Real Estate Market in Turkey: Opportunities and Risks for European Investors

In 2025, the Turkish real estate market remains an attractive option for European investors due to its affordability, growth potential, and diverse property offerings. However, economic instability, currency fluctuations, and regulatory changes pose certain risks that should be carefully considered before investing.
Current Trends and Price Dynamics
In recent years, property prices in Turkey have shown significant growth. According to the real estate analytics platform Endeksa, in 2023, housing prices increased by 84%, surpassing 3 million Turkish liras (approximately $100,000). Analysts predict a continued upward trend in 2025, with prices expected to rise by 35% in the first half of the year and up to 50% by year-end.
The primary drivers of price growth include strong demand, improved mortgage lending conditions, and active real estate development. Major cities such as Istanbul, Ankara, and Izmir remain prime investment locations, while coastal areas like Antalya and Bodrum continue to attract international buyers.
Investment Opportunities
1. New Housing Developments
Large-scale urban renewal projects in major cities create excellent opportunities for purchasing properties at the construction stage and selling them at a higher price once completed.
2. Income-Generating Properties in Tourist Areas
Coastal regions such as Antalya, Alanya, and Fethiye are in high demand among tourists, making short-term rental investments a lucrative option.
3. Commercial Real Estate
Office spaces, shopping centers, and hotels remain promising investment areas in Turkey’s growing economy.
4. Land Investments
Buying land in rapidly developing regions can offer substantial long-term returns as infrastructure expands.
Key Risks
1. Economic Uncertainty
High inflation (over 70% in 2024) erodes purchasing power and can affect investment profitability.
2. Currency Fluctuations
The Turkish lira continues to depreciate, which may impact the value of rental income and property resale returns when converted to euros.
3. Regulatory Changes
New taxes and restrictions on foreign property ownership could impact liquidity. Turkish authorities periodically revise property laws for non-residents.
4. Political Risks
Geopolitical instability and domestic political shifts could affect the investment climate, especially for long-term investors.
Current Property Prices in Turkey
• Istanbul
Luxury properties: $14,000 per m²
Modern apartments: $4,500–8,000 per m²
• Antalya
City center apartments: $1,500–2,000 per m²
• Bodrum
Average prices: $2,000–5,000 per m²
Prices vary depending on location, property condition, and proximity to infrastructure.
Recommendations for Investors
✔ Conduct in-depth market research
• Analyze price trends and demand in your target region before purchasing.
✔ Diversify investments
• Consider multiple property types: residential, commercial, and tourist rentals.
✔ Work with reliable legal consultants
• Ensure property legality and compliance with Turkish regulations.
✔ Evaluate currency risks
• Plan for potential devaluation of the Turkish lira when calculating returns.
✔ Focus on long-term investments
• While prices are rising, market corrections are possible, making long-term planning essential.
The Turkish real estate market in 2025 presents significant opportunities for European investors, but careful consideration is required. High demand, infrastructure development, and rising property values make it an attractive investment destination, yet economic volatility and regulatory uncertainties add an element of risk. To maximize returns and mitigate potential losses, investors should conduct thorough market research, seek professional legal advice, and adopt a long-term investment strategy.