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
Turkey's real estate market in 2025 shows strong nominal price growth but faces inflation-adjusted challenges. Property prices rose 31.95% year-over-year in January 2025, though real values declined 7.16% due to persistent inflation at 39.05%.
The Turkish property market presents a complex landscape where coastal cities and major metropolitan areas significantly outperform eastern provinces in both demand and pricing. Foreign investment remains active despite regulatory changes, with citizenship-by-investment programs continuing to drive premium property purchases.
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.
Turkey's real estate market shows 31.95% nominal price growth year-over-year but 7.16% real decline due to inflation.
Istanbul leads with average prices of $1,301-$1,520 per square meter, while rental yields range from 5.74% in Antalya to 8.95% in Adana.
| City | Avg. Price (USD/sqm) | Rental Yield |
|---|---|---|
| Istanbul | $1,301 - $1,520 | 7.30% |
| Ankara | $815 - $846 | 8.29% |
| Antalya | $1,097 - $1,102 | 5.74% |
| Izmir | $1,062 - $1,118 | 7.00% |
| Adana | $650 - $750 | 8.95% |
| Bursa | $800 - $900 | 7.42% |
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
What's the current average price per square meter in Turkey by city and property type?
Property prices in Turkey vary significantly between major cities, with Istanbul leading at $1,301-$1,520 per square meter as of June 2025.
Izmir follows with prices ranging from $1,062-$1,118 per square meter, making it the second most expensive major city for property purchases. Antalya, Turkey's tourism capital, shows similar pricing at $1,097-$1,102 per square meter, reflecting strong demand from both domestic and foreign buyers.
Ankara, the capital city, offers more affordable options at $815-$846 per square meter, providing better value for investors seeking rental income opportunities. The national average sits between $869-$988 per square meter, indicating that many smaller cities offer significantly lower entry costs.
It's something we develop in our Turkey property pack.
Eastern provinces like Muş and Diyarbakır show the fastest price growth rates at 25.66% and 17.45% respectively, though starting from much lower base prices around $300-$500 per square meter.
How have real estate prices changed in the last 6 months compared to the previous year?
Turkish property prices rose 31.95% year-over-year in January 2025, but inflation-adjusted real values actually declined by 7.16%.
The first quarter of 2025 showed a 4.66% quarterly increase, bringing national average prices to 37,740 Turkish Lira per square meter. Istanbul experienced a 29.6% nominal increase but an 8.8% real decline when adjusted for the 39.05% inflation rate as of February 2025.
Ankara performed slightly better with a 36.6% nominal increase and only a 3.9% real decline, while Izmir mirrored Istanbul's performance with 29.6% nominal growth and 8.8% real decline. These figures highlight the challenging environment where property appears to be gaining value rapidly, but purchasing power erosion affects actual returns.
The fastest-growing cities include Muş with 25.66% growth and Diyarbakır with 17.45% growth in the last six months, though these are emerging markets with much lower absolute prices. Coastal and metropolitan areas continue to outperform eastern provinces in both stability and demand.
Which areas in Turkey are seeing the fastest price growth right now?
Eastern Turkish cities are experiencing the fastest price growth rates as of mid-2025, led by Muş with 25.66% growth and Diyarbakır with 17.45% growth.
These emerging markets benefit from infrastructure development projects and lower starting price points, making them attractive for value investors. Kırklareli and other border cities also show strong growth potential due to increased connectivity and development initiatives.
Among major cities, Ankara leads with 36.6% nominal growth, outpacing both Istanbul and Izmir at 29.6% each. Coastal areas including Bodrum and Antalya maintain steady premium pricing with 15-20% growth rates, driven by foreign investment and tourism recovery.
Prime Istanbul districts, particularly those with Bosphorus views or new metro connections, continue to see 20-25% price appreciation. Luxury coastal villas in Bodrum and Antalya command $4,000+ per square meter, representing the highest-growth premium segment.
Investment opportunities in these high-growth areas require careful consideration of infrastructure development timelines and market accessibility for both rental income and resale potential.
What are the rental yields like in major cities such as Istanbul, Ankara, and Antalya?
| City | Average Gross Rental Yield | Property Type |
|---|---|---|
| Adana | 8.95% | Mixed residential |
| Ankara | 8.29% | Apartments |
| Bursa | 7.42% | Mixed residential |
| Istanbul | 7.30% | City apartments |
| Izmir | 7.00% | Coastal apartments |
| Antalya | 5.74% | Tourist zone properties |
Rental yields in Turkish major cities range from 5.74% in Antalya to 8.95% in Adana, with most investors achieving 7-8% gross returns on well-located properties.
Istanbul offers 7.30% average yields, with higher returns possible in emerging districts and lower returns in prime central locations. Ankara provides 8.29% yields, making it attractive for steady rental income due to government employment and university presence.
Antalya's lower 5.74% yield reflects higher property prices in tourist zones, though seasonal short-term rentals can achieve significantly higher returns during peak months. Bursa offers solid 7.42% yields with good industrial employment supporting rental demand.
How do short-term rental returns compare to long-term rentals across different regions?
Short-term rentals in Turkish coastal cities can generate €70-€100 per day during peak season, compared to €900-€1,500 monthly for long-term rentals in the same properties.
Antalya short-term rentals achieve up to 12% annual yields when managed properly, significantly outperforming the 5.74% long-term rental average. However, seasonal vacancy periods of 3-4 months reduce overall returns and require active management.
Istanbul short-term rentals near major attractions can command €50-€80 per night year-round, with occupancy rates of 60-70% generating 8-10% annual yields. Long-term rentals in the same areas typically yield 7.30% with minimal management requirements.
Bodrum and Çeşme coastal properties show the highest short-term rental premiums, with luxury villas earning €200-€500 per night during July-August. Winter months see significant rate drops and occupancy challenges, making year-round financial planning essential.
Eastern cities generally favor long-term rentals due to limited tourism infrastructure, though business travel in Ankara can support higher short-term rates around government and conference areas.
Are foreign buyers active in the market currently, and if so, where are they buying?
Foreign property purchases in Turkey fell 45.7% year-over-year in the first half of 2024 to 10,548 units, though activity remains concentrated in specific high-value locations.
Russians, Iranians, and Iraqis lead foreign buyer activity, with Antalya attracting 3,868 foreign purchases, followed by Istanbul and Bodrum. The citizenship-by-investment program requiring $400,000+ investment continues to drive premium property demand despite overall volume declines.
Istanbul's foreign buyers focus on luxury apartments in districts like Beşiktaş, Şişli, and waterfront areas, with average purchase prices exceeding $200,000. Antalya attracts lifestyle buyers seeking coastal villas and apartments, particularly in Alanya, Belek, and Kalkan.
It's something we develop in our Turkey property pack.
Bodrum maintains its position as Turkey's most exclusive market, with foreign buyers purchasing properties averaging $500,000-$2 million. Recent regulatory changes requiring higher investment thresholds have made buyers more selective, focusing on prime locations with strong rental potential.
What are the transaction volumes and buyer profiles this quarter compared to last year?
Total property sales in Turkey surged 20.1% year-over-year to 335,786 units in Q1 2025, driven primarily by increased domestic demand.
Domestic buyers account for the majority of increased activity, with a 20% uptick in local purchases reflecting improved mortgage accessibility and investment demand. Foreign buyer activity has become more selective, focusing on higher-value properties that meet citizenship requirements.
First-time homebuyers represent approximately 35% of total transactions, supported by government housing programs and developer incentives. Investment buyers constitute 40% of the market, seeking rental income properties in major cities and coastal areas.
Cash buyers increased to 65% of all transactions due to high mortgage rates of 38.79%, though foreign buyers often access EUR/USD financing at lower rates. Developer presales account for 25% of total volume, concentrated in Istanbul and Ankara new construction projects.
The average transaction value rose 15% compared to last year, indicating buyers are purchasing higher-quality properties despite overall market challenges. Luxury segment transactions above $500,000 grew 30%, driven by citizenship program requirements.
Don't lose money on your property in Turkey
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What are the current risks and opportunities for buying to resell within 12–24 months?
Currency volatility presents the primary risk for short-term property flipping, with the Turkish Lira declining 30% against the USD since 2023.
Inflation at 39.05% erodes real gains despite nominal price increases, making timing crucial for profitable resales. Geopolitical tensions and regulatory changes affecting foreign investment create additional uncertainty for international buyers.
Prime Istanbul and coastal areas offer 5-15% nominal appreciation potential within 12-24 months, particularly properties near new infrastructure projects. Undervalued eastern cities like Muş and Diyarbakır present high-yield opportunities with lower entry costs around $50,000.
New metro line completions in Istanbul, airport developments in coastal cities, and government infrastructure spending create appreciation catalysts. Properties purchased below market value during developer financial pressures offer 10-20% quick gains when market confidence returns.
Successful short-term flipping requires local market knowledge, USD/EUR purchase financing, and exit strategy planning to minimize currency exposure. Focus on properties with immediate rental income potential to hedge against holding period extensions.
How do mortgage rates and lending conditions look for local and foreign investors?
Local mortgage rates in Turkey reached 38.79% as of March 2025, effectively limiting domestic borrowing and creating cash-buyer market conditions.
Foreign buyers access significantly better financing through international banks, with USD and EUR loans available at 6.4-7.8% interest rates. These loans typically require 20-30% down payments and proof of income from foreign sources.
Turkish banks offer foreign currency loans to qualified international buyers, though loan-to-value ratios remain conservative at 70% maximum. Developer financing provides alternative options with 12-24 month payment plans at competitive rates for presale purchases.
Local buyers increasingly rely on cash purchases or seller financing arrangements, with many transactions structured as installment payments directly to developers. Real estate investment trusts (REITs) provide alternative exposure to Turkish property markets without direct ownership complications.
Foreign buyers should secure EUR/USD financing before property search to negotiate better purchase prices and avoid local currency exposure during the transaction process.
Which property types are most in demand right now?
Luxury coastal villas in Bodrum and Antalya lead demand, commanding $4,000+ per square meter with strong ROI potential.
City apartments in Istanbul and Ankara remain preferred for rental stability, particularly 1-2 bedroom units under $200,000 that attract both local and foreign tenants. These properties offer consistent 7-8% yields with minimal vacancy periods.
Commercial properties and short-term rental investments are rising in tourist zones, with furnished apartments and boutique hotels showing increased investor interest. Mixed-use developments combining retail and residential components attract premium pricing.
Land plots near expanding urban areas present development opportunities, though foreign ownership restrictions apply in certain zones. Industrial properties near Istanbul's new airport and Ankara's technology parks show strong appreciation potential.
It's something we develop in our Turkey property pack.
What's the entry budget needed today for a good investment property in the top five areas?
| Area | Minimum Budget (USD) | Property Type |
|---|---|---|
| Istanbul Prime | $150,000 | 1-BR Apartment |
| Antalya Coast | $100,000 | Studio Apartment |
| Ankara Central | $80,000 | 2-BR Apartment |
| Bodrum Premium | $200,000 | 1-BR Sea View |
| Eastern Cities | $50,000 | 3-BR House |
| Izmir Central | $120,000 | 2-BR Apartment |
Entry budgets for Turkish real estate investment range from $50,000 in eastern cities to $200,000+ for premium coastal locations as of June 2025.
Istanbul requires $150,000 minimum for a quality 1-bedroom apartment in investment-grade locations, while Antalya coastal properties start at $100,000 for studio apartments near tourist areas. Ankara offers better value with 2-bedroom apartments available from $80,000 in central locations.
Bodrum represents the luxury segment with minimum $200,000 investment for sea-view properties, though citizenship-qualifying properties typically start at $400,000. Eastern cities like Muş and Diyarbakır offer 3-bedroom houses from $50,000, providing high yields but requiring local market knowledge.
If I want to buy now, where and what should I buy depending on whether I plan to live, rent out, or flip the property?
For living purposes, prioritize Ankara or Izmir for affordability and infrastructure, with budgets of $100,000-$200,000 for 2-3 bedroom apartments in central areas.
Rental income investors should focus on Istanbul apartments for long-term stability achieving 7.30% yields, or Antalya coastal properties for short-term rental potential up to 12% yields. Budget $120,000-$180,000 for properties in established rental neighborhoods.
Property flippers should target emerging areas like Muş and Kırklareli with sub-$50,000 entry points, holding 12-18 months during infrastructure development phases. Alternatively, focus on Istanbul pre-construction developments with 10-15% appreciation potential upon completion.
Citizenship seekers require $400,000+ investment in approved projects, with Istanbul luxury apartments or Bodrum coastal villas providing both citizenship eligibility and strong resale potential. These properties typically appreciate 5-10% annually while qualifying for Turkish passport programs.
Currency hedging through EUR/USD financing reduces exposure to Turkish Lira volatility regardless of investment strategy, particularly important for foreign buyers planning exits within 2-3 years.
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.
What should foreign investors know about property taxes and ongoing costs in Turkey?
Foreign property owners in Turkey face annual property taxes ranging from 0.1% to 0.6% of the property's assessed value, depending on location and property type.
Luxury properties above certain thresholds pay higher rates, while residential properties in smaller cities benefit from lower tax assessments. Title deed transfer costs amount to 4% of the property value, split equally between buyer and seller at 2% each.
Ongoing maintenance costs for apartments include monthly building management fees of $50-$200 depending on amenities and location. Utility costs average $100-$300 monthly for typical residential properties, varying significantly by city and usage patterns.
Insurance requirements include mandatory earthquake insurance and optional comprehensive property coverage, totaling $200-$500 annually for most residential properties. Rental income is subject to Turkish income tax, though various deductions apply for foreign property investors.
Professional property management services charge 8-12% of rental income for full-service management, essential for foreign investors not residing in Turkey.
How do infrastructure developments affect property values in different Turkish regions?
Major infrastructure projects drive 15-25% property value increases within 2-3 years of completion, particularly metro line extensions and airport developments.
Istanbul's new metro lines to European districts created 20-30% value appreciation in adjacent neighborhoods, while the new Istanbul Airport boosted property values in northern Istanbul by 25%. The ongoing Kanal Istanbul project promises significant long-term appreciation for northwestern districts.
Ankara's high-speed rail connections to Istanbul and other major cities enhanced property values by 10-15% in station-adjacent areas. Government quarter developments and technology park expansions continue driving demand in specific Ankara districts.
Coastal highway improvements in Antalya and Bodrum regions improved accessibility and increased villa values by 20-40% over three years. New marina developments and airport expansions in Bodrum created premium property segments with values exceeding $10,000 per square meter.
Eastern region infrastructure investments, including dam projects and industrial zone developments, create emerging opportunities with 30-50% appreciation potential, though timelines and execution risks require careful evaluation.
What are the legal requirements and restrictions for foreign property ownership in Turkey?
Foreign nationals can purchase property in Turkey up to 30 hectares total, with reciprocity agreements determining eligibility for citizens of specific countries.
Military zones, strategic areas, and certain border regions remain restricted for foreign ownership, requiring careful location verification before purchase. Properties in village areas may have additional restrictions or require special permissions from local authorities.
The citizenship-by-investment program requires minimum $400,000 investment with a three-year holding commitment, providing Turkish citizenship and passport access. This investment can be spread across multiple properties or concentrated in single premium developments.
All foreign property transactions require obtaining a tax number, opening a Turkish bank account, and completing due diligence through qualified legal representation. Title deed transfers must be completed at official land registry offices with proper documentation and tax payments.
Foreign companies can also purchase property with proper registration and compliance with Turkish commercial law, offering potential tax advantages for larger investments or rental business operations.
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 real estate market offers compelling opportunities for informed investors despite inflation challenges.
Success requires understanding currency risks, choosing appropriate financing, and focusing on locations with strong fundamentals and infrastructure development potential.
Sources
- Global Property Guide - Turkey Price History
- Pera Property - Turkey Housing Prices Growth
- Daily Sabah - Turkish Housing Prices Real Terms
- 4K Group - Cities in Turkey for Investment
- Damasturk - Turkey Property Prices Q1 2025
- Global Property Guide - Turkey Rental Yields
- Skyline Holding - Turkey Real Estate Forecast 2025
- Property Turkey - Turkish Citizenship by Real Estate
- Trading Economics - Turkey Interest Rate
- Tranio - Turkey Mortgage Information