Is Turkey's real estate market overheated or is it steady growth? A breakdown of trends for 2025

What came first - active growth of apartment prices in Turkey or talk of a "bubble" in the market? Since 2021, the real estate market in Turkey has experienced a prolonged upswing. In some areas of Istanbul, Antalya and Alanya, the cost per square meter has increased by 30-50% since then. In 2024-2025, the growth rate has slowed down but remained steady, which has sparked a new debate among investors: is the market overheated or is it on track?

In this article, we will look in detail at the factors affecting the real estate market in Turkey today and why it is premature to talk about a "bubble".

How to recognize a bubble in the real estate market?

Signs that usually indicate an overheated real estate market:

1. Growth through speculation

If a large percentage of transactions are done with the intent to resell in a short period of time, without waiting for construction to be completed or occupancy to occur, this is a red flag.

2. Overpriced neighborhoods

If the price of real estate in certain locations is growing without reliance on real demand - that is, there are fewer buyers, but the price continues to rise artificially.

3. The predominance of foreign capital

If the main investors are non-residents, who can at any time massively withdraw from the market, creating sharp price fluctuations.

What is happening in the real estate market in Turkey in 2025?

1. Regulation of transactions has intensified

After a series of reforms in recent years, the market has become noticeably more transparent. Now most developers work through escrow accounts, transactions are conducted through licensed agents, and resale at early stages is restricted in a number of projects.

2. Demand remains strong

Price growth in Turkey continues to be supported by real demand. According to Turkey's Ministry of Tourism and Trade, annual population growth in major cities (Istanbul, Izmir, Antalya) is consistently above 2%. Also, the number of wealthy foreigners applying for residence permits through the purchase of real estate continues to grow.

For example:

• in 2023-2024 in Istanbul the number of transactions involving foreigners increased by 18 %,
• in Antalya - by 21%.

3. Prices remain competitive

Despite the growth, prices per square meter in Turkey are still significantly lower compared to similar Mediterranean markets such as Spain, Portugal or France. On average, as of May 2025:

• Istanbul: 2000-3500 €/m²
• Antalya: 1500-2800 €/m²
• Alanya: 1200-2500 €/m²

4. Government policies incentivize long-term investments

Turkey 2025+ programs aimed at developing infrastructure, transportation and tourism continue to create a favorable environment for real estate purchases.

Key growth regions

Istanbul

The country's largest market, high rates of development, housing prices rising by 10% per annum. Demanded areas: Başakşehir, Kartal, Maltepe.

Antalya

The main resort region with a growing demand for housing for both vacation and permanent residence. Prices are steadily increasing by 8-12% per year.

Alanya

Investment-attractive market with new projects in Mahmutlar, Kargycak, City Center. Price growth - up to 15% per year due to foreign demand.

Conclusions: bubble or stable growth?

The situation in the real estate market in Turkey in 2025 is far from a "bubble". Reasons:

• Developers and realtors are being actively regulated.
• Price growth is supported by real demand: population growth, immigration, investor flow.
• The country's economic program is aimed at creating sustainable markets.
• Real estate prices are still attractive compared to Europe.

Is it worth investing in real estate in Turkey now?

If you are considering buying an apartment for permanent residence, renting or obtaining a residence permit - now is still a favorable moment. This is especially true in regions with steady demand and developing infrastructure.