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What is happening in Turkey’s real estate market? Are prices on the rise or decline? Is Istanbul still a magnet for foreign investors? How are Turkey’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across the country, from Ankara to Antalya and beyond. Maybe you’re curious about these trends too.
We know this because we stay closely connected with local experts and individuals like you, exploring the Turkish real estate market daily. That’s why we crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance 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) Trabzon will attract Middle Eastern investors looking for cooler climates and natural beauty
Trabzon is quickly becoming a favorite spot for Middle Eastern investors looking for cooler climates and stunning natural landscapes.
In recent years, there's been a significant increase in property sales to Middle Eastern buyers in Trabzon. Back in 2018, the Lands and Real Estate Registry noted that Arab Gulf and Middle Eastern nationals were leading in property purchases. This trend has only intensified, with more interest from investors in Saudi Arabia, Kuwait, and Qatar.
Traveling to Trabzon has become much easier thanks to increased flight connections with major Middle Eastern cities. Airlines like Pegasus and SunExpress now offer direct flights from places like Kuwait City and Muscat, making it convenient for investors to visit and explore what Trabzon has to offer.
The allure of Trabzon isn't just about accessibility; it's also about its climate and natural beauty. Middle Eastern investors often rave about the scenic landscapes and cooler weather, which provide a refreshing escape from the heat back home. This growing interest is backed by tourism data showing a rise in visitors from Bahrain, the UAE, Oman, and Jordan in 2023.
With its lush landscapes and welcoming climate, Trabzon offers a unique appeal that resonates with those seeking a change from the desert heat. The combination of natural beauty and improved accessibility makes it an attractive destination for investment.
Sources: Al Huda Real Estate, Flight Connections, Daily Sabah
2) New government incentives in Turkey will boost demand by attracting foreign real estate investors
Turkey's real estate market is buzzing with foreign investments reaching $13 billion in 2023.
Expectations are high, with projections suggesting investments could hit $15 billion by the end of 2024. This surge is a clear sign of growing interest from international buyers in Turkish properties. The Turkish government has a history of rolling out successful incentives to attract foreign investors. Back in 2012, they made a game-changing move by allowing foreign ownership of properties, which opened the floodgates for international investments.
One of the most enticing offers is the Citizenship by Investment Program. This program grants Turkish citizenship to those purchasing properties worth $400,000 or more, making it a hot ticket for foreign investors. In 2024 alone, nearly 60,000 properties were snapped up by foreign buyers, with Istanbul leading the charge. This vibrant city, along with Antalya and Ankara, has become a magnet for buyers from Iraq, Saudi Arabia, and Iran.
These cities are not just popular; they are strategic hubs for investment. Istanbul, for instance, is not only Turkey's cultural and economic heart but also a city where property values are expected to rise significantly in the coming years. Antalya offers a Mediterranean lifestyle that is hard to resist, while Ankara, the capital, provides political and economic stability.
Foreign investors are drawn to Turkey not just for its properties but also for its strategic location, bridging Europe and Asia. This unique position offers easy access to multiple markets, making it an attractive spot for global investors. The Turkish government is keen on maintaining this momentum and is set to introduce new incentives to further boost foreign investment in real estate.
These upcoming incentives are expected to make Turkey an even more appealing destination for property buyers worldwide. With the government's proactive approach, the demand for Turkish real estate is likely to soar, offering lucrative opportunities for those looking to invest.
Sources: Property Turkey, Luxury Signature, A-M Real Estate
One of our partners sent us this video where government incentives for foreign investors are discussed, showing their impact on demand.
3) Turkey's urban real estate market will see moderate price increases due to limited supply
Property prices in Turkey's major cities are on the rise, especially in places like Istanbul, Ankara, and Izmir.
In Istanbul, for example, house prices jumped by 66.7% in nominal terms. But when you factor in inflation, the real increase was just 3.3% year-on-year. This shows that even with inflation, there's a strong demand for homes in these bustling urban areas.
One big reason for these price hikes is the limited land available for new developments in city centers. With not much space to build, the supply of new homes is tight, making existing properties more valuable and pushing prices up.
Urban areas in Turkey are also seeing a steady population growth. People flock to cities like Istanbul and Ankara for jobs and a vibrant lifestyle, which adds more pressure to the already limited housing supply.
This mix of high demand and limited supply is why we're seeing moderate price increases in these urban centers. It's a classic case of supply and demand at work.
Sources: Global Property Guide, Turkiye Today, Turkey Real Estate
4) Turkish buyers will prioritize homes with office spaces as remote work becomes more common
In Turkey, remote work has become the norm for many companies.
By 2023, 70% of Turkish companies had embraced remote and hybrid work policies, a significant increase from the previous year. This shift has led to a growing need for homes that can accommodate work-from-home setups. People are now looking for properties with dedicated office spaces to support their new work lifestyle.
The real estate market is responding to this demand. In September 2024, home sales in Turkey jumped by 37.3%, indicating a strong interest in properties that offer home office spaces. Real estate listings are increasingly highlighting these features, catering to the needs of remote workers.
Alongside this, the market for home office furniture is thriving. The Turkey Office Furniture Market is on the rise, driven by the demand for modern and ergonomic office solutions. This trend shows that people are investing in creating comfortable and efficient work environments at home.
Social media in Turkey is buzzing with conversations about remote work and home office setups. This reflects a growing awareness among consumers about the importance of having a dedicated workspace at home. Companies are also adopting permanent remote work policies, which further fuels the demand for homes with office spaces.
With more people working from home, the need for functional and comfortable home offices is becoming a priority for Turkish consumers. This trend is reshaping the real estate market, as buyers seek properties that can support their work-from-home needs.
Sources: Octapull, Istanbul University, Istanbul Real Estate, 6Wresearch
5) New government incentives will make Ankara's suburban areas more appealing for residential development
Ankara's suburban areas are becoming more attractive thanks to new government incentives for residential development.
One major draw is the increased government funding for infrastructure, like the new transport projects. For example, the Turkish government has invested in the Ankara-Izmir high-speed line, which greatly improves connectivity and accessibility in these suburban areas.
There's also been a notable rise in residential building permits. The Turkish Statistical Institute reported a 33.4% increase in the total floor area of building permits issued in the first quarter of 2024, continuing a growth trend from 2023. This surge is especially visible in suburban areas, showing a growing interest in these regions.
The government has rolled out a New Incentive System in Ankara, offering perks like VAT and customs duty exemptions, corporate tax reductions, and social security premium support for employers. These incentives are crafted to lure investments into suburban areas, making them more appealing for developers and potential residents alike.
Improved public transportation links are also key in boosting the appeal of suburban regions. The Ankara Metro Project, including the Dikimevi – Natoyolu Metro line extension, aims to cut down traffic congestion and enhance accessibility, making suburban living more attractive.
Sources: Invest in Ankara, Business Wire, EBRD
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6) Stricter building codes will enhance the quality and safety of new residential properties in Turkey
Stricter building codes are crucial for ensuring the safety and quality of new homes in Turkey.
In the past, Turkey has struggled with inconsistent enforcement of building regulations, leading to severe damage during earthquakes. After the 1999 Izmit earthquake, Turkey updated its codes to include seismic standards similar to California's. However, non-compliance issues have persisted, causing damage in recent quakes.
Newer buildings that follow these updated seismic codes have shown better structural integrity during earthquakes. This clearly indicates that when codes are adhered to, the safety and resilience of structures improve significantly. Unfortunately, many older buildings, built before these codes, are more prone to collapse, emphasizing the need for strict adherence to modern standards.
Experts like Aras Kalyoncuoğlu, a senior structural engineer, point out that a large portion of Turkey’s building stock does not comply with any code. This discrepancy explains why some buildings remain standing while others collapse during seismic events.
Media often highlights successful projects that adhere to new building codes, showcasing newly built residential complexes that withstand earthquakes better than older structures. This positive attention underscores the benefits of strict building regulations. Experts inspecting earthquake damage in Turkey credit modern seismic building codes for keeping many buildings standing, though they stress the need for better enforcement and implementation.
7) Property tax reforms will encourage investment in Turkey’s residential real estate market
Property tax reforms in Turkey are boosting investment in the residential real estate market.
In 2023, Turkey saw a significant rise in foreign direct investment, with 5.6 billion USD flowing into the real estate sector. This accounted for 42% of all foreign investments, showing that foreign investors are increasingly confident in Turkey's real estate market. The Turkish government has sweetened the deal with tax incentives, like lower property taxes and VAT exemptions for those buying with foreign currency. This is particularly appealing to foreign nationals looking to invest.
In early 2024, nearly 4,000 properties were snapped up by foreign investors, indicating a renewed interest in the market. The government has also reduced property tax rates and lowered the investment amount needed for Turkish citizenship. These changes make Turkey an even more attractive spot for real estate investment.
Stamp duty reductions for certain agreements are another perk, making the process smoother and less costly. Media coverage has been buzzing about these reforms, highlighting the benefits and painting Turkey as a prime destination for real estate investors. The buzz is not just talk; it's backed by numbers and policy changes that make investing here a smart move.
For those eyeing a property in the country, these reforms mean more than just savings. They represent a strategic shift to attract more foreign capital, which in turn can lead to better infrastructure and services. The Turkish real estate market is not just open for business; it's rolling out the red carpet for investors.
Sources: Consultor Groups, Global Property Guide, Investment Visa
8) High-rise apartment demand will grow in urban centers due to limited land availability
In Turkey, urban populations are growing steadily, especially in 2023 and 2024.
As more people move to cities, land is becoming scarce, which is pushing up prices. Take Istanbul, for instance, where home sales fell by 21.5% in 2023 due to the high demand for existing properties.
High-rise apartments are becoming a popular solution to this problem. They make the most of limited space by being built on smaller plots of land. In 2023, the construction industry saw a 24.1% increase in dwelling units granted construction permits, with many of these being high-rise buildings.
For those considering buying property in Turkey, this trend towards high-rise living is something to watch. With land availability shrinking, these buildings offer a practical way to meet housing needs in bustling urban centers.
Investors are taking note, as high-rise apartments not only address the space issue but also cater to the growing urban population. This shift is particularly evident in cities like Istanbul, where land is at a premium.
As urban centers continue to expand, the demand for high-rise apartments is expected to rise, driven by the need to efficiently use the limited land available.
Sources: Property Turkey, World Bank, Global Property Guide, Trading Economics
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.
9) Turkey's luxury real estate market, especially in Istanbul and Bodrum, will attract more foreign buyers
Foreign buyers are increasingly eyeing Turkey's luxury real estate market, especially in Istanbul and Bodrum.
In 2024, the number of foreigners buying properties in Turkey jumped by 30%, with Istanbul standing out as a major attraction. Despite a general dip in foreign property purchases, Istanbul remains a hotspot, thanks to a wave of new development projects and a growing appetite for residential and investment properties.
Bodrum has also caught the world's attention, earning a spot on Time Magazine's list of the "World's Greatest Places" in 2021. This recognition has sparked a surge in interest from high-net-worth individuals looking to invest in Bodrum's real estate. Meanwhile, Istanbul's luxury property market is booming, with prices climbing by 20% in 2024, and this upward trend shows no signs of slowing down.
The Turkish Golden Visa program sweetens the deal for foreign investors, offering residency and potential citizenship for those who invest at least $400,000 in real estate. This makes Turkey an appealing option for wealthy individuals seeking new opportunities.
Adding to Bodrum's allure, luxury brands like Four Seasons and Ritz Carlton are rolling out high-end residential projects, making it even more attractive to discerning buyers.
Sources: IMI Daily, Golden Visas, Luxury Signature, Turkey Expert
10) Izmir will see rising demand for eco-friendly housing as environmental awareness grows
Izmir is on a mission to become one of Turkey's greenest cities.
With the help of the European Bank for Reconstruction and Development, Izmir has rolled out a Green City Action Plan. This plan is packed with environmental investments and policy actions to tackle the city's challenges and boost its green credentials. The city is not just talking the talk; it's walking the walk towards a more resilient future.
The Izmir Development Agency is also in the game, pushing strategies to combat climate change. They're all about renewable energy and resource efficiency, which are key to creating a sustainable urban environment. This focus is likely to spark a rise in demand for eco-friendly homes as people look for greener living options.
On a national level, the Turkish government is rolling out policies and incentives to back sustainable urban development. These incentives make it more appealing for developers to build green, nudging the real estate market towards eco-friendly projects. It's a win-win for developers and the environment.
Media in Turkey is buzzing with stories about environmental issues and sustainable living. This coverage is raising public awareness and getting more people interested in eco-friendly housing. As awareness grows, so does the demand for homes that are kind to the planet.
Sources: EBRD, Izmir Development Agency, UCLG
11) Multi-generational living trends will shape the design and layout of new residential properties
In Turkey, multi-generational living is becoming increasingly popular, especially in 2023 and 2024.
Families are opting for homes that can accommodate everyone, from grandparents to grandchildren, under one roof. This shift is evident as extended-family households now make up 13.2% of all households in 2023. As a result, the design and layout of new homes are changing to meet these needs.
People are looking for larger homes with flexible spaces that can adapt to different generations' needs. Real estate developers are catching on, offering properties with separate living quarters or additional suites. This setup allows families to live together while still enjoying some privacy.
Architectural designs are also evolving. Homes now feature separate entrances and dual master suites, making them perfect for multigenerational living. These designs ensure that each family member has their own space while still being part of a larger family unit.
In-law apartments are becoming a common feature in new homes. These spaces are designed to be adaptable and multifunctional, catering specifically to the needs of multigenerational households. This trend is reshaping the way homes are built, focusing on flexibility and privacy.
As more families embrace this lifestyle, the real estate market is responding with innovative solutions. The trend of multi-generational living is not just a passing phase; it's influencing the future of residential property design in Turkey.
Sources: Statista, Antalya Development, Sutter and Nugent
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12) Smart home technology will be a standard in new residential projects in Turkey
In Turkey, smart home technology is becoming a must-have in new residential developments.
Back in 2023, the market for smart homes was on the rise, fueled by consumer demand and government support for energy-efficient solutions. By 2024, real estate reports showed that over 70% of Turkish buyers wanted smart home features, prompting developers to include these modern conveniences in their projects.
The Turkish government has been a key player, offering tax incentives to developers who integrate smart technologies. This aligns with national goals to cut energy use through smart grids and efficient appliances, which are often part of smart homes.
Tech giants like Samsung and Bosch have teamed up with local developers to create integrated smart home solutions. Successful projects in areas like Istanbul's Maslak have demonstrated the appeal and practicality of these technologies.
Media in Turkey has been buzzing about the perks of smart homes, such as better energy efficiency and security. This positive coverage has only increased consumer interest, while more tech providers entering the market have driven down costs, making smart homes more accessible.
Urban plans in Turkey are increasingly embracing smart city concepts, which naturally include smart home technologies. Initiatives by the Istanbul Metropolitan Municipality focus on energy efficiency and smart living, and real estate agents report that buyers are actively seeking properties with these features.
Sources: ResearchAndMarkets.com, JLL Report, Nielsen Survey
13) Syrian refugee influx will affect housing demand in southeastern Turkey
The arrival of Syrian refugees in southeastern Turkey has dramatically changed the housing market in the region.
In 2023, Turkey hosted about 3.2 million Syrian refugees, with many settling in southeastern provinces like Sanliurfa, Hatay, Gaziantep, and Kilis. In Kilis, Syrians make up nearly half of the population, creating a unique demographic landscape. This influx has led to a surge in rental prices, especially in cities like Gaziantep, where the demand for housing has skyrocketed.
From 2019 to 2023, rental prices in Turkey increased by an astonishing 583% nationwide, with even steeper hikes in major cities. This surge has made it increasingly difficult for refugees to secure affordable housing, worsening the existing housing crisis. The situation is further complicated by the fact that temporary accommodation centers, initially meant for refugees, are now also housing Turkish citizens affected by recent earthquakes.
Government reports and NGO findings reveal that refugees face severe housing challenges, including overcrowding and poor living conditions. Despite efforts to ramp up construction and government initiatives aimed at addressing these issues, the demand for housing continues to outstrip supply. This ongoing struggle highlights the urgent need for more sustainable housing solutions in the region.
For those considering buying property in southeastern Turkey, it's crucial to understand the local dynamics. The influx of refugees has not only affected rental prices but also the overall housing market, making it a complex environment for potential buyers. The region's unique demographic mix and the ongoing housing challenges present both opportunities and risks for investors.
As the situation evolves, staying informed about government policies and local developments will be key for anyone looking to invest in property in this part of Turkey. The housing market here is deeply intertwined with the broader socio-political landscape, making it essential to approach any investment with a well-rounded perspective.
Sources: Washington Institute, Asylum in Europe, Modern Diplomacy
14) New airport developments will boost the appeal of nearby residential areas
New airport developments can make nearby residential areas much more appealing.
Take Istanbul, for example, where new airports have led to a noticeable rise in property values. In areas like Basaksehir and Kadikoy, property prices jumped by 12% and 9% respectively in 2024 compared to the previous year. This shows how airports can really boost the real estate market by making nearby areas more desirable.
One big reason for this increased attractiveness is the improved transport links that come with new airports. In Istanbul, the construction of new metro lines and highways connected to the airport has made getting around much easier. This enhanced accessibility means reduced travel times, making these areas more convenient to live in and driving up demand for homes.
New airports also bring a wave of economic growth by creating jobs. Istanbul's new airport is expected to employ about 225,000 people by 2025. This influx of jobs not only boosts the local economy but also attracts more people to live nearby, further increasing the demand for housing.
With more people moving in, the local economy gets a boost, and businesses start to thrive. This creates a vibrant community atmosphere, making the area even more attractive to potential homebuyers. The ripple effect of an airport can transform a neighborhood into a bustling hub of activity.
So, if you're considering buying property, keep an eye on areas near new airport developments. They often offer a mix of convenience, economic opportunity, and community growth that can make them a smart investment choice.
Sources: Righthome, Luxury Signature, Site Selection
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.
15) New zoning rules will promote mixed-use residential projects in urban areas
In Turkey, 77.5% of people now live in urban areas, with Istanbul leading the way at 96.4% urban residency.
This urban boom has pushed the Turkish government to introduce new zoning laws, like the Zoning Law No. 3194, to support mixed-use developments. These laws are designed to ensure that new buildings meet specific zoning criteria, encouraging projects that blend living, working, and leisure spaces.
In Istanbul, mixed-use projects like Zorlu Center and Vadistanbul are becoming increasingly popular. These developments offer a mix of apartments, offices, shops, and entertainment options, all in one place, catering to the growing demand for integrated urban living.
Real estate trends show that nearly 60% of new projects in Istanbul are mixed-use, reflecting a shift towards more versatile urban spaces. This trend aligns with global preferences for living environments that offer convenience and variety.
For potential property buyers, these mixed-use developments present an opportunity to invest in spaces that offer both residential and commercial benefits. The convenience of having everything from shopping to workspaces within walking distance is a major draw.
Sources: Karanfiloglu Law Firm, Wikipedia, Daily Sabah, Prime Property Turkey, Tolj Commercial
16) Property demand on Istanbul's Asian side will surge with improved connectivity from new infrastructure projects
Istanbul's Asian side is becoming a hot spot for property buyers, thanks to improved connectivity from major infrastructure projects.
With the completion of the Eurasia Tunnel and the Marmaray rail line, traveling between Istanbul's European and Asian sides is now a breeze. This ease of movement has made areas like Basaksehir and Kadikoy more attractive, with property prices jumping by 12% and 9% respectively in 2024. These neighborhoods are now buzzing with interest from both investors and potential residents.
Looking ahead, the government is not slowing down. Plans for new metro lines, such as the M12 and M13, are in the works, promising even better public transportation on the Asian side. This is expected to draw in more people, further boosting the demand for property in the area.
Insider tip: the Kanal Istanbul Project is another game-changer. Although still in development, it's already causing a stir in the real estate market, with prices in nearby areas starting to climb. Locals are buzzing about the potential this project holds for transforming the region.
For those considering a move or investment, now might be the time to act. The combination of enhanced infrastructure and strategic government investments is setting the stage for a property boom. The Asian side of Istanbul is poised to become a prime location, offering both convenience and opportunity.
As these projects unfold, the landscape of Istanbul's Asian side is changing rapidly. The improved connectivity and new developments are not just making life easier for current residents but are also attracting a wave of new interest. It's a dynamic time for the area, with property demand expected to continue its upward trend.
Sources: Luxury Signature, Investo Global, Asrin Grup
17) Environmentally conscious buyers will increasingly seek eco-friendly and sustainable housing
In Turkey, eco-friendly and sustainable housing is becoming a hot trend among buyers who care about the environment.
Over the past few years, there's been a noticeable increase in green-certified buildings. By 2020, Turkey had 484 buildings with at least one green certification, with LEED being the most popular, covering 84.2% of these buildings. This shows a clear shift towards more sustainable construction practices.
Developers are now opting for sustainable building materials that are kinder to the environment. They're using recycled or renewable resources, non-toxic materials, and energy-efficient products. This isn't just about the materials; it's about creating healthier living spaces for everyone.
Buyers are also showing more interest in eco-friendly homes. A survey by the National Association of REALTORS in March 2024 found that nearly half of the respondents noticed their clients' growing interest in sustainability. This reflects a broader move towards eco-conscious living, where people are more aware of how their housing choices impact the environment.
Government incentives are a big part of this shift. Policies like the Energy Efficiency Law and the National Climate Change Strategy have been crucial in reducing greenhouse gas emissions and boosting energy efficiency in buildings. These initiatives are pushing developers to adopt more sustainable practices.
The media is also playing a role by focusing more on sustainable living, which is driving up demand for eco-friendly homes. This trend is expected to keep growing, with more buyers looking for properties that feature energy-efficient technologies and sustainable building practices. In places like Fethiye, eco-friendly housing communities are popping up, highlighting the move towards sustainable living.
Sources: Constructive Voices, National Association of REALTORS, Property Wizard Turkey
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.
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