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Turkey's property market has shown remarkable resilience and growth in 2025.
Property prices across Turkey have surged dramatically since 2022, with nationwide residential prices jumping 31.95% year-on-year in January 2025 alone. Home sales rose 20.6% in 2024 and surged another 39.7% in early 2025, driven by high inflation, foreign investment, and strong demand in major cities like Istanbul, Ankara, and Izmir. The average residential price reached approximately $869 per square meter nationwide, with some regions experiencing over 30% annual growth rates.
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Turkey's property market is experiencing robust growth in 2025, with prices rising over 30% annually in many regions.
Foreign investment, inflation hedging, and supply constraints continue to drive strong demand across major Turkish cities.
| Market Indicator | 2024 Performance | 2025 Outlook |
|---|---|---|
| Home Sales Growth | +20.6% nationwide | +39.7% (Jan 2025) |
| Price Growth | 29-32% annually | 31.95% (Jan 2025) |
| Average Price/sqm | $869 nationwide | Projected 10-20% increase |
| Foreign Investment | Rising in coastal areas | Continued growth expected |
| Inflation Impact | Above 40% | Expected to moderate to 25-43% |
| Major Cities Growth | 18-34% price increases | Sustained double-digit growth |
| Tourism Effect | Strong recovery post-pandemic | Continued boost to coastal markets |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
What is the current state of Turkey's property market?
Turkey's residential property market is experiencing exceptional growth as of September 2025.
Home sales nationwide surged 39.7% year-on-year in January 2025, following a strong 20.6% increase throughout 2024. Major cities including Istanbul, Ankara, and Izmir all recorded robust double-digit growth in both unit sales and median prices.
The average residential price reached approximately $869 per square meter nationwide, with annual growth rates exceeding 30% in many regions. Istanbul property prices rose 18-34% in the past year alone, while coastal cities like Antalya experienced similar dramatic increases.
The Turkish property market has fully recovered from the brief downturn in 2023 and is now operating at historically high levels with strong momentum across all major metropolitan areas.
Foreign buyers continue to drive significant activity, particularly in coastal regions and major cities, contributing to the market's robust performance.
How have property prices in Turkey changed over the past few years?
Turkish property prices have experienced dramatic increases since 2022, representing one of the most significant growth periods in the country's real estate history.
Property prices surged 168% in 2022, followed by another 76% increase in 2023, reaching historic peaks during this period. The nationwide residential price index jumped 31.95% year-on-year in January 2025, maintaining the steep upward trajectory.
In Turkey's top cities including Istanbul, Ankara, Antalya, and Izmir, prices increased by 18-34% in 2024 alone. The nationwide year-over-year price growth averaged 29-32% throughout 2024 and continued into mid-2025.
This represents a cumulative price increase of over 400% since early 2022, making Turkish real estate one of the fastest-appreciating property markets globally during this period.
The price acceleration has been consistent across both luxury and mid-market segments, with coastal properties and urban centers leading the growth.
What are the main factors driving Turkey's property prices up or down?
Several key factors are propelling Turkish property prices upward in 2025.
- High inflation rates: Official inflation remains above 40%, eroding the Turkish lira's value and increasing the appeal of property as a hard asset hedge against currency depreciation.
- Strong population growth: Annual population growth of 1.7% combined with continued urbanization creates sustained housing demand across major cities.
- Foreign investment surge: International buyers, particularly in resort areas like Antalya and Bodrum, drive elevated demand through favorable investment laws and climate migration trends.
- Supply constraints: Limited available land in desirable coastal and urban areas restricts new development, creating supply-demand imbalances that push prices higher.
- Tourism boom: Rising international tourist arrivals increase demand for vacation homes and short-term rental properties, particularly in coastal regions.
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How do inflation and interest rates in Turkey impact property prices?
Inflation and interest rates create complex dynamics that ultimately favor Turkish property price growth.
High inflation above 40% drives Turkish and foreign buyers toward property as an inflation hedge, since real estate typically retains value better than cash holdings during periods of currency depreciation. This influx of inflation-hedging demand significantly boosts property prices across all market segments.
The Central Bank's sharp interest rate increases in late 2023 and 2024 initially slowed domestic mortgage demand due to higher borrowing costs. However, this simultaneously increased rental market activity as potential buyers shifted to renting, driving up rental yields and making property investment more attractive.
Foreign buyers remain largely unaffected by Turkish interest rate changes since they typically purchase with cash or foreign-currency financing, maintaining strong demand pressure even when domestic financing becomes more expensive.
The combination of high inflation and elevated interest rates ultimately creates a net positive effect on property prices by increasing investment demand while constraining supply through reduced development financing.
What is the overall economic outlook for Turkey in the coming years?
| Economic Indicator | Current Status (2025) | 2025-2026 Forecast |
|---|---|---|
| Inflation Rate | Above 40% | Expected to moderate to 25-43% |
| GDP Growth | Positive growth maintained | Continued expansion projected |
| Investment Climate | Strong foreign interest | Forecast to increase further |
| Urbanization Trend | Ongoing migration to cities | Persistent urban growth |
| Currency Stability | Gradual stabilization | Improved stability expected |
| Real Estate CAGR | Above 11% currently | Projected above 11% through 2030 |
| Infrastructure Investment | Major projects ongoing | Continued expansion planned |
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Are foreign investments in Turkish property increasing or decreasing?
Foreign investments in Turkish property are significantly increasing as of September 2025.
International buyers are particularly active in coastal regions including Antalya, Bodrum, and Istanbul, contributing substantially to both sales volumes and price increases. Foreign investment has become a major driver of the current property boom, especially among buyers seeking residency or citizenship through property purchase programs.
Legislative changes remain favorable for foreign ownership, with relatively few restrictions limiting international property investment. The combination of attractive investment laws, competitive pricing compared to European markets, and Turkey's strategic location continues to draw European, Middle Eastern, and Russian buyers.
Foreign buyers are less affected by Turkish lira volatility and domestic interest rate changes since they typically transact in dollars or euros, maintaining consistent demand even during periods of domestic economic uncertainty.
The trend toward climate migration and lifestyle investment in Turkish coastal properties has accelerated post-pandemic, with foreign buyers viewing Turkey as an attractive alternative to traditional European destinations.
How does Turkey's political climate affect property values?
Turkey's political climate creates short-term volatility but has minimal long-term impact on property values due to strong fundamental demand.
Political uncertainty or election periods may cause temporary hesitancy among some investors, particularly in the luxury segment where buyers have more flexibility in timing their purchases. However, these effects typically last only weeks or months rather than creating sustained downward pressure.
Turkey's enduring demand fundamentals including population growth, urbanization, foreign investment interest, and inflation hedging needs keep the property market attractive regardless of political developments. Both local and international investors continue to view Turkish real estate as a stable store of value during political transitions.
The government's generally pro-investment stance toward real estate, including favorable foreign ownership laws and infrastructure development, provides policy continuity that supports long-term market confidence.
Historical data shows that Turkish property prices have continued rising through various political cycles, with economic factors proving more influential than political events for market performance.
What role does the supply and demand balance play in Turkey's property market?
Supply and demand imbalances strongly favor continued price appreciation across Turkey's major property markets.
Demand far outpaces supply in most sought-after regions, driven by population growth, urbanization, foreign investment, and domestic buyers seeking inflation hedges. This sustained demand pressure maintains upward pressure on prices across all property segments.
New construction permits are rising but cannot keep pace with surging demand, especially in coastal cities where land availability is naturally constrained. Limited developable land in desirable locations creates structural supply shortages that support long-term price growth.
Urban renewal projects and new building permits are increasing supply in some areas, but the rate of new supply additions remains well below demand growth in key markets like Istanbul, Ankara, Antalya, and Izmir.
The supply-demand imbalance is most pronounced in prime coastal locations and central urban areas, where geographic constraints limit expansion possibilities while demand continues to intensify from both domestic and international buyers.
Are there any major infrastructure projects planned that could influence property prices?
Turkey has extensive infrastructure development planned that will significantly boost property values in surrounding areas.
- Airport expansions: Major capacity increases planned for Istanbul, Antalya, and other key airports will improve international accessibility and drive property demand in nearby areas.
- Highway networks: New highway connections between major cities will reduce travel times and make previously less accessible areas more attractive for residential development.
- Urban transport systems: Metro and rail expansions in Istanbul, Ankara, and Izmir will increase property values along new transit corridors and improve connectivity to urban centers.
- Port developments: Expansion of commercial and cruise ports in coastal cities will boost tourism infrastructure and increase demand for nearby residential and vacation properties.
- Urban renewal zones: Large-scale redevelopment projects in Istanbul and other major cities will create modern residential districts and increase surrounding property values.
These infrastructure investments are anticipated to enhance property values substantially in surrounding areas, with the most significant impacts expected in Istanbul, Antalya, Bodrum, and Izmir where major projects are concentrated.
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.
How do local regulations or zoning laws impact the property market in Turkey?
Local regulations and zoning laws create mixed effects on Turkey's property market, generally supporting price growth through controlled development.
Loosening of foreign ownership regulations has increased international investment activity, particularly in coastal and metropolitan areas where foreign buyers can now purchase more freely. These regulatory changes have directly contributed to increased sales volumes and price appreciation.
Local zoning restrictions in highly sought-after coastal areas limit new development density, constraining supply and supporting higher prices for existing properties. These restrictions are particularly impactful in prime beachfront locations where development rights are strictly controlled.
Urban renewal initiatives and streamlined permitting processes in some areas are increasing supply, but the overall regulatory environment still favors controlled growth rather than unrestricted development. This balanced approach supports sustainable price appreciation rather than speculative bubbles.
Building permit allocation processes can create temporary supply bottlenecks, but increasing permit issuance in recent years suggests regulatory support for meeting growing housing demand across major Turkish cities.
How are tourism trends affecting property prices, especially in popular areas?
Tourism recovery and growth are major drivers of property price increases in Turkey's popular destinations.
International tourist arrivals have grown strongly post-pandemic, directly boosting property prices and rental yields in tourist hotspots including Antalya, Bodrum, Istanbul, and coastal Aegean regions. This tourism resurgence increases demand for both vacation homes and short-term rental investment properties.
The popularity of short-term rental platforms has made tourism-related property investment increasingly attractive, with investors purchasing properties specifically for vacation rental income. This trend adds a new category of property demand beyond traditional residential and vacation home purchases.
Tourism infrastructure improvements including new airports, hotels, and attractions make surrounding residential areas more desirable, creating spillover effects that boost property values in entire regions rather than just immediate tourist zones.
Climate migration trends and increased interest in Mediterranean lifestyle investments have accelerated foreign property purchases in Turkish coastal areas, with tourism amenities and infrastructure serving as key attractors for international buyers.
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What are experts predicting about the future of Turkey's property market?
Real estate experts are forecasting continued strong growth for Turkey's property market through 2025 and beyond.
| Expert Prediction | Timeframe | Expected Impact |
|---|---|---|
| Average price growth of 10-20% | 2025 | Continued appreciation across all segments |
| CAGR above 11% | Through 2030 | Sustained long-term growth trajectory |
| Resilience in foreign currency values | Ongoing | Continued appeal to international buyers |
| Strong medium-term outlook | 2025-2027 | Barring major political/economic disruptions |
| Continued foreign buyer attractiveness | Next 3-5 years | Sustained international investment demand |
| Infrastructure-driven appreciation | 2025-2030 | Regional value increases near major projects |
| Tourism sector property growth | Ongoing | Coastal and resort area outperformance |
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.
Turkey's property market shows exceptional strength in 2025, with experts forecasting continued robust growth driven by fundamental demand factors and international investment interest.
While inflation and political factors create some uncertainty, the combination of supply constraints, infrastructure development, tourism growth, and foreign investment demand supports a positive long-term outlook for Turkish real estate prices.
Sources
- Global Property Guide - Turkey Price History
- Realting - Turkey Housing Market 2025 Growth Analysis
- Mercury Estate - Turkey Property Price Forecasts 2025
- Property Turkey - Turkish Real Estate Market Analysis
- CEIC Data - Turkey House Prices Growth
- Yekta Homes - Turkey Real Estate News
- Turkey Homes - Real Estate Sales Surge 2025
- Imtilak Real Estate - Turkey Property Prices
- LinkedIn - Turkish Real Estate Market Outlook 2025
- eSales International - Turkey Property Market Predictions 2025