Turkey Property Market 2025

The Turkish Property Market in 2025: A Landscape of Resilience and Opportunity for International Buyers

The Turkish property market in 2025 presents a complex yet compelling picture, characterized by strong domestic demand, evolving dynamics for international buyers, and ongoing efforts to stabilize the economy. While inflation remains a significant factor, strategic government policies and a resilient real estate sector continue to position Turkey as an attractive destination for property investment. Understanding the nuances of this market is key for international buyers looking to capitalize on its unique opportunities.

Overall Market Performance and Key Drivers

As of mid-2025, Turkey’s real estate market continues to demonstrate robust performance, with significant increases in overall sales. The first half of 2025 saw a remarkable surge in property transactions, with over 1.4 million properties changing hands – marking the second-highest first-half sales figure in the country’s history. This growth isn’t limited to residential housing but extends across all segments, including land, commercial properties, and office spaces. Monthly sales have maintained a strong pace, with notable year-on-year increases. This widespread growth indicates strong underlying demand and a perception of real estate as a stable store of value amidst economic fluctuations.

Several primary market drivers contribute to this robust performance. Firstly, urbanization trends maintain strong momentum, with continuous migration to major cities like Istanbul, Ankara, and Izmir fueling housing demand. Secondly, the tourism recovery has accelerated, particularly in coastal regions, creating increased demand for both holiday homes and rental properties. Furthermore, economic conditions have led to a notable shift from home purchases to rentals for many domestic buyers, driving up rental yields in various cities. Inflationary pressures, while challenging for the broader economy, have also paradoxically driven some local buyers towards real estate as a hedge against currency depreciation, contributing to nominal price increases.

Price Trends and the Impact of Inflation

While nominal property prices in Turkey have continued their upward trajectory, with significant year-on-year increases in major cities, it’s crucial to consider the impact of inflation. For instance, in Istanbul, average property prices saw a substantial nominal surge in early 2025. However, when adjusted for Turkey’s high inflation rate, the real prices of properties have, in some instances, seen a slight decline. This highlights a key dynamic in the Turkish market: while the value of properties in Turkish Lira might be rising, the real purchasing power of those assets, especially for local buyers, needs to be assessed against the inflation rate.

Despite this, the depreciation of the Turkish Lira against foreign currencies has historically made Turkish property particularly attractive to international investors. Their foreign currency often translates into significantly more real estate value in Lira terms, creating favorable entry points. The government’s efforts to stabilize the economy, including tightening monetary policy and projected interest rate cuts in late 2025 and 2026, are anticipated to bring more stability to the currency and potentially lead to a resurgence in the real estate sector, making it an even more exciting prospect for investors.

The Role of International Buyers in 2025

For international buyers, 2025 presents a nuanced picture. While overall foreign property sales have seen a gradual decrease compared to previous years, falling by around 13-20% in the first quarter and first half of 2025 compared to 2024, significant interest remains concentrated in key areas.

Istanbul, Antalya, and Mersin continue to be the top three regions for property sales to foreigners. Istanbul leads in the number of sales, followed closely by Antalya, with Mersin also showing consistent activity. Russians remain the most active foreign buyers, followed by Iranian, Ukrainian, Iraqi, and German nationals. This sustained demand, particularly from neighboring and European countries, reflects ongoing international interest in Turkey’s unique blend of cultural richness, strategic location, and investment potential.

The slight slowdown in overall foreign purchases can be attributed to various factors, including global tightening conditions, visa regulation updates, and general geopolitical tensions which have made some buyers more cautious. However, industry experts suggest that pockets of opportunity, especially in major cities and resort towns, remain ripe for investment. There’s also an emerging trend of foreign nationals seeking properties not just for vacations but for long-term residence or retirement, drawn by Turkey’s high quality of life, favorable climate, and improving infrastructure.

Citizenship by Investment Program and its Impact

The Turkish Citizenship by Investment (CBI) program continues to be a major draw for foreign investors. This program grants Turkish citizenship to those purchasing properties worth at least $400,000 USD. While the threshold was increased in June 2022 from $250,000, it remains one of the most popular citizenship schemes globally, especially appealing with the current valuation of the Turkish Lira against the US Dollar.

The CBI program offers several benefits:

• Dual Nationality: Investors do not have to surrender their original citizenship.
• No Residency Requirement: There’s no obligation to reside in Turkey to obtain or maintain citizenship.
• Fast Processing: Applications typically process within 3-6 months.
• Family Flexibility: Spouses and children under 18 (or disabled children of any age) are eligible under a single investment.
• Visa-Free Travel: The Turkish passport offers visa-free or visa-on-arrival access to over 115 countries.
• Tangible Asset: Investment in real estate provides ownership of a tangible asset with potential for capital appreciation and rental income.

The real estate purchased under the CBI program must be held for a minimum of three years, a stipulation that is strictly enforced. While the CBI program has seen no further changes in its investment threshold in 2025 beyond the 2022 increase, it continues to be a significant driver of foreign direct investment into the Turkish property market.

Regulatory Landscape and Buying Process for Foreigners

Turkey has implemented progressive policies to encourage foreign investment in real estate. Generally, foreign individuals and legal entities can acquire property under specific conditions, with citizens from 183 countries eligible. Key regulations and aspects of the buying process include:

• Reciprocity Principle: Turkish citizens must have similar property ownership rights in the foreign buyer’s home country.
• Land Ownership Limits: Individual foreign nationals cannot exceed 30 hectares of total property ownership across Turkey, and total foreign-owned land in any single municipality cannot exceed 10% of that municipality’s total area.
• Restricted Zones: Certain strategic locations, including military zones, security areas, and border regions, remain restricted for foreign ownership.
• Due Diligence: It’s crucial to verify property documents (Title Deed/Tapu, Building Permit, Habitation Certificate) and check for any encumbrances.
• Tax Identification Number: Foreign buyers must obtain a Turkish Tax Identification Number.
• Sales Contract: A preliminary sales contract is often signed before a notary. The final sale contract is executed before a notary or directly at the Land Registry Office.
• Taxes and Fees:
  • Purchasing Tax (Title Deed Tax): 4% of the sales price, typically split 2% by buyer and 2% by seller, though often negotiated.
  • VAT (Value Added Tax): Varies from 1% to 18% for residential properties, depending on net area and land value, and 18% for commercial properties.
  • Annual Property Tax: Varies based on property type and city category (big vs. small cities), typically 0.2% of the property value for residential properties in big cities like Istanbul.
  • Valuable Housing Tax: For very high-value properties, adjusted brackets apply, with rates ranging from 0.3% to 1.0% for properties exceeding certain Turkish Lira thresholds in 2025.
  • Other Costs: Include legal fees (around 1% + VAT), translator fees, and mandatory earthquake insurance (DASK).

Recent changes in 2024 and 2025 include mandatory fingerprinting in Turkey and the requirement for the investor to be physically present for both residence permit and citizenship applications, aiming to streamline and secure the process.

Future Outlook and Investment Hotspots

The outlook for the Turkish real estate market in the latter half of 2025 remains largely positive, particularly in high-demand areas. Analysts anticipate further nominal price increases, driven by continued domestic demand, construction cost inflation, and limited land supply in central areas. Developers are responding by focusing on new construction projects, especially in suburban areas and smaller coastal cities, with a shift towards mixed-use developments, eco-friendly buildings, and smart home technologies.

Istanbul continues to be a prime market, with significant demand for new, earthquake-resistant buildings and luxury properties. High-growth neighborhoods are experiencing increases due to luxury developments, gentrification, and major infrastructure projects. Antalya and Mersin remain top coastal destinations for foreign buyers, offering diverse property options and promising rental yields, particularly during peak tourism seasons. Other emerging hotspots include Alanya for its growing luxury market and areas like Fethiye where digital nomad demand is reshaping year-round occupancy. The expected easing of interest rates is likely to spur both local mortgage activity and developer projects, further stimulating the market.

In conclusion, Turkey’s property market in 2025 is a dynamic environment offering significant opportunities for international buyers. While a slight decline in foreign transaction volume has been observed, the underlying demand, attractive pricing relative to other global markets (especially for foreign currency holders), and the compelling Citizenship by Investment program continue to draw investors. With careful due diligence and a focus on high-demand areas, investing in Turkish real estate in 2025 can prove to be a strategic and rewarding decision.