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What will happen in Turkey’s real estate market? Will prices go up or down? Is Istanbul still a hotspot for foreign investors? How is Turkey’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with notaries, real estate agents, and clients who buy properties in Turkey, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
1) Property prices in the Marmara region will fall moderately because of economic uncertainties
The Marmara region is seeing some economic challenges that might lead to a moderate decline in property prices.
One big reason is the slowdown in Turkey's GDP growth. In 2024, the growth rate dropped to 2.1%, the slowest since 2020, mainly because of high interest rates squeezing the economy. This makes it tough for businesses and individuals to borrow money, slowing down investments and spending.
Unemployment is another issue. In September 2024, the rate hit 8.60%, signaling economic uncertainty. When people worry about job security, they hesitate to buy property, which can lower demand and push prices down.
Inflation is also climbing, with the government setting a target of 41.5% for 2024. High inflation eats into consumer purchasing power, making it harder for people to afford homes. This situation can further drive property prices down in the Marmara region.
These economic factors are creating a cautious atmosphere among potential buyers. The combination of slow GDP growth, rising unemployment, and high inflation is making people think twice before investing in property.
Sources: Trading Economics, CEIC Data, Middle East Briefing
2) More Middle Eastern buyers will invest in Turkey’s real estate due to strong cultural and economic connections
Middle Eastern buyers are increasingly interested in Turkey's real estate market.
In 2023, foreign direct investment in Turkey's housing market hit $13 billion, with a big chunk coming from countries like Iraq, Iran, and Saudi Arabia. This number is expected to grow to $15 billion by 2024, showing that the interest isn't fading anytime soon.
One reason for this surge is the improved connectivity between Turkey and the Middle East. Turkish Airlines has ramped up its network, offering non-stop flights from Istanbul to major cities in Iraq, Iran, and Saudi Arabia. This makes it super convenient for investors to hop over and check out properties.
Cultural and historical ties also play a big part. Turkey shares strong cultural similarities and historical connections with Middle Eastern countries. The AKP government has been working to strengthen these ties, making Turkey feel like a familiar and trustworthy place for Middle Eastern investors.
These connections aren't just about politics; they're about a shared sense of identity and trust. This makes Turkey a preferred destination for real estate investment among Middle Eastern buyers.
Sources: Infographic Site, Flight Connections, Middle East Institute
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.
3) More European buyers will invest in Turkey’s real estate market seeking affordable vacation homes
European buyers are increasingly eyeing Turkey for affordable vacation homes.
With property prices soaring across Europe, Turkey stands out as a more budget-friendly option. In 2024, Turkey boasted the highest inflation-adjusted house price index among 35 European countries, marking a significant rise since 2010. This makes it a compelling choice for those looking to invest in a second home without breaking the bank.
The exchange rate is another big draw. European currencies have a favorable rate against the Turkish lira, allowing buyers to get more value for their money. This financial advantage is expected to attract even more international buyers in 2025, as they look to capitalize on these beneficial rates.
Turkey's appeal doesn't stop at affordability. Its Mediterranean charm, rich history, and diverse culture make it a prime location for those seeking a sunny escape. Surveys show a growing European interest in Mediterranean real estate, with Turkey being a top contender due to its favorable climate and vibrant lifestyle.
The Turkish government sweetens the deal with incentives like the chance to obtain Turkish citizenship through property investment. This policy has been a game-changer, further boosting foreign interest and making Turkey an even more attractive market for European buyers.
Sources: Statista, Investment.com.tr, Consultor Groups
4) Rents in Turkish cities will rise as housing demand exceeds supply
Urban areas in Turkey are seeing a significant rise in rent as housing demand outstrips supply.
In bustling cities like Istanbul, the population is growing rapidly, which naturally pushes up the demand for housing. This influx includes many migrants, such as Syrians, who are moving to these cities for job opportunities, further increasing the need for homes. As a result, rental rates are climbing.
On the flip side, new housing developments are lagging. Economic and regulatory hurdles have slowed down construction, meaning there aren't enough new homes to keep up with demand. This shortage is evident in the consistent trend of rent hikes in urban centers over the years.
Government reports underscore a housing shortage, with a decline in home sales in major cities. This shortage only worsens the supply-demand gap, driving rents even higher. People prefer urban living for better job prospects and amenities, adding more pressure to the demand.
Insider knowledge suggests that the construction industry is facing challenges like rising costs and bureaucratic red tape, which further delays new projects. This situation is not just a temporary blip; it's a trend that has been building over time, with historical data showing steady rent increases.
For potential buyers, understanding these dynamics is crucial. The urban housing market in Turkey is a complex landscape where demand consistently outpaces supply, leading to ongoing rent increases.
Sources: BARNES Türkiye, Global Property Guide, T.C. Merkez Bankası
5) Property prices in Turkey's tourist areas will vary as tourism levels change
In Turkey's tourist hotspots, property prices dance to the rhythm of tourism.
When tourists flood in, places like Istanbul and Antalya see a surge in demand for rentals, which means rental yields can soar to around 6.5% to 7%. This makes these properties a magnet for investors. But here's the catch: tourism isn't always a steady stream. In 2024, for instance, hotel occupancy rates along the Mediterranean coast plummeted to about 60%, a sharp drop from the usual 90-95%. This dip hints at fewer tourists sticking around, which can cool off the property market.
Global events throw their weight around too. The COVID-19 pandemic and geopolitical tensions, like the war in Ukraine, have made travelers more cautious. This caution ripples through the real estate scene in tourist-heavy areas. Investors worry because the market leans heavily on tourism, making it vulnerable to these global shifts and seasonal swings.
So, what's the takeaway? The property market in these areas is like a rollercoaster, with prices rising and falling as tourism does. Seasonal changes, global happenings, and shifting travel habits all play their part. When tourism is up, property prices follow suit, but when it dips, so do the prices.
For those eyeing a property in Turkey's tourist zones, it's crucial to keep an eye on these trends. The market's dependency on tourism means that property values can fluctuate significantly based on how many tourists are visiting. This makes it a dynamic but unpredictable investment landscape.
Understanding these patterns can help potential buyers make informed decisions. It's all about timing and being aware of the factors at play. The ebb and flow of tourism will always be a key player in determining property prices in these vibrant areas.
Sources: eSales International, Travel and Tour World, Binaryx
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6) New zoning laws in Turkey will open up areas for development, affecting property values
Turkey's recent zoning law changes are reshaping the real estate landscape, opening up new areas for residential development.
In Izmir, for example, house prices jumped by 77.2% year-over-year in 2023, a clear sign of how these zoning changes are affecting property values. The new regulations have allowed for more development areas, catering to the rising demand for homes. This is evident as construction permits for residential buildings rose by 24.1% in the first three quarters of 2023, showing a direct link to the zoning updates.
Turkey's real estate market is buzzing, driven by a shift towards urban living and modern amenities. The zoning changes are expected to fuel this growth further by allowing for mixed-use projects that blend living, shopping, and leisure spaces. This approach is attracting more investors, which in turn, boosts property values.
The government is also playing its part by offering incentives like tax breaks and citizenship programs for foreign investors. These policies are making the market even more appealing, adding to the upward trend in property values. The introduction of sustainable practices, such as solar panels, is another factor making properties more attractive and potentially increasing their worth.
In cities like Istanbul and Ankara, the impact of these zoning changes is becoming more visible. New residential areas are popping up, and with them, property values are seeing a noticeable rise. The combination of modern amenities and strategic location is making these areas highly sought after.
Overall, the changes in Turkey's zoning laws are not just about new buildings; they're about creating vibrant communities that meet the needs of today's buyers. This shift is expected to continue influencing property values positively, making it an exciting time for potential buyers and investors.
Sources: Esin Avukatlık Ortaklığı, Statista, Global Property Guide
7) Rents in Turkey's less developed areas will stay flat because of limited economic opportunities
In Turkey's less developed regions, rents have stayed stagnant due to limited economic opportunities.
Take the southeast, for instance, where cities like Mardin and Batman faced an unemployment rate of 18.8% in 2023. This high unemployment means fewer people can afford to rent homes, keeping demand low. Without jobs, there's simply not enough money flowing into these areas to drive up rental prices.
Meanwhile, the western part of Turkey, with cities like Manisa and Afyonkarahisar, tells a different story. Here, unemployment rates were below 5% thanks to more economic activity. This contrast highlights how less developed regions lack the business growth needed to boost their local economies and rental markets.
Foreign direct investment (FDI) hasn't been pouring into these areas either. While Turkey overall was expected to play a bigger role in regional production and distribution, the southeast wasn't a major FDI target. This lack of investment means fewer job opportunities and less economic growth, which directly impacts the rental market.
Without significant industrial or commercial development, these regions struggle to attract new businesses. The absence of business growth means no new jobs are being created, and without jobs, people aren't moving in or looking to rent.
In short, the economic landscape in these areas remains unchanged, keeping rents flat. Limited economic opportunities continue to hold back any potential growth in the rental market.
8) Rents in Turkey's coastal areas will increase as demand for vacation homes grows
In Turkey's coastal areas, the demand for vacation homes is booming.
Take Fethiye, for example, where the real estate market is buzzing with holiday home buyers and investors. People are drawn by the chance to earn significant rental income during peak tourist seasons. It's a hotspot for those looking to capitalize on the thriving tourism scene.
In 2024, Turkey saw a record-breaking 5.1 million foreign tourists in May alone. Coastal gems like Antalya were especially popular, welcoming 1.8 million visitors, which made up 35% of all arrivals. This influx means more tourists are on the hunt for vacation rentals, boosting demand in these picturesque locales.
Foreign investors, particularly from Europe and the Middle East, are eyeing Turkish coastal properties. They're attracted by the lucrative potential of short-term holiday rentals. This international interest is a key factor driving up rental prices, as more people want a piece of the action.
With the surge in tourism and foreign investment, rental prices in these coastal areas are climbing. It's a trend that's hard to ignore if you're considering buying property in Turkey. The combination of beautiful landscapes and a thriving rental market makes it an enticing prospect.
For those looking to invest, understanding the local market dynamics is crucial. The demand for vacation homes isn't just a passing phase; it's a growing trend fueled by both tourism and international interest. This makes Turkey's coastal regions a prime spot for property investment.
Sources: Barnes Turkey, Tourism Review, Property Wizard Turkey
Our team found this video highlighting how rising demand for vacation homes is pushing rental prices up in Turkey's coastal areas.
9) Rental demand in Turkey’s student cities will drop as online education becomes more common
The rental market in Turkey's student cities is experiencing a shift due to the rise of online education.
With a tech-savvy young population and government backing, online education in Turkey has grown by about 15% annually over the past five years. This surge is making remote learning more appealing to students. As a result, many are opting for online classes, which means less demand for traditional student housing.
High private dormitory fees are pushing students towards online education, which is often more affordable. The government's push for better E-learning systems is also playing a role. With these systems in place, students find online education a cost-effective alternative to living on or near campus.
Universities are expanding their online programs, which means fewer students need to be physically present on campus. This shift is leading to a noticeable drop in the need for student housing. The savings from not having to pay for housing or commuting are significant incentives for students to choose online learning.
As more students embrace online education, the traditional rental market in student cities is feeling the impact. The convenience and cost savings of online learning are hard to ignore, making it a popular choice. This trend is reshaping the landscape of student housing in Turkey.
Sources: Stockholm Center for Freedom, Digital Defynd, Ken Research
10) Demand for senior-friendly housing in Turkey will grow as the population ages
Turkey's elderly population is growing rapidly, with 8.45 million seniors in 2023, making up 9.9% of the total population.
By 2025, this number is expected to rise to over 9.5 million, marking the first time the elderly population ratio will exceed double digits in Turkey's history. This shift is significant as it indicates a growing need for senior-friendly housing options.
The United Nations has labeled Turkey as a "country with a very elderly population" because its elderly population ratio has surpassed 10%. Looking further ahead, the UN predicts this ratio will reach 16.3% by 2040 and 22.6% by 2060, underscoring the increasing demand for housing that caters to seniors.
In the senior housing market, there's been a noticeable uptick in demand. In early 2024, absorption rates jumped by 40% compared to the previous year, reflecting a strong need for accessible housing as the 80+ age group grows faster than the available housing stock.
For potential property buyers, this trend suggests a promising opportunity in the senior housing sector. As Turkey's population ages, the demand for homes that accommodate the needs of older adults is likely to continue rising.
Sources: Hürriyet Daily News, Anadolu Agency, NIC MAP Vision, Daily Sabah
11) Demand for properties with health and fitness amenities in Turkey will grow as wellness culture expands
Turkey's wellness culture is booming, and it's making properties with health and fitness amenities more popular.
In 2023, Turkey's health tourism sector brought in $2.3 billion, drawing 1.4 million health tourists. This surge shows a growing interest in health and wellness services, making Turkey a hotspot for those seeking a healthier lifestyle.
The fitness scene in Turkey is on fire, with an 18.2% growth rate expected from 2020 to 2025. This boom is fueled by rising disposable incomes and health awareness, leading to a wave of new gyms and health clubs. Many new residential areas now feature top-notch fitness centers, so residents can easily keep up with their workouts.
The Turkish government is all in on promoting healthy living, aiming to cut physical inactivity by 10% by 2025. This push from the government is boosting the demand for homes with health and fitness features. Real estate developers are teaming up with wellness brands to make sure new properties have these in-demand amenities.
Imagine living in a place where you can hit the gym without leaving your building. That's becoming the norm in Turkey, thanks to this wellness wave. The trend is reshaping the real estate market, making health-focused properties a hot commodity.
Sources: FineUp Clinic, AGBI, Ken Research, Irina Property
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12) Demand for smaller living spaces in Turkey will grow as single-person households rise
The number of single-person households in Turkey has seen a 77.2% increase over the last decade, reaching about 5.2 million in 2023.
In 2023, nearly 20% of households were one-person households, a jump from just 14% in 2014. This shift means more people are choosing to live alone, which naturally boosts the demand for smaller living spaces.
As urbanization continues, Turkey's urban population has grown to over 66 million. This trend often leads to a preference for smaller, more affordable housing, especially for those living solo. The combination of more single-person households and increasing urbanization points to a clear demand for compact living spaces.
Minimalist living and downsizing are gaining popularity, particularly among those living alone. This lifestyle shift often involves choosing smaller, more efficient living spaces, aligning with the needs of single-person households.
As a result, there's a growing market for studio and one-bedroom apartments, reflecting the demand for compact living arrangements. This trend is especially noticeable in urban areas where space is at a premium.
For potential property buyers, understanding these trends can be crucial. Investing in smaller properties might be a smart move, given the rising demand for such spaces in Turkey's urban centers.
Sources: Duvar English, Trading Economics, Statista
13) Affordable housing investments will rise in southeastern Turkey because of government incentives
The southeastern region of Turkey is quickly becoming a hotspot for affordable housing investments thanks to government incentives.
In recent years, the Turkish government has rolled out significant tax breaks for property investments in this area. These incentives are designed to attract both foreign and domestic investors, making the region more appealing for those eyeing affordable housing opportunities.
The Southeastern Anatolia Project, or GAP, is a game-changer here. As the largest development project in Turkish history, GAP focuses on regional growth with major investments in infrastructure like dams, power plants, and irrigation systems. These improvements have boosted the quality of life and income for locals, making the area even more attractive for housing investments.
Population growth is another factor driving demand. The region is experiencing a rise in housing needs due to both natural population increase and migration. This demographic shift, coupled with the region's lower property prices compared to other parts of Turkey, makes it a prime spot for affordable housing.
All these elements—government incentives, infrastructure development, and demographic trends—are aligning to position the southeastern region as a key area for affordable housing investments. It's a perfect storm of opportunity for savvy investors.
Sources: Asrin Group, Antalya Development, GAP Official Site
14) Eco-friendly property values in Turkey will rise due to government incentives for green building practices
The Turkish government is boosting the value of eco-friendly properties by offering incentives for green building practices.
One standout initiative is the Efficiency Enhancement Project Support, which provides a 30% grant for energy efficiency projects. This program has already backed numerous projects, underscoring the government's dedication to sustainable development. Such support makes eco-friendly properties more appealing to potential buyers.
Another key effort is the Climate Change Reduction Strategy and Action Plan, which focuses on improving energy efficiency in existing buildings. This plan promotes renewable energy use and the acquisition of energy identity certificates, essential for cutting down energy consumption. These measures not only encourage green construction but also enhance the marketability of these properties.
There's a clear uptick in the sales of eco-friendly homes, with a notable rise in transactions observed in October 2024. This surge reflects a growing interest in sustainable living, as more buyers are drawn to environmentally efficient homes.
Consumer surveys reveal that many buyers are willing to pay extra for eco-friendly properties. This preference highlights the increasing demand for homes that align with sustainable living principles.
These trends are supported by government incentives, which are likely to continue driving the value of eco-friendly properties upward. As the market evolves, investing in green real estate in Turkey could be a smart move.
Sources: Baker McKenzie, Beynil, Turk Estate
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.
15) Property demand in Turkey's coastal regions will rise as climate change makes inland areas less appealing
Turkey's coastal property market is booming, largely due to climate change making inland areas less desirable.
Inland Turkey is getting hotter, with summer droughts now stretching into fall by 30%, making these areas uncomfortable. Cities like Istanbul are facing critically low water levels, and places like Izmir and Bursa aren't faring much better, which is a big turn-off for potential residents.
Wildfires are another concern. Experts like Ismail Yucel highlight that extreme temperatures and droughts increase wildfire risks, making coastal areas more appealing as they are generally safer from such threats. People are drawn to the coast for its milder weather and more comfortable living conditions.
Investment in coastal infrastructure is on the rise, with a focus on climate-resilient projects to combat rising sea levels and extreme weather. The government is also offering incentives for coastal development, which is expected to further boost property demand.
Real estate reports show that coastal areas are seeing higher property appreciation rates, with cities like Izmir experiencing significant growth in house prices.
Sources: AA, Earth Refuge, G20 Climate Risks, Global Property Guide
16) More people in Turkey will want detached houses for private living spaces
In Turkey, there's a noticeable shift towards detached houses as people crave more private living spaces.
While overall property sales dipped by 14.9% in 2023, the interest in suburban and rural areas is on the rise, hinting at a preference for homes with more space. Take Izmir, for example, where house prices jumped by 77.2% in October 2023, reflecting a strong demand for properties in less crowded areas.
The remote work trend is a big driver here. People want homes with dedicated office spaces and gardens, features typical of detached houses. This shift in work habits makes these homes more attractive, offering the privacy needed for a home office.
Construction is booming too. The Turkish Statistical Institute noted a 24.1% increase in dwelling units granted construction permits in early 2023. This uptick shows developers are catching on to the growing demand for detached homes.
Government incentives are also in play, encouraging purchases outside urban centers. These incentives make spacious, private living environments more appealing, aligning with the trend towards more personal space.
As people seek out these private spaces, the demand for detached houses is set to rise, reshaping Turkey's real estate landscape.
Sources: Global Property Guide, Visit World
17) Demand for modern apartments in Turkey's cities will grow as more young professionals move in
Turkey's urban centers, like Istanbul and Ankara, are seeing a surge of young professionals moving in.
In 2023 and 2024, these cities became hotspots for record-breaking startup investments, especially in the tech sector. Young professionals are flocking to the vibrant tech scene, with companies like Trendyol and Getir making waves globally. This influx is reshaping the urban landscape, creating a buzz around modern living spaces.
Young professionals are on the lookout for modern apartments that offer convenience and a contemporary lifestyle. Real estate reports highlight a growing demand for such properties, especially rentals, in these bustling urban centers. The trend is clear: they want places that match their dynamic lifestyles.
The Turkish government is also playing a part by investing heavily in urban infrastructure. With improved public transportation systems, city living becomes more attractive and accessible, further fueling the demand for modern apartments. Efficient transport options make it easier for young professionals to navigate city life.
Moreover, the rise of co-working spaces and innovation hubs in cities like Istanbul and Ankara is providing the necessary infrastructure for these professionals. These spaces offer a blend of work and lifestyle, making urban areas even more appealing.
Sources: Inside Turkey's Thriving Tech Hub: Startups and Success Stories, Startup Ecosystem Reports, Entrepreneurship Insights, Sustainable infrastructure in Türkiye
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.