Türkiye: Best Places for Foreigners to Invest in Istanbul Real Estate in 2025

Although Istanbul is not the capital of Türkiye, it is the largest city and the most well-known one. This continents-spanning city is, after all, home to 15 million people and is the historic bridge between the European and Asian continents since its founding as Byzantium. The Turkish government considers Istanbul one of its most important cities, and thus special attention is given to its infrastructure, including the new Istanbul Airport (iGA) one of the busiest in the world, as well as the $15 (many estimates say $25) billion Canal.

Some brief statistics about the Istanbul Airport

1) Opened in 2018

2) Served 76 million passengers in 2023, becoming the 2nd busiest airport in Europe and the 7th in the world, servicing flights to and from 114 countries.

3) Still conveniently close to Istanbul proper, facilitating ease of access and transportation.

4) Is serviced by rail, bus, metro, and taxi transportation, to all areas of Istanbul

5) The high volume of flights into Istanbul as the main hub for Turkish Airlines which serves many U.S. and European cities also makes this city convenient stopover for business and tourist travel on to cities in Russia, Central Asia and China. Citizens of former Soviet Central Asian republics will find that Turkey in recent years has been adding flights to Organization of Turkic States member countries, including Hungary.

The unique Eurasian geography of Istanbul provides a variety of investment options–you can purchase holiday homes on either the Black Sea (of which the Bosporus is a bottlenecked strait) or the wider Sea of Marmara (Mediterranean Sea) coastlines. Regardless of geographers whether ancient Greek or modern sailors designations, this metropolis sprawls along one of the world's busiest shipping lanes, creating ample opportunities to invest in waterfront properties.

There are far too many options to go through here, but we can provide a summary of the most popular areas with foreigners who buy rental property as an investment.

Photo credit above: Luxurious restaurant and nightclub along the Bosporus, Istanbul

Uploaded to iStock Yamac Beyter by Aug 2020 iStock photo ID: 1203536200

See also our recently published ESW article about Turkey's neighbor Azerbaijan: Baku Rendezvous

The history of Istanbul of which Recep Tayyip Erdoğan was the mayor from 1994 to 1998 also shows that this has always been a city of opportunities, as the megapolis expanded over 60 years of constant population growth and many urbanization projects. Thanks in part to Turkish Lira inflation running red hot, the real estate market is not slowing at all. If anything, the market managed to bounce back from the 2020-21 COVID pandemic in a relatively short time, and is still booming, even amid the ongoing economic crisis. The same crisis which has made Turkey re-evaluate its foreign policy and adopt a more conciliatory approach closer to the previous 'zero problems with neighbors' policy of 11 years ago.

Thus, as one of the most enticing areas in the Near East to invest in regards to real estate, we will look at greater Istanbul and discuss some of the most desirable districts and neighborhoods, including one Sea of Marmara waterfront suburb.

Photo credit: A tourist-rented yacht cruising along the beautiful Bosporus waterfront, Istanbul

Uploaded to iStock ZZ3701 by Jan 2020 iStock photo ID: 1197487372

First, I would like to talk about the general real estate market and the economic situation in 2024.

While nominally speaking the Turkish real estate did, in nominal terms, recover from COVID, the inflation crisis in Turkey has hit middle and working class Turks quite hard. Inflation reached 61% in July 2024, and the crisis that started in 2022 is still ongoing, with YoY inflation averaging around 70% from 2022 till 2024. Thus, there has been a massive surge in housing prices, which skyrocketed nationwide between 20% to 50% depending on the Turkish city. Demand from foreigners decreased as one would expect, with foreign-purchased homes declining by over 50% and the total amount of real estate sold to non-Turks decreasing by over 17%.

During the first half of 2024, home sales were down by 3.7% in general, while those in Istanbul could have fallen down by as much as 16%. Despite this, the Turkish economy is still booming – and it had an increase for four years straight since 2020, important to note that in August 2024, the real estate market went up by 9.9% compared to August of 2023, again, the market did manage to somewhat bounce back from COVID.

Not just Russians--which nationalities are the main foreign buyers of property in Turkey?

In regards to foreigners purchasing property–the pattern in Turkey has varied. For example, in 2021 during the Pandemic but prior to the Russia-Ukraine War it was up. While in 2023, it went down by almost 50% as Turkish real estate purchases by affluent Russians and Ukrainians decreased. However, the overall trends do not lie, barring exceptional years, the share of foreigners buying property in Turkey tends to gradually increase–it increased four-fold over the last 11 years, and Russians make up the single largest group of foreigners buying real estate (23%), followed by Iranians (10%). Ukrainians (7%), Germans (4.7%), and Iraqis (4.7%), Kazakhs also are notable (4.5%) nationalities, although residents from the GCC countries are expected to be major buyers now that the Lira has fallen and it is relatively cheap to invest in Turkey in GCC currency (AED/SAR/QAR/KWD) terms.

Some Turkish banks will hold RUB deposits and AED is becoming a more common option in banks

We should note here that the Turkish banking system allows for Ruble accounts to be opened, to ease the transactions with the residents of the Russian Federation, and the Emirati dirham is likely to become more accepted for bank deposits in the coming years as well. Many Russians buy vacation and rental properties in Antalya due to the sea-side views and high travel convenience compared to other Mediterranean destinations, with Istanbul being in second place.

Returning to our first point–while demand fell and prices surged, the construction of new real estate is still increasing, which shows that the market has faith in the Turkish real estate sector. Permits are still being issued and construction is ongoing almost everywhere in the city.

The hottest property investment areas on the European and Asian sides of the Bosporus

While the situation of the Turkish economy and its real estate sector is not ideal, it's important to know that it persevered through several crises that are somewhat similar, such as the crisis of 2008–where prices of real estate dropped by 22% amid a global recession, which was followed by a surge lasting another four years, and then the botched Coup attempt of 2016 also caused a brief but painful crisis in the economy. However, it still recovered–until COVID hit, curtailing tourism as an earner of foreign exchange. And that brings us to today, when the Lira has lost much of its value over the past 5 years leaving real estate together with gold and bitcoin as the best performing asset classes.

Now, with the general situation of the Turkish economy out of the way, let us discuss the properties in Istanbul.

Photo credit: A seagull flies by the Dolmabahce Palace on the Bosporus waterfront, Istanbul

Uploaded to iStock by Anton Aleksenko Sep 2022 iStock photo ID: 1420120332

Besiktas

On the European side of Turkey, this area is considered one of the most expensive locations in Istanbul, as it has modern and historical districts, making it attractive to purchase real estate here for several purposes. It's also a strategic area in Istanbul as it is considered a transportation hub and connects the city with its various districts to the outside world.

Besiktas is quite close to business districts and cultural landmarks, such as the the Yildiz Park, Dolmabache Palace and Ciragan Palace. Due to all of these factors, the demand to purchase property (residential, commercial, and mixed use), with the new investment projects, is still on the rise and increasing. Property values in Besiktas are only likely to increase and be good for the long term, prices are usually around and above $5,000 to $7,000 per square meter, thus it's one of the best districts in Istanbul to buy residential real estate in. However, it's quite important to note that this area is typically crowded with traffic and pedestrians especially during the high tourist season.

Beyoglu

Also located on the European side of Istanbul, this is mostly a district that's been recently invested in, it has its fair share of historical landmarks such as the Pera Museum and Galata Tower. Recent investments have also supported more cafes, shops, and high quality restaurants in the area. Thus, it is a popular tourism area, its commercial and residential estate are highly valued, and it also has Istiklal Avenue which is a well-known avenue for tourists and high-end shopping in Turkey. The price per square meter varies from $5,000 to $7,000, the district is also considered a residential one. Thus, contracts for digital nomad renters as well as those who wish to attain permanent occupancy are abundant here.

Sisli

On the European side of Istanbul, Sisli is considered a luxurious district and a business district as well, full of expensive housing complexes and office spaces. There's also quite a lot of demand by wealthy people or companies for property. Sisli is known for its expensive neighborhoods, such as Nisantasi, Bomonti, Fulya, Osmanbey, Ferikoy, and Pangalti–featuring elegant and good-looking historic homes. There are also important shopping areas in this district as Cevahir Mall, and some well-known educational institutes. Thus, many high-class of Turks prefer to reside in this district, as do the brands and companies who specialize in luxury goods, so property demand is always high here. Sisli also gets a large share of Istanbul's pedestrians and tourists during the high season.

Photo credit: Fatih Sultan Mehmet Bridge and Rumeli Fortress with beautiful view. Drone shot. Bosporus waterfront, Istanbul

Uploaded to iStock by resulmuslu Aug 2023 iStock photo ID: 1625314653

Sariyer

Another luxurious district in Istanbul located on the European side, this time quite more expensive than the rest, among the most expensive including Sisli. Property prices are still increasing here while demand keeps up. This area is full of villas and luxurious apartments, it also has quite a few historic landmarks, including several museums, natural parks, and the Rumelihisari fort (see pic above). It also has quite a lot of commercial property, such as the Istanbul Stock Exchange. A further look into this district may interest prospective investors who are keen to buy higher end and luxury properties.

Kagithane

One of the most recent areas in Istanbul to be considered for large real estate developments, it used to be a residential district for the working class of Istanbul on the European side. The investment projects of the early 2000s have completely changed this area. While it's still cheaper than Sisli, being the closest district to the new Istanbul Airport, one of the top 10 busiest airports in the world, ensures prices here will keep rising. Foreign investors can make a pretty penny if they invest in a AirBnB/VRBO here.

Beylikduzu

Located on the European side of Istanbul the Mediterranean, the area has had several investment projects injected into it as it is a waterfront district. There's also no lack of amenities for the residents, property prices are increasing and there's no shortage of demand. Although the district is mostly residential, it's also quite a green area, making it one of the most beautiful districts on this list.

Bahcesehir

On the European side of Istanbul, the new investment projects that were initiated in the 2000s have improved the district quite a lot. There's not much to add here compared to the areas above, but property prices have increased over the last decade. Investors probably shouldn't expect to find very many bargains here.

Kadikoy

Located on the Asian side of Istanbul, Kadikoy is one of the areas that had massive investments pumped into it in recent decades, with a wide choice of real estate types, from modern housing complexes to historical landmarks. It's also not as heavily populated as other districts, and is also a transportation hub, with trains, metro, and ferries.

Property in Kadikoy is considered a good investment, as it's still quite cheaper than Besiktas, with prices per square meter ranging from $3,000 to $5,000 per square meter.

Uskudar

On the Asian side of Istanbul, it's located on the Mediterranean–to be specific, the Bosporus strait, and thus, there's a lot of waterfront estate here, which adds value to the real estate market for this area. Several of the top quality hospitals in Istanbul are also in this area, so demand from medical professionals and visiting doctors and surgeons from the Russian-speaking OTS Central Asian countries is high for quality rentals in this area. The price of purchasing per square meter can come as cheap as $3,000, or as expensive as $7,000.

Bakirkoy

Located on the Sea of Marmara, this area has experienced significant real estate development projects since the early 2000s, and property prices have only been steadily increasing in the district. It's also a transportation hub and has educational institutes and facilities catering to the needs of residents.

General information for investors I would like to note that if you invest in real estate of at least $400,000 value, you are eligible for Turkish residency with a path to citizenship. The number of people who attained Turkish citizenship through property real estate has increased by 30% in 2024.

As noted in the Economic Market segment, the Turkish Economy has a tendency to go up and down, as all economies do, however, rent yields and profits are almost guaranteed with the right real estate choices and solid research.

It's important to note that your nationality is not banned to own property in Istanbul, some nationalities are effectively banned from buying Turkish property, such as Syrians (subject to court hearings that could take years) and Armenians. Property sales to Greeks are also highly restricted with a prohibition on Greek nationals purchasing coastal real estate and any property in Northern Cyprus. For Israelis and dual Israel and other nationality (such as Russian) passport holders, there are fewer restrictions based on reciprocity with some Ottoman legacies Turkish ownership in the Holy Land, but the latest Israel-Palestine war has inflamed Turkish-Israel tensions.

As noted earlier, prices vary extremely in Istanbul, while the lowest I mentioned up in the districts I wrote about is around $3,000, it can go as low as $1,000, and can still go as up as $11,000 per square meter.

Here are some closing figures:

Mortgage sales in the Turkish market dropped by 17.1% in August compared to last year, and almost 50% compared from January to August 2023.

The number of homes sold to foreign buyers dropped, not by much, though, to be exact, 26% in August compared to August 2023, and 40% for the entire year.