Turkey’s residential property market entered a more active phase in 2025, supported by strong domestic demand, high rental levels, inflation-hedging behavior and the continued perception of real estate as a value-preserving asset.
While transaction activity increased and nominal housing prices continued to rise, investors became more focused on rental yield, location quality, financing conditions, supply-demand balance and long-term value potential.
At Taya Homes, we analyse the Turkish real estate market from an investment-focused perspective, covering key cities and regions such as Istanbul, Ankara, Izmir, Antalya, Bursa, Mersin and Muğla.
Overview of the Turkish Housing Market
As of Q4 2025, the average housing unit price in Turkey stood at TRY 45,447 per square meter, equivalent to approximately USD 1,076 per square meter.
Nationwide housing prices increased by 26.03% year-on-year. Major cities and coastal markets showed different dynamics, with some outperforming the national average in terms of price growth, liquidity or premium pricing.
Istanbul remained the most expensive major residential market, while Ankara recorded one of the fastest annual price increases among the largest cities. Muğla also stood out with an average unit price of TRY 76,619 per square meter, underlining the premium still commanded by Turkey’s high-value coastal markets.
Average Housing Prices in Selected Turkish Markets
Nationwide, the average housing unit price reached TRY 45,447 per square meter, equal to approximately USD 1,076 per square meter. Annual price growth was 26.03%.
In Istanbul, the average housing unit price stood at TRY 74,101 per square meter, equal to approximately USD 1,755 per square meter. Annual price growth reached 33.51%.
In Ankara, the average price was TRY 41,281 per square meter, equal to approximately USD 978 per square meter. Ankara recorded a strong annual increase of 38.69%.
In Izmir, the average price was TRY 49,544 per square meter, equal to approximately USD 1,173 per square meter. Annual price growth was 22.04%.
In Antalya, the average price was TRY 50,363 per square meter, equal to approximately USD 1,193 per square meter. Annual price growth was 26.20%.
In Bursa, the average price was TRY 36,404 per square meter, equal to approximately USD 862 per square meter. Annual price growth was 29.05%.
In Mersin, the average price was TRY 35,476 per square meter, equal to approximately USD 840 per square meter. Annual price growth was 26.74%.
In Muğla, the average housing unit price reached TRY 76,619 per square meter, equal to approximately USD 1,815 per square meter. Although annual growth was 17.01%, Muğla remained one of Turkey’s highest-value residential markets.
Istanbul: Turkey’s Largest and Most Liquid Property Market
Istanbul remains the largest and most liquid residential property market in Turkey.
In 2025, Istanbul accounted for approximately 18% of all national housing transactions, with annual sales increasing by 16.51%.
Key investment strengths of Istanbul include:
- Large and growing population
- Strong rental demand
- International buyer interest
- Role as Turkey’s financial, commercial and cultural hub
- Premium value potential in Bosphorus, central and branded residence locations
For investors seeking liquidity, rental income and long-term capital appreciation, Istanbul continues to be one of Turkey’s most strategic markets.
Ankara: Strong Price Growth and Stable Domestic Demand
Ankara recorded one of the strongest annual price increases among Turkey’s major cities, with prices rising by 38.69% year-on-year.
As the capital city, Ankara benefits from stable public-sector employment, universities, healthcare infrastructure and consistent domestic housing demand.
For investors, Ankara stands out due to:
- More accessible price levels
- Strong local demand
- Stable rental market
- Developing residential districts
- High annual price growth
Izmir: Lifestyle Appeal and Long-Term Value Potential
Izmir continues to attract strong interest from both lifestyle buyers and long-term investors.
Its average housing prices remain above the national average, reflecting strong demand and the city’s appeal as one of Turkey’s most desirable places to live.
Key investment drivers include:
- Coastal lifestyle
- Internal migration
- University and healthcare infrastructure
- Tourism and trade potential
- More balanced price levels compared with Istanbul
Antalya and Muğla: Premium Coastal Markets
Antalya and Muğla are among Turkey’s strongest coastal real estate markets.
Antalya benefits from tourism demand, foreign buyer activity, short-term rental potential and a broad residential supply base.
Muğla, including destinations such as Bodrum, Fethiye and Marmaris, continues to command premium pricing in the luxury and lifestyle property segments.
Muğla’s housing prices remaining well above the national average demonstrate the strength of premium coastal markets in Turkey.
Housing Demand: Domestic Buyers Continue to Lead the Market
Residential property sales in Turkey remained strong in 2025. A total of 1,760,292 homes were sold nationwide, representing a 13.58% year-on-year increase.
The recovery was driven primarily by domestic buyers. Foreign purchases reached 22,980 units, accounting for only around 1.3% of total transactions.
This shows that the Turkish housing market’s recovery was mainly supported by domestic demand, deferred purchases, high rental costs and the continued role of housing as a value-preservation asset.
Foreign Buyer Demand Has Become More Selective
Foreign property purchases declined in 2025. This reflected higher price levels, changes in residency and citizenship processes, financing conditions and global economic uncertainty.
Despite the decline, Istanbul, Antalya and Mersin remained among the most preferred locations for international buyers.
Turkey continues to offer several advantages for foreign investors:
- Strategic geographic location
- Coastal and urban lifestyle options
- Foreign-currency-based investment opportunities
- Large residential stock
- Citizenship and residency-related investment potential
- Tourism and short-term rental opportunities
Rental Market: Growth Continues, But at a Slower Pace
Turkey’s rental market remained strong in 2025, although the pace of rental inflation continued to moderate.
As of Q4 2025, the average appraised residential rent in Turkey stood at TRY 224.8 per square meter, equal to approximately USD 5.3 per square meter.
Istanbul, Muğla, Izmir and Antalya remained above the national average in terms of rental values.
Average rents in selected markets:
In Istanbul, the average unit rent was TRY 367.9 per square meter, equal to approximately USD 8.7 per square meter. Annual rental growth reached 41.2%.
In Ankara, the average unit rent was TRY 210.1 per square meter, equal to approximately USD 5.0 per square meter. Annual rental growth reached 42.8%.
In Izmir, the average unit rent was TRY 252.2 per square meter, equal to approximately USD 6.0 per square meter. Annual rental growth was 32.3%.
In Antalya, the average unit rent was TRY 230.9 per square meter, equal to approximately USD 5.5 per square meter. Annual rental growth was 34.6%.
In Muğla, the average unit rent was TRY 325.8 per square meter, equal to approximately USD 7.7 per square meter. Annual rental growth was 34.7%.
Nationwide, the average unit rent was TRY 224.8 per square meter, equal to approximately USD 5.3 per square meter. Annual rental growth was 33.2%.
Rental Yields and Investment Potential
Residential rental yields in Turkey remain attractive for income-focused property investors.
As of early 2026, average gross rental yields in Turkey were estimated at approximately 7.32%. Istanbul and Ankara showed particularly strong rental yield potential, with estimated yields of around 8.17% and 8.10% respectively.
This makes Turkey attractive for investors seeking rental income, especially in high-demand urban markets.
However, investors should not focus only on gross yield. Net return calculations should include:
- Maintenance and repair costs
- Service charges
- Taxes
- Insurance
- Vacancy risk
- Professional property management
- Financing costs
Property Supply: Construction Permits Rebound
Turkey’s residential supply pipeline strengthened significantly in 2025.
A total of 1,109,424 residential units received construction permits, representing a 30.25% year-on-year increase and marking one of the highest levels since 2017.
This rebound was supported by:
- Post-earthquake reconstruction
- Urban transformation projects
- Previously limited supply
- Expectations of stronger demand
- Social housing initiatives
However, construction permits do not immediately translate into completed housing stock. For this reason, new supply may take time to ease market tightness.
Financing and Mortgage Market
Housing loan rates in Turkey remained high, although some easing was observed in the second half of 2025.
Mortgaged housing sales increased by 48.8% year-on-year in 2025, indicating that lower borrowing costs and improving buyer sentiment supported a partial recovery in mortgage-financed transactions.
However, the share of mortgaged sales in total transactions remained below historical averages, suggesting that many home purchases in Turkey are still completed through cash or alternative financing methods.
Economic Outlook and Its Impact on Real Estate
Turkey continues to operate in a challenging macroeconomic environment shaped by high inflation, currency movements, interest-rate policy and geopolitical risks.
Despite this, real estate tends to remain attractive during high-inflation periods because many investors view property as a hedge against currency depreciation and inflation.
Key economic indicators investors should monitor include:
- Inflation
- Interest rates
- Exchange rates
- Construction costs
- Housing loan access
- Population movements
- Employment data
- Foreign investor regulations
Outlook for 2026 and Beyond
Entering 2026, Turkey’s property market is expected to remain active but more selective.
Further nominal price increases are likely, although expectations for real price growth remain more cautious. High rents, deferred demand, internal migration, limited accessible supply and the use of housing as a value-preservation asset may continue to support market activity.
However, not every region or property type will offer the same investment potential. Location-based analysis, rental yield calculations and professional market evaluation are becoming increasingly important.
Key Investment Locations in Turkey
Istanbul: High liquidity, strong rental demand, premium projects and international buyer interest.
Ankara: Accessible pricing, strong domestic demand and high annual price growth.
Izmir: Lifestyle appeal, coastal demand and long-term value potential.
Antalya: Tourism, foreign buyer demand and short-term rental potential.
Muğla: Premium coastal markets, luxury housing and high unit prices.
Mersin: Port activity, trade, migration and developing investment appeal.
Bursa: Industrial strength, production economy and proximity to Istanbul.
Taya Homes’ Approach to the Turkish Market
Taya Homes evaluates the Turkish real estate market not only from a sales perspective, but from an investment perspective.
Our focus areas in Turkey include:
- Premium residential projects
- Investment opportunities in Istanbul and coastal markets
- Income-generating rental properties
- Citizenship and residency-focused investments
- Commercial real estate opportunities
- High-growth locations
- Portfolios suitable for international investors
Our aim is to help investors choose not only the right property, but the right market, location and strategy.
Conclusion
Turkey’s real estate market remained attractive in 2025, supported by strong transaction volumes, high rental levels and continuing nominal price growth.
However, the market is becoming more selective. Investors should focus not only on price appreciation, but also on rental yield, location quality, supply-demand balance, financing conditions and long-term value potential.
Taya Homes Market Reports are designed to help investors make more informed decisions across Turkey and international real estate markets.
