December 2025
Turkey Real Estate Market: Overview, Prospects, Opportunities
House Price index
In 2026, growth in Turkey’s real estate market index is expected to continue. The year 2025 marked a record in terms of transaction volume. Real estate remains a traditional and primary form of savings in the country.
Foreign Buyer Activity
In 2025, foreign demand remains subdued: the share of transactions involving foreign buyers stays at around 1–2%, confirming a structural cooling of the foreign segment amid regulatory pressure and macroeconomic risks. This trend is expected to continue in 2026.
Share of Foreign Buyers
In 2024, the combined share of foreign buyers from Iran, Russia, and Ukraine amounted to 38.3%, which is broadly in line with previous years. However, there is a clear overall decline in interest in the country.
Share of Foreign Buyers
In 2025, the share of foreign buyers in total real estate transactions in Turkey declined to around 1.5%, aligning with levels seen in 2016–2017 and indicating a structural reduction in the role of foreign demand amid macroeconomic and regulatory factors.
Domestic Demand Dynamics
Domestic demand remains the primary driver of market growth. 2025 was a record year, despite the decline in interest from foreign buyers.
Urbanization
A key driver of domestic demand is the ongoing process of urbanization and the migration of the local population into major urban centers such as Istanbul, Ankara, and Izmir. As the potential for urbanization has not yet been exhausted, further growth in domestic demand and increased population concentration in these cities are expected over the next five years. An additional factor accelerating this concentration is the crisis in the textile industry and the closure of major enterprises in smaller cities across the country.
Inflation and Domestic Dynamics
The primary factor driving real estate price growth remains the inflation of the Turkish lira. Historically, property acquisition in Turkey has been a key means of protecting capital against currency depreciation. At the same time, the sharp price surge previously observed in coastal regions (2018–2022) has led to a redistribution of demand toward other parts of the country, where prices remain relatively more affordable.
The real estate market in Ankara deserves special attention, as it demonstrates the most устойчивый and consistent price growth trend. It is the only major city where price dynamics have never been significantly dependent on foreign demand, while still matching the growth rates of traditionally popular coastal regions. As a result, Ankara did not experience the notable price correction that affected popular areas such as Antalya, Alanya, and even Istanbul in 2023.
Most popular cities
Ankara has never been among the most popular Turkish cities for foreign buyers, and therefore its real estate demand has never been dependent on foreign demand.
Price Growth in 2025
Ankara has slowed its pace of growth but retained its absolute leadership in 2025. Growth rates in Istanbul and other major cities are lagging behind inflation.
Средняя стоимость метра
На текущий момент Анкара уступает по уровню цен даже Мерсину - городу с самым низким уровнем цен среди крупных городов на турецком побережье Средиземного моря.
Growth Drivers
Thus, the price growth potential in Ankara is driven by a significant price gap compared to other popular cities in the country.
Additional Factors
An additional significant factor is the high level of seismic activity, with the risk being particularly relevant for Istanbul and Izmir. The Turkish authorities are implementing a program to gradually relocate industrial capacity to less seismically exposed regions of the country. Among these, Ankara and Konya stand out due to their developed infrastructure, available workforce, and convenient access to logistics networks. The combination of these factors creates unique conditions for sustainable growth in Ankara’s real estate market over the next 3–4 years.
Market Potential and Outlook
As of 2025, Turkey’s real estate market demonstrated a recovery in transaction volumes and confirmed its overall resilience; however, the structure of this recovery differs fundamentally from previous cycles. The primary driver of the market has shifted to domestic demand, while the role of foreign buyers has declined significantly and no longer exerts a meaningful influence on price dynamics. Total transaction volume rebounded to approximately 1.5 million units, comparable to the levels seen in 2020–2022, indicating the end of the sharp downturn experienced in 2023. Notably, this recovery occurred amid tight monetary policy and limited mortgage financing, underscoring the defensive role of real estate for local households in a high-inflation environment.
Price dynamics in 2025 remained positive in nominal terms; however, in real terms, the market was largely stagnant. Growth in Turkish lira prices was driven primarily by inflationary inertia rather than a fundamental supply shortage. In USD terms, certain regions—particularly tourist destinations—experienced price corrections.
Regional divergence has intensified: Ankara stands out as the only major market showing signs of real growth, while Istanbul continues to demonstrate high liquidity with limited price momentum. Meanwhile, Antalya and Alanya have come under pressure due to declining foreign demand and the accumulated overheating from previous years.
The foreign segment of the market in 2025 has definitively entered a phase of structural contraction. Transaction volumes involving foreign buyers have fallen to levels last seen in the mid-2010s, with their share of the total market declining to approximately 1.5%. Despite ongoing interest from certain countries, foreign demand has ceased to be a systemic growth driver and has largely lost its ability to support prices, particularly in resort regions. This has widened the gap between primary and secondary markets and led to increased discounts on resale properties.
Outlook for 2026
In 2026, under the base-case scenario, Turkey’s real estate market is expected to enter a phase of stabilization. Significant growth in transaction volumes is unlikely, with the market expected to remain within the range of 1.45–1.55 million units. Prices will continue to rise in nominal terms, but at a moderate pace largely offset by inflation. In real terms, the market is likely to remain close to flat, while in USD terms, some regions may continue to see sideways movement or mild corrections.
A meaningful recovery in foreign demand is not expected in 2026, with its share likely to remain within the 1–2% range.
Overall Assessment
In 2026, Turkey is not a market for rapid growth or mass speculative strategies aimed at capital appreciation in foreign currency terms. However, it retains investment appeal for selective strategies focused on domestic demand, acquisition of liquid assets at a discount, and long-term capital preservation in local currency.
The most resilient markets are likely to be capital and economically diversified cities, while tourist regions will remain more volatile and sensitive to changes in external demand. Overall, Turkey’s real estate market is entering a phase of maturity, requiring investors to exercise a high degree of selectivity, a deep understanding of regional specifics, and realistic expectations regarding returns.
As of 2025, Turkey’s real estate market demonstrated a recovery in transaction volumes and confirmed its overall resilience; however, the structure of this recovery differs fundamentally from previous cycles. The primary driver of the market has shifted to domestic demand, while the role of foreign buyers has declined significantly and no longer exerts a meaningful influence on price dynamics. Total transaction volume rebounded to approximately 1.5 million units, comparable to the levels seen in 2020–2022, indicating the end of the sharp downturn experienced in 2023. Notably, this recovery occurred amid tight monetary policy and limited mortgage financing, underscoring the defensive role of real estate for local households in a high-inflation environment.
Price dynamics in 2025 remained positive in nominal terms; however, in real terms, the market was largely stagnant. Growth in Turkish lira prices was driven primarily by inflationary inertia rather than a fundamental supply shortage. In USD terms, certain regions—particularly tourist destinations—experienced price corrections.
Regional divergence has intensified: Ankara stands out as the only major market showing signs of real growth, while Istanbul continues to demonstrate high liquidity with limited price momentum. Meanwhile, Antalya and Alanya have come under pressure due to declining foreign demand and the accumulated overheating from previous years.
The foreign segment of the market in 2025 has definitively entered a phase of structural contraction. Transaction volumes involving foreign buyers have fallen to levels last seen in the mid-2010s, with their share of the total market declining to approximately 1.5%. Despite ongoing interest from certain countries, foreign demand has ceased to be a systemic growth driver and has largely lost its ability to support prices, particularly in resort regions. This has widened the gap between primary and secondary markets and led to increased discounts on resale properties.
Outlook for 2026
In 2026, under the base-case scenario, Turkey’s real estate market is expected to enter a phase of stabilization. Significant growth in transaction volumes is unlikely, with the market expected to remain within the range of 1.45–1.55 million units. Prices will continue to rise in nominal terms, but at a moderate pace largely offset by inflation. In real terms, the market is likely to remain close to flat, while in USD terms, some regions may continue to see sideways movement or mild corrections.
A meaningful recovery in foreign demand is not expected in 2026, with its share likely to remain within the 1–2% range.
Overall Assessment
In 2026, Turkey is not a market for rapid growth or mass speculative strategies aimed at capital appreciation in foreign currency terms. However, it retains investment appeal for selective strategies focused on domestic demand, acquisition of liquid assets at a discount, and long-term capital preservation in local currency.
The most resilient markets are likely to be capital and economically diversified cities, while tourist regions will remain more volatile and sensitive to changes in external demand. Overall, Turkey’s real estate market is entering a phase of maturity, requiring investors to exercise a high degree of selectivity, a deep understanding of regional specifics, and realistic expectations regarding returns.