Istanbul Real Estate Market Trends for 2025: What Investors Need to Know

Istanbul Real Estate Market Trends for 2025: What Investors Need to Know

Predicting the Real Estate market trends is an important skill when investing especially in Istanbul. Knowing when and where to buy is the essential factor in making or losing money when investing.

Our Guide will help you understand and predict the Trends:

Introduction to Istanbul’s Real Estate Market in 2025

• Istanbul is going to be a top choice for real estate investors in 2025. 
• Its strategic location, rich history, and growing economy have made it a sought-after market for both local and foreign investors. 

Key Factors Influencing Istanbul’s Real Estate Market in 2025

• Economic Stability:

The inflation rate in Turkey has been effectively decreasing lately thanks to Government Interventions, making the Turkish Lira exchange rate stable.

A growing and stable economy encourages investors, especially foreigners, to enter the market without any fear. We believe that the inflation rate will reach a new low level in 2025, without any doubt. So hurry up and invest before the prices increase.

• Infrastructure Development:

Istanbul Municipality did an excellent job in 2024 by adding new Metro lines and stations to enhance the connectivity of Istanbul city such as the Airport metro line. The Municipality plans to create new bus lines and metro stops to control transportation issues. 

• Government Policies:

The Government of Turkey has been aiming to promote the Real Estate Market in Turkey and encourage Foreign investments by implementing the Turkish Citizenship Program and pushing local investors to buy property with Tax exemption laws. 

• Demand and Supply:

The demand and supply of the Real Estate Market in Istanbul will control the trends. The supply doesn’t match the huge demand in the market due to a huge number of local buyers. When demand is larger than supply, the prices of properties will increase creating profit for smart investors.

Residential Property Trends in Istanbul: What to Expect in 2025

• According to the Turkish Statistical Institute, the sale of Residential property in 2024  has increased by 34% compared to the previous year. This increase shows that the market is shifting towards Residential units. 
• For High ROI consider buying properties to rent out, the rent has increased 1000% in the last 4 years in popular areas like Sisli according to Sahibinden rental reports.
• Look for 1+1 Apartments or 2+1 Apartments close to schools and universities. There is a huge demand for 1+1 Apartments by Small families, students, and workers.
• For high capital appreciation, look for apartments in good neighborhoods such as Maslak, and Levent.
•  The Capital Appreciation in Maslak can reach 50% in 2 years for 2+1 and 1+1 Apartments.
• And don’t forget new upcoming neighborhoods such as Kagithane, where Capital Appreciation can reach % 35 in 2 years.

Commercial Real Estate Prospects in Istanbul for 2025

• Buying Offices in Istanbul is considered a profitable investment, particularly in areas with international companies such as Maslak and Atasehir.
• In 2025 we predict that offices in Maslak and Atasehir will reach a high rental yield of 15 to 20%. An increase compared to previous years of 10 to 15 % rental yield. 
• Pro tip: renting out offices is easier than selling them, so consult a Real Estate Agency before buying one.

Impact of Foreign Investments on Istanbul’s Real Estate Market in 2025

• Citizenship by Investment:

The program of Turkish Citizenship by investment made Turkey an attractive option for foreign investors looking for a new home with a powerful passport. The program helped the Real Estate Market by expanding the consumer range.

• Foreign investors increased the demand for Luxurious Homes in 2024 according to Statista Data.
• In 2025 our experts predict that foreign investment will increase 30% compared to last year.
• And most sales will be made by  Russians, Iranians, and Arabs in 2025.

Top Areas for Real Estate Investment in Istanbul in 2025

• The top areas to invest in Istanbul in 2025 are located in Zone 1:
  • Sisli
  • Topkapi
  • Levent
  • Maslak
  • Kagithane

We recommend those areas for Short and long-term investment. Both commercial and residential options.

• If you are looking for a long-term investment with a smaller budget we recommend buying in Zone 2:
  • Basin Express.
  • Başakşehir.

Government Policies and Their Effect on Istanbul’s Real Estate Market in 2025

• Urban Renewal Projects:

The Government has been renewing older neighborhoods in Istanbul to create new modern communities with modernized infrastructure including new roads, parks, and services in the last few years. In 2025 it is going to expand the reconstruction to new neighborhoods such as Basin Express and Eyup.

• Transportation:

The municipality of Istanbul is planning to add new metro stations and buses in 2025 to manage the traffic during rush hours.

Istanbul Property Price Forecasts for 2025:

• The price of properties in the last 4 years has increased 800% according to Sahibinden Real Estate Index.
• The property prices will slightly increase at the beginning of 2025 thanks to the decreasing inflation rate and increase in Demand in the Real estate Market.
• The smart thing to do is to invest now, to harvest a decent profit in 2025
•  Or you can go for a long-term investment and earn a sizable profit in the next 3 years.

Challenges and Risks for Real Estate Investors in Istanbul in 2025

• Not finding the right property:

You should always consider the type, location, and amenities of the property before buying it. Not all properties are a good investment. The 1+1 Apartment type makes an excellent investment option.

• Buying property without checking the Title Deed (Tapu):

You need to check the status of the building and property before buying it to ensure that everything is legal and correct. 

Istanbul's real estate market presents exciting opportunities for investors seeking capital appreciation and rental income. By understanding the key trends, factors, and investment strategies outlined in this guide, you can make informed decisions and maximize your investment potential in this dynamic city.

Feel free to contact us to receive offers of properties.

To learn more about the Istanbul Real Estate Market, read our blogs.