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Thinking about buying a 3-bedroom apartment in Kadıköy? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Beşiktaş or Şişli where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Turkey Property Pack.
Will property prices increase in Turkey in 2025?
Yes, property prices in Turkey are expected to rise in 2025, driven by a combination of high demand and various economic factors.
Backed by our fresh, in-depth market analysis, we’re confident that Turkey remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and geopolitical tensions, the main drivers behind Turkey’s price growth are expected to persist.
Demand, especially in major cities and coastal areas, continues to outstrip supply, making significant price declines unlikely. Additionally, Turkey's strategic location and growing economy continue to attract buyers from around the world.
Signals pointing to a property price increase in Turkey
Here are some factors suggesting prices could increase:
The ongoing urbanization and population growth in Turkey are expected to continue, particularly in major cities like Istanbul, Ankara, and Izmir. This demographic trend is likely to sustain high demand for housing, pushing property prices upward.
Turkey's strategic location as a bridge between Europe and Asia continues to attract international investors, particularly from the Middle East and Europe. This influx of foreign investment is expected to drive up property prices, especially in key urban and coastal areas.
The Turkish government has been implementing policies to encourage real estate investment, such as offering citizenship to foreign investors who purchase property. These incentives are likely to boost demand and support price increases.
Infrastructure projects, such as new transportation links and urban development initiatives, are expected to enhance the attractiveness of certain areas, leading to increased property values in those regions.
The tourism sector in Turkey is expected to recover and grow, increasing demand for holiday homes and investment properties in popular tourist destinations, which could drive up prices in these areas.
Signals pointing to a property price decrease in Turkey
Here are some factors suggesting prices could fall:
Economic instability and high inflation rates in Turkey could impact consumer purchasing power, potentially reducing demand for property and putting downward pressure on prices.
Geopolitical tensions and uncertainties in the region may deter some international investors, leading to a potential decrease in foreign demand for Turkish real estate.
Rising interest rates could make mortgage financing more expensive, potentially reducing the affordability of property for domestic buyers and cooling off demand.
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If property prices go up in Turkey, how much would they increase by?
If real estate prices in Turkey were to rise in 2025, the increase would likely be around 10% to 15% of their 2024 values.
Typically, real estate in dynamic markets like Turkey appreciates by approximately 5% to 15% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Istanbul for 2,000,000 Turkish Lira today, don't be surprised if it's priced between 2,200,000 and 2,300,000 Turkish Lira this time next year.
To give you a better understanding, here is a table that shows 7 types of Turkish real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 5%, 10%, and 15%.
| Type of Property | Average Price in 2024 (₺) | Price in 2025 (5% increase) | Price in 2025 (10% increase) | Price in 2025 (15% increase) |
|---|---|---|---|---|
| Modern Apartment (100 sqm / 1,076 sqft) | ₺1,500,000 | ₺1,575,000 | ₺1,650,000 | ₺1,725,000 |
| Luxury Villa (200 sqm / 2,153 sqft) | ₺5,000,000 | ₺5,250,000 | ₺5,500,000 | ₺5,750,000 |
| Studio (50 sqm / 538 sqft) | ₺750,000 | ₺787,500 | ₺825,000 | ₺862,500 |
| Loft (120 sqm / 1,292 sqft) | ₺2,000,000 | ₺2,100,000 | ₺2,200,000 | ₺2,300,000 |
| Townhouse (180 sqm / 1,938 sqft) | ₺3,500,000 | ₺3,675,000 | ₺3,850,000 | ₺4,025,000 |
| Investment Property (70 sqm / 753 sqft) | ₺1,200,000 | ₺1,260,000 | ₺1,320,000 | ₺1,380,000 |
| Seaside Apartment (90 sqm / 969 sqft) | ₺2,500,000 | ₺2,625,000 | ₺2,750,000 | ₺2,875,000 |
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If real estate prices go up in Turkey, which areas are likely to see the biggest increases?
Today, people who want to move to Turkey are looking for a blend of historical charm and modern amenities, which Beyoğlu in Istanbul offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in vibrant, youthful neighborhoods, and Kadıköy has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Turkish market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Beyoğlu, Istanbul | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Nişantaşı, Istanbul | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Istanbul. |
| Çankaya, Ankara | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Maslak, Istanbul | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Ataşehir, Istanbul | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Üsküdar, Istanbul | Medium | Investment in local infrastructure, such as the extension of metro lines and renovation of historic areas, is boosting long-term value. |
| Karşıyaka, Izmir | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Kadıköy, Istanbul | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Bodrum, Muğla | Medium-High | Its appeal as a coastal retreat, along with new residential developments, makes it increasingly attractive to professionals seeking more space. |
| Beşiktaş, Istanbul | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Etiler, Istanbul | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Sultanahmet, Istanbul | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Turkey?
In 2025, Turkey's real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025, especially in cities like Istanbul and Ankara.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near major Turkish cities are seeing increased interest. Proximity to green spaces, schools, and transportation hubs is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Istanbul, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Turkey's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
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