 2024 and foreign currency devaluation created opportunities for international investors.

Key Metric	Istanbul 2025	Change YoY
Average Price per sqm	55,503 TRY ($1,520)	+29.6%
Real Price (Inflation-Adjusted)	N/A	-8.8%
Home Sales Volume	239,213 units (2024)	+20.4%
Average Home Price	3+ million TRY	+30%
Rental Yields	4%-11.7% (avg 7.3%)	+0.7pp

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.

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Istanbul. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At InvestRopa, we explore the Turkish real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Istanbul, Ankara, and Izmir. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

What's the current average price per square meter in Istanbul as of June 2025?

The Istanbul residential property market shows average prices of 55,503 Turkish lira per square meter as of early 2025, making it Turkey's most expensive city for real estate.

To put this in perspective, Istanbul's prices are nearly double those of Ankara (29,764 TRY/sqm) and 37% higher than Izmir (40,595 TRY/sqm). In dollar terms, this translates to approximately $1,520 per square meter, though the exact figure fluctuates with the Turkish lira's exchange rate.

The average home price in Istanbul has surpassed 3 million Turkish lira, equivalent to around 40,000 TRY per square meter for most properties in central and sought-after areas. This represents the culmination of several years of rapid price growth, particularly since the pandemic era.

District variations are significant within Istanbul. Luxury properties in central Istanbul's new developments can reach up to 18,000 dollars per square meter, while central districts offer renovated properties ranging from 5,000 to 16,000 dollars per square meter.

For international buyers, the weakened Turkish lira presents opportunities, as properties appear more affordable when converting from stronger currencies like the euro or dollar.

How much have Istanbul property prices increased in the past year?

Istanbul's residential property prices surged by 29.6% year-over-year in January 2025, continuing a trend of strong nominal price growth.

However, when adjusted for Turkey's high inflation rate of 39.05% as of February 2025, real property prices in Istanbul actually declined by 8.8% year-over-year. This disconnect between nominal and real prices is crucial for understanding the true market dynamics.

The price increases vary significantly by property type and location. Tech-equipped, energy-efficient apartments and family-sized homes in suburban areas are seeing the strongest price growth, driven by post-pandemic demand for modern amenities and more space. Luxury properties and new builds, especially those with smart home features, are particularly in demand.

Some sources report even higher increases in specific segments. For instance, rental prices in 15 areas highly sought-after by foreign residents have increased by eight times compared to 2019 levels, with Istanbul experiencing one of the world's biggest rental price growths of 160% in 2022 alone.

It's something we develop in our Turkey property pack.

Which Istanbul districts are seeing the fastest price increases in 2025?

Several Istanbul districts are experiencing particularly rapid price appreciation, driven by factors like urban regeneration, infrastructure improvements, and foreign investment.

Leading the charge is Başakşehir, where modern infrastructure and high rental yields are driving property values up by an expected 30-50% in the coming years. This district has become increasingly attractive due to its planned development and family-friendly environment.

Kadıköy on the Asian side continues to see strong demand and price growth thanks to urban regeneration projects and improved transport links. The district's cosmopolitan atmosphere, proximity to the Sea of Marmara, and excellent ferry connections make it increasingly popular with both locals and expats.

Other high-growth neighborhoods include Karaköy, Nişantaşı, Moda, Levent, Bebek, Etiler, Üsküdar, Cihangir, Balat, and Galata. These areas are experiencing medium-high to high expected price increases due to factors like luxury developments, gentrification, and major infrastructure projects.

The formation of distinct price convergence clubs in Istanbul's districts since 2015 shows that socioeconomic factors and material prosperity levels significantly influence price dynamics, with spillovers predominantly flowing from less affluent to more affluent districts.

What are the current mortgage rates for property buyers in June 2025?

Turkey's mortgage market operates in a high interest rate environment, with the central bank's benchmark rate at 42.5% as of March 2025, following recent cuts from 50% in 2024.

For property buyers, mortgage rates from commercial banks typically range between 30% and 45% for short-term deposits as of early 2025. These rates vary by bank, loan term, borrower income, and down payment amount. Some banks like YapiKredi offer mortgages denominated in foreign currencies (euro, pound, dollar, Swiss franc) for international buyers.

The mortgage market is showing signs of recovery, with 14.8% of residential properties purchased with mortgages in April 2025—over 17,000 units, representing a 147% increase from April 2024. This surge indicates that despite high rates, buyers are increasingly turning to financing options.

Turkish banks are actively lending to foreigners, with mortgage terms for international buyers differing only slightly from those for Turkish citizens. However, due to the high rates, many experts recommend considering developer installment plans as an alternative, where buyers can pay 40-60% down and the remainder over up to three years.

The central bank has signaled its intention to lower the policy rate to 21% by the end of 2025, contingent upon ongoing disinflation efforts, which could make mortgages more affordable in the coming months.

Are foreign investors still active in Istanbul's property market?

International investors remain very active in Istanbul's property market, though the dynamics have shifted somewhat compared to previous years.

Foreign buyers accounted for approximately 35.4% of total property sales in Istanbul during 2024, making it the top destination for international property investment in Turkey. However, overall foreign demand has declined by 24.9% year-over-year as of January 2025, partly due to increased investment thresholds for residency and citizenship programs implemented in 2022.

The sharp devaluation of the Turkish lira has made Istanbul property particularly attractive to foreign investors, as their foreign currency buys significantly more real estate. Russians, Iranians, Iraqis, Ukrainians, Kazakhs, and Germans continue to show strong interest, with Russians maintaining their position as the top foreign buyers for 35 consecutive months.

Foreign investment contributed $5 billion to Turkey's real estate market in 2022 alone, with the citizenship-by-investment program remaining a key driver. Investors must acquire properties with a total cadastral value of at least $400,000 to qualify for Turkish citizenship.

In 2024, Istanbul's population grew by 420,000, including 150,000 foreigners primarily from Russia, Iran, and CIS countries, ensuring continued international demand for both rental and purchase properties.

What types of properties are appreciating fastest in value?

The Istanbul property market shows clear winners in terms of price appreciation, with modern, tech-enabled properties leading the charge.

Tech-equipped, energy-efficient apartments are experiencing the strongest price growth, with 50% of new buildings in 2025 featuring smart home technology. These properties appeal to both domestic buyers seeking modern amenities and international investors looking for premium rental returns.

Family-sized homes in suburban areas are also seeing robust appreciation, driven by post-pandemic lifestyle changes favoring more space and better quality of life. Areas like Başakşehir exemplify this trend, with their modern infrastructure and family-friendly environments.

Luxury properties, particularly villas with sea views or in prestigious neighborhoods, continue to command premium prices and strong appreciation rates. These properties benefit from limited supply in prime locations and sustained international demand.

Property Type	Price Growth Trend	Key Driver
Smart Home Apartments	Very High	Tech features, energy efficiency
Suburban Family Homes	High	Post-pandemic space demand
Luxury Villas	High	International buyers, limited supply
New Build Apartments	Moderate-High	Earthquake resistance, modern amenities
Central District Renovations	Moderate	Location premium, gentrification

New construction is particularly attractive, with 30% of Istanbul's residential properties expected to be newly constructed in 2025. After the February 2023 earthquake, demand for new earthquake-resistant buildings has increased significantly, pushing prices higher for these safer structures.

How does Istanbul compare to other major Turkish cities?

Istanbul maintains its position as Turkey's most expensive property market by a significant margin, reflecting its status as the country's economic and cultural hub.

As of 2025, Istanbul's average price of 55,503 TRY per square meter is 86% higher than Ankara's 29,764 TRY and 37% above Izmir's 40,595 TRY per square meter. This price premium has remained relatively stable despite nationwide property market trends.

In terms of market activity, Istanbul accounts for 16-17.5% of all Turkish property transactions, with 239,213 homes sold in 2024—a 20.4% year-over-year increase. This compares to 134,046 sales in Ankara (+17.1%) and 80,398 in Izmir (+22.8%).

Rental yields in Istanbul average 7.3%, slightly lower than Ankara's 8.29% but higher than Antalya's 5.73%. The city's yields range from 4% to 11.7%, offering diverse investment opportunities depending on location and property type.

Istanbul's unique position spanning two continents, its role as Turkey's financial center, and its population of nearly 17 million justify its price premium. The city continues to attract the highest share of both domestic migrants and international residents among Turkish cities.

What economic factors are driving Istanbul's property prices in 2025?

Multiple economic forces converge to drive Istanbul's property market, creating a complex landscape of opportunities and challenges.

High inflation remains the dominant factor, with real estate serving as a traditional hedge against currency devaluation. Despite inflation falling to 39.05% in February 2025 from peaks above 75%, property remains attractive for preserving wealth in Turkish lira terms.

Population growth and urbanization continue unabated, with Istanbul's population nearing 17 million and growing by 420,000 in 2024 alone. This demographic pressure, combined with limited land supply in central areas, creates persistent upward pressure on prices.

Government policies play a crucial role, including the citizenship-by-investment program that continues to attract foreign capital despite increased thresholds. Urban regeneration projects and infrastructure developments, such as new metro lines and financial centers, boost property values in targeted districts.

The Turkish lira's volatility creates a dual effect: while making properties cheaper for foreign currency holders, it reduces affordability for local buyers earning in lira. The currency is projected to reach around 34.5 lira per dollar by mid-2025.

It's something we develop in our Turkey property pack.

What are the property price forecasts for 2026 and beyond?

Property market analysts project continued nominal price growth for Istanbul real estate, though the pace may moderate from recent peaks.

For 2026, expectations point to annual nominal price growth of 5-10%, depending on economic stability and inflation trends. The central bank's target to reduce inflation to 36% by end-2025 and 9% by 2026 could stabilize the market and make price growth more sustainable.

Looking further ahead, the five-year outlook suggests sustained upward pressure on prices driven by ongoing urbanization, population growth, and limited supply in central areas. Districts like Başakşehir are expected to see 30-50% appreciation over the coming years due to infrastructure development.

Time Horizon	Expected Annual Growth	Key Assumptions
2026	5-10% nominal	Inflation at 36%, stable politics
5 years	5-10% nominal	Continued urbanization, limited supply
10 years	Moderate growth	Market maturation, increased supply
20 years	Steady appreciation	Long-term demographic trends

The residential real estate market in Turkey is expected to reach $110.10 billion in 2025 and grow at a compound annual growth rate of 11.16% to reach $186.87 billion by 2030, indicating strong long-term fundamentals.

Is domestic demand for Istanbul property increasing or decreasing?

Domestic demand for Istanbul residential properties is experiencing a strong resurgence after a period of decline, marking a significant shift in market dynamics.

Home sales in Istanbul rose sharply by 20.4% year-over-year to 239,213 units in 2024, with the momentum continuing into 2025. In January 2025 alone, nationwide home sales surged 39.7% year-over-year to 112,173 units, with Istanbul maintaining its traditional lead at 17.5% of total transactions.

The revival in domestic demand is particularly strong for new builds and modern apartments, driven by urbanization and population growth. Sales of new houses rose by 27.6% year-over-year nationally, while second-hand house sales increased by 17.4%.

Turkish buyers are returning to the market after a pause caused by high interest rates in 2023-2024. The recent interest rate cuts and the traditional view of real estate as an inflation hedge are encouraging domestic investors to re-enter the market.

However, the share of homeowners in Istanbul fell to 56.1% in 2024, indicating that while demand is strong, affordability challenges persist for many residents, particularly given the high inflation environment.

How has the Turkish lira's devaluation affected property prices?

The Turkish lira's dramatic devaluation has created a two-speed market in Istanbul's real estate sector, with vastly different implications for local and international buyers.

For international buyers, the lira's 46.3% decline against the US dollar over the past two years has made Istanbul property significantly more affordable. Properties that might have been out of reach are now accessible, with some international investors seeing effective discounts of 30-50% when converting from hard currencies.

Local buyers face the opposite challenge. While nominal property prices increased 29.6% year-over-year, real wages haven't kept pace with inflation, reducing purchasing power. This has led to an 8.8% decline in real (inflation-adjusted) property prices, indicating reduced affordability for Turkish citizens.

The currency dynamics have shifted market composition, with foreign buyers becoming increasingly important for maintaining price levels, especially in luxury segments and central districts. Some areas now see tenants willing to pay rent in USD, though this practice isn't technically legal.

Market resilience despite currency volatility demonstrates real estate's role as a store of value in Turkey. Properties have more than doubled in nominal lira terms over five years, though real growth in foreign currency terms is much more modest at 3-5% annually.

Which areas offer the best investment potential for 2026?

Looking ahead to 2026, several Istanbul districts stand out for their exceptional investment potential based on current trends and planned developments.

Başakşehir tops the list with expected price appreciation of 30-50% over the coming years. Its modern infrastructure, proximity to the new Istanbul Airport, and family-friendly environment make it attractive for both end-users and investors. The district offers some of the highest rental yields in Istanbul.

Kadıköy on the Asian side combines urban regeneration with excellent transport links, making it increasingly popular with young professionals and expats. The district's cultural vibrancy and improving infrastructure position it for sustained price growth.

Emerging neighborhoods like Karaköy and Balat offer gentrification plays, where early investors can benefit from ongoing transformation. These historic areas are attracting creative professionals and tourists, driving demand for both renovated properties and short-term rentals.

For luxury investors, established areas like Bebek, Etiler, and Nişantaşı continue to offer stability and prestige, though with more moderate growth expectations. These neighborhoods benefit from limited supply and sustained international demand.

Districts with new metro connections or major infrastructure projects offer particular promise. The expansion of Istanbul's metro network continues to unlock value in previously less accessible areas, creating opportunities for investors who identify these zones early.

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Conclusion

Yes, property prices in Istanbul are going up significantly in nominal terms, with a 29.6% year-over-year increase as of early 2025. However, when adjusted for inflation, real prices have actually declined by 8.8%, creating a complex market dynamic that offers both opportunities and challenges for different types of buyers.

For international investors, the weakened Turkish lira presents significant opportunities, with properties effectively discounted when purchasing with foreign currency. The market fundamentals remain strong, supported by Istanbul's growing population, limited central land supply, and ongoing infrastructure development.

Looking forward, Istanbul's property market appears set for continued nominal price growth of 5-10% annually, with certain districts like Başakşehir potentially seeing 30-50% appreciation. While high interest rates and inflation pose challenges, the long-term outlook remains positive for those who can navigate the current market conditions strategically.

infographics comparison property prices Istanbul

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.