Turkish Real Estate Market Forecasts 2025: Growth, Opportunities, and Challenges

Performance of the Turkish Real Estate Market in 2024

The Turkish real estate market experienced outstanding performance in 2024, achieving significant growth compared to previous years. According to official statistics, the total property sales reached approximately 1.55 million housing units, with around 23,781 units sold to foreigners, reflecting international investor activity in the Turkish market.

Several factors contributed to this robust performance, including relative political stability, encouraging economic policies, and diverse investment opportunities.

• Domestic Property Sales

Sales to Turkish citizens showed continuous growth due to the increasing demand for housing and the availability of mortgage financing at relatively low interest rates. Government initiatives to support housing have facilitated homeownership for many Turkish families.

• Foreign Property Sales

Property sales to foreigners peaked in 2024, attracting investors from various countries due to lucrative returns and Turkey's strategic location. The top nationalities purchasing properties included citizens from the Gulf countries, Russia, and Germany.

Top Cities for Property Sales in 2024

Several Turkish cities stood out with high property sales volumes in 2024, including:

Istanbul
Units Sold: 520,000
Factors: Istanbul, as Turkey's economic and cultural capital, attracts real estate investments due to its developed infrastructure and abundance of modern residential projects.

Antalya
Units Sold: 210,000
Factors: Antalya city attracts many foreign buyers seeking holiday homes or investment properties because of its beautiful beaches and mild climate.

Ankara
Units Sold: 155,000
Factors: As the administrative capital of Turkey, Ankara offers attractive real estate opportunities due to government projects and good infrastructure.

Izmir
Units Sold: 125,000
Factors: Izmir, a coastal city, attracts many investors due to its economic growth and rich culture.

Bursa
Units Sold: 105,000
Factors: Bursa's proximity to Istanbul and its natural beauty make it a preferred destination for local and foreign buyers.

Related: Real Estate Market in Turkey: Guide 2025.

Cities with the Highest Property Value Growth in 2024

Some Turkish cities saw remarkable growth in property values during 2023, including:

Antalya

• Growth Rate: 20%
• Reasons: High demand from foreigners, ongoing tourism infrastructure development, and an increase in luxury projects.

Izmir

• Growth Rate: 15%
• Reasons: Growing interest in the city as a tourist and investment destination and infrastructure improvements.

Istanbul

• Growth Rate: 10%
• Reasons: Continued investment inflows and an increase in large residential and commercial projects.

Bursa

• Growth Rate: 8%
• Reasons: New development projects and their prime geographical location.

Fethiye

• Growth Rate: 7%
• Reasons: Attracting foreign buyers looking for holiday homes and investing in tourism properties.

Turkish Real Estate Market Forecast for 2025

The Turkish real estate market is expected to continue growing in 2025, driven by several factors:

• Increasing Demand: Demand for properties from both Turkish and foreign buyers is expected to rise due to greater political and economic stability.
• Price Growth: Property prices are likely to increase by 12% to 17% in major cities, reflecting rising demand and relative supply limitations.
• New Projects: Major cities like Istanbul, Ankara, and Izmir are expected to see the launch of various new residential and commercial projects catering to diverse market needs.
• Government Policies: The Turkish government may continue supporting the real estate sector through investment encouragement policies and offering low-interest mortgage financing.

Golden Opportunities in the Turkish Real Estate Market for 2025

Numerous promising opportunities exist in the Turkish real estate market for 2025, including:

• Luxury Properties: Increasing demand for villas and luxury apartments Turkey in tourist areas and major cities.
• Commercial Properties: Growing demand for commercial spaces and offices due to economic expansion and increased commercial activity.
• Tourism Properties: Investments in coastal areas like Antalya and Bodrum, attract foreign buyers seeking holiday homes.
• Infrastructure Projects: Leveraging large government infrastructure projects enhances the attractiveness of surrounding areas.

Challenges

Despite the promising opportunities, the Turkish real estate market faces some challenges that could affect its performance in 2024:

• Currency Fluctuations: Fluctuations in the Turkish Lira against foreign currencies influence foreign investors' decisions.
• Inflation: Continued inflation affects citizens' purchasing power and increases construction costs.
• Government Policies: Potential changes in tax and regulatory policies could impact the attractiveness of real estate investment.

Impact of New Economic Policies on the Real Estate Market

The impact of new economic policies depends on various factors, including interest rates and economic stimulus policies. Encouraging investment policies are expected to enhance the real estate market and attract more investors.

Is it Advisable to Buy Property in Turkey in 2025?

Yes, buying property in Turkey in 2025 is advisable given the expected market growth and potential investment returns. Investing in Turkish real estate is a promising opportunity for those looking to diversify their investment portfolios.

High rental yields and the appreciation of property values over time make Turkey a preferred destination for investors.

Best Types of Properties to Invest in 2025

The best types of properties for investing in 2024 include residential apartments in major cities, commercial properties, and hotels. The reasons behind this include:

• Residential Apartments: High demand from both Turks and foreigners for housing in major cities ensures stable rental yields.
• Commercial Properties: Increasing commercial activity and economic expansion enhance the value of commercial properties.
• Hotels: Growing tourism in Turkey offers significant investment opportunities in hotels and tourism projects.

Best Cities and Regions to Buy Property in Turkey in 2025

1. Istanbul: As Turkey's economic and cultural capital, Istanbul attracts real estate investments due to its developed infrastructure and abundant modern residential projects.
2. Antalya: Known for its beautiful beaches and mild climate, Antalya attracts many foreign buyers seeking holiday homes or investment properties.
3. Trabzon: Located on the Black Sea, Trabzon is known for its natural beauty and mild climate, making it a preferred destination for investors seeking tranquility and nature.
4. Bursa: Bursa's proximity to Istanbul and its natural beauty make it a preferred destination for local and foreign buyers.
5. Kocaeli: Located near Istanbul, Kocaeli is an important industrial center known for its natural environment and developed residential projects.
6. Sakarya: Sakarya is known for its natural beauty and tranquil environment, making it an ideal place to invest in residential and tourism properties.

Consult Imtilak Real Estate for Property Ownership and Investment in Turkey

If you are looking to own or invest in the Turkish real estate market, Imtilak Real Estate is your ideal partner for advice and support. With our extensive experience and deep market knowledge, we can help you find the best real estate opportunities and achieve your investment goals safely and efficiently.

Imtilak Real Estate offers comprehensive services, including real estate consultancy, field tours, and facilitating purchase and ownership procedures, ensuring a comfortable and successful investment experience.