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
What will happen in Istanbul’s real estate market? Will prices go up or down? Is Istanbul 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 Istanbul, 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.
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1) Rental yields in the city center will drop as property prices outpace rent increases
In 2024, property prices in Istanbul's city center have been rising rapidly, outpacing the increase in rental rates. For instance, while the average rent increased by 46.82% over the past year, property prices surged even more significantly.
Historically, Turkish house prices have climbed by more than 166% since 2015, making Istanbul's prices comparable to those in expensive cities like Paris and London. This trend suggests that property prices are growing at a faster pace than rental rates.
In 2023, the gross rental yields on apartments in Istanbul ranged from 2.84% to 9%, with a city average of 6.21%. By 2025, these yields slightly increased to a range of 3.75% to 9.72%, with a city average of 6.63%. However, this increase in rental yields is not keeping up with the rapid rise in property prices.
Sources: Global Property Guide, Duvar English, Euronews, The Luxury Playbook
2) Prices for affordable housing in Istanbul's outskirts will rise significantly as more people look for budget-friendly options
The outskirts of Istanbul are becoming a hotspot for affordable housing.
With central Istanbul's housing prices skyrocketing, increasing by 185% in 2023, many are looking to the outskirts for more budget-friendly options. This shift is making these areas more attractive for potential buyers.
The Turkish government is also playing a big role by offering incentives like low-interest loans for first-time homebuyers. This is part of a massive $50 billion initiative to build 500,000 new homes, focusing on low-income families and young people, which is further driving demand.
Transportation improvements are another key factor. New roads and public transport systems have made commuting from the outskirts much easier, boosting their appeal and pushing property prices up.
These developments are turning the outskirts into a viable option for those seeking affordable living without sacrificing convenience. The combination of government support and improved infrastructure is creating a perfect storm for rising property values in these areas.
As more people seek budget-friendly housing, the outskirts of Istanbul are poised for a significant price increase, making them a smart choice for potential buyers looking to invest in the future.
Sources: Daily Sabah, Hürriyet Daily News, Luxury Signature
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) Property prices in Nişantaşı will rise as high-end buyers keep investing
The upscale neighborhood of Nişantaşı has been experiencing a steady rise in property prices, which is expected to continue attracting high-end buyers. In the past, from 2023 to 2024, property prices in Nişantaşı saw significant increases, with luxury penthouses appreciating by up to 10% in value. This trend is part of a broader pattern in Istanbul's luxury real estate market, which saw a remarkable 86.46% jump in property prices in 2023.
One of the key factors driving this demand is Istanbul's growing population, projected to reach 20 million by 2030. This population growth fuels the demand for real estate, particularly in desirable areas like Nişantaşı. Additionally, international interest remains high due to Turkish government incentives, such as citizenship through investment, which attract foreign buyers to the market.
The influx of foreign investors is further supported by favorable conditions like tax exemptions and the opportunity to obtain residence permits with a minimum investment. These factors make Nişantaşı an attractive location for international investors seeking luxury properties. Moreover, the development of upscale amenities and infrastructure, including luxury projects with private swimming pools and panoramic city views, enhances the area's appeal.
Sources: Prestij Consulting, Mimary Turkey Real Estate, Turkey Expert
4) Foreign interest in Istanbul's real estate will grow due to Turkish government incentives for international buyers
The Turkish government's incentives for foreign property buyers have significantly boosted international interest in Istanbul's real estate market. In 2024, the number of foreigners purchasing properties in Turkey increased by 30%, with Istanbul being a major attraction. This surge in interest is largely due to the government's successful Citizenship by Investment Program, which grants Turkish citizenship to foreign investors who invest in real estate worth at least $400,000.
In 2023, Turkey experienced a substantial rise in foreign direct investment, with $5.6 billion flowing into the real estate sector, accounting for 42% of all foreign investments. This trend continued in 2024, with nearly 60,000 properties purchased by foreign buyers, highlighting the effectiveness of the government's incentives. The market share of foreign buyers in Istanbul’s residential property market has nearly tripled over the past five years, indicating a growing interest from international investors.
Property prices in Istanbul increased by 20% in 2024 and are expected to continue this upward trend in 2025 due to the growing demand from both local citizens and foreign investors. The commercial real estate market in Istanbul has also seen significant growth, with demand for commercial and administrative spaces increasing by up to 15% in 2023 and expected to continue in 2024. These factors, combined with increased marketing efforts targeting international buyers, suggest a sustained interest in Istanbul's real estate market.
Sources: Luxury Signature, Turk Estate, Property Turkey Istanbul
5) Property prices around the Bosphorus will keep rising as it remains a premium location
The area around the Bosphorus has consistently shown a trend of increasing property prices. In 2024, properties near the Bosphorus were priced 50% higher than the city average, reflecting a significant increase in value over recent years. This trend is expected to continue, with real estate prices in Istanbul, including those in the Bosphorus area, having increased by 20% compared to 2023, and a further rise anticipated in 2025.
The high demand for luxury properties is another key factor. In 2024, Istanbul welcomed over 10 million foreign visitors in just the first seven months, breaking previous records. This surge in tourism indicates a high demand for luxury properties, particularly those with waterfront views. Additionally, the number of foreigners purchasing properties in Turkey increased by 30% in 2024, with a significant proportion of these purchases occurring in Istanbul, suggesting sustained interest from foreign investors in luxury properties around the Bosphorus.
Limited availability of waterfront properties also contributes to their high demand and value. For example, a luxury waterfront apartment in Beylerbeyi, facing the Bosphorus, is listed for $4.5 million USD, highlighting the premium nature of such properties. Furthermore, the Turkish Citizenship by Investment program, which requires a minimum investment of $400,000 in real estate, has attracted a wave of international interest, pushing prices up in coveted areas like the Bosphorus.
Sources: Istanbul Apartments for Sale, Visit Turkey, Luxury Signature, Luxury Signature
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6) Demand for affordable rentals near universities in Istanbul will rise as the student population grows
Istanbul's student population is driving up demand for affordable rentals near universities.
With nearly 1.5 million university students in 2023 and 2024, Istanbul stands as Türkiye's education hub. Even with a 25% drop in university preference, the student numbers remain robust, ensuring a steady need for housing.
International students are flocking to Istanbul, with over 300,000 enrolled in the 2022/23 academic year. Drawn by the city's rich culture and educational offerings, these students are adding to the demand for budget-friendly housing options.
There's a clear shortage of student housing in the city. Students face an average monthly cost of 6,000 Turkish Liras for housing, leading many to seek off-campus alternatives. This trend is backed by a report from the Çelikel Education Foundation, highlighting the strong demand for affordable rentals near universities.
Many students are unhappy with their current living situations, pushing them towards off-campus housing. This dissatisfaction is a key driver for the growing market of affordable rentals.
Sources: The PIE News, Directly Education, Hürriyet Daily News
7) Property values in Üsküdar will rise as it becomes popular for a quieter lifestyle
Üsküdar is quickly becoming a top choice for those looking to buy property in Istanbul.
With its proximity to the city center and a surge in new amenities, Üsküdar is attracting young professionals and families. This influx is driving up demand for homes, which in turn is boosting property values. The district's appeal is growing as more people seek a quieter lifestyle without sacrificing access to the city.
In 2024, Üsküdar saw a 15% increase in property prices, a clear sign of its rising popularity. Compared to other parts of Istanbul, this district stands out for its balance of tranquility and convenience, making it a highly desirable place to live.
Many Istanbul residents are on the hunt for peaceful living spaces, and Üsküdar fits the bill perfectly. Its serene environment and strong community vibe are complemented by excellent connectivity. Ferries and public transport keep Üsküdar well-linked to the bustling city center, enhancing its attractiveness.
The area is experiencing a wave of urban development, with new residential projects and infrastructure upgrades. Üsküdar is bustling with schools, shopping centers, and public facilities, making it an ideal spot for families looking for a well-rounded community.
As Üsküdar continues to evolve, its blend of modern amenities and a peaceful setting is likely to keep drawing in more residents. This trend suggests that property values will continue to rise, solidifying Üsküdar's status as a preferred residential area.
Sources: Right Home, Luxury Signature, Turkey Real Estate
8) More foreign investors will enter Istanbul’s real estate market as the city grows as a global business hub
The number of foreign investors in Istanbul's real estate market is likely to rise as the city continues to establish itself as a global business center. In 2024, there was a notable 30% increase in the number of foreigners purchasing properties in Turkey, highlighting a significant uptick in foreign investment in Istanbul's real estate market. This trend is supported by the competitive rental yields in the city, which range from 4-5%, offering a good balance between risk and return for investors.
Moreover, Istanbul's strategic location between Europe and Asia makes it an ideal hub for international business, attracting global attention. The city's economic growth, with a 5% GDP increase in 2023, further boosts confidence among companies to expand and invest in new spaces, including setting up international business headquarters in Istanbul. This economic dynamism is complemented by government incentives, such as the opportunity for foreign investors to obtain Turkish citizenship by investing $400,000 in real estate, and tax exemptions like VAT exemption for property purchases.
Infrastructure improvements, such as the Istanbul Metro Project and road and tunnel enhancements, are also key factors. These projects improve connectivity and transportation within the city, making it more attractive for international conferences and business events. Additionally, the presence of international schools and expatriate communities indicates a growing interest in Istanbul as a global business center, further driving demand for real estate investment.
Sources: Luxury Signature, Luxury Signature, MBANY
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) More foreign buyers will seek properties on Istanbul's Asian side as it gains a reputation as a cultural and business hub
In recent years, the Asian side of Istanbul has gained a reputation as a cultural and business hub, attracting more foreign buyers. One of the main reasons is the rising property prices on the European side, which have made the Asian side more appealing. The Asian side offers a unique blend of modern amenities and historical charm, with high-end real estate showing strong appreciation potential.
Infrastructure developments have played a significant role in this shift. New metro lines, such as the M12 and M13, and extensions to existing lines like the M4 and M5, have greatly improved accessibility. These enhancements not only make commuting easier but also increase property values, making the Asian side a more attractive investment.
The Asian side is also emerging as a significant business hub, drawing international companies and expatriates. This influx of new residents boosts demand for real estate, both for rentals and sales. Additionally, the area's rich cultural life, with theaters, cafes, and art galleries, adds to its appeal for those who value cultural experiences.
Sources: Istanbul Real Estate, Investo Global, Luxury Signature
10) Rental yields in Istanbul will dip slightly as more rental properties become available
The rental market in Istanbul is seeing a slight dip in yields because of more rental properties becoming available.
In recent years, new residential projects like AVRUPA KONUTLARI SISLI and PIYALEPASA have been popping up, with completion expected by 2025. This means renters will have more choices, and landlords might face stiffer competition.
The Turkish government is also playing a role by offering incentives to foreign investors, which has led to a construction boom. More housing projects are underway, adding to the rental supply and making the market more crowded.
Real estate platforms are buzzing with new listings, showing just how much the rental supply is growing. Landlords are finding it harder to fill vacancies, which means they might have to lower prices or offer better terms to attract tenants.
Surveys and reports from real estate agencies confirm that landlords are taking longer to find tenants. This delay is pushing them to be more competitive with their pricing.
Sources: Luxury Signature, Turkey Real Estate
11) Luxury property prices in Istanbul will dip slightly due to too many high-end homes on the market
Istanbul's luxury real estate market is facing a price dip due to an oversupply of high-end properties.
In bustling areas like Esenyurt, the market is flooded with unsold luxury homes, making it tough for sellers to find buyers. This glut of properties is pushing prices down, and rental yields are not as attractive as they once were.
Many high-end properties remain vacant, highlighting a significant drop in demand. This trend is evident in the declining sales figures, which show that fewer people are interested in purchasing luxury homes in Istanbul.
Market analyses reveal a saturation of luxury listings, indicating a clear oversupply. This makes it challenging for sellers to attract buyers, further driving down prices. Consumer surveys echo this sentiment, showing a waning interest in high-end property investments.
For potential buyers, this could mean more negotiating power, but it also signals a market where capital appreciation is not guaranteed. The current landscape suggests that investing in luxury real estate in Istanbul might not yield the returns it once promised.
As the market adjusts, opportunities may arise for those looking for long-term investments, but caution is advised. The oversupply situation is unlikely to resolve quickly, so patience and strategic planning are key.
Sources: Notte Global, Istanbul Real Estate, Property Turkey, Turkey Real Estate
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12) Property prices in Sultanahmet will stagnate due to preservation restrictions
In the historic peninsula, including areas like Sultanahmet, property prices have faced stagnation due to preservation restrictions. These restrictions limit new construction permits, which means fewer new properties can be built. This lack of new development opportunities contributes to a stagnant property market in these areas.
Historical preservation regulations also restrict property modifications, making it difficult for owners to update their properties to modern standards. This can deter potential buyers who are looking for more flexible and modern living spaces. Additionally, historic properties often come with higher maintenance costs, which can be a significant burden for property owners and may discourage potential buyers.
Surveys have shown that many buyers prefer modern amenities over the historical charm of older buildings. This shift in buyer preference contributes to the stagnation of property prices in historic areas. Real estate market analyses emphasize the shift in demand towards newer districts, as buyers seek modern amenities and more flexible living spaces.
Sources: Daily Sabah, Turkey Real Estate Insights, Turkey Real Estate Investment
13) Property prices in central Istanbul will stabilize as the market matures
In recent years, particularly in 2023 and 2024, the central districts of Istanbul have shown signs of stabilization in property prices. This is evident from the rising statistics on property transactions, which have started to plateau. Such a trend suggests that the market is reaching a mature phase where rapid growth is no longer the norm.
Additionally, there has been a noticeable slowdown in price growth rates in these central areas. This can be attributed to factors like high interest rates and a significant price gap between metropolitan and provincial cities. As a result, the market is showing signs of stabilization, moving away from the rapid increases seen in previous years.
Moreover, the increased supply of new housing projects reaching completion in central districts is playing a crucial role. This influx of new properties helps balance the demand and supply dynamics, further contributing to the stabilization of property prices. Consumer surveys also indicate a shift in buyer interest towards suburban areas, reducing speculative buying in central Istanbul and signaling a maturing market.
Sources: The Wandering Investor, Turkey Real Estate, Turkey Expert
14) Rental yields in suburban areas will rise as more families leave the crowded city center
In recent years, we've seen a noticeable shift in where families choose to live, moving from crowded city centers to more spacious suburban areas. This trend has been particularly evident in places like Istanbul, where the city center has experienced a significant rise in property prices. In 2023, for instance, house prices in Istanbul's city center increased by 66.7%, making it less affordable for many families.
As families seek more space and a better quality of life, suburban areas have become increasingly attractive. These areas often offer improved infrastructure and transportation links, making them more accessible. Additionally, the development of new residential projects in suburban regions provides families with more spacious and affordable living options. This shift is also supported by demographic data showing a growing number of families moving to suburban areas, driven by the desire for more space and a better quality of life.
Moreover, the rise of remote working has given families more flexibility in choosing their living locations. With the ability to work from anywhere, many are opting for suburban areas that offer a better work-life balance. This increased demand for suburban living has led to higher rental yields in these areas, as families prefer larger homes and better amenities. In Istanbul, for example, suburban areas may offer higher rental yields compared to the city center, due to this growing demand.
Sources: Global Property Guide, TenantCloud
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) Newly developed areas will offer higher rental yields as they attract young professionals and families
Properties in newly developed areas often offer higher rental yields because they attract young professionals and families. These groups are drawn to areas like Arnavutköy, Silivri, and Başakşehir due to the modern amenities and vibrant lifestyle they offer. In 2023 and 2024, Istanbul saw a significant influx of young professionals, particularly in these newly developed areas, as they were attracted by the city's growing tech scene and improved infrastructure.
Families are also moving to these areas, seeking better living conditions and modern conveniences. The Turkish government's investment in urban infrastructure, such as enhanced public transportation, has made these areas more accessible and appealing. This has led to a growing demand for modern apartments, which in turn boosts rental yields.
Moreover, the development of mixed-use projects that combine residential, shopping, and leisure spaces has further increased the attractiveness of these areas. These projects not only enhance the quality of life but also attract more investors, driving up property values and rental yields. The recent changes in zoning laws have opened up new areas for residential development, fueling further growth and investment opportunities.
Sources: Property Turkey, Hürriyet Daily News, Global Property Guide
16) Istanbul’s property prices will grow moderately as demand exceeds supply
In recent years, Istanbul has experienced a steady increase in population and urbanization, which naturally boosts the demand for housing. The city's unique position bridging Europe and Asia, along with its robust economy, makes it a magnet for people looking to live and invest here. This growing population has been a key driver in the rising demand for residential properties.
Foreign investment has also played a significant role in the real estate market. In 2024, nearly 60,000 properties in Turkey were purchased by foreign investors, with a large number of these transactions taking place in Istanbul. This influx of foreign capital, particularly from countries like Iraq, Saudi Arabia, and Iran, has further fueled the demand for housing.
Moreover, the Turkish government has introduced various incentives to attract real estate investment, such as tax reductions and financial benefits for foreign buyers. These policies have made property investments more appealing, contributing to the moderate growth in property prices. Additionally, the limited availability of land for new developments in Istanbul has increased the value of existing properties, as the scarcity of land drives up prices.
Sources: Luxury Signature, Istanbul Real Estate
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.