Will Property Prices in Turkey Rise in 2025

The Turkish real estate market has been a key driver of economic growth over the past decade, attracting both domestic and international investors. Despite fluctuations in global economic conditions, Turkey’s property market has shown resilience, with steady appreciation in property values across major cities. As we approach 2025, a key question on investors’ minds is: Will property prices in Turkey continue to rise? To answer this, we need to analyze multiple factors influencing the market, including economic conditions, supply and demand dynamics, foreign investment trends, inflation, and government policies.

1. Current State of the Turkish Property Market

Over the past few years, Turkey has experienced significant property price growth. Between 2021 and 2024, real estate prices in major cities like Istanbul, Ankara, Izmir, and Antalya saw sharp increases, driven by rising demand, inflation, and foreign investment. According to the Turkish Statistical Institute (TÜİK), housing prices in Turkey surged by over 100% in 2022 alone, with continued growth in 2023 and 2024, albeit at a slower pace.

Several key factors have contributed to this upward trend:

Foreign investment: Investors from the Middle East, Europe, and Russia continue to buy property in Turkey, particularly in Istanbul, Antalya, and Bodrum. The Turkish Citizenship by Investment program, which allows foreigners to obtain citizenship by purchasing real estate worth at least $400,000, has played a significant role in attracting international buyers.
High domestic demand: Turkey has a young and growing population, leading to increased demand for housing, particularly in urban centers.
Inflation and currency fluctuations: The depreciation of the Turkish Lira has made property in Turkey more affordable for foreign investors, further boosting demand.
Construction costs: The rising cost of raw materials, labor, and energy has pushed property developers to increase prices, contributing to market appreciation.

2. Key Factors That Will Influence Property Prices in 2025

a) Inflation and Interest Rates

One of the biggest determinants of property prices in Turkey is inflation. Over the past few years, Turkey has experienced high inflation rates, which have led to higher construction costs and rising property values. While the government has taken steps to curb inflation through monetary policies, price increases are expected to continue into 2025, albeit at a more moderate pace.

Interest rates also play a crucial role in real estate affordability. The Central Bank of Turkey has adjusted interest rates multiple times to combat inflation, directly impacting mortgage lending and real estate financing. If interest rates remain high, it could slow down domestic demand, but foreign investors who buy in cash will continue to take advantage of the market.

Prediction for 2025: Inflation is likely to remain a challenge, leading to continued property price growth, though at a slower rate compared to previous years.

b) Foreign Investment Trends

Foreign investors have played a key role in Turkey’s real estate boom. Turkey’s relatively low property prices compared to Europe, its attractive rental yields, and its citizenship-by-investment program have made it a favorite destination for international buyers.

Russian and Middle Eastern investors continue to dominate the market, purchasing high-end properties in Istanbul, Antalya, and Bodrum.
European buyers have been increasingly looking at Turkey due to its favorable climate, affordability, and growing tourism sector.
Chinese investors are showing rising interest in Turkey’s real estate sector as part of their global property investment strategy.

However, global economic uncertainty and geopolitical tensions could impact foreign direct investment in 2025. If the Turkish government introduces additional incentives for foreign investors, such as tax breaks or residency benefits, demand could remain strong.

Prediction for 2025: Foreign investment will remain a strong driver of price increases, particularly in tourist hotspots and metropolitan areas.

c) Supply and Demand Imbalance

Urbanization in Turkey is growing rapidly, leading to high demand for new housing units. However, rising construction costs and economic challenges have caused delays in new developments.

The number of building permits issued for new housing projects has decreased, limiting future supply.
The shortage of affordable housing in major cities has created strong demand in the rental market, pushing rental prices to record highs.
Government initiatives aimed at affordable housing projects may provide some relief, but the overall demand for mid-range and luxury properties is expected to outpace supply.

Prediction for 2025: The supply shortage will keep driving property prices higher, especially in high-demand urban areas.

d) Infrastructure and Mega Projects

Turkey continues to invest heavily in infrastructure and urban development projects, which directly influence property values. Major projects such as:

The Istanbul Canal Project (expected to transform the city’s real estate landscape)
New metro lines and transportation improvements in Istanbul, Ankara, and Izmir
Tourism-focused developments in Antalya and Bodrum
Technology and business hubs, attracting corporate investments

These large-scale projects significantly boost property values in surrounding areas, creating new investment opportunities.

Prediction for 2025: Infrastructure projects will drive localized property price increases, particularly in Istanbul and Antalya.

Which Cities Will See the Highest Property Price Growth in 2025?

Istanbul

As Turkey’s economic and cultural capital, Istanbul will remain the hottest real estate market. Areas experiencing the fastest growth include:

Başakşehir and Esenyurt (emerging investment hubs)
Kadıköy and Beşiktaş (high-end, high-demand districts)
Beylikdüzü and Kartal (affordable areas seeing rapid appreciation)

Estimated price increase in 2025: 12% – 18%

Antalya

With its booming tourism sector and growing expat population, Antalya is one of the most promising cities for real estate investment.

Konyaaltı and Lara (luxury beachfront properties)
Kepez (affordable properties with high rental demand)

Estimated price increase in 2025: 10% – 15%

Izmir

The third-largest city in Turkey, Izmir is rapidly growing due to its strong economy and attractive coastal lifestyle.

Alsancak and Karşıyaka (prime real estate locations)
Bornova (a top choice for rental investment)

Estimated price increase in 2025: 8% – 14%

Bursa

Bursa, close to Istanbul, remains an affordable alternative for investors looking for strong capital appreciation.

Nilüfer and Mudanya (up-and-coming investment areas)

Estimated price increase in 2025: 7% – 12%

Considering the factors discussed above—inflation, foreign investment, supply shortages, and infrastructure developments—Turkey’s property market is expected to continue growing in 2025, though at a moderate pace compared to previous years. While economic fluctuations and interest rate changes may impact short-term trends, the long-term outlook remains highly positive for real estate investors.

Investors looking for high ROI should focus on cities like Istanbul, Antalya, and Izmir, where demand continues to outpace supply. With the ongoing expansion of Turkey’s infrastructure, strategic property purchases in key locations will ensure profitable returns for both rental income and capital appreciation.

Ultimately, 2025 presents strong opportunities for investors, but it is crucial to monitor market conditions, work with experienced real estate professionals, and choose properties in high-demand areas to maximize gains in Turkey’s evolving real estate landscape.

Turkey Trends

Will Property Prices in Turkey Rise in 2025 – Market Analysis