Real Estate Market Trends in Turkey
Turkey’s real estate sector continues to be one of the fastest-growing markets in the world, attracting not only domestic buyers but also a significant number of foreign investors. In 2025, global economic shifts, Turkey’s strategic location, and government incentives are shaping the property market in new and exciting ways.
For international buyers, understanding the latest trends, price dynamics, demand patterns, and regulatory frameworks is crucial before making an investment decision. This guide provides an in-depth look at what foreign buyers should know about the Turkish real estate market in 2025.
The Rise of Property Prices in 2025
Over the last decade, Turkey has experienced steady property price increases, fueled by urban development, infrastructure projects, and strong demand from both local and foreign investors.
In 2025, the market continues its upward trajectory, although the pace has slightly moderated compared to the boom years following the pandemic. Key highlights include:
- Istanbul remains the leader with double-digit annual price growth in prime districts such as Beşiktaş, Şişli, and Kadıköy. Luxury apartments and waterfront residences are in particularly high demand.
- Antalya and Alanya, long favored by European and Russian buyers, show consistent appreciation driven by lifestyle buyers and retirees.
- Izmir is emerging as a hotspot for both locals and foreigners, with its growing tech sector and improved transport links pushing property values upward.
While average nationwide property prices have risen, the gap between major metropolitan areas and secondary cities is widening. Investors seeking long-term capital appreciation often focus on Istanbul and Izmir, whereas lifestyle-oriented buyers are increasingly drawn to coastal resorts.
Foreign Demand: Who Is Buying in 2025?
Foreign interest in Turkish real estate remains strong in 2025, driven by both lifestyle and investment motives. According to recent data:
- Middle Eastern buyers (particularly from Gulf countries) continue to dominate demand, seeking both second homes and citizenship by investment opportunities.
- European investors from Germany, the UK, and Scandinavian countries are attracted to coastal properties in Antalya, Bodrum, and Fethiye.
- Russian and Ukrainian buyers remain active in the market, particularly in Antalya and Mersin, although geopolitical factors influence their purchasing power.
- Asian investors (especially from China and South Korea) are increasingly exploring Istanbul’s high-end residential projects and commercial real estate opportunities.
The diversity of buyer nationalities ensures a stable level of foreign demand, which acts as a cushion against local economic fluctuations.
Government Incentives and Supportive Policies
One of the main reasons Turkey’s property market has remained attractive to foreigners is the government’s supportive approach toward international investors. In 2025, several key policies continue to drive foreign demand:
1. Citizenship by Investment (CBI) Program
The Turkish CBI program allows foreigners to obtain citizenship by investing a minimum of USD 400,000 in real estate. This pathway remains highly popular as it provides a Turkish passport not only for the investor but also for their spouse and children under 18.
2. Residency Permits Linked to Real Estate
In addition to citizenship, purchasing property above a certain threshold grants eligibility for a residence permit, making Turkey attractive for those who wish to live or retire in the country.
3. Infrastructure and Urban Development Projects
Government-led initiatives such as new airports, metro lines, and smart city projects continue to increase property values in key locations, making early investments particularly lucrative.
4. Tax Incentives
Foreign buyers benefit from VAT exemptions on certain property purchases, provided they meet specific conditions such as paying in foreign currency and committing not to sell the property for at least one year.
Market Segments Gaining Momentum
Luxury Real Estate
High-net-worth individuals are increasingly targeting luxury properties in Istanbul, Bodrum, and Antalya. Waterfront mansions, penthouses, and branded residences are among the most sought-after assets.
Coastal Holiday Homes
Regions such as Antalya, Muğla, and Izmir remain magnets for lifestyle buyers. Properties with sea views, access to marinas, and resort-style facilities are in constant demand.
Commercial Real Estate
As Turkey continues to position itself as a logistics and business hub, demand for office spaces, warehouses, and retail units is gradually increasing. Foreign institutional investors are showing renewed interest in Turkey’s commercial market.
Off-Plan and New Developments
Investors seeking higher yields are turning to off-plan projects, where early-stage prices often deliver strong capital appreciation upon completion.
Economic and Global Influences in 2025
The Turkish real estate market does not exist in isolation—it is influenced by both local and international dynamics.
- Currency fluctuations: The Turkish lira’s volatility continues to make property more affordable for foreign buyers using stronger currencies, especially USD and EUR.
- Inflation and interest rates: Domestic inflation remains a challenge, but for foreign buyers with hard currency, this often translates into advantageous entry points.
- Global mobility trends: Investors increasingly view Turkish real estate as a gateway not only to lifestyle benefits but also to global mobility through the citizenship program.
Risks Foreign Buyers Should Be Aware Of
While Turkey’s real estate market offers significant opportunities, foreign investors should also be mindful of potential risks:
- Legal complexities: Title deed transfers, property registration, and zoning issues can be complicated without professional guidance.
- Market fluctuations: Although long-term trends are positive, short-term volatility in property prices can occur.
- Due diligence: Verifying property ownership, checking for debts or liens, and ensuring construction quality are essential steps.
Working with trusted agencies and legal experts is the most effective way to mitigate these risks
Why Professional Guidance Matters
The Turkish real estate market is dynamic and sometimes complex. From navigating language barriers to ensuring compliance with legal and financial regulations, professional assistance can make a world of difference.
For international buyers, working with an experienced agency like Best House Turkey ensures access to vetted properties, transparent transactions, and full support throughout the investment and citizenship process.
Outlook for 2025 and Beyond
Looking ahead, Turkey’s property market is expected to maintain its positive momentum, supported by:
- Continued foreign demand from diverse regions.
- Ongoing urban renewal projects and infrastructure expansion.
- A government keen to attract international capital through property-related incentives.
- Turkey’s unique position as a bridge between Europe, Asia, and the Middle East.
For foreign investors, the market in 2025 presents a balance of growth potential and lifestyle benefits, making it a compelling option for both capital appreciation and personal use.
Conclusion
The real estate market in Turkey in 2025 is characterized by rising property prices in prime locations, sustained foreign demand from multiple regions, and strong government support through citizenship and residency programs.
Foreign investors should remain mindful of legal and financial procedures but can reap significant rewards by approaching the market strategically. Whether looking for a luxury home on the Bosphorus, a seaside villa in Antalya, or an off-plan investment in Izmir, opportunities are abundant.
Ready to explore the latest property opportunities in Turkey? Partner with Best House Turkey for expert guidance, exclusive listings, and end-to-end support tailored to international buyers.