Turkey’s Real Estate: A Decade of Growth
Turkey’s real estate market has grown rapidly over the last 10 years, boosted by government policies, foreign investment incentives, infrastructure projects, and the Citizenship by Investment program. Cities like Istanbul, Antalya, and Izmir are now top business and lifestyle hubs.
2025 Market Trends
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Housing prices may rise up to 15%
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Rental yields in tourist areas could increase up to 20%
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Istanbul leads, but Sakarya is emerging as an investment hotspot
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Commercial real estate growth ~8%
Investment Segments
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Luxury homes, coastal/tourist properties, off-plan projects, and commercial spaces all show strong potential.
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Housing Sales Highlights (2025)
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June: Total 107,723 (+35.8%), Mortgage 14,484 (+112.6%)
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July: Total 142,858 (+12.4%), Mortgage 18,425 (+60.3%)
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August: Market remains active; inflation 33.52%, house prices +27.8%
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A Rising Market Over the Last 10 Years: Turkey’s Real Estate Transformation
Over the past decade, Turkey’s real estate sector has become one of the most dynamic markets worldwide. This transformation accelerated thanks to strategic government policies, foreign investment incentives, and major infrastructure projects such as Istanbul Airport, as well as urban renewal investments (Mordor Intelligence).
Another factor that gave the market significant momentum was the Citizenship by Investment program. This program attracted investors from the Middle East, Europe, and Central Asia, turning cities like Istanbul, Antalya, and Izmir into both business and lifestyle hubs. Today, investors can choose from a wide range of properties—from small city apartments to large villas and mixed-use projects.
Early Signals: A Rapid Recovery
As of March and April 2025, the Turkish real estate market shows clear signs of recovery and growth:
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March 2025: Home sales increased by 5.1% year-on-year, while mortgage sales jumped by 41.5% (Reuters).
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April 2025: Total home sales rose by 56.6% year-on-year, while mortgage sales surged by 163.4%. Foreign buyer activity increased by 13.2% compared to the previous month (Ensari Yigit & Cakmak).
In 2024, the market experienced a slight slowdown due to inflation and geopolitical uncertainties. However, the growing interest from both domestic and foreign investors shows that confidence in the market has returned.
Emerging Regions and Investment Hubs
Istanbul remains the most expensive city, maintaining its leadership with an average price of $1,256/m². However, other cities are also becoming attractive investment destinations:
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Ankara and Izmir: Foreign investment increased by 16%.
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Sakarya: With affordable prices and development potential, foreign interest rose by 20.7% (Paturkey).
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National Average: $825/m², expected to exceed $1,000/m² by 2028 (PropertyTurkey).
What to Expect in 2025?
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Housing prices may rise up to 15%
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Rental yields in tourist areas could increase up to 20%
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While Istanbul maintains its leadership, Sakarya is gaining momentum in investment
Forecasts for Sustainable Growth in 2025
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Housing demand will increase by 10–15%, especially in metropolitan and coastal areas
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Prices in tourism-focused areas such as Antalya and Bodrum could rise by 20%, driven by short-term rentals and foreign demand
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Commercial real estate growth will be around 8%, supported by the expansion of start-ups and retail (IMARC Group)
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The government will continue to support demand through incentives such as long-term mortgages and down payment assistance
Investment Segments for 2025
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Luxury Homes: Large villas and modern apartments are in high demand. Villa prices are expected to rise by 15% (Mordor Intelligence).
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Coastal and Tourist Properties: Ideal for investors seeking high rental yields. Rental prices may increase up to 18%.
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Off-Plan Projects: Competitive pricing and flexible payment plans attract long-term investors.
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Commercial Properties: Offices and retail spaces in city centers may grow by 8%, supported by the rise of start-ups and SMEs.
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Our Services:
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Legal and financial expert guidance
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Foreign investor support
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Post-sales property management
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? Housing Sales
June 2025
Housing sales showed a remarkable increase in June:
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Total Sales: 107,723 homes (+35.8%) – aa.com.tr
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Mortgage Sales: 14,484 homes (+112.6%) – bmd.com.tr
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First-Time Sales: 33,569 homes (+32%) – emsal.com
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Second-Hand Sales: 74,154 homes (+37.6%) – gayrimenkulajanlari.com
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Foreign Sales: 1,565 homes (+8.7%) – alomaliye.com
July 2025
July continued the upward trend in housing sales:
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Total Sales: 142,858 homes (+12.4%) – alomaliye.com
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Mortgage Sales: 18,425 homes (+60.3%)
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First-Time Sales: 43,984 homes (+7.8%)
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Second-Hand Sales: 98,874 homes (+14.6%)
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Foreign Sales: 1,913 homes (-18.6%)
August 2025
Although full August data has not yet been released, the market’s vitality is evident:
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Inflation Rate: 33.52% year-on-year as of July – TCMB
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Housing Price Growth: 27.8% compared to July – endeksa.com
Conclusion:
Turkey’s real estate market is entering a new era. Opportunities for investors have never been so diverse.
Demand is rising, international interest is growing, and 2025 offers a unique window to invest in a market with strong growth potential. From city centers to emerging regions, opportunities are real—and the time is now.
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Disclaimer:
The information provided is for general informational purposes only and does not constitute financial, investment, or legal advice. Past performance is not indicative of future results. All investment decisions should be made after independent research and consultation with professional advisors. Vip Property does not guarantee the accuracy, completeness, or reliability of any data presented.
Sources
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TÜİK – https://data.tuik.gov.tr
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Reuters – https://www.reuters.com/world/middle-east/turkish-house-sales-rise-51-year-on-year-march-2025-04-16
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Ensari Yigit & Cakmak – https://www.ensariyigitcancak.av.tr/blog/turkey-real-estate-sales-report-april-2025
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PropertyTurkey – https://www.propertyturkey.com
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Paturkey – https://www.paturkey.com/news/2025/foreign-buyers-shift-preferences-in-turkiyes-housing-market-20778
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Mordor Intelligence – https://www.mordorintelligence.com/industry-reports/residential-real-estate-market-in-turkey
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IMARC Group – https://www.imarcgroup.com/turkey-real-estate-market