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 is happening in Istanbul’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are Turkey’s government policies shaping real estate regulations and taxes in 2025?
These are the questions we hear every day from professionals, buyers, and sellers alike, from Kadıköy to Beşiktaş and beyond. Perhaps you’re curious about the same things.
We know this because we stay closely connected with local experts and individuals like you, exploring the Istanbul real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
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1) Rising student numbers will increase demand for rentals near universities
The growing student population in Istanbul is a key factor driving the demand for rental properties near universities. In 2023 and 2024, Istanbul was recognized as the education capital of Türkiye, with nearly 1.5 million university students attending 60 higher education institutions. This large student population naturally leads to a higher demand for housing, especially in areas close to universities.
Moreover, the expansion of university campuses and facilities in Istanbul has been a significant trend. This expansion not only accommodates more students but also attracts additional students, further increasing the need for rental properties nearby. Additionally, surveys have shown that many students prefer off-campus housing due to factors like cost and living conditions, which directly contributes to the demand for rentals.
Another important aspect is the influx of international students, which has been bolstered by initiatives such as scholarships and admission exemptions. In the 2022/23 academic year, Istanbul hosted over 300,000 international students, adding to the demand for rental properties. Real estate market analyses and testimonials from real estate agents have also highlighted a spike in demand for properties near educational institutions, reinforcing the trend.
Sources: Hürriyet Daily News, The PIE News, ICEF Monitor, Hürriyet Daily News
2) Foreign interest in Istanbul real estate will grow with new citizenship-by-investment opportunities
In recent years, Istanbul has become a hotspot for foreign real estate investment, and this trend is expected to continue. In 2024, there was a notable 30% increase in foreign property purchases in Turkey, with Istanbul being a key focus for these investments. This surge highlights the city's strong position as a hub for foreign investors.
The Turkish government's citizenship-by-investment program has played a significant role in this growing interest. The program has been successful, with the government earning an average of $250 million monthly from foreign investors. This success is partly due to the increased minimum investment requirement of $400,000, which has not deterred but rather attracted more applicants seeking Turkish citizenship.
Real estate prices in Istanbul rose by 20% in 2024, reflecting the high demand from both local and international buyers. This increase in property prices is a clear indicator of the growing interest in Istanbul's real estate market, driven by the benefits of acquiring Turkish citizenship, such as visa-free travel and the right to live and work in Turkey.
Sources: Property Turkey Istanbul, Henley & Partners, 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) Tourist-heavy areas will see rising short-term rental yields as tourism recovers
Istanbul is buzzing with tourists, hitting a record of nearly 17.4 million foreign visitors in 2023, up 8.44% from the previous year.
In 2024, the trend continued with a 10% increase in foreign visitors during the first four months compared to the same period in 2023. This surge in tourism is great news for those considering investing in short-term rental properties.
Short-term rentals, like those on Airbnb, are seeing a boom. Occupancy rates averaged 55% for listings in Istanbul from August 2023 to July 2024, showing that tourists are favoring these over traditional hotels.
The Turkish government is pushing hard to boost tourism, aiming for 61 million visitors and $60 billion in revenues in 2024. This ambition is backed by a global travel recovery, with a 7% rise in tourist arrivals and a 6% increase in tourism revenues.
For property investors, this means short-term rental yields are likely to rise, especially in tourist-heavy areas. As tourism rebounds, the demand for short-term rentals is expected to grow, making it a potentially lucrative investment.
With Istanbul's charm and the government's efforts, the city is set to remain a top destination. Investing in short-term rentals here could be a smart move as the tourism sector continues to thrive.
Sources: Daily Sabah, Istanbul Property Management, Hürriyet Daily News
4) Central Istanbul rental yields will dip slightly as property prices rise faster than rents
In the past few years, property prices in central Istanbul have been on a significant rise. From 2018 to 2024, they increased by about 40%, and they are expected to rise by another 67% from 2024 to 2030. This increase is largely driven by Turkey's economic growth, which has been quite robust.
On the other hand, rental prices have not kept up with this rapid increase in property prices. While rental prices surged by 55-58% in 2023, the rental yields, which are the returns landlords get from renting out their properties, have not increased at the same pace. In Q3 2023, the average gross rental yield in Istanbul was 6.21%, which, although slightly higher than the previous year, still indicates that rental yields are not matching the property price increases.
This trend of property prices outpacing rent increases is not unique to Istanbul. It's a common phenomenon in many urban areas worldwide, where property values rise faster than rental income. This results in a slight decline in rental yields, as the return on investment from renting becomes less attractive compared to the rising property values.
Sources: Global Property Guide, Turkey Real Estate, The Wandering Investor
5) Istanbul’s property prices will rise moderately due to ongoing demand
Istanbul's property prices have been on a steady rise, thanks to ongoing demand.
Foreign investors are flocking to Istanbul, snapping up nearly 60,000 properties in 2024. This surge is largely due to enticing offers like the Golden Visa and Turkish citizenship through real estate investments. These programs have made Istanbul a hotspot for international buyers, who see the city as a gateway to both Europe and Asia.
The Turkish government is also playing a big part in this trend. They've rolled out tax breaks and financial perks for foreign buyers, making property investment even more appealing. In just the first half of 2024, around 3,000 foreign investors jumped into the market, showing a clear interest in what Istanbul has to offer.
Urban development is another key player in the property price game. Projects like the Istanbul Metro and the Road and Tunnel Improvement are transforming the city's infrastructure. These upgrades are making various neighborhoods more accessible and attractive, which naturally boosts property values. With limited land available for new builds, developers are keen to make the most of existing spaces.
Insider tip: Areas near these new infrastructure projects are seeing the most significant price hikes. If you're considering buying, keep an eye on these up-and-coming neighborhoods. The combination of improved transport links and limited land supply is a recipe for rising property values.
For those looking to invest, Istanbul's blend of government incentives, foreign interest, and urban development makes it a compelling choice. The city's unique position as a cultural and economic bridge between continents only adds to its allure.
Sources: Turkey Real Estate, Luxury Signature
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6) Affordable housing projects will stabilize prices in specific areas
Affordable housing projects are crucial in stabilizing prices in certain areas because they increase the supply of homes, which can help balance the demand. When there are more homes available, it can prevent prices from skyrocketing due to high demand and limited supply.
In Istanbul, the Turkish government's $50 billion housing project aims to build 500,000 new homes over five years. This significant increase in housing supply is targeted at low-income families, young people, and other groups who often struggle to find affordable housing. By focusing on these groups, the project helps ensure that more people can find homes within their budget, reducing the pressure on the housing market.
Moreover, the government's efforts to make housing more affordable are expected to reduce rental prices by half through initiatives like the "New Housing Model." This model involves leasing government-owned land to developers, which can lead to more affordable housing options and, consequently, a more stable real estate market.
Sources: Daily Sabah, Luxury Signature, Turkey Homes
7) Istanbul's historic districts will draw more investors looking for culturally significant properties
In recent years, the historic districts of Istanbul have become increasingly attractive to investors seeking properties with cultural significance. Property prices in these areas, such as Uskudar and Kadikoy, have seen significant increases, with Uskudar experiencing a 15% rise in 2024 and Kadikoy seeing a 25% increase over the past two years. This growth is driven by new urban projects and a developed transportation network, making these areas more accessible and desirable.
The cultural richness of Istanbul, which blends modern amenities with historical charm, continues to draw tourists and expatriates. This ensures a consistent demand for rentals in these culturally significant areas. The Turkish government's Citizenship through Investment Program has also played a role, attracting foreign investors by offering incentives like Turkish citizenship for real estate investments of at least $400,000.
Media coverage and social media trends have highlighted the unique charm and history of Istanbul's districts, further increasing their appeal. Additionally, major infrastructure projects like the new Istanbul Airport have boosted accessibility and property values, making historic districts even more attractive to investors.
Sources: Istanbul Real Estate, Luxury Signature, Luxury Signature
8) Property values in newly connected areas of Istanbul will rise with the metro network expansion
The expansion of Istanbul's metro network has historically boosted property values in newly connected areas.
Take neighborhoods like Başakşehir, Kartal, and Ümraniye, for instance. These areas saw rapid price hikes after new metro lines connected them. This isn't just a one-time thing; it's a pattern that repeats whenever the metro expands.
Real estate agents have noticed that homes near metro stations are priced higher. Why? Because everyone loves quick and easy transportation. In places like Maltepe, Küçükçekmece, and Beylikdüzü, demand for homes shot up once new metro stations opened, proving that metro access is a big deal for property values.
It's not just Istanbul. Look at Tokyo and Seoul. Metro expansions there also led to big jumps in property values. These cities show that better public transport can really make property prices soar by improving how easily people can get around.
So, if you're thinking about buying property in Istanbul, keep an eye on where the metro is heading next. Being close to a new metro line could mean a great investment as these areas tend to appreciate in value.
Sources: Consultor Groups, Turkey Expert
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) European buyers will increasingly target Istanbul as it becomes a more attractive investment destination
In recent years, Istanbul has become an increasingly attractive investment destination for European buyers. One of the key reasons is the rising property prices in the city. In 2025, the average price per square meter for apartments in Istanbul is around €3,500, with some upscale districts like Nişantaşı and Bebek reaching up to €7,000 per square meter. This is significantly higher than in many other European cities, making Istanbul an appealing opportunity for investors looking for high-value properties.
The Istanbul real estate market has also been favorable for European investors due to its status as a buyer's market. Prices have been consolidating, and rental yields are on the rise, making it an ideal time for long-term investment. Additionally, the Turkish Lira has stabilized over the past year, providing a more favorable exchange rate for European buyers. This economic stability, combined with high rental yields, enhances Istanbul's attractiveness as an investment destination.
Moreover, Istanbul's strategic location between Europe and Asia makes it a significant business hub. The city's role in connecting these two continents is underscored by major development projects like the new Istanbul Airport and the Canal Istanbul project. These projects not only boost the city's infrastructure but also increase its appeal to investors from both Europe and Asia. The growing interest among European investors in emerging markets like Turkey is further reflected in the expansion of European real estate agencies in Istanbul.
Sources: Hürriyet Daily News, The Wandering Investor
10) Luxury developments will see rent hikes as they draw high-income tenants
Rents in luxury developments are expected to increase as they attract high-income tenants due to several key factors. First, there is a rising demand for luxury housing in Istanbul, with some areas experiencing a 109.5% annual increase in rents. This demand is particularly strong in districts like Beşiktaş and Üsküdar, where hundreds of ads for luxury homes are posted on real estate platforms.
Additionally, the influx of high-income expatriates and professionals into Turkey, drawn by its lower cost of living compared to Western and Northern Europe, contributes to the rising demand for luxury housing. These individuals often seek high-end amenities and prime locations, which are typically found in luxury developments.
Moreover, the supply of luxury developments in Istanbul is limited compared to the demand, which naturally drives up prices and rents. This limited supply is further strained by foreign investment, as decent deals in certain areas attract more interest from abroad.
Sources: Hürriyet Daily News, ACVian, The Wandering Investor
11) Middle Eastern investors will remain a key force in Istanbul’s real estate market
Middle Eastern investors are keen on Istanbul's real estate market, and this enthusiasm isn't fading anytime soon.
In 2024, there was a 30% increase in foreign property purchases in Turkey, with Istanbul being a top choice. This upward trend is expected to continue into 2025, largely due to the active involvement of Middle Eastern investors.
One big reason for this ongoing interest is the improved connectivity between Istanbul and major Middle Eastern cities. Etihad Airways is set to launch 10 new routes next year, making travel even more convenient for investors. Plus, Turkish Airlines already offers non-stop flights to several Middle Eastern cities, simplifying visits and investments in Istanbul.
Favorable exchange rates are another key factor drawing Middle Eastern buyers to Turkey's real estate market. These economic conditions, along with the growing demand for properties, have fueled the expansion of Istanbul's real estate sector. Additionally, the Turkish government's citizenship through investment program is a major attraction, offering citizenship to foreign investors who purchase real estate worth at least $400,000.
Sources: Luxury Signature, Rihlat Travel News
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12) Updated property tax laws will impact the appeal of certain investment strategies
Changes in property tax laws can significantly impact the attractiveness of certain investment strategies, especially in real estate. When tax rates increase, as they did in Istanbul in 2023 and 2024, the cost of owning and transferring property rises, which can deter short-term investors looking for quick profits.
For instance, the increase in the value-added tax (VAT) and ownership transfer tax means that investors need to pay more upfront when buying or selling properties. This can make short-term investments less appealing because the higher taxes eat into potential profits. On the other hand, long-term investors might still find opportunities, as they can spread these costs over a longer period and potentially benefit from property appreciation.
Moreover, changes in tax incentives, such as the increased minimum threshold for income tax calculation, can alter the financial landscape for investors. While some might benefit from reduced tax burdens, others could face higher taxes if their resale income exceeds certain limits. This complexity requires investors to reassess their strategies and consider the long-term implications of their investments.
Sources: Altop Real Estate, Capitolestate, Questorg, Tranio, Luxury Signature
13) Suburban rental yields will rise as more people relocate from city centers
In recent years, we've seen a noticeable shift in where people choose to live, especially in cities like Istanbul. One of the main reasons for this is the rising property prices in the city center. As prices continue to climb, many people find it more affordable to look for homes in suburban areas.
Another factor is the increasing traffic congestion and pollution levels in the city center. These issues make living in central areas less appealing, pushing people to seek cleaner and quieter environments in the suburbs. Additionally, the Turkish government has been offering incentives to encourage development in these suburban areas, making them even more attractive to potential residents.
Moreover, the shift to remote work has changed what people look for in a home. Many now prefer larger living spaces, which are more readily available in suburban areas. This trend is supported by consumer surveys indicating a preference for the spacious and quieter lifestyle that suburbs offer.
Sources: Turkey Expert, Turkey Real Estate
14) Neighborhoods with high seismic safety standards will see increased property desirability
Interest in Istanbul's seismic safety has surged since the recent earthquakes in southern Turkey.
People are now more aware of the importance of living in areas with high seismic safety standards. The Turkish government is responding by enforcing stricter building codes in seismic zones. Initiatives like the Istanbul Seismic Risk Mitigation and Emergency Preparedness (ISMEP) are actively retrofitting and rebuilding public buildings to reduce risks, making neighborhoods with modern, earthquake-resistant infrastructure more appealing.
Buyers are showing a clear preference for properties with enhanced seismic safety. Real estate market reports indicate that people are willing to pay more for safety. This trend is further supported by insurance companies offering lower premiums for earthquake-resistant properties, providing a financial incentive for buyers.
Neighborhoods with modern infrastructure are becoming increasingly desirable. The focus on safety is not just a trend but a necessity, as people prioritize their well-being and investment security. The government's efforts in improving building standards are making a significant impact on the real estate market.
As a result, properties in areas with high seismic safety standards are gaining popularity. This shift in buyer preferences is reshaping the market, with safety becoming a top priority for potential homeowners. The demand for earthquake-resistant properties is expected to continue growing.
In Istanbul, the emphasis on seismic safety is transforming the real estate landscape. Buyers are more informed and cautious, seeking properties that offer both security and peace of mind. The trend towards safer neighborhoods is likely to persist, driven by the ongoing efforts to enhance seismic resilience.
Sources: EFE, AIIB, Business Standard
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) Luxury property prices will increase more rapidly than the average market due to limited supply
Luxury property demand in Istanbul is booming, especially among international buyers.
As Istanbul's economy flourishes, its strategic location continues to attract investors from around the globe. This has led to a surge in interest for high-end real estate, particularly in the city's prime areas.
The scarcity of prime real estate in central Istanbul is a major driver of rising luxury property prices. In 2022, there was a 144% increase in luxury property prices, highlighting how limited availability is pushing values up.
Adding to the challenge, strict zoning and construction regulations restrict the development of new luxury properties. This means that the few available properties become even more desirable and valuable.
With construction costs on the rise, existing luxury properties are becoming increasingly attractive to buyers. This combination of factors ensures that luxury property prices will rise faster than the average market due to limited supply.
Sources: Notte Global, Turkey Expert
16) Interest in large family homes will drop as people choose smaller, more manageable properties
In Istanbul, housing preferences are shifting towards smaller, more manageable properties.
One reason for this change is the rise in single-person households. Back in 2023, 20% of households in Turkey were made up of just one person, up from 14% in 2014. This increase highlights a growing demand for living spaces that cater to individuals rather than large families.
Urbanization is another factor influencing this trend. As more people flock to Istanbul, there's a noticeable preference for centrally located, smaller homes. By 2023, the average household size in Istanbul had decreased to 3.14 people, down from 4 in 2008. This shift naturally leads to a desire for homes that are easier to manage and maintain.
Consumer surveys reveal a strong desire for lower maintenance living spaces. People are increasingly seeking homes that require less upkeep, which is more feasible with smaller properties. This aligns with the broader cultural trend towards minimalist lifestyles, where simplicity and efficiency are highly valued.
As a result, more people are opting for smaller, more manageable homes that fit this lifestyle. The trend is particularly evident in urban areas, where the demand for compact, efficient living spaces is on the rise. This shift is reshaping the real estate market, with developers focusing on creating properties that meet these new preferences.
In Istanbul, the move towards smaller homes is not just a trend but a reflection of changing lifestyles and priorities. As the city continues to grow, the demand for smaller, centrally located properties is expected to increase, making them a smart investment choice for potential buyers.
Sources: Statista, Hürriyet Daily News, Daily Sabah
17) High-end rental yields will remain stable with steady demand from expatriates
Istanbul is becoming a hotspot for expatriates, with its population steadily climbing.
In 2023, the city welcomed nearly 200,000 new residents, thanks to both local and international arrivals. This growth is expected to continue, with projections suggesting Istanbul's population could hit 16 million in 2024, making it one of the world's fastest-growing cities.
Neighborhoods like Basaksehir and Kadikoy are particularly popular among expatriates. In 2024, Basaksehir saw a 12% increase in property prices, while Kadikoy experienced a 9% rise. The Turkish government is also playing a role by offering residency programs for foreign investors, which further fuels real estate interest.
The rental market in Istanbul is holding strong, especially in major cities and tourist hotspots. With rising interest rates, some locals are shying away from buying, which means more people are looking to rent. This is especially true in the high-end market, where low vacancy rates show a steady demand for luxury rentals.
Real estate agencies note that expatriates are a key driver of this demand, drawn by Istanbul's vibrant culture and business opportunities. Surveys reveal that many expatriates prefer renting over buying, as it offers more flexibility and lower initial costs, which keeps the demand for high-end rentals stable.
Sources: Global Database, Luxury Signature, Yekta Homes
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.