Turkish Real Estate Market 2025: Comprehensive Analysis of Prices, Investments, and Future Trends
- 20 May
- 6 dakikada okunur
Expert interview with Engineer Sotoudeh, Director of SAMARAM Investment Group and Senior International Real Estate Investment Consultant
Turkish Real Estate Market 2025: Comprehensive Analysis of Prices, Investments, and Future Trends
General Situation of Turkish Real Estate Market in 2025
Question: Engineer Sotoudeh, how do you assess the current state of the Turkish real estate market in 2025?
Answer: The Turkish real estate market in 2025 is experiencing a dual situation. On one hand, high inflation and currency fluctuations have caused nominal property prices to increase, but on the other hand, the real value of properties (after accounting for inflation) has decreased in many areas. For example, in Istanbul, the average price per square meter has reached approximately 55,500 liras (equivalent to $1,520 USD), which despite increasing compared to last year, shows an 8.8 percent decrease after adjustment for inflation.
Factors Affecting the Turkish Real Estate Market in 2025
Question: What factors have influenced the current trend in the Turkish real estate market?
Answer: Several key factors have impacted the Turkish real estate market:
High interest rates: This has reduced the purchasing power of Turkish citizens, but at the same time created investment opportunities for foreigners with stronger currencies.
Foreign investment: Despite economic challenges, foreign investors remain interested in the Turkish real estate market, especially in popular urban areas and tourist coastal regions.
Infrastructure projects: Mega-projects such as Canal Istanbul and the expansion of metro lines have increased the value of properties in adjacent areas.
Migration of Turkish Investors to Foreign Markets
Question: Is the trend of Turkish investors migrating to foreign markets continuing in 2025?
Answer: Yes, this trend has not only continued but has intensified. Due to economic instability and legal uncertainties, many Turkish investors have turned to foreign markets such as Spain, Montenegro, and London. This trend has quadrupled since 2021, and it is predicted that the volume of overseas investment by Turkish citizens in 2025 will reach 3 to 4 billion dollars.
Best Investment Strategies in Turkish Real Estate in 2025
Question: What practical recommendations do you have for investors interested in the Turkish real estate market in 2025?
Answer: Investors should pay attention to these key points:
Focus on new projects: Given that 30 percent of residential properties in Istanbul in 2025 are newly built, focusing on these projects can yield better returns.
Investing in developing areas: Areas such as Ataşehir and Şişli with infrastructure projects and urban renewal have high growth potential.
Attention to the rental market: With the significant increase in rental rates in major cities, investing in rental properties can be quite profitable.
Commercial Real Estate Price Trends in Turkey 2025
Question: How are commercial real estate prices trending in Turkey in 2025?
Answer: According to official statistics from the Central Bank of Turkey, the commercial real estate price index in the fourth quarter of 2024 increased by 7.3 percent compared to the previous quarter. However, compared to the same period last year, this index shows a decrease of 6.2 percent after adjustment for inflation.
Various factors have played a role in this trend, including increased construction costs, high demand in urban areas, and high inflation rates, which have caused prices to increase nominally but decrease in real value.
Commercial Real Estate Prices in Major Turkish Cities
Question: Is the trend of commercial real estate prices in major cities like Istanbul, Ankara, and Izmir also similar?
Answer: Yes, in the fourth quarter of 2024, the commercial real estate price index increased by 6.3 percent in Istanbul, 4.5 percent in Ankara, and 7.6 percent in Izmir compared to the previous quarter. However, the important point is that after adjustment for inflation, these increases have been less than the inflation rate, and we are actually witnessing a decrease in real value.
Decrease in Real Value of Properties in Different Regions of Turkey
Question: Could you elaborate more on the decrease in real value of properties in different regions of Turkey?
Answer: In 2024, some regions of Turkey have experienced a significant decrease in the real value of properties. For example, Antalya has experienced a 20 percent decrease, Istanbul 15 percent, Ankara 14 percent, and Izmir 13 percent.
This decrease in value has been due to factors such as increased supply, decreased demand, economic problems, and increased interest rates, which have reduced people's purchasing power.
Investment Opportunities Arising from Price Decreases
Question: Does this decrease in real property value create an opportunity for investors?
Answer: Definitely. This decrease in value provides exceptional opportunities for smart investors to purchase properties at more favorable prices and benefit from higher returns in the long term. For foreign investors entering the market with stronger currencies, this opportunity is even more attractive.
Decrease in Property Purchases by Foreign Nationals in Turkey 2025
Question: Do you have statistics on the decrease in property purchases by foreign nationals in Turkey in 2025?
Answer: Yes, according to official data from the Turkish Statistical Institute, in the first quarter of 2025, property purchases by foreign nationals decreased by 11.5 percent, reaching 574 units. Among these, Russians remain the leading foreign buyers.
This decrease has mainly been due to the increase in the minimum investment amount for obtaining residency to $200,000, increase in property prices, currency fluctuations, and decrease in investment returns.
Future of the Real Estate Market for Foreign Buyers
Question: Will this downward trend in property purchases by foreigners continue?
Answer: Given the current economic and regulatory conditions, this downward trend is likely to continue in the short term. However, with improving economic conditions and the introduction of new incentives by the government, we may see a renewed increase in demand from foreign investors in the second half of 2025.
Increase in Rental Rates in Major Turkish Cities
Question: What is the situation of the rental market in major Turkish cities in 2025?
Answer: In 2025, rental rates in major Turkish cities such as Istanbul, Ankara, and Izmir have seen a significant increase. This increase is mainly due to high demand, decreased supply of rental units, and high inflation.
This increase in rental rates has led to an increase in demand for property purchases as investments, as it provides higher rental returns for investors.
Recommendations for Tenants and Investors in the Rental Market
Question: What recommendations do you have for tenants and investors in the Turkish rental market?
Answer: Tenants should look for more affordable options in developing areas and consider long-term contracts to protect themselves from sudden increases in rent.
For investors, these conditions provide a good opportunity for investment in rental properties. Focusing on small and medium-sized units in high-demand areas can yield annual returns of 8 to 12 percent.
Changes in Property Buying Patterns in Turkey 2025
Question: What changes do you observe in property buying patterns in Turkey in 2025?
Answer: In 2025, we are witnessing significant changes in the buying behavior of domestic and foreign customers. Unlike previous years when buyers were looking for ready-made units in central areas, now there is much more attention to new projects in developing areas, smart properties, green buildings, and properties with sustainable living facilities.
Factors Changing Attitudes in the Turkish Real Estate Market
Question: What factors have caused this change in attitude in the Turkish real estate market?
Answer: These changes are due to several key factors:
Increased cost of living in urban centers: This has pushed families toward suburban areas with more affordable prices.
Younger generation's preference for digital and modern living: Demand for smart homes with remote control capabilities, digital security systems, and green energy has increased.
Lifestyle changes after the coronavirus pandemic: The need for open spaces, large balconies, home office space, and desirable landscaping has increased.
Increase in long-term investment: Foreign buyers are more looking for projects with long-term value growth rather than just temporary residence.
New Patterns of Foreign Buyers in the Turkish Real Estate Market 2025
Question: Regarding foreign buyers, what new patterns are observed in 2025?
Answer: Foreign buyers in 2025 are more looking for properties with reliable profitability in the medium term. Russian, Iranian, German, and Arab country buyers now have more interest in projects with strong infrastructure, transparent permits, and the possibility of short-term rental or long-term family residence.
Areas such as Başakşehir, Büyükçekmece, Pendik in Istanbul, and Çankaya in Ankara have seen significant growth in attracting this group of buyers.
Successful Investment Strategies in the Turkish Real Estate Market 2025
Question: Have these changes affected investor strategies?
Answer: Definitely. In 2025, successful investors are those who have a combined perspective: they pay attention to both capital growth in the long term and rental returns in the short term. Many investors, even in conditions of decreased property purchases by some foreign nationals, have focused on projects with advanced technical facilities such as Building Management System (BMS), solar energy, and buildings with green certification.
This type of investment not only increases the value of the asset but also provides easier resale and creates more stability in economic fluctuations.
This interview was prepared by SAMARAM Investment Group and contains expert views of Engineer Sotoudeh, Senior International Real Estate Investment Consultant, about the situation of the Turkish real estate market in 2025.
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