Turkey’s real estate market has undergone fundamental changes in recent years, as low property prices are no longer the defining feature they once were. Instead, the sector is currently witnessing a noticeable rise in prices, higher taxes, and the implementation of stricter regulations governing the industry, according to an analysis published by the real estate–focused website TEKCE.
Regarding market dynamics, the report noted that the Turkish property market has shifted from a phase of rapid speculation—previously attractive to investors seeking short-term profits—to a new stage based on more cautious, long-term investment strategies. Investors have begun to adopt more carefully considered valuation approaches, with greater emphasis on future returns extending over long periods of five to ten years.
This year saw the introduction of a new property valuation system, which has contributed to a sharp surge in prices. Some neighborhoods in Istanbul and Izmir recorded increases ranging between 300% and 500%, particularly in upscale areas. These significant jumps have not been limited to market values alone; their effects have been clearly reflected in higher taxes, property transfer fees, and inheritance obligations.
In addition, it has become mandatory to register rental contracts digitally through the government’s e-services platform, a step that enhances transparency and curbs tax evasion.
Despite the substantial rise in costs, demand for real estate remains strong and steady. Construction costs increased by nearly 650% between 2021 and 2025, leading to a significant slowdown in the launch of new projects. As a result, the current housing supply covers only about half of annual demand.
Major cities, characterized by high levels of internal migration and active tourism, continue to face constant pressure that fuels further price increases. Consequently, many believe that the likelihood of prices declining in the near future remains unrealistic.
At the broader level of the Turkish economy, indicators point to growth of around 3.9% and a decline in inflation to a range of 16%–21%. As citizens continue to view real estate investment as a haven against economic volatility and inflation, the property sector stands out as an attractive option that offers sustainable value extending beyond mere figures to the real value of assets.
