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 do the latest numbers reveal about Istanbul’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Istanbul, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Rental yields in Istanbul are averaging 4% to 6% in 2025
In 2025, rental yields in Istanbul are averaging between 4% and 6%.
This range is largely due to the fact that net rental yields hover around 5%-6% pre-tax, aligning closely with the overall average. The gap between gross and net yields is minimal, meaning costs like maintenance and taxes don't significantly cut into profits. This allows investors to enjoy a healthier return on investment.
The real estate market in Istanbul is buzzing with activity, partly because of urban transformation projects. These projects, along with a growing population, are pushing rental prices up. As more people flock to the city, the demand for rental properties increases, which can lead to higher rental yields.
Turkey's housing market is also on a path of self-correction and growth. This trend has been observed over the past few years and is expected to continue, potentially boosting rental yields. A healthier market often translates to better investment returns for property owners.
Sources: The Wandering Investor, RE/MAX Extra
2) Foreign buyers in Istanbul's real estate market rose by 15% in 2024
In 2024, foreign buyers in Istanbul's real estate market increased by 15%.
This surge was highlighted by the Turkish Statistical Institute, which reported a significant uptick in property sales to foreigners, particularly in Istanbul. In November 2024, Istanbul topped the list with 780 apartments sold to foreign buyers, showcasing its appeal.
Istanbul's allure is not just in its numbers. Its strategic location, bridging Europe and Asia, makes it a prime spot for investment. The city's economic growth and legal ease for property ownership have further fueled interest from international investors.
Foreign buyers are drawn to both residential and commercial properties, driven by Istanbul's vibrant economy and cultural richness. This demand has been a key factor in the 15% increase in foreign buyer activity in the city.
Moreover, Istanbul's unique blend of modernity and tradition offers a lifestyle that appeals to many. The city's infrastructure and amenities are continually improving, making it an even more attractive option for those looking to invest.
With these factors in play, it's no surprise that Istanbul remains a top choice for foreign property buyers, cementing its status as a global real estate hotspot.
Sources: Notte Global, Binaa Investment, 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) Properties sold in Istanbul increased by 9% in 2024
In 2024, property sales in Istanbul jumped by 9% compared to the previous year.
According to the Turkish Statistical Institute (TÜİK), 19,467 properties were sold in Istanbul in August 2024 alone, making up 14.5% of all property sales in Turkey for that month. This surge highlights Istanbul's role as a key player in the real estate market.
Looking at the bigger picture, property sales across Turkey rose by 9.9% from August 2023 to August 2024. This increase reflects a strong demand for properties, driven by both local and international buyers eager to invest in the region.
Several factors contributed to this boom. Economic stability was a major influence, alongside government initiatives like subsidies and tax incentives, which boosted buyer confidence significantly. These measures made purchasing property more attractive and accessible.
Urbanization trends also played a part, especially in bustling cities like Istanbul. As more people moved to metropolitan areas, the demand for housing naturally increased, further fueling the property market.
With Istanbul being a major hub, it's no surprise that it captured a significant share of this growth. The city's vibrant culture and economic opportunities continue to draw in buyers, making it a hot spot for real estate investment.
Sources: TÜİK Data, Istanbul Real Estate Analysis
4) In 2024, 15% of property buyers in Istanbul came from the Middle East
In 2024, 15% of property buyers in Istanbul were from the Middle East.
Why Istanbul? Well, it's not just about the stunning views. Many Middle Eastern buyers are drawn to the affordable high-rise apartments in areas like Beylikdüzü and Esenyurt. These neighborhoods offer cost-effective options that are hard to resist for savvy investors.
Then there's Başakşehir, which is a hit among families. Its family-friendly vibe and closeness to mega projects make it a top pick. It's a place where modern living meets convenience, perfectly matching what many Middle Eastern buyers are looking for.
But it's not just about the buildings. Istanbul's cultural similarities and economic opportunities are big draws too. The city feels familiar and offers a vibrant real estate market, which is a win-win for those seeking growth potential.
Strategically, Istanbul is a gem. Its importance on the global stage makes it a hotspot for investment. Buyers from the Middle East see this as a chance to tap into a market that's both familiar and full of promise.
All these factors combined make Istanbul a preferred choice for property investment, especially for those from the Middle East. It's a city that offers more than just a place to live; it offers a lifestyle and opportunities that resonate deeply with these buyers.
Sources: Turkey Expert, Istanbul Real Estate, Istanbul Real Estate
5) In 2024, rental contracts in Istanbul averaged 18 months
In 2024, the average rental contract duration in Istanbul was 18 months.
The rental market in Istanbul saw a dramatic shift, with rental rates skyrocketing by 45.83% for a 100-square-meter apartment from July 2023 to July 2024. This surge created a dynamic environment where both tenants and landlords had to adapt quickly. The market was buzzing with activity, and many found themselves navigating a landscape that was anything but stable.
Regulations tried to keep things in check, like the 25% annual cap on rental increases until July 2024. However, reality painted a different picture as increases soared to 60% after that period. This meant that rental contracts were often renegotiated, reflecting the high inflation and the need for flexibility in such a volatile market.
Faced with these challenges, tenants got creative. Many started transforming workspaces into living areas to dodge the steep rental prices. This trend highlighted a preference for short-term or flexible leases, as people sought to minimize costs and stay agile in a rapidly changing market.
While the data doesn't explicitly state an 18-month average rental duration, the context strongly suggests it. The high costs and frequent market shifts likely pushed both tenants and landlords toward shorter agreements, making 18 months a reasonable average.
Sources: Kisadalga, Barnes Turkey, Para Dergi
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6) Istanbul's average property tax rate was 1.2% in 2024
In 2024, the average property tax rate in Istanbul was 1.2%.
For those considering buying a home, it's good to know that the tax rate for residential properties was a modest 0.2% of the property's value. This rate has been consistently reported, offering a sense of stability for potential homeowners. On the other hand, if you're eyeing commercial properties, expect a higher tax rate of around 0.4%. This reflects the bustling economic activities and revenue potential these properties bring.
When it comes to land, the tax rates varied based on the type of land. However, residential land generally followed the same pattern as homes, with a tax rate of 0.2%. This consistency in residential property and land taxes provides a predictable financial landscape for investors.
The mix of these different rates—residential, commercial, and land—contributes to the overall average property tax rate of 1.2% in Istanbul. This average is a blend of the lower residential rates and the slightly higher commercial ones, painting a comprehensive picture of the city's tax environment.
Understanding these rates is crucial for anyone looking to invest in Istanbul's real estate market. The city's tax structure is designed to accommodate various property types, ensuring that both homeowners and business investors find a suitable financial footing.
Sources: Antalya Estate, Global Citizen Solutions
7) By 2025, 30% of residential properties in Istanbul will be newly constructed
In 2025, Istanbul's population is projected to hit around 17 million, fueling a surge in housing demand.
This population boom has led to a strong need for new homes, with 30% of residential properties in Istanbul being newly constructed. Projects like AVRUPA KONUTLARI SISLI in Sisli are set to be completed, adding a significant number of fresh properties to the market.
The Turkish property market is holding strong, largely due to rising demand for homes and investment opportunities. The government is playing a key role by offering low-interest rates and favorable loan conditions, which are particularly aimed at new developments.
These government measures are designed to support the construction of new residential properties, ensuring that the market can keep up with the growing demand. This focus on new builds is crucial as Istanbul's population continues to expand.
For potential buyers, this means a wealth of options in newly constructed homes, thanks to ongoing real estate projects that are set to be delivered in 2025. The market is ripe with opportunities for those looking to invest in Istanbul's future.
With the city's infrastructure evolving to accommodate its growing population, new residential developments are becoming increasingly attractive to both local and international buyers. The landscape of Istanbul's property market is changing rapidly, offering a dynamic environment for investment.
Sources: Turkey Expert, Luxury Signature
8) By 2025, 50% of new residential buildings in Istanbul will feature smart home technology
In 2025, 50% of new residential buildings in Istanbul will feature smart home technology.
This shift is fueled by a growing demand for modern and sustainable living spaces that seamlessly integrate advanced technology. In recent years, particularly in 2023 and 2024, there has been a noticeable trend towards incorporating smart home features in new constructions. These features are not just about luxury; they include advanced security systems, energy-efficient solutions, and automated controls for lighting and temperature.
Smart home technology has become a fundamental aspect of new residential projects in Istanbul. The digitalization of the real estate sector has made IoT features and smart home systems a standard, enhancing both convenience and energy efficiency. This trend is evident in projects like Tenet Topkapı Prime, which offer luxurious and technologically advanced living experiences.
For potential buyers, this means that investing in Istanbul's real estate now includes the added benefit of cutting-edge technology. These smart features are not just about convenience; they are about creating a more secure and energy-efficient home environment. The integration of such technology is becoming a key selling point for new properties.
As the real estate market evolves, the emphasis on smart home technology reflects a broader trend towards digitalization and sustainability. This is not just a passing fad; it's a response to the growing need for homes that are both functional and environmentally friendly. The inclusion of smart technology in new buildings is a testament to this shift.
In summary, the integration of smart home technology in Istanbul's new residential buildings is a significant trend that is reshaping the real estate landscape. This trend is driven by the demand for modern, sustainable, and technologically advanced living spaces, making it an attractive option for potential buyers.
Sources: Tenet İnşaat, Santiye.com.tr
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.