Turkey’s real estate sector is expected to undergo significant changes in 2025, driven by factors such as economic conditions, foreign interest, and government policies. Below are 17 key predictions and insights into what we can expect from the market.Â
1) Property Prices in the Marmara Region Will Moderately Decline Due to Economic UncertaintiesÂ
The Marmara region, including key cities like Istanbul and Bursa, may see a moderate decline in property prices due to economic challenges. The slowdown in Turkey’s GDP growth, high inflation, and rising unemployment rates could reduce demand for properties, impacting prices in this region.Â
2) Middle Eastern Interest in Turkey’s Real Estate Will GrowÂ
Middle Eastern buyers are increasingly investing in Turkey due to strong cultural ties, historical connections, and improved flight accessibility between Turkey and Middle Eastern countries. This growing interest is expected to continue in 2025, making Turkey a key destination for real estate investments.Â
3) European Buyers Will Flock to Turkey’s Real Estate for Affordable Vacation HomesÂ
As property prices in Europe continue to rise, Turkey remains an affordable option for vacation homes. The favorable exchange rate and Mediterranean climate make Turkey an attractive choice for European investors looking for second homes in popular coastal destinations like Antalya and Bodrum.Â
4) Urban Areas in Turkey Will See Rents Rise as Housing Demand Exceeds SupplyÂ
In cities like Istanbul, Ankara, and Izmir, demand for housing is exceeding the available supply, leading to increasing rents. Urbanization and the influx of migrants continue to fuel the rise in rental prices, especially in central urban areas.Â
5) Property Prices in Turkey’s Tourist Areas Will Fluctuate with Tourism ChangesÂ
Tourist hotspots like Istanbul and Antalya will see fluctuations in property prices based on tourism activity. As tourist numbers increase, rental yields and property values rise, but in the event of a decline in tourism, prices are likely to drop, showing the dependency of these areas on seasonal tourism.Â
6) Turkey’s Zoning Law Changes Will Open New Areas for Homes and Impact Property ValuesÂ
Recent zoning law reforms have opened new areas for residential development, especially in Izmir and Ankara, where property values are expected to rise. These changes will drive the demand for mixed-use developments and modern residential projects, attracting both local and foreign investors.Â
7) Rents in Turkey’s Less Developed Regions Will Stay Stagnant Due to Limited Economic OpportunitiesÂ
In less economically developed regions, such as southeastern Turkey, rents are likely to remain stagnant. High unemployment and limited investment opportunities in these areas have hindered economic growth, keeping rental prices low.Â
8) Rents in Turkey’s Coastal Areas Will Increase as Demand for Vacation Homes GrowsÂ
With growing demand for vacation homes in coastal areas like Fethiye, Antalya, and Bodrum, rents are expected to rise. The increasing tourist influx and foreign investment are driving up property values and rental prices in these high-demand areas.Â
9) Turkey’s Student City Rental Market Will Decline as Online Education GrowsÂ
With the rise of online education, student housing demand in cities like Istanbul and Ankara is expected to decrease. Many students are opting for remote learning, reducing the demand for traditional student housing near campuses.Â
10) Turkey’s Aging Population Will Increase Demand for Senior-Friendly Housing DevelopmentsÂ
Turkey’s aging population will create a growing demand for senior-friendly housing developments. The government’s focus on healthcare and sustainable housing solutions for the elderly will likely drive demand for specialized senior living communities.Â
11) Turkey’s Wellness Culture Will Boost Demand for Properties with Health and Fitness AmenitiesÂ
Turkey’s increasing focus on wellness and healthy living is expected to drive demand for properties with health and fitness amenities. New residential developments featuring gyms, spas, and fitness centers will cater to the growing market of health-conscious buyers.Â
12) Rising Single-Person Households in Turkey Will Boost Demand for Smaller Living SpacesÂ
The increasing number of single-person households is fueling demand for compact, affordable apartments. As urbanization progresses, many individuals are opting for studio apartments and one-bedroom flats in city centers.Â
13) Southeastern Turkey will become a Hotspot for Affordable Housing Investments with Government Incentives
Government incentives and major infrastructure projects are positioning southeastern Turkey as a prime area for affordable housing investments. The Southeastern Anatolia Project (GAP) has driven improvements in infrastructure, attracting both local and foreign investors seeking cost-effective housing opportunities.Â
14) Government Incentives Will Boost the Value of Eco-Friendly Properties in TurkeyÂ
The Turkish government’s support for sustainable construction is expected to boost the value of eco-friendly properties. With incentives for energy-efficient homes and green building practices, these properties will likely see higher demand and value in 2025.Â
15) Turkey’s Coastal Regions Will Experience a Property Demand Surge as Climate Change Reduces Inland DesirabilityÂ
As climate change increases temperatures in inland areas, coastal regions like Izmir and Antalya will become more attractive for both residents and investors seeking milder climates. These areas are expected to see rising demand due to their comfortable living conditions and improved climate-resilient infrastructure.Â
16) Demand for Detached Houses in Turkey Will Rise as People Seek Private Living SpacesÂ
The growing trend for detached houses in suburban and rural areas reflects a desire for private living spaces. With increasing demand for homes with gardens and home offices, developers are responding by building more spacious homes in Turkey's less crowded areas.Â
17) Young Professionals Moving to Turkey’s Cities Will Boost Demand for Modern ApartmentsÂ
Turkey’s urban centers, especially Istanbul and Ankara, are seeing a rise in young professionals who are fueling demand for modern apartments. As these professionals seek convenient, contemporary living spaces, property developers are focusing on creating apartments that cater to their dynamic lifestyles.Â