Buying Property in Ankara vs. İstanbul: A Comprehensive Guide to Prices, New Builds, Resales & Villas in 2025

Turkey’s residential real estate market in 2025 presents a complex picture of soaring nominal prices alongside elevated inflation and currency volatility. The national average price per square meter reached between 36,061 and 37,740 TRY (approximately $869–$988 USD) as of June 2025, marking a 32% nominal increase year-on-year but an 8.9% decline in real terms when adjusted for inflation rates running 39–45% annually and a benchmark central bank policy rate of 50% investropa.com. January 2025 alone saw house prices in Istanbul surge by 29.6% year-on-year and in Ankara by 36.6%, though their real values dropped by 8.8% and 3.9%, respectively, when adjusted for inflation globalpropertyguide.com. At the same time, Q1 2025 sales volume climbed by 20% compared to Q1 2024, demonstrating robust domestic demand despite rising borrowing costs investropa.com.

Against this macroeconomic backdrop, investors and end-users alike are evaluating opportunities across Turkey’s two largest cities—Ankara, the nation’s political heart, and Istanbul, its economic and cultural epicenter. This article provides a granular, data-driven comparison of real estate prices in Ankara versus Istanbul in 2025, covering newly built developments, the secondary market, the villa segment, current demand dynamics, and the most sought-after neighborhoods in both cities.

Price Comparison Overview

A direct price comparison between Ankara and Istanbul highlights the significant premium Istanbul commands. As of February 2025, the average residential price per square meter in Istanbul was $1,301 USD, compared to $748 USD in Ankara tranio.com. In local currency terms, with mid-2025 exchange rates, this translates to roughly 40,000–45,000 TRY/m² in Istanbul and 23,000–25,000 TRY/m² in Ankara. Istanbul’s average is therefore 74% higher than Ankara’s, underlining its status as Turkey’s most expensive housing market.

Further refining the Istanbul picture, apartment prices in June 2025 varied widely by location and property type, ranging from $1,250 to $1,800 USD per square meter on average, with luxury waterfront developments exceeding $4,000 USD/m² investropa.com. Central districts such as Nişantaşı and Bebek command €5,000–€7,000/m² (approximately $5,500–$7,700 USD/m²), while budget-friendly areas like Esenyurt start at €1,500–€2,000/m² investropa.com. In Ankara, prices concentrate more tightly around the mean, reflecting a less fragmented market, with central premium areas like Çankaya pushing prices above the citywide average of TRY 29,700/m² ($815 USD/m²) investropa.com.

On a national scale, Istanbul’s 55,000–61,000 TRY/m² (€1,300–€1,500/m²) range sits well above the 36,061–37,740 TRY/m² Turkish average, while Ankara remains closer to the median, highlighting Istanbul’s enduring appeal and the capital’s more affordable, yet steadily rising, property segment investropa.comglobalpropertyguide.com.

New Building Market

New constructions, or the primary market, remain a critical growth engine in both cities, attracting buyers seeking modern amenities and more flexible payment plans. In Turkey overall, primary market transactions account for 30% of total sales, with the secondary market comprising the remaining 70% tranio.com. This split indicates a strong ongoing appetite for ready-to-move-in units, especially among end-users and foreign investors seeking immediate rental income or residency benefits.

In Istanbul, new building prices rose 11% year-on-year, averaging $1,458 USD/m² in March 2025, according to Endeksa platform data tranio.com. Central Istanbul new developments cater to the luxury segment, with prices in premium complexes reaching as high as $16,000–$18,000 USD/m², reflecting bespoke finishes, smart-home integration, and proximity to Bosphorus views tranio.com. These projects often come with developer financing options—such as 20–50% down payments and interest-free installments during construction—making them accessible to a broader set of buyers.

In Ankara, while comprehensive Endeksa data for new build price growth is more limited, investors report that prime new constructions in districts like Çankaya and Oran command a premium of 20–30% above the city average of TRY 29,700/m² ($815 USD/m²) investropa.com. Developers in Ankara are increasingly offering energy-efficient designs, smart-home systems, and communal amenities (gyms, pools, co-working spaces) to differentiate new projects from the older stock, thus sustaining demand in a market characterized by more modest entry-price levels compared to Istanbul.

Secondary Market

The secondary market—existing, resale properties—continues to dominate total transactions, driven by price-sensitive buyers and investors seeking established neighborhoods. Nationwide, secondary market transactions represent approximately 70% of sales, offering a wider selection across different price points and building ages tranio.com.

In Istanbul, older apartments in central districts can trade at significant discounts to new-build rates, with secondary market prices averaging €3,000–€5,000/m² in neighborhoods such as Şişli, Beşiktaş, and Kadıköy investropa.com. This reflects both the premium placed on location and the relative scarcity of undeveloped land in core urban zones. Suburban resale stock in areas like Esenyurt and Beylikdüzü offers €1,500–€2,500/m², attracting first-time homebuyers and rental investors alike investropa.com.

Ankara’s secondary market exhibits less variation but still provides opportunities for cost-efficient purchases. In December 2024, sale prices in Ankara rose by 36.6% year-on-year, though real growth moderated to –3.9% after adjusting for inflation, indicating that most price gains are being eroded by the elevated consumer price index globalpropertyguide.com. Secondary resale flats in Cankaya and Oran typically list between TRY 7,000–12,000/m², making them 40–60% cheaper than comparable dwellings in Istanbul’s core investropa.com.

While resale properties lack the modern amenities of new builds, they offer lower acquisition costs (6–10% in fees versus 8–18% VAT for new builds) and can be rented out immediately without construction timelines, driving their continued popularity among yield-focused investors.

Villa Segment

Villas represent a distinct segment with unique price dynamics, attracting both ultra-high-net-worth individuals and investors eyeing Turkey’s citizenship-by-investment program. In Istanbul, villa prices in 2025 range between 11 million and 18 million TRY, with luxury waterfront properties in Sariyer or along the Bosphorus commanding 20 million TRY and up to 50 million TRY for branded developments mbany.com. A more conservative estimate from Mbany Real Estate places the average Istanbul villa price between $800,000 and $5 million USD depending on location, size, and finishes mbany.com.

In Istanbul’s suburbs—such as Beylikdüzü and Arnavutköy—villas start at 8–12 million TRY, offering a balance between land size and proximity to infrastructure mbany.com. High-end gated communities like Acarkent (Beykoz) and Kemer Country Club feature premium villas from 30 million TRY upward, with private marinas, clubhouses, and international school access, appealing particularly to expatriates and diplomats.

Ankara’s villa market, while smaller, has seen growing interest. According to Investropa, luxury apartments and villas in premium Ankara locations typically range from $200,000 to $400,000 USD investropa.com. Based on the average price per square meter of TRY 29,700 (US$815), a typical 200 m² villa in Ankara equates to approximately TRY 5.95 million, though plot sizes, architectural style, and proximity to green belts or recreational lakes can push prices above TRY 10 million in districts like Gölbaşı and İncek globalpropertyguide.com.

The villa segment continues to draw domestic and foreign buyers seeking spacious living, investment diversification, and eligibility for Turkish citizenship through real estate purchases.

Demand Analysis

Robust demand underpins both markets, though its characteristics differ by city. In Istanbul, 239,213 properties sold in 2024—the highest among all Turkish provinces—underscoring relentless end-user and investor interest tranio.com. In February 2025 alone, 19,347 properties transacted in Istanbul, capturing 17.5% of national sales volume, while Ankara accounted for 10,791 transactions (approximately 9.8% of Turkey’s total) tranio.com. This distribution highlights Istanbul’s market liquidity and Ankara’s steady, government-driven residential growth.

Rental yield trends further illustrate demand. In Q1 2025, Istanbul delivered gross rental yields averaging 7.3%, with hotspots like Beylikdüzü and Ataşehir offering up to 11% globalpropertyguide.com. Ankara outperformed on yields, averaging 8.29%, driven by stable tenant demand in family-oriented districts such as Çankaya, Oran, and Yenimahalle globalpropertyguide.com. These yields compare favorably to many European cities, attracting yield-seeking investors and boosting short-term and long-term rental markets.

Foreign buyer activity remains significant in Istanbul, with 1,150 properties purchased by non-Turkish nationals in Jan–Feb 2025, whereas Ankara saw only 100 foreign transactions in the same period tranio.com. While program changes have tempered foreign demand slightly, Istanbul’s established infrastructure, multinational schools, and cultural amenities continue to entice multinational investors and expatriates. In contrast, Ankara’s market is driven predominantly by domestic end-users—government employees, university students, and young families—contributing to a more conservative, yield-stable environment.

Best Areas in Istanbul

Istanbul’s real estate landscape is highly neighborhood-driven. Prime European side districts—Nişantaşı, Bebek, Şişli, Beşiktaş, and Sarıyer—feature the city’s most expensive housing, with prices exceeding TRY 100,000/m² (€5,000–€7,000/m²) and offering premium retail, dining, and cultural venues investropa.com. These areas command robust rental occupancy and cater to luxury buyers seeking prestige addresses and waterfront views.

Asian side hubs like Kadıköy and Üsküdar have matured into vibrant residential and commercial centers, with TRY 60,000–80,000/m² (€3,000–€4,000/m²) pricing, strong rental demand from young professionals, and improved transport links via Marmaray and Metro lines investropa.com. Emerging districts—Ümraniye, Ataşehir, Kağıthane, and Zeytinburnu—appeal to value-oriented buyers, offering TRY 35,000–50,000/m² (€1,700–€2,500/m²) in new developments near business hubs and transit corridors investropa.com.

For investment-focused buyers, budget-friendly suburbs like Esenyurt, Başakşehir, and Beylikdüzü present entry points at TRY 30,000–40,000/m² (€1,500–€2,000/m²), with modern gated communities, family amenities, and projected capital appreciation driven by ongoing infrastructure expansion investropa.com. These areas offer rental yields of 6–8% and are popular among middle-income residents and rental investors.

Key investment criteria include proximity to metro stations, access to international schools, and upcoming mega-projects (e.g., new airport city, canal projects), which are anticipated to further elevate property values in connected neighborhoods over the next five years.

Best Areas in Ankara

Ankara’s neighborhood appeal centers on administrative prestige, green spaces, and accessibility. According to a recent Turk.Estate survey, the top locations for residing and investing include Emek, Kavaklıdere, Bahçelievler, Çankaya, Kızılay, Ulus, Sıhhıye, Esat, Tunalı, Gaziosmanpaşa, Anıttepe, Oran, Golfkent, and Mamak turk.estate. These districts combine central government offices, diplomatic missions, cultural venues, and established residential stock.

Çankaya—the political and cultural hub—hosts embassies, ministries, universities, and upscale retail, with resale and new apartments trading at TRY 10,000–15,000/m² and villas starting from TRY 10 million in gated communities turk.estate. Kavaklıdere and Ulus deliver proximity to green parks, pedestrianized boulevards (Tunalı Hilmi), and premium eateries, with prices nearly 10–15% above city averages.

Oran and Çayyolu stand out for modern planned developments offering communal amenities—pools, fitness centers, and landscaped gardens—at TRY 7,000–12,000/m² getproperties.com. Yenimahalle and Keçiören remain budget-friendly yet benefit from metro and bus rapid transit links, attracting young families and upwardly mobile professionals.

Emek and Mamak are highlighted for high rental yields (up to 9.5%), driven by student and civil servant demand, while Gölbaşı, with its lakeside villas and university campus expansions, merges suburban tranquility with easy highway access globalpropertyguide.com. As Ankara continues its urban transformation, neighborhoods adjacent to new metro extensions (Çayyolu–Eryaman) and major infrastructure projects are likely to experience the strongest appreciation over the medium term.

Conclusion and Outlook

In 2025, real estate in Istanbul and Ankara offers contrasting investment profiles. Istanbul remains Turkey’s dynamic, high-entry market—commanding significant price premiums, luxury segmentation, and strong foreign interest—while balancing elevated inflation and currency risks with potential capital gains linked to mega-projects and demographic growth. Ankara, in contrast, delivers more affordable entry points, stable rental yields, and a domestically driven, policy-backed growth trajectory centered on the civil service and academic sectors.

Investors targeting new builds should consider Istanbul’s emerging districts (Kağıthane, Ataşehir) for price appreciation, while those focused on yield may find superior returns in Ankara’s peripheral neighborhoods (Keçiören, Yenimahalle) and secondary-market apartments. Meanwhile, the villa segment in both cities caters to niche high-net-worth and foreign buyers, with villas in Istanbul commanding multi-million-TRY prices and Ankara offering sub-$500k USD alternatives.

Looking ahead, Turkey’s ability to moderate inflation, stabilize the lira, and expand financing options will be critical to real-term property value growth. Infrastructure roll-outs—metro extensions, new highways, and logistics hubs—will continue to shift demand and appreciation corridors. With 2026 forecasts projecting nominal growth of 5–15% in prime markets and 15–25% in emerging zones, strategic district selection, due diligence on financing costs, and alignment with long-term demographic trends will be key to optimizing real estate investments in both Ankara and Istanbul.