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 remains one of the most dynamic real estate markets in Europe, with nominal property prices rising around 32% year-over-year through late 2025, though inflation-adjusted gains are nearly flat.
Foreign buyers still account for only about 1.4% of total Istanbul property sales, but Istanbul leads all Turkish provinces in foreign purchases with 728 units sold to foreigners in November 2025 alone.
This guide breaks down every neighborhood you need to know, from trophy Bosphorus addresses to high-yield outer districts, with actual price data, rental yields, and risk factors so you can make an informed decision.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Istanbul.
We constantly update this blog post to reflect the latest market data and regulatory changes.
What's the Current Real Estate Market Situation by Area in Istanbul?
Which areas in Istanbul have the highest property prices per square meter in 2026?
As of early 2026, the three most expensive areas in Istanbul for residential property are Bebek and Arnavutkoy (within Besiktas district) along the Bosphorus, the Nisantasi triangle (Tesvikiye, Macka, Harbiye) in Sisli, and Caddebostan and Suadiye along Bagdat Avenue in Kadikoy on the Asian side.
In these premium Istanbul neighborhoods, you can expect to pay anywhere from 100,000 TRY to over 220,000 TRY per square meter for residential property, with the very best Bosphorus-view units in Bebek and Arnavutkoy reaching the upper end of that range.
Each of these Istanbul neighborhoods commands top prices for different reasons:
- Bebek and Arnavutkoy (Besiktas): Waterfront scarcity, historic mansions, and exclusive cafes that cannot be replicated elsewhere.
- Tesvikiye and Macka (Nisantasi): Walkable luxury with designer boutiques, embassy proximity, and old-money prestige.
- Caddebostan and Suadiye (Kadikoy): Best sea-view addresses on the Asian side with excellent schools and family appeal.
- Yeniköy and Tarabya (Sariyer): Quieter Bosphorus villages with consulate residences and waterfront dining.
Which areas in Istanbul have the most affordable property prices in 2026?
As of early 2026, the most affordable residential property prices in Istanbul are found in Esenyurt (averaging around 27,000 to 35,000 TRY per square meter), followed by Sultanbeyli on the Asian side (25,000 to 40,000 TRY), Beylikduzu (30,000 to 50,000 TRY), and inland pockets of Avcilar (28,000 to 45,000 TRY).
In these budget-friendly Istanbul districts, a typical 75-square-meter apartment can be purchased for 2 to 3.5 million TRY (roughly 47,000 to 82,000 USD), making them accessible for first-time investors or those prioritizing rental yield over prestige.
The main trade-offs when buying in these lower-priced Istanbul areas include longer commute times to central business districts in Esenyurt, higher seismic and ground-condition risk in coastal Avcilar that requires extra building due diligence, oversupply of similar new-build apartments in Beylikduzu that can make resale slower, and fewer walkable amenities in Sultanbeyli compared to established Asian-side neighborhoods.
You can also read our latest analysis regarding housing prices in Istanbul.
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.
Which Areas in Istanbul Offer the Best Rental Yields?
Which neighborhoods in Istanbul have the highest gross rental yields in 2026?
As of early 2026, the Istanbul neighborhoods with the highest gross rental yields are Esenyurt (approximately 9.4%), Fatih (around 8.9%), Gungoren (about 8.5%), and Bahcelievler (roughly 8.5%), all located on the European side where purchase prices remain moderate relative to rental demand.
Across Istanbul as a whole, the typical gross rental yield ranges from about 5% in premium Bosphorus districts to around 9.5% in outer working-class neighborhoods, with the citywide average sitting at approximately 7.2% based on December 2025 data.
Here is why these high-yield Istanbul neighborhoods outperform others:
- Esenyurt: Entry prices around 27,000 TRY per square meter create fast payback periods despite moderate rents.
- Fatih: Central location near historic attractions and universities keeps tenant turnover high and vacancies low.
- Gungoren and Bahcelievler: Strong metro and Metrobus connections attract working families seeking affordable commutes.
- Zeytinburnu: Proximity to the old city without premium pricing, plus direct tram links to Sultanahmet.
Finally, please note that we cover the rental yields in Istanbul here.
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Which Areas in Istanbul Are Best for Short-Term Vacation Rentals?
Which neighborhoods in Istanbul perform best on Airbnb in 2026?
As of early 2026, the top-performing Istanbul neighborhoods for Airbnb are Galata and Karakoy in Beyoglu (with occupancy rates reaching 60 to 70% in peak season), Sultanahmet in Fatih (average nightly rates around 1,500 to 3,000 TRY for well-located units), Ortakoy in Besiktas, and Moda in Kadikoy on the Asian side.
In these best-performing Istanbul short-term rental areas, a well-managed one-bedroom apartment can generate between 30,000 and 60,000 TRY per month during peak tourist season, though net returns depend heavily on compliance with Turkey's 2024 short-term rental regulations under Law No. 7464.
Here is what drives Airbnb performance in each of these Istanbul neighborhoods:
- Galata and Karakoy: Walking distance to Galata Tower, vibrant nightlife, and excellent transport connections.
- Sultanahmet (Cankurtaran): Steps from Hagia Sophia and the Blue Mosque, ideal for first-time Istanbul visitors.
- Ortakoy: Bosphorus-side location with iconic mosque views and weekend market atmosphere.
- Moda (Kadikoy): Local-cool vibe with cafes and coastal walks attracting longer-stay digital nomads.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Istanbul.
Which tourist areas in Istanbul are becoming oversaturated with short-term rentals?
The three Istanbul tourist areas showing the clearest signs of short-term rental oversaturation are the Sultanahmet and Cankurtaran neighborhood in Fatih, the Galata-Karakoy-Cihangir triangle in Beyoglu, and the Moda cafe strip in Kadikoy.
In Sultanahmet alone, there are hundreds of competing listings within walking distance of Hagia Sophia, while the Galata-Karakoy corridor has seen listing density grow by over 40% since 2022, creating fierce competition for the same pool of tourists.
The clearest indicator of oversaturation in these Istanbul areas is the combination of declining average daily rates despite rising nominal property prices, plus increased neighbor complaints and municipal scrutiny under Law No. 7464, which makes it harder to obtain and maintain the required Tourism Purpose Rental Permit.
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.
Which Areas in Istanbul Are Best for Long-Term Rentals?
Which neighborhoods in Istanbul have the strongest demand for long-term tenants?
The Istanbul neighborhoods with the strongest long-term tenant demand are Levent and Gayrettepe (for corporate professionals), Kagithane and Seyrantepe (for young professionals priced out of central Sisli), Atasehir and Koşuyolu on the Asian side (for families), and transit-anchored emerging areas like Kartal and Maltepe.
In these high-demand Istanbul neighborhoods, vacancy rates for well-priced apartments typically stay below 3 to 4%, and units often rent within two to three weeks of listing, especially near metro stations.
Here is the typical tenant profile driving demand in each of these Istanbul neighborhoods:
- Levent and Gayrettepe: Finance and corporate employees seeking short commutes to Istanbul's central business district.
- Kagithane (Hamidiye, Gursel): Young professionals and couples looking for newer buildings at lower prices than Sisli.
- Atasehir and Koşuyolu: Families prioritizing international schools, parks, and Asian-side quality of life.
- Kartal and Maltepe: Budget-conscious tenants benefiting from improving metro connectivity and newer building stock.
The key characteristic that makes these Istanbul neighborhoods attractive to long-term tenants is reliable metro access, which reduces commute times and makes daily life predictable even in a city with notoriously heavy traffic.
Finally, please note that we provide a very granular rental analysis in our property pack about Istanbul.
What are the average long-term monthly rents by neighborhood in Istanbul in 2026?
As of early 2026, average long-term monthly rents in Istanbul range from around 20,000 TRY in outer districts like Esenyurt to over 65,000 TRY in premium areas like Kadikoy (Moda, Caddebostan) and Sariyer, with the citywide average sitting at approximately 34,000 TRY per month.
In the most affordable Istanbul neighborhoods like Esenyurt, Sultanbeyli, and Gaziosmanpasa, entry-level one-bedroom apartments typically rent for 15,000 to 25,000 TRY per month.
In mid-range Istanbul neighborhoods like Bahcelievler, Uskudar, and Maltepe, a standard two-bedroom apartment costs around 25,000 to 40,000 TRY per month.
In the most expensive Istanbul neighborhoods like Besiktas (Bebek, Etiler), Sariyer (Tarabya, Yeniköy), and Kadikoy (Caddebostan), high-end apartments command 50,000 to 120,000 TRY per month depending on size, views, and building amenities.
You may want to check our latest analysis about the rents in Istanbul here.
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Which Are the Up-and-Coming Areas to Invest in Istanbul?
Which neighborhoods in Istanbul are gentrifying and attracting new investors in 2026?
As of early 2026, the Istanbul neighborhoods showing the clearest gentrification signals are Kagithane (especially Hamidiye and Gursel), the Bomonti area in Sisli, Yeldeğirmeni in Kadikoy (Rasimpasa), and the Kartal-Maltepe corridor on the Asian side where urban transformation is replacing older industrial zones with modern residential complexes.
In these gentrifying Istanbul neighborhoods, nominal price appreciation has ranged from 25% to 40% year-over-year in 2024 and 2025, though real (inflation-adjusted) gains are more modest given Turkey's high inflation environment.
Which areas in Istanbul have major infrastructure projects planned that will boost prices?
The Istanbul areas most likely to benefit from major infrastructure projects are the Arnavutkoy corridor (linked to the M11 metro extension to Istanbul Airport and Halkali), the Basaksehir-Kayasehir belt (served by new metro lines), and the Sancaktepe-Samandira area on the Asian side (where the M5 extension is improving connectivity).
The specific projects underway include the M11 Halkali extension (expected to open in early 2026, connecting western suburbs to the airport and Marmaray rail), the M5 Sultanbeyli extension on the Asian side, and several urban transformation zones being developed under Istanbul Metropolitan Municipality oversight.
Historically, Istanbul properties within walking distance of newly opened metro stations have seen price increases of 10% to 20% above surrounding areas within two to three years of station opening, based on patterns observed after the M7 and M8 line openings.
You'll find our latest property market analysis about Istanbul here.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Turkey versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which Areas in Istanbul Should I Avoid as a Property Investor?
Which neighborhoods in Istanbul with lots of problems I should avoid and why?
The Istanbul neighborhoods that require extra caution from property investors include coastal Avcilar (especially lake-adjacent areas), parts of Kucukcekmece near the lagoon, some Zeytinburnu coastal pockets, and oversupplied new-build zones in outer Esenyurt and Beylikduzu.
Here are the specific problems affecting each of these Istanbul areas:
- Avcilar coast and lake belt: High seismic risk due to soft alluvial soil and proximity to the locked Marmara fault segment.
- Kucukcekmece lagoon area: Ground liquefaction potential and older building stock that may not meet post-1999 earthquake codes.
- Esenyurt (certain blocks): Oversupply of nearly identical apartment towers makes resale difficult and depresses prices.
- Sultanahmet (for STR investors): Regulatory scrutiny under Law No. 7464 and fierce Airbnb competition reduce net returns.
For these Istanbul neighborhoods to become viable investment options, they would need either significant urban renewal to replace vulnerable building stock, documented geotechnical remediation for seismic concerns, or regulatory clarity that reduces compliance risk for short-term rental operators.
Buying a property in the wrong neighborhood is one of the mistakes we cover in our list of risks and pitfalls people face when buying property in Istanbul.
Which areas in Istanbul have stagnant or declining property prices as of 2026?
As of early 2026, the Istanbul areas experiencing the weakest price performance in real (inflation-adjusted) terms are outer new-build corridors like parts of Esenyurt and Beylikduzu, as well as coastal Marmara shoreline districts where seismic concerns are increasingly priced into valuations.
While nominal prices in these areas may still show 15% to 25% year-over-year increases, Turkey's inflation rate of approximately 33% in late 2025 means real purchasing power has remained flat or even declined, effectively creating stagnation despite rising TRY figures.
Here are the underlying causes of price stagnation in these Istanbul areas:
- Esenyurt (new-build blocks): Continuous delivery of competing apartment towers creates chronic oversupply.
- Beylikduzu (outer sections): Distance from metro stations and CBD reduces appeal relative to better-connected districts.
- Avcilar coastal strip: Growing buyer awareness of seismic risk discounts values relative to comparable inland areas.
- Bakirkoy shoreline pockets: Older pre-2000 building stock faces valuation pressure as buyers prioritize earthquake-safe construction.
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Which Areas in Istanbul Have the Best Long-Term Appreciation Potential?
Which areas in Istanbul have historically appreciated the most recently?
The Istanbul areas that have shown the strongest price appreciation over the past five to ten years are the Bosphorus micro-markets (Bebek, Arnavutkoy, Yeniköy), the Nisantasi prestige core (Tesvikiye, Macka), and the best streets of the Bagdat Avenue corridor (Caddebostan, Suadiye) on the Asian side.
Here is the approximate appreciation these top-performing Istanbul areas have achieved:
- Bebek and Arnavutkoy (Besiktas): Over 1,200% nominal price growth in TRY terms over the past decade, roughly flat in USD.
- Tesvikiye and Macka (Nisantasi): Consistent outperformance of 5 to 10 percentage points above the citywide average annually.
- Caddebostan and Suadiye: Strongest Asian-side appreciation, with premium sea-view units holding value better than district averages.
- Sariyer waterfront (Tarabya, Emirgan): Trophy-asset status has protected values during market downturns.
The main driver of above-average appreciation in these Istanbul areas is supply scarcity: Bosphorus frontage cannot be replicated, historic neighborhood fabric limits new construction, and high-quality schools and amenities create sticky demand from affluent families.
By the way, you will find much more detailed trends and forecasts in our pack covering there is to know about buying a property in Istanbul.
Which neighborhoods in Istanbul are expected to see price growth in coming years?
The Istanbul neighborhoods expected to see the strongest price growth over the next two to five years are Kagithane (Hamidiye, Gursel), the Arnavutkoy airport corridor, the Kartal-Maltepe belt on the Asian side, and Bomonti in Sisli.
Here are the projected growth trajectories for these high-potential Istanbul neighborhoods:
- Kagithane: Expected to outperform citywide averages by 5 to 10 percentage points as CBD proximity gets repriced.
- Arnavutkoy (airport-linked): M11 metro completion in 2026 should compress commute times and lift values in served micro-areas.
- Kartal and Maltepe: Metro extensions and newer building stock position these for steady 8 to 12% nominal annual growth.
- Bomonti: Ongoing gentrification from creative industries and hospitality spillover from Sisli core.
The single most important catalyst expected to drive future price growth in these Istanbul neighborhoods is improved metro connectivity, which historically has lifted values by 10% to 20% within two to three years of station openings.
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.
What Do Locals and Expats Really Think About Different Areas in Istanbul?
Which areas in Istanbul do local residents consider the most desirable to live?
The Istanbul areas that local residents consistently rank as most desirable are the Bosphorus lifestyle belt (Bebek, Arnavutkoy, Kuruçesme, Emirgan, Yeniköy), the Nisantasi triangle (Tesvikiye, Macka, Harbiye), and the Kadikoy quality-of-life corridor (Moda, Caddebostan, Suadiye, Fenerbahce).
Here is what makes each of these Istanbul areas most desirable to local residents:
- Bebek and Arnavutkoy: Waterfront cafes, jogging paths, and a village-like atmosphere within a megacity.
- Tesvikiye and Macka: Walkable streets with designer shops, quality restaurants, and prestigious schools nearby.
- Moda and Caddebostan: Coastal charm, strong neighborhood identity, and excellent public parks on the Asian side.
- Etiler and Ulus: Gated communities, proximity to forest parks, and access to top international schools.
The typical resident demographic in these locally-preferred Istanbul areas includes established professionals, business owners, multigenerational Turkish families with inherited property, and senior corporate executives.
Local preferences in Istanbul largely align with what foreign investors target at the premium end, but diverge at the mid-market level: locals often prioritize family proximity and established neighborhoods over trendy tourist-core locations that appeal more to foreign short-term rental investors.
Which neighborhoods in Istanbul have the best reputation among expat communities?
The Istanbul neighborhoods with the strongest reputation among expat communities are Cihangir and Galata in Beyoglu, Etiler and Ulus in Besiktas, Tesvikiye and Macka in Sisli, and Moda in Kadikoy on the Asian side.
Here is what attracts expats to these Istanbul neighborhoods:
- Cihangir and Galata: Walkable streets, vibrant cafe culture, and a cosmopolitan mix of artists, writers, and digital nomads.
- Etiler and Ulus: Proximity to international schools, embassies, and secure gated compounds with English-speaking services.
- Tesvikiye and Macka: European-style shopping and dining with easy access to corporate offices in Levent.
- Moda: Creative, laid-back atmosphere with ferry access to the European side and strong community feel.
The typical expat profile in these popular Istanbul neighborhoods includes diplomatic and consulate staff in Etiler and Tesvikiye, remote workers and entrepreneurs in Cihangir and Moda, and corporate transferees with families in Ulus and Macka.
Which areas in Istanbul do locals say are overhyped by foreign buyers?
The Istanbul areas that locals most commonly describe as overhyped by foreign buyers are tourist-core Sultanahmet in Fatih, the Galata-Karakoy corridor in Beyoglu, and some glossy new-build projects in outer Esenyurt and Beylikduzu.
Here is why locals believe these Istanbul areas are overvalued:
- Sultanahmet: Beautiful but impractical for daily living, with limited grocery stores and heavy tourist foot traffic.
- Galata-Karakoy: Nightlife noise, steep streets, and overpriced renovated apartments that locals would not choose for family life.
- Esenyurt new-builds: Marketed heavily to Gulf and Central Asian buyers but lacking neighborhood character and resale liquidity.
What foreign buyers typically see in these Istanbul areas that locals do not value as highly is the "postcard" appeal of historic backdrops and the promise of easy Airbnb income, which often proves harder to realize after Law No. 7464 compliance costs and competitive saturation are factored in.
By the way, we've written a blog article detailing the experience of buying a property as a foreigner in Istanbul.
Which areas in Istanbul are considered boring or undesirable by residents?
The Istanbul areas that local residents most commonly describe as boring or undesirable for daily living are monolithic new-build developments in outer Esenyurt and parts of Beylikduzu, car-dependent zones in distant Basaksehir, and some inland pockets of Sultanbeyli and Sancaktepe on the Asian side.
Here is why residents find these Istanbul areas less appealing:
- Outer Esenyurt: Repetitive tower blocks with few walkable streets, limited green space, and long commutes to central jobs.
- Distant Basaksehir: Mall-centric lifestyle with weak public transit until recent metro extensions improved connectivity.
- Inland Sultanbeyli: Few cafes, cultural venues, or distinctive neighborhood character compared to coastal Asian-side alternatives.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Istanbul, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| Central Bank of Turkey (TCMB) | Official central bank publishing the quality-adjusted Residential Property Price Index. | We used RPPI data to anchor Istanbul's nominal and real price trends. We also validated neighborhood claims against citywide direction. |
| Turkish Statistical Institute (TUIK) | Turkey's national statistics office providing official housing and economic data. | We extracted foreign buyer counts and inflation figures for context. We used these to avoid relying on anecdotal market commentary. |
| Endeksa | Leading Turkish real estate analytics platform with district-level price and yield data. | We pulled per-square-meter prices and rental yields by district. We cross-checked these against TCMB figures for consistency. |
| AFAD (Disaster Management Authority) | Government agency responsible for earthquake hazard mapping and risk assessment. | We used AFAD maps to identify high seismic risk zones. We flagged districts where building due diligence is essential. |
| IBB Earthquake Ground Platform | Istanbul Municipality's technical platform for local geology and ground risk data. | We applied Istanbul-specific risk screening beyond national maps. We justified extra caution in coastal alluvial zones. |
| Metro Istanbul | Official operator publishing current network maps and construction timelines. | We defined accessibility using actual metro infrastructure. We supported growth projections with planned line openings. |
| Invest in Turkiye | Government investment portal summarizing legal frameworks for foreign property buyers. | We described foreign ownership limits and procedures. We framed practical steps using official guidance. |
| AirDNA | Industry-standard short-term rental analytics platform with occupancy and rate data. | We framed Airbnb performance using consistent metrics. We compared neighborhoods by demand patterns rather than anecdotes. |
| Egemenoglu Law | Turkish law firm providing clear summaries of Law No. 7464 regulatory requirements. | We explained why short-term rentals became compliance-heavy from 2024. We flagged regulatory yield risk by area. |
| Turkiye Today | Reputable Turkish news outlet citing official data on housing and economic trends. | We cross-checked rental yield percentages and price trends. We used their December 2025 Endeksa coverage for timeliness. |
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