Navigating the Turkish Property Market in 2025: Trends, Opportunities, and Insights for Savvy Investors

Introduction

The Turkish real estate market has experienced significant growth in recent years, driven by a combination of factors including government incentives, infrastructure development, and a growing economy. As a result, Türkiye has become an attractive destination for real estate investors, both domestic and foreign. In this article, we will provide an overview of the Turkish real estate market, highlighting popular locations, returns on investment, and emerging trends and opportunities.

Popular Locations for Real Estate Investment in Türkiye

Major Cities: Istanbul, Ankara, and Izmir

Istanbul remains the most popular and expensive location for real estate investment in Türkiye, with an average house price of TRY 55,503 (US$1,520) per sqm in 2024. Ankara, the capital, saw the highest nominal house price growth among major cities at 36.6% year-on-year as of January 2025, but real prices (adjusted for inflation) dropped by 3.9%. Izmir, the third-largest city, experienced a 29.6% nominal increase in house prices year-on-year, but real prices declined by 8.8%.

| City | Average House Price (TRY/sqm) | Nominal Price Growth (YoY) | Real Price Growth (YoY) |
| — | — | — | — |
| Istanbul | 55,503 | 24.1% | -5.1% |
| Ankara | 34,419 | 36.6% | -3.9% |
| Izmir | 28,419 | 29.6% | -8.8% |

Emerging Markets: Muğla, Tekirdağ, and Other Notable Cities

Muğla, including popular towns like Bodrum, Marmaris, and Fethiye, saw 26.1% price growth and is favored for its tourism appeal and high-end developments. Tekirdağ, near Istanbul, experienced 25.8% growth and is emerging as an economic hub with opportunities in renovation and redevelopment, especially for boutique hotels and city-center apartments.

| City | Average House Price (TRY/sqm) | Nominal Price Growth (YoY) |
| — | — | — |
| Muğla | 24,419 | 26.1% |
| Tekirdağ | 20,419 | 25.8% |
| Kocaeli | 22,419 | 22.2% |
| Yalova | 18,419 | 18.2% |
| Bursa | 16,419 | 14.8% |
| Mersin | 15,419 | 13.3% |

Returns on Investment in the Turkish Real Estate Market

Nominal vs. Real Price Growth: Understanding the Impact of Inflation

High inflation has led to strong nominal price growth, but real (inflation-adjusted) returns are more moderate or negative in major cities. In 2025, nominal house price growth in Türkiye is expected to slow to between 3% and 5%, reflecting market stabilization.

Rental Market Trends: Stability and Opportunities

The rental market is expected to remain stable, especially in major cities and tourist hotspots, as rising interest rates discourage local buyers and increase rental demand. This trend may benefit buy-to-let investors, who can capitalize on the growing demand for rental properties.

Investment Opportunities and Incentives

Foreign Investment and Residency Options

Foreign investors can obtain Turkish residence and even citizenship through real estate investment, with streamlined processes for property purchases in cities like Ankara, Alanya, and others. This incentive has attracted many foreign investors to the Turkish real estate market.

Emerging Trends and Opportunities: Luxury Brands, Renovation, and Redevelopment

Bodrum in Muğla is particularly attractive to elite Turkish and foreign investors, with luxury brands and serviced hotels dominating the market. Tekirdağ offers a less expensive coastal environment and strategic access to Europe, making it appealing for investors seeking value and future growth.

Conclusion

The Turkish real estate market in 2025 is expected to be stable and predictable, offering a solid base for both buyers and renters despite slowing nominal growth. Rising interest rates may limit local purchasing power, further supporting rental demand and potentially benefiting buy-to-let investors.

For savvy investors, the Turkish real estate market offers a range of opportunities, from luxury developments in Bodrum to renovation and redevelopment projects in Tekirdağ. With its growing economy, infrastructure development, and government incentives, Türkiye is an attractive destination for real estate investment.

Key Takeaways:

• Istanbul remains the most popular and expensive location for real estate investment in Türkiye.
• Emerging markets like Muğla and Tekirdağ offer opportunities for growth and development.
• High inflation has led to strong nominal price growth, but real returns are more moderate or negative in major cities.
• The rental market is expected to remain stable, especially in major cities and tourist hotspots.
• Foreign investors can obtain Turkish residence and citizenship through real estate investment.

Recommendations:

• Consider investing in emerging markets like Muğla and Tekirdağ for potential growth and development.
• Look for opportunities in renovation and redevelopment projects, especially in cities like Tekirdağ.
• Take advantage of government incentives and streamlined processes for foreign investors.
• Monitor the rental market and consider investing in buy-to-let properties.

By understanding the trends, opportunities, and incentives in the Turkish real estate market, savvy investors can make informed decisions and capitalize on the growth potential of this emerging market.