Foreign investment in Turkish real estate remains a complex, high-reward market, characterized by significant nominal growth alongside pronounced currency and regulatory challenges. While overall sales to foreigners declined in 2023 and 2024, the market is showing signs of targeted recovery in 2025, offering a strategic window for savvy international buyers focused on long-term assets or citizenship by investment (CBI).
Sales Trend: Fluctuation Amid High Demand
Data from the Turkish Statistical Institute (TurkStat) shows that the number of houses sold to foreigners experienced a sharp peak of 67,490 units in 2022, followed by declines in 2023 and 2024. Despite this contraction in foreign volume, the first half of 2025 indicated a renewed, albeit volatile, interest, with some months showing year-on-year increases. Total residential sales in May 2025, for example, hit a three-year high, largely driven by robust domestic demand and improved credit conditions.
Istanbul and Antalya remain the magnets for foreign capital, consistently topping the list of preferred cities, with buyers from Russia, Iran, and Germany leading the purchasing demographics.
The Investor’s Dual Calculus: High Returns vs. Currency Risk
The allure of the Turkish property market for foreign investors is built on two primary factors:
- Affordability and Nominal Growth: Despite recent deceleration in real terms, property prices in Turkish Lira have shown spectacular nominal growth over the last decade. Furthermore, the average cost of residential real estate in Turkey (around $777 per square meter) remains significantly lower than in many EU countries, offering compelling entry points for hard currency investors.
- Citizenship by Investment (CBI) Program: The program, requiring a minimum real estate investment of $400,000, continues to be a major driver, offering a route to a G20 economy passport and access to a strategic location.
However, investors must operate with eyes open to inherent risks:
| Investment Challenge | Impact on Foreign Investors | Source/Reference |
| Lira Volatility | The local currency’s depreciation can severely impact the real-term value and yield of investments, especially since the removal of the Foreign Exchange Currency Protection Scheme (FX protection) for CBI in 2025. | Global Citizen Solutions, International Investment |
| High Inflation | While nominal property prices rise, high general and housing inflation (e.g., housing price inflation was over 65% in June 2025) erodes real returns, meaning property values have recently seen negative real growth. | International Investment, Global Property Guide |
| CBI Regulation | Recent changes mandate a three-year holding period, transactions must be conducted via a Turkish bank, and properties must be purchased from a Turkish citizen or entity, adding layers of due diligence. | Global Citizen Solutions, Property Turkey |
💡 Outlook for Strategic Investment
For international capital looking for a deep-value market, the current climate presents a nuanced opportunity:
- Long-Term Holds: Investors with a three-to-five-year horizon, who can absorb short-term volatility, may benefit from the long-term capital appreciation potential driven by Turkey’s urbanization and young population.
- Income-Generating Assets: High rental demand, particularly in tourist and metropolitan areas like Istanbul and Antalya, still offers attractive income potential, provided owners strategically manage the currency conversion.
- Leveraging Incentives: Foreign buyers benefit from streamlined procedures and VAT exemptions on purchases made with foreign currency, making the entry process relatively efficient.
The market requires careful risk assessment, focusing on properties with high rental demand and purchasing through reputable, legally accredited channels to navigate regulatory complexities.
