Authored by the expert who managed and guided the team behind the Turkey Property Pack
Everything you need to know before buying real estate is included in our Turkey Property Pack
Why is Turkey emerging as a prime destination for property investment in 2025? Is it the attractive rental returns, the thriving tourism sector, or the competitive pricing compared to other international markets? What are the key benefits for investors?
We frequently encounter these questions because we are actively engaged with developers, real estate agents, and investors like you. Given the growing interest in this market, we've decided to compile our insights into a comprehensive article for everyone's benefit.
Our aim is to present a compelling case for investing in Turkey's real estate market, supported by our firsthand experience and market expertise.
If you feel we've overlooked an important aspect in our content or wish to learn more, please don't hesitate to reach out (we respond very quickly). Your feedback enhances the quality of our content.
Finally, please remember that this is not financial or investment advice. Real estate investment involves inherent risks, and market conditions can change unexpectedly. We strongly recommend conducting thorough research and consulting with a qualified financial advisor before making any investment decisions.
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
1) Turkey’s geothermal resources make it ideal for eco-friendly real estate projects
Turkey's geothermal resources are a game-changer for eco-friendly real estate projects.
In the Aegean Region, geothermal power generation capacity hit 1691.4 MW by 2024, showcasing a huge potential for real estate applications. Imagine homes and buildings powered by the earth's natural heat, reducing energy bills and carbon footprints. This isn't just a dream; it's happening now.
The Turkish government is all in, backing renewable energy with programs like the Renewable Energy Resources Support Mechanism (YEKDEM). This initiative offers 15-year fixed price purchase agreements for geothermal power plants, making it a no-brainer for developers to jump on board. It's like getting a long-term discount on your energy costs.
Geothermal energy is a win for the environment, cutting down on greenhouse gas emissions and shrinking carbon footprints. This aligns perfectly with Turkey's push for sustainability and moving away from fossil fuels. For developers, this means creating properties that are not just modern but also environmentally responsible.
In Turkey, using geothermal energy in real estate isn't just about being green; it's about being smart. The country's commitment to renewable energy makes it an attractive option for those looking to invest in sustainable living spaces. With geothermal, you're not just buying a property; you're investing in a future-proof lifestyle.
Sources: ThinkGeoEnergy, World Bank, Stanford University
2) Urban renewal projects are boosting property values by revitalizing city centers
Turkey's urban renewal projects are reshaping city centers and boosting property values.
In cities like Ankara and Istanbul, property prices have jumped between 3% and 20% in 2023, with Ankara leading the charge. This surge is a clear sign that urban renewal is making these areas more appealing to potential buyers. The government's push for urban renewal is backed by new laws, like the Law on Transformation of Areas Under Disaster Risk, which focuses on renewing old buildings and making cities safer. This legal framework not only enhances safety but also increases investor confidence, further driving up property values.
Take the Eskişehir Urban Development Project, for example. This initiative has completely revamped the city's infrastructure and environment. The restoration of the Porsuk River and the introduction of a new public transport network have made Eskişehir more accessible and attractive. These changes have not only improved public opinion but also boosted economic activity, drawing more people and businesses to the area.
These urban renewal efforts are not just about aesthetics; they are about creating vibrant, livable spaces that attract both residents and investors. The focus on infrastructure improvements, like upgraded wastewater systems, plays a crucial role in making these areas more desirable. As a result, property values in these renewed areas are on the rise, making them a smart investment choice.
For those considering buying property in Turkey, these urban renewal projects offer a promising opportunity. The combination of government support, improved infrastructure, and rising property values makes these areas particularly appealing. Whether you're looking for a home or an investment, the revitalized city centers in Turkey are worth considering.
Sources: Property Turkey, WRI Insights, Investment Visa
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.
3) Turkey’s varied climate and landscapes draw in lifestyle buyers of all kinds
Turkey's diverse climate and landscapes are a magnet for lifestyle buyers worldwide.
In recent years, there's been a noticeable uptick in foreign property buyers, especially in coastal hotspots like Antalya, Izmir, and Alanya. These areas are buzzing with expat communities, drawn by Turkey's varied environments. Imagine sipping coffee on a sunny terrace in Antalya or exploring the vibrant streets of Izmir, where the blend of cultures and climates creates a unique living experience.
Tourism numbers from 2023 highlight this trend. Turkey welcomed 49.2 million foreign tourists, a clear sign of its growing appeal as travel restrictions eased. This influx brought in a whopping $54.3 billion, showcasing the allure of regions like Antalya and Mugla, known for their stunning landscapes and distinct climates.
Turkey's climate diversity is a big selling point. From the sun-drenched Mediterranean coast, perfect for beach lovers, to the cooler Aegean climate, there's something for everyone. Whether you're dreaming of endless summers or a place with distinct seasons, Turkey's got you covered.
For those seeking a lifestyle change, Turkey offers a range of options. The Mediterranean climate along the southern coast is ideal for those who love the beach, while the Continental climate offers a taste of all four seasons. This variety means you can find a spot that matches your lifestyle, whether it's the warmth of the Mediterranean or the refreshing Aegean breeze.
Sources: TRT World, Next Generation Equity, Earth Site
4) The natural beauty and outdoor activities make it a top choice for lifestyle-focused property buyers
Turkey's stunning landscapes and outdoor adventures are drawing in lifestyle-focused property buyers.
In 2023, Turkey saw a surge in tourism, welcoming around 36.75 million visitors, with Istanbul alone capturing 36% of these international guests. This upward trend continued into 2024, with a 7.1% increase in foreign tourist arrivals by August, showcasing the growing allure of Turkey's breathtaking scenery and outdoor activities.
Turkey's investment in infrastructure, like hiking trails and water sports facilities, has bolstered the eco-tourism and adventure tourism sectors. These developments not only enhance the charm of Turkey's natural wonders but also make properties in these areas more appealing to those craving an active, nature-filled lifestyle.
Social media platforms, especially Instagram and Facebook, are buzzing with stunning images and videos of Turkey's natural beauty. This online presence has significantly boosted the country's reputation as a top destination for lifestyle-focused property buyers. Testimonials from expatriates and property owners often highlight the lifestyle perks of living in Turkey, such as easy access to gorgeous landscapes and outdoor activities.
For those considering a property purchase, Turkey offers a unique blend of natural beauty and modern amenities. The country's diverse landscapes, from the beaches of Antalya to the mountains of Cappadocia, provide endless opportunities for adventure and relaxation. This combination makes Turkey an attractive option for those seeking a lifestyle change.
With its rich culture, vibrant cities, and stunning natural attractions, Turkey continues to captivate those looking for a new place to call home. The country's commitment to developing its tourism infrastructure ensures that it remains a top choice for lifestyle-focused property buyers.
5) In Turkey, you’ll find a wide range of property options to suit any investor's needs
The Turkish real estate market is a treasure trove of options, offering a wide variety of property types to suit every investor's needs.
In bustling Istanbul, you'll find a mix of residential apartments, commercial spaces, and luxury villas. Istanbul recorded the highest number of house sales in July 2024, making it a hot spot for both local and international investors. This city is a vibrant blend of history and modernity, where you can invest in a chic apartment overlooking the Bosphorus or a sleek office space in the heart of the business district.
Head to Antalya, and you'll discover a paradise for luxury seekers. Known for its stunning Mediterranean coastline, Antalya is famous for its high demand for luxury villas and apartments. Places like Kalkan offer 5-star living with breathtaking views, drawing in tourists and investors alike. Imagine waking up to the sound of waves and enjoying a leisurely breakfast on your terrace.
Izmir, with its proximity to the Aegean coast, is another gem. It's perfect for those looking for holiday homes or luxury apartments. Izmir's real estate market is growing, thanks to its beautiful beaches and vibrant cultural scene. Whether you're looking for a summer retreat or a permanent residence, Izmir has something to offer.
The Turkish government sweetens the deal with incentives for foreign buyers, including the chance to obtain Turkish citizenship through property investment. This has made Turkey a magnet for international investors, even though there's been a slight dip in transactions involving foreigners recently. The rise in short-term rental properties is another trend, especially in coastal areas like Kalkan, driven by the booming tourism industry.
Sources: Istanbul Real Estate, Premier Villas, Yekta Homes
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6) Turkey’s coastline is perfect for luxury real estate investments
Turkey's coastline is a hotspot for luxury real estate investments.
Property values along the coast have been on the rise, mainly because there's limited land available and a growing number of people eager to buy. Take the Kanal Istanbul Project in Istanbul, for instance; it has shown how coastal investments can significantly increase in value. This trend is not just about numbers; it's about the allure of living by the sea.
Foreign investors are increasingly drawn to Turkey's stunning Mediterranean and Aegean coasts. These areas are not just tourist magnets; they are also prime locations for luxury villa projects. Cities like Bodrum, Fethiye, and Antalya are particularly appealing, offering the potential for high rental income through platforms like Airbnb. Imagine owning a villa where tourists flock year-round.
The Turkish government sweetens the deal with incentives for foreign buyers, such as the citizenship by investment program. With a minimum investment of USD 250,000, this program is especially attractive to investors from the Middle East and Asia. These incentives make investing in coastal properties even more enticing.
For those considering a purchase, it's not just about the property itself but the lifestyle and opportunities it offers. The coastal areas are known for their vibrant culture, delicious cuisine, and a mix of modern and traditional living. Owning a piece of this paradise means more than just a financial investment; it's about embracing a unique way of life.
Whether you're looking for a vacation home or a long-term investment, Turkey's coastline offers a blend of beauty, culture, and financial potential. The combination of rising property values, foreign interest, and government incentives makes it a compelling choice for savvy investors.
Sources: Asrin Grup, Consultor Groups
7) Turkey’s location connects Europe and Asia, making it a hotspot for international business and tourism
Turkey's unique position as a bridge between Europe and Asia makes it a key hub for international business and tourism.
With its strategic location, Turkey has become a magnet for foreign direct investment. Multinational companies are increasingly setting up regional offices here, drawn by the country's improving business environment. This influx of businesses is not just about location; it's about Turkey's growing role as a connector between East Asia and Europe.
Turkey's tourism sector is booming, attracting millions of visitors each year. In 2023, the country welcomed around 36.75 million tourists, and the numbers are expected to soar to 59.6 million in 2024. Cities like Istanbul and Antalya are at the heart of this growth, offering a mix of rich cultural heritage and breathtaking landscapes.
One of the standout features of Turkey's connectivity is the expansion of Istanbul Airport. It's now one of the busiest airports in the world, reflecting the country's enhanced global connectivity. This development is a testament to Turkey's strategic importance in international travel and trade.
Tourists flock to Turkey not just for its historical sites but also for its vibrant culture and stunning natural beauty. The country's appeal is broad, drawing visitors from all over the globe who are eager to experience its unique blend of East and West.
As Turkey continues to grow as a tourist and business destination, its role as a bridge between continents becomes even more pronounced. The country's strategic location is not just a geographical advantage; it's a gateway to new opportunities for businesses and travelers alike.
Sources: Market Insights, Netblime, Consultor Groups
In this video, Turkey's strategic position between Europe and Asia is highlighted as a key factor in attracting international business and tourism.
8) Turkey’s key position in global trade makes it ideal for commercial real estate investments
Turkey's unique position between Europe and Asia makes it a key player in global trade.
In 2023, Turkey had a trade deficit of about 106 billion U.S. dollars, showing the massive flow of goods through its borders. This bustling trade activity highlights Turkey's importance as a transit hub, which naturally boosts the demand for commercial real estate. The Turkish government is actively working to attract foreign direct investment (FDI) by integrating the country into global supply chains. By 2028, Turkey aims to capture 1.5% of global FDI and 12% of the regional share, which could significantly impact the commercial real estate market.
One of the strategies includes bringing small and medium-sized enterprises into the supply chains of major industrial producers. This move is expected to give a substantial boost to the commercial real estate sector. The expansion of international companies setting up regional headquarters in Turkey, especially in cities like Istanbul, is also driving demand for commercial spaces. The rise of e-commerce is another factor, increasing the need for warehousing and distribution centers, which further supports the commercial real estate market.
Turkey's strategic location and proactive government policies are making it an attractive destination for businesses looking to expand their operations. The country's efforts to integrate into global supply chains are not just about attracting investment but also about creating a robust infrastructure that supports business growth. This is particularly evident in the commercial real estate sector, where demand is steadily rising.
As more international companies establish their presence in Turkey, the need for commercial real estate continues to grow. This trend is especially noticeable in Istanbul, where the demand for office spaces and logistics centers is on the rise. The growth in e-commerce is also contributing to this demand, as more warehousing and distribution centers are needed to support the industry's expansion.
Sources: Statista, Daily Sabah, Mada Homes, Trade.gov
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.
9) Turkey’s citizenship-by-investment program boosts property demand
The Turkish government has a program that lets you get citizenship by buying property, which has really boosted demand.
Through the Citizenship-by-Investment Program (CIP), foreigners can become Turkish citizens by purchasing real estate. Initially, you needed to invest US$1 million, but in 2017, they dropped it to US$250,000, making it more appealing to many more people.
From 2018 to 2021, 19,630 foreigners became Turkish citizens by buying a total of 30,358 properties. This was largely due to changes in the law that made it easier for foreigners to invest. Russians, Iranians, and Iraqis have been the top buyers since 2019, showing a strong interest from these regions.
In 2023, foreigners bought 35,005 properties in Turkey, making up 3% of all property sales. Even though there was a 45% drop in the first quarter of 2024 compared to the previous year, foreign interest is still strong. The market is expected to grow significantly, reaching USD 168.11 billion by 2029.
Sources: IMI Daily, Mordor Intelligence, Hürriyet Daily News
In this video, we can see that Turkey's citizenship-by-investment program drives real estate demand.
10) The Turkish lira's fluctuations can offer foreign investors more appealing property prices
The Turkish lira's ups and downs have made buying property in Turkey more appealing to foreign investors.
When the lira drops against stronger currencies like the USD or EUR, real estate in Turkey becomes cheaper for those holding these currencies. Imagine the lira loses 20% of its value against the US Dollar; a property priced at 1 million TRY would then cost 20% less in USD terms. This is a big draw for investors looking to get more for their money.
Historically, when the lira takes a hit, foreign property purchases in Turkey tend to rise. Investors from Europe, the Middle East, and Asia have been particularly keen on snapping up Turkish real estate during these times. This was especially noticeable in 2023 and 2024, when foreign ownership in Turkish property markets increased amid economic instability.
Foreign investors are taking advantage of these favorable exchange rates to buy properties in Turkey. The increased affordability due to lira depreciation has kept property prices stable, even as the lira itself fluctuates. This has led to a significant boost in foreign direct investment in Turkish real estate during periods of lira volatility.
For those looking to invest, the lira's volatility can be a strategic advantage. It allows investors to enter the market at a lower cost, potentially increasing their return on investment. This is why many are keeping a close eye on currency trends and timing their purchases accordingly.
In essence, the lira's fluctuations offer a unique opportunity for savvy investors to capitalize on lower property prices. This dynamic has made Turkey an attractive destination for those looking to diversify their real estate portfolios.
Sources: My Villa Turkey, Number One Property, Luxury Signature
11) Turkey’s booming tech sector means there’s a high demand for modern office spaces
Turkey's tech industry is booming, with over 8,000 startups thriving in 101 technoparks.
This surge has attracted $1.4 billion in investments in 2023, making Turkey a hotspot for tech innovation. The influx of foreign direct investment, jumping from $50-100 million to over $1.5 billion, is a testament to the country's growing appeal. The government's Technopark Program, offering tax breaks and infrastructure support, plays a crucial role in this growth.
Turkey's universities are expanding their tech programs, creating a strong talent pool that benefits startups. This talent influx is driving demand for modern office spaces, especially in cities like Istanbul. The city's tech ecosystem is valued at $22 billion, underscoring its status as a major tech hub.
With more tech professionals flocking to Turkey, the need for coworking spaces and modern office amenities is on the rise. Istanbul, in particular, is seeing a boom in demand for these spaces, reflecting the city's vibrant tech scene.
For those considering property investment in Turkey, the tech industry's growth offers promising opportunities. The demand for modern office spaces is not just a trend but a necessity driven by the expanding tech sector.
Sources: Nucamp, Nucamp, Nucamp
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12) With Turkey's booming tourism, you can easily rent out your property short-term
Turkey's tourism industry is thriving, with international tourist arrivals soaring in recent years.
In 2024, the number of foreigners visiting Turkey jumped by 9.3% compared to the previous year, with 5.45 million visitors in October alone. This influx, especially from Germany, Russia, and the UK, has naturally increased the demand for short-term rentals.
Popular destinations like Istanbul and Antalya are seeing higher occupancy rates in short-term rentals due to their rich culture and historical allure. These cities offer a vibrant atmosphere that attracts tourists, making them hotspots for property investment.
The Turkish government is actively promoting tourism, recognizing its vital role in the economy. In 2024, tourism revenues grew by 3.9% year-on-year, reaching $23.22 billion in the third quarter, which supports the growth of short-term rental opportunities.
Investors are drawn to the healthy rental market in these areas, finding reliable returns on platforms like Airbnb. This trend is encouraging more property owners to list their homes, capitalizing on the booming tourism sector.
With the government's support and the continuous influx of tourists, short-term rental properties are becoming a lucrative business in Turkey's real estate market.
Sources: Trading Economics, Binaryx, Trading Economics
13) Turkey’s expanding middle class is increasing the need for modern homes
Turkey's growing middle class is significantly boosting the demand for modern housing.
In 2023, the World Bank noted that Turkey's urban population, which is mostly middle-class, is on the rise. This shift is largely due to economic growth in the services sector and reconstruction efforts after earthquakes, which have spurred urban development. The urban population in Turkey was over 66 million, showing a clear trend towards urbanization.
Property prices in Istanbul have surged, rising by about 40% from 2018 to 2024. This increase reflects the strong demand for modern housing units, especially in urban areas like Istanbul, where the middle class is expanding. Consumer surveys highlight a preference for modern housing amenities among young professionals and middle-income families.
These groups are particularly interested in city center properties, which offer the appeal of urban living. Popular districts such as Beşiktaş, Beyoğlu, and Şişli are experiencing high demand, driven by their attractiveness to young professionals and middle-income families. There has been a notable boom in construction and real estate development projects in these urban areas.
The number of real estate transactions involving middle-class buyers is on the rise. This trend is fueled by the steady demand and limited supply of modern housing units, leading to significant capital growth in real estate investments. Trending hashtags on social media promoting modern living spaces indicate a growing interest in modern housing among the Turkish population.
This reflects the changing lifestyle preferences of the middle class towards more urban and modern living standards. The demand for modern housing is not just about having a roof over one's head; it's about embracing a lifestyle that aligns with contemporary urban living. The middle class is driving this change, seeking homes that offer both comfort and convenience.
Sources: Trading Economics, Property Turkey, Middle East Briefing
14) Turkey’s growing infrastructure, with new airports and highways, increases property values
Turkey's expanding infrastructure is reshaping property values across the country.
Take the Istanbul Airport, for example. It's not just any airport; it's one of the largest and busiest globally. This massive hub has turned once-remote areas into prime investment spots, causing property prices in nearby neighborhoods to soar. The airport's influence is undeniable, making these areas more appealing to investors.
In 2024, Istanbul's airports saw a 9% rise in passenger traffic in just the first seven months. Specifically, Istanbul Airport experienced a 6% increase. This surge in connectivity has made surrounding regions more accessible and attractive for real estate investments, drawing in more people who can now easily reach these areas.
Beyond Istanbul, Turkey's airport network expansion is opening up new opportunities. Airports in places like Antalya and Alanya have transformed these Mediterranean gems into popular destinations for holiday homes and permanent residences. As these areas become more desirable, property values naturally climb.
These infrastructure developments are not just about convenience; they're about creating new opportunities. The improved regional accessibility is making previously overlooked areas more appealing, driving up demand and, consequently, property prices.
For anyone considering buying property in Turkey, understanding the impact of these infrastructure projects is crucial. They are not just changing the landscape but also the real estate market dynamics, offering new investment opportunities in areas that were once off the radar.
Sources: Business Wire, Daily Sabah, VIP Property
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.
15) You’ll benefit from tax breaks and other incentives if you’re a foreign property buyer
The Turkish government is actively encouraging foreign property buyers with attractive tax breaks.
In recent years, particularly in 2023 and 2024, foreign investment has been a driving force in Turkey's real estate boom. A large chunk of the $254.2 billion in foreign investments was funneled into real estate, showing just how appealing the market is.
One standout incentive is the VAT exemption for first-time foreign buyers. If you're buying property in Turkey for the first time and transferring funds from abroad, you won't have to pay VAT. This is a big draw for international investors looking to maximize their returns.
Real estate agencies in Turkey are quick to point out these perks, often highlighting the favorable tax conditions and the potential for high rental income. This makes Turkey a hotspot for those looking to invest in property abroad.
Foreign property owners in Turkey frequently share positive experiences, often mentioning the ease of the buying process and the potential for long-term financial gains. These testimonials add to the allure of investing in Turkish real estate.
Sources: Safe Properties, Luxury Signature, IMI Daily
16) With better healthcare, Turkey is drawing health tourists, which increases property demand
Turkey's healthcare system has become a magnet for health tourism, with over 1.4 million health tourists visiting in 2023.
Thanks to Turkey's investment in healthcare infrastructure, the country now boasts integrated healthcare campuses like the Elazığ Fethi Sekin City Hospital. These facilities offer cutting-edge medical services and have significantly increased bed capacity, making them a top choice for international patients.
The Turkish government is also playing a big role by partnering with international insurance companies to promote health tourism. This has led to Turkish hospitals gaining international accreditation, like Memorial Şişli Hospital, which was the first in Turkey to receive JCI Accreditation, boosting its global standing.
What really draws people in is Turkey's competitive pricing for medical procedures. The combination of affordability and high-quality care has earned Turkey rave reviews and plenty of media attention, solidifying its reputation as a leading medical tourism hub.
This boom in health tourism is having a ripple effect on the property market. Foreign property purchases are on the rise in areas with top-notch medical facilities, as more people look for comfortable places to stay while receiving treatment.
Developers are catching on, creating residential projects aimed at medical tourists and expatriates. These developments offer convenient living options for those undergoing treatment, making Turkey an even more attractive destination for health tourists.
Sources: SESRIC, Invest in Turkey, Memorial Healthcare Group, Medipol Mega University Hospital, FineUp Clinic
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.