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As we reach mid-2025, Turkey's residential property market presents a complex picture of soaring nominal prices combined with declining real values.
This comprehensive analysis examines the latest data and trends to help you understand whether now is the right time to invest in Turkish real estate.
If you want to go deeper, you can check our pack of documents related to the real estate market in Turkey, based on reliable facts and data, not opinions or rumors.
Turkish property prices are increasing 31-39% nominally year-over-year, but real values are declining 5-14% when adjusted for inflation.
Istanbul leads with average prices of 55,503-61,085 TRY/sqm ($1,301-$1,520 USD/sqm), while foreign buyers continue driving demand in coastal and premium segments despite high interest rates at 50%.
| Metric | Current Status | Change from 2024 |
|---|---|---|
| National Average Price | 36,061-37,740 TRY/sqm ($869-$988 USD/sqm) | +32% nominal, -8.9% real |
| Istanbul Average Price | 55,503-61,085 TRY/sqm ($1,301-$1,520 USD/sqm) | +30% nominal, -8.6% real |
| Inflation Rate | 39-45% annually | Remains elevated |
| Interest Rates | 50% (Central Bank rate) | Increased to combat inflation |
| Foreign Buyer Activity | Moderate but significant | Down from 2022 peak |
| Q1 2025 Sales Volume | +20% year-over-year | Strong demand growth |
| Real Price Trend | -5% to -14% across major cities | Declining purchasing power |
| Rental Market | Surging nominally | Real rents starting to decline |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
How Much Have Turkish Property Prices Increased in the Past 12 Months?
Turkish residential property prices have experienced dramatic nominal increases of 31-39% year-over-year as of early 2025.
However, this headline figure masks a crucial reality: when adjusted for Turkey's high inflation rate of 39-45%, real property prices have actually declined by 5-14% across the country.
The national average price per square meter now stands at 36,061-37,740 TRY, equivalent to $869-$988 USD depending on exchange rates. This represents a 32% nominal increase from June 2024, though USD prices have remained relatively stable due to lira depreciation offsetting nominal TRY gains.
This means that while property owners see bigger numbers on paper, the actual purchasing power of their assets has decreased.
Which Turkish Cities Are Seeing the Biggest Property Price Surges Right Now?
Ankara leads major cities with the highest nominal price growth at 36.6-38.6% annually, outpacing both Istanbul and Izmir.
Istanbul remains the most expensive market at 55,503-61,085 TRY per square meter ($1,301-$1,520 USD/sqm), followed by Izmir at 40,595-41,118 TRY/sqm, while Ankara averages 29,764-33,272 TRY/sqm despite its recent surge.
Smaller cities like Muş, Diyarbakır, and Kırklareli have recorded even higher nominal increases, sometimes exceeding 40% annually. However, these markets remain significantly cheaper in absolute terms compared to major metropolitan areas.
Istanbul continues to command premiums of 50-70% above the national average, while eastern provinces trade at 40-60% discounts.
What Types of Properties Are Experiencing the Fastest Price Growth in 2025?
New builds with energy-efficient features are leading price growth in urban centers, commanding premium prices as buyers seek modern amenities and lower utility costs.
| Property Type | Price Growth | Key Driver |
|---|---|---|
| Energy-efficient new builds | 35-45% nominal | Lower operating costs, modern features |
| Smart home apartments | 30-40% nominal | Tech-enabled features, urban millennials |
| Coastal villas | Up to 20% in USD terms | Foreign buyer demand, lifestyle appeal |
| Low-rise Bodrum/Antalya buildings | 25-35% nominal | International investment interest |
| Prime Istanbul apartments | 28-35% nominal | Consistent high demand |
| Second-hand homes | 15-25% nominal | More moderate demand |
How Are Current Interest Rates Affecting Turkish Property Prices in 2025?
The Central Bank of Turkey's aggressive interest rate policy, maintaining rates at 50% to combat inflation, has significantly impacted the property market in 2025.
High borrowing costs have priced many domestic buyers out of the market, with mortgage rates exceeding 60% annually at commercial banks. This has shifted demand from buying to renting, creating strong pressure in the rental market.
The market has essentially bifurcated into two segments: cash buyers (particularly foreigners) continue to drive prices up in premium segments, while mortgage-dependent domestic buyers face severe constraints. Only 20-25% of transactions now involve mortgages, compared to 40-45% historically.
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These high rates have contributed to the real price declines despite nominal increases, as reduced domestic purchasing power fails to keep pace with inflation.
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What Impact Did the March 2025 Political Unrest Have on Property Prices?
The arrest of Istanbul's mayor in March 2025 and subsequent political unrest caused immediate market volatility.
Despite initial concerns, property sales jumped 20% in Q1 2025, suggesting buyers rushed to convert cash to real assets amid uncertainty. The stock market dropped 8% and the lira depreciated 5% against the dollar in the immediate aftermath.
International buyers particularly are adopting a wait-and-see approach for major investments, with foreign purchases declining 15% in April 2025 compared to March. However, domestic buyers accelerated purchases, viewing real estate as a safe haven during political turbulence.
Experts warn that continued political instability could dampen buyer confidence and slow price growth in the coming months, particularly if it affects Turkey's EU accession talks or international relations.
What Are the Latest Foreign Buyer Trends Affecting Turkish Property Prices?
Foreign buyer activity remains a crucial price driver in 2025, though it has moderated from the 2022 peak of 67,490 units.
Russian buyers continue to dominate the foreign buyer segment, focusing on Istanbul and Antalya's high-end properties. Iraqi buyers target mid-range apartments in Istanbul and Mersin, while Iranian investors seek investment properties across major cities.
European buyers concentrate on coastal resort areas, driving villa and luxury apartment prices. Gulf State nationals focus on ultra-luxury segments in prime Istanbul districts, often purchasing multiple units for investment portfolios.
Foreign demand continues to put upward pressure on prices, especially in coastal and resort areas where they represent up to 40% of transactions.
The citizenship-by-investment program, requiring a minimum $400,000 property investment, continues attracting wealthy foreign buyers despite the increased threshold from previous years.
What Is the Current Rental Yield Outlook for Turkish Properties in 2025?
Rental markets in Turkey are experiencing robust growth in 2025, with nominal rental prices surging alongside property values.
Current rental yields in major cities average 4-7% annually, with higher yields of 8-10% achievable in emerging neighborhoods and student areas. Istanbul's prime districts offer 4-5% yields, while secondary locations can reach 6-8%.
The shift from buying to renting due to high mortgage rates has created strong rental demand. Occupancy rates in major cities exceed 95%, providing landlords with pricing power.
However, real rents are beginning to decline as tenant purchasing power weakens under inflation pressure. This makes buy-to-let investments increasingly attractive for cash buyers who can weather the currency volatility.
Short-term rental markets in tourist areas show even stronger performance, with some coastal properties achieving 10-12% gross yields during peak seasons.
How Does Turkey's 2025 Property Market Compare to Five Years Ago?
Turkish property prices have more than doubled in nominal terms over the past five years, making it one of the fastest-growing markets globally.
| Metric | 2020 | 2025 | Change |
|---|---|---|---|
| National Average (TRY/sqm) | 3,500-4,000 | 36,061-37,740 | +900-1000% |
| Istanbul Average (TRY/sqm) | 5,500-6,000 | 55,503-61,085 | +900-1000% |
| USD/TRY Exchange Rate | 7.5 | 38-41 | +400-450% |
| Annual Transaction Volume | 1.5 million | 1.8-2.0 million | +20-33% |
| Foreign Buyer Share | 2.7% | 3.5-4.0% | +30-48% |
| Mortgage Usage | 40-45% | 20-25% | -44-50% |
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 Are Property Price Forecasts for Turkey Through 2026?
Market analysts project Turkish property prices will continue their nominal growth trajectory through 2026, with estimates ranging from 15-25% annual increases.
Expected inflation moderation to 25-30% by end-2026 could enable real price stability or modest growth. The Central Bank aims to reduce interest rates gradually as inflation declines, potentially reviving mortgage market activity.
Infrastructure project completions in Istanbul and Ankara, including new metro lines and urban renewal projects, should support price growth in affected areas. The completion of Canal Istanbul mega-project could create entirely new high-value districts.
Political stability following upcoming elections will be crucial for maintaining foreign investor confidence. EU accession negotiations progress could provide additional momentum.
It's something we develop in our Turkey property pack.
The consensus view suggests prices in Istanbul and coastal areas will outperform the national average by 5-10 percentage points.
Which Specific Istanbul Districts Are Seeing the Highest Price Increases Now?
Istanbul's property market in mid-2025 shows significant variation by district, with European side districts generally outperforming.
Beşiktaş and Şişli lead with 35-40% annual increases, driven by extensive urban renewal projects transforming old neighborhoods into modern residential complexes. These central districts benefit from proximity to business centers and excellent transport links.
Kadıköy on the Asian side shows 32% growth, attracting young professionals with its vibrant lifestyle amenities, restaurants, and cultural venues. Sarıyer records 30% increases from luxury waterfront developments along the Bosphorus.
Başakşehir benefits from new infrastructure with 28% growth, including metro connections and proximity to the new Istanbul Airport. Beylikdüzü offers more affordable options with 25% increases from large-scale new construction projects.
Asian side districts generally see more moderate growth of 20-25%, while peripheral areas lag at 15-20% nominal increases.
What Is the Current Average Price Per Square Meter Across Turkey in June 2025?
The national average price per square meter for residential properties in Turkey stands at 36,061-37,740 TRY as of June 2025.
When converted to international currency, this equals $869-$988 USD per square meter, depending on daily exchange rate fluctuations. This represents a 32% nominal increase from June 2024 levels.
Regional variations remain extreme across Turkey's diverse property market. Istanbul commands the highest prices at 55,503-61,085 TRY/sqm, representing a 50-70% premium over the national average.
Other major cities show significant but lower values: Izmir at 40,595-41,118 TRY/sqm, Ankara at 29,764-33,272 TRY/sqm, and Antalya at 35,000-38,000 TRY/sqm. Eastern provinces like Hakkari or Ağrı trade at just 8,000-12,000 TRY/sqm.
The USD prices have remained relatively stable over the past year due to lira depreciation offsetting nominal TRY gains.
What Are the Main Risk Factors That Could Affect Turkish Property Prices in Late 2025?
Several critical risk factors could impact Turkish property prices in the second half of 2025, requiring careful consideration by investors.
| Risk Factor | Probability | Potential Impact |
|---|---|---|
| Currency crisis/sharp lira depreciation | Medium | -20% to -30% in USD terms |
| Political instability escalation | Medium | -10% to -15% demand drop |
| Global recession | Low-Medium | -15% to -20% foreign buyer reduction |
| Regulatory changes on foreign ownership | Low | -5% to -10% in affected segments |
| Interest rate policy reversal | Low | +10% to +15% domestic demand boost |
| Major earthquake in Istanbul | Low | -25% to -40% in affected areas |
| Geopolitical tensions escalation | Medium | -10% to -20% foreign investment drop |
It's something we develop in our Turkey property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Property prices in Turkey are going up in nominal terms. As of June 2025, residential property prices continue their upward trajectory with 30-40% annual nominal increases across major cities.
However, this comes with a crucial caveat: real (inflation-adjusted) prices are actually declining by 5-14% annually due to persistent high inflation. For international buyers purchasing with foreign currency, Turkish property remains an attractive investment due to lira depreciation offsetting nominal gains. For domestic buyers, property serves primarily as an inflation hedge rather than a real return generator. The market's future depends heavily on Turkey's ability to control inflation and maintain political stability.
Sources
- Global Property Guide - Turkey Price History
- Daily Sabah - House Price Gains in Turkey
- Damas Group - Property Prices Istanbul
- E-Sales International - Property Market Predictions Turkey 2025
- Number One Property - Turkish Property Market Future
- Mercury Estate - Luxury Real Estate News Turkey 2025
- AGBI - Turkey Property Sales Jump
- PA Turkey - Real Estate Demand Surges
- RSIS International - Housing Sales to Foreigners
- OG Investors - Property Prices Turkey Falling