Turkey Real Estate Market – First Half of 2025: Opportunities Amid Shifting Trends
The Turkish real estate market has entered the second half of 2025 with changing dynamics, new investment opportunities, and strong rental returns — making it an attractive time for both domestic and international buyers.
While inflation has moderated price growth in real terms, certain cities and provinces have delivered exceptional capital appreciation and rental yields, drawing the attention of savvy investors.
Sales Prices: Growth Slows, Opportunities Emerge
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In the first six months of 2025, residential sales prices across Turkey increased 12.6% nominally.
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After adjusting for inflation, this translates to a 3.3% real-term decline, creating entry opportunities for buyers looking to secure property before the next growth cycle.
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On an annual basis, prices rose 26.9% nominally, but fell 6.2% in real terms.
Current National Averages:
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₺33,470 per square meter
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₺4.3 million average property price
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13 years average payback period for investment
Rental Market: Stronger Returns and Shorter Payback Periods
Rental properties have been the star performers in early 2025.
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Nationwide rents increased 21.5% in the first half of the year.
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Even after accounting for inflation, there was a 4.4% real increase.
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Annual rent growth stands at 32.6% nominal, with only a 1.9% real-term decline.
Current Rental Averages:
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₺220 per m²
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₺22,681 average monthly rent
The rental market’s resilience has shortened the payback period for investments and enhanced the appeal of income-focused strategies.
Sales Activity & Financing: The Mortgage Comeback
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691,893 homes were sold in the first half of 2025 — up 26.9% from last year.
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Mortgage sales surged by 100.5%, reaching 103,090 transactions.
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Mortgaged deals now make up 14.9% of all sales, compared to 9.4% in 2024, signaling renewed confidence in financed purchases.
Best-Performing Investment Provinces
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Diyarbakır – The top performer in the first half of 2025
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Six-month increase: +23.1% nominal, +5.7% real
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Annual growth: +63.3% nominal, +20.7% real
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Avg. ₺/m²: ₺27,129 | Avg. price: ₺4.2M
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Samsun – Strong and steady appreciation
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Six-month increase: +21.7% nominal, +4.5% real
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Annual growth: +38.0% nominal, +2.1% real
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Avg. ₺/m²: ₺29,665 | Avg. price: ₺3.5M
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Çanakkale – High annual appreciation
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Six-month increase: +17.7% nominal, +0.1% real
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Annual growth: +47.3% nominal, +8.9% real
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Avg. ₺/m²: ₺44,923 | Avg. price: ₺5.4M
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Regions with Weaker Growth
Areas impacted by the February 2023 earthquakes recorded more modest gains:
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Hatay: 6-month real drop -8.6%, annual real drop -13.9%. Avg. price: ₺3.5M.
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Gaziantep: 6-month real drop -7.1%, annual real drop -6.4%. Avg. price: ₺3.7M.
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Kahramanmaraş: 6-month real drop -5.6%, annual real drop -8.6%. Avg. price: ₺3.4M.
Major Cities – Performance Overview
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Ankara – Best among the big four
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Six-month growth: +16.1% nominal (flat in real terms)
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Annual growth: +36.2% nominal, +0.7% real
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Avg. ₺/m²: ₺29,596 | Avg. price: ₺3.9M
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Istanbul – Softened growth but high price levels
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Six-month growth: +13.9% nominal, -2.2% real
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Annual growth: +26.4% nominal, -6.5% real
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Avg. ₺/m²: ₺50,992 | Avg. price: ₺5.8M
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Izmir – Strong lifestyle market
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Six-month growth: +14.0% nominal, -2.1% real
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Annual growth: +27.3% nominal, -5.9% real
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Avg. ₺/m²: ₺43,999 | Avg. price: ₺5.5M
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Antalya – Tourism-driven demand with mild slowdown
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Six-month growth: +14.7% nominal, -1.6% real
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Annual growth: +21.9% nominal, -9.8% real
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Avg. ₺/m²: ₺43,540 | Avg. price: ₺4.8M
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Muğla – Turkey’s Price Leader
Muğla continues to dominate as the most expensive housing market in Turkey:
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Avg. ₺/m²: ₺72,511
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Avg. property price: ₺9.4M
Its blend of luxury lifestyle, tourism appeal, and limited supply keeps it firmly at the top of the price rankings.
Investor Takeaway
The first half of 2025 has revealed a market in adjustment — nominal prices are rising, but inflation is reshaping real returns.
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Opportunity: Slower real growth allows buyers to enter prime markets before the next upward cycle.
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Advantage: Strong rental demand shortens payback periods, enhancing investment value.
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Strategy: Focus on high-performing provinces like Diyarbakır, Samsun, and Çanakkale, while targeting rental-driven cities for income stability.
For those ready to take advantage of these trends, Turkey offers both short-term income potential and long-term capital growth, especially when guided by expert local knowledge and data-driven decision-making.
