Why investing in real estate in Turkey is a profitable decision in 2025
Real estate investments in Turkey are rapidly gaining popularity among Russian and international investors. In the context of global economic instability, the Turkish real estate market offers a unique combination of high yields, stable growth and attractive citizenship programs. According to the Turkish Statistical Institute, the volume of foreign investment in Turkish real estate in 2024 increased by 45%, and the average rental yield is 12-15% per annum. In this article we will examine in detail why real estate in Turkey for investment is considered one of the most promising areas and what advantages it gives the modern investor.
Turkish real estate market: stability amid global turbulence
Real estate as an investment in Turkey has a number of unique characteristics that make it particularly attractive to foreign buyers. The main advantage is the combination of European quality of construction with affordable prices and high tourist appeal.
The Turkish economy shows a steady GDP growth of 4-5% per annum, which directly affects the development of the real estate market. The Turkish government actively supports foreign investors through special programs, tax incentives and simplified procedures for obtaining citizenship.
Historical data shows that real estate prices in popular Turkish resorts have been growing at an average annual rate of 8-12% over the past 10 years. Istanbul, Antalya, Bodrum and Alanya show the most stable dynamics of growth in the value of objects.
Key factors of stability of the Turkish market:
- Strategic geographical location between Europe and Asia
- Developed tourist infrastructure with 50+ million tourists annually
- Government support for foreign investment in real estate
- Liberalization of currency legislation for real estate purchase
- High standards of construction and modern technologies
Passive income from real estate in Turkey is provided not only by traditional long-term rentals, but also by short-term rental programs for tourists, which allows you to increase the yield to 15-18% per annum in the high season.
Citizenship program through real estate investment
One of the main advantages of investing in Turkish real estate is the possibility of obtaining Turkish citizenship for the whole family when buying a property worth $400,000 or more. This program makes real estate in Turkey for investment particularly attractive for those seeking international mobility.
Benefits of Turkish citizenship:
Visa-free travel with more than 110 countries around the world, including countries in Europe, Asia and South America.
The right to do business in Turkey without restrictions and receive favorable loans for business activities.
Access to education in Turkish universities at preferential rates and the opportunity to enroll in European universities as a resident.
Tax advantages for residents, including income tax and profit tax exemptions.
Procedure for obtaining citizenship
- Purchase of real estate of $400,000 or more with a commitment not to sell for 3 years
- Submission of documents to the Migration Department (2-3 months processing time)
- Obtaining ID-card and Turkish passport for the whole family
- Retention of dual citizenship - Turkey allows multiple citizenship
The average cost of real estate for citizenship is $450,000-600,000, which is significantly lower than similar programs in other EU or Caribbean countries.
High profitability: up to 15% per annum from rental real estate
The profitability of real estate in Turkey is significantly higher than most European countries. The average rental yield is 8-12% for long-term rentals and up to 15-18% for tourist rentals.
Factors of high profitability
Tourist boom. Turkey is among the top 5 most visited countries in the world. More than 50 million tourists visit the country every year, which creates a constant demand for short-term rentals.
Year-round season. Unlike many resort destinations, Turkish resorts are popular all year round due to their mild climate and developed infrastructure.
Growth of domestic tourism. The Turkish middle class actively travels around their country, ensuring stable demand for rentals outside the high season.
Development of medical tourism. Turkey is becoming a center of medical tourism, which creates additional demand for long-term rentals.
Yield by region
Antalya and the region - 10-15% p.a., high tourist flow Istanbul - 8-12% p.a., stable demand for long-term rentals Bodrum - 12-18% p.a., elite resort with premium prices Alanya - 10-14% p.a., popularity among European tourists Cappadocia - 15-20% p.a., unique hotels in caves
It is important to note that returns can vary significantly depending on the type of property, its location and the quality of management.
Comparison of Turkish real estate with other international markets
When analyzing the "real estate or stocks", "real estate vs. deposits" question, the Turkish market shows impressive advantages over other investment destinations.
Turkey vs European real estate
- Yield: Turkey 10-15% vs. 3-6% in Europe
- Entry threshold: $100,000-200,000 in Turkey vs €500,000-1,000,000 in Europe
- Value Growth: 8-12% p.a. in Turkey vs. 2-4% in Europe
- Additional bonuses: Citizenship in Turkey is included, in Europe requires separate investment
Turkey vs UAE
- Taxation: Relief for residents in both jurisdictions
- Climate: More diverse in Turkey, four seasons
- Cultural Proximity: Turkey is closer to European culture
- Cost of Living: Significantly lower in Turkey
Turkey vs Russian real estate
- Currency diversification: Investments in Turkish lira and dollars
- Legal protection: Strong protection of foreigners' property rights
- Tourism potential: International vs. regional in Russia
- Liquidity: High foreign buyer interest provides better liquidity
Turkey's best regions for real estate investment in 2025
Commercial real estate investment and residential real estate in Turkey are presented in different regions, each of which has its own characteristics and prospects.
Antalya - the pearl of the Turkish Riviera
Antalya remains the leader in attractiveness for investment due to:
- An international airport with direct flights from 100+ cities worldwide
- Developed tourist infrastructure and 300+ days of sunshine per year
- Average real estate price growth of 10-12% per annum
- Rental yields of 12-15% in tourist areas
Popular areas: Lara, Konyaalti, Kepez, Muratpaşa Average price: $80,000-300,000 for a seaside apartment
Istanbul is the economic center of the country
Istanbul offers the most stable investments:
- Turkey's largest city with a population of 16+ million people
- Center of business activity and financial markets
- Stable rental demand from locals and expats
- Average yield of 8-10%, but with minimal risks
Promising areas: Başakşehir, Beylikdüzü, Kadıköy, Şişli Average cost: $120,000-500,000 depending on the area
Bodrum is a luxury resort on the Aegean Sea
Bodrum attracts wealthy investors:
- Status as Turkey's most prestigious resort
- Proximity to Greek islands and European markets
- High rental rates in the summer season
- Steady growth in the value of luxury real estate
Features: Restrictions on building heights, emphasis on villas and townhouses Average price: $200,000-800,000 for properties near the sea
Alanya is the center of the Russian-speaking community
Alanya is ideal for Russian investors:
- Large Russian-speaking community and relevant infrastructure
- Affordable prices with high quality real estate
- Developed medical and educational base
- Good transportation accessibility
Advantages: Low language barrier, familiar infrastructure Average cost: $60,000-200,000 per apartment
Cappadocia is a unique tourist region
Cappadocia offers unconventional opportunities:
- Unique cave hotels with the highest yields
- Growing flow of tourists (25% growth annually)
- Opportunity to create luxury boutique hotels
- Government support for the development of the region
Specialization: Short-term rentals to tourists, boutique hotels Average yield: 15-20% per annum
Real estate types and investment strategies
Investment apartment in Turkey can take different forms depending on the chosen strategy and the investor's budget.
Apartments in residential complexes
Modern residential complexes are the most popular choice:
- Developed infrastructure (swimming pools, fitness, security)
- Professional management and maintenance
- Guaranteed rental through a management company
- Average yield of 10-12% per annum
Typical characteristics:
- Studios and 1-2 bedroom apartments
- Area 45-120 sq.m
- Cost $80,000-250,000
- Location 500-1500 meters from the sea
Villas and townhouses
Elite real estate for wealthy investors:
- High rental rates during the tourist season
- Possibility of personal use
- Stable growth in value
- Yield of 8-15% depending on location
Segment features:
- Area from 150 sqm with a plot of land
- Own swimming pool and parking lot
- Cost from $300,000 to $2,000,000
- Predominantly in Bodrum, Kalkan, elite areas of Antalya
Commercial real estate
Commercial properties provide stable income:
- Long-term lease agreements (3-10 years)
- Less dependence on seasonality
- The possibility of indexation of rental payments
- Average yield of 12-18% per annum
Types of commercial properties:
- Stores in shopping centers
- Office premises in business centers
- Warehouses and logistics centers
- Hotels and apart-hotels
Investment Strategies:
"Buy & Hold" - purchase and long-term ownership with rental income generation
"Fix & Flip" - purchase of properties for renovation and subsequent sale
"Airbnb Strategy - specializing in short-term rentals to tourists
"Mixed Portfolio" - diversification between different types of properties and regions
Practical aspects of buying real estate in Turkey
Return on investment in real estate in Turkey depends largely on the correct approach to the purchase process and subsequent management of the object.
Legal aspects
Ownership. Foreigners can own real estate in Turkey on the rights of full ownership with the right of inheritance and sale.
Restrictions. One foreigner can own no more than 30 hectares of land, objects should not be located in military zones or border areas.
Document flow. Transactions are executed through a notary, all documents are translated into Turkish and certified.
Title Insurance. Title insurance is recommended to protect against possible legal risks.
Financial aspects
Methods of payment:
- Cash in US dollars or euros
- Bank transfer through a Turkish bank
- Installment payment from the developer (usually up to 24 months)
- Mortgage loans for residents
Additional costs:
- Tax on the purchase of real estate - 4% of the value
- Notary services - about $500-1,000
- Legal support - $1,000-3,000
- Real estate appraisal - $300-500
Taxation
Income tax on rentalincome:
- For residents: progressive scale 15-35%
- For non-residents: flat rate 20%
- Possible exemptions upon obtaining resident status
Tax on profit from the sale of real estate:
- If owned for less than 5 years - 20% on profit
- If owned for more than 5 years - tax exemption
- There are additional benefits for residents
Annual taxes:
- Property tax - 0.1-0.6% of cadastral value
- Municipal fees - $50-200 per year depending on the size of the property
Property management and income maximization
Effective management is a key factor for successful investment in Turkish real estate. Professional management companies can increase returns by 2-3% per annum through optimized workloads and quality service.
Management options:
Self-management is suitable for investors permanently residing in Turkey:
- Full control over the process
- Maximum profit
- Need to know the language and local legislation
- High time costs
Management company is the optimal choice for most investors:
- Commission of 15-25% of rental income
- Full cycle of services: tenant search, maintenance, reporting
- Professional marketing and advertising
- Solution of all arising problems
Guaranteed rent from the developer:
- Guaranteed income of 6-8% per annum in the first 2-3 years
- No risk of downtime
- Typically below market yields
- Limited duration of the program
Seasonality and load optimization
High season (June-September): possibility of 70-80% annual income Off-season (April-May, October): average prices, stable flow of tourists Low season (November-March): focus on long-term rentals and winterers
Strategies to increase revenue:
- Differentiated pricing by season
- Package offers with additional services
- Partnerships with tour operators and online platforms
- Regular renovation of interior and equipment
Risks and ways to minimize them
Like any investment, real estate in Turkey involves certain risks that are important to consider and minimize.
The main risks are
Currency risk. Fluctuations in the exchange rate of the Turkish lira can affect the yield in terms of dollars or euros. Solution: rent in hard currency, diversification of currency assets.
Political risk. Changes in government policy towards foreign investors. Solution: monitoring of legislation, political risk insurance.
Market risk. Possible decrease in demand for tourist services or real estate. Solution: diversification by regions and types of objects.
Operational risks. Problems with management, maintenance, finding tenants. Solution: work with proven management companies.
Strategies to minimize risks:
Comprehensive inspection of the object:
- Legal examination of documents
- Technical expertise of the real estate condition
- Analysis of infrastructure and development prospects of the area
- Verification of the reputation of the developer or seller
Investment diversification:
- Allocation of capital between different properties
- Investing in different regions of Turkey
- Combining residential and commercial real estate
- Combining long-term and short-term rentals
Professional support:
- Working with licensed realtors
- Use of lawyers and tax consultants
- Real estate and liability insurance
- Regular market monitoring and strategy adjustment
Frequently Asked Questions (FAQ)
1. Is it worth investing in Turkish real estate in 2025?
Yes, the Turkish real estate market remains one of the most attractive for foreign investors due to high yields (10-15% per annum), citizenship program and stable tourist flow. The government continues to support foreign investments.
2. What is the minimum amount needed to buy real estate in Turkey?
The minimum amount to buy quality real estate is $80,000-100,000. To obtain citizenship requires an investment of $400,000. Additionally, you should set aside 10-15% for related expenses and a reserve fund.
3. Can I get a mortgage from a Turkish bank as a foreigner?
Mortgages for foreigners are available if certain conditions are met: Turkish tax number, proof of income, down payment of 30% or more. Interest rates are 15-25% per annum depending on the bank and conditions.
4. What documents are needed to buy real estate in Turkey?
The main documents: passport, certificate of criminal record (apostilized), certificate of marital status, Turkish tax number, certificate of income (when using credit). All documents must be translated into Turkish and notarized.
5. How is the process of obtaining citizenship through real estate?
After purchasing real estate for the amount of $400,000 or more, an application is submitted to the Migration Department with a package of documents. The period of consideration is 2-3 months. Citizenship is granted to the entire family (spouse and children under 18 years of age). Real estate cannot be sold for 3 years.
6. What taxes do owners of real estate in Turkey have to pay?
The annual real estate tax is 0.1-0.6% of the cadastral value. Income tax is levied on rental income: 20% for non-residents, 15-35% for residents. When selling real estate owned for less than 5 years, a 20% tax is paid on the profit.
7. In which region of Turkey is better to buy real estate for investment?
The choice depends on the objectives: Antalya - the best ratio of price and yield (10-15%), Istanbul - stability and liquidity (8-10%), Bodrum - premium segment (12-18%), Alanya - affordable prices and Russian-speaking environment (10-14%).
8. Is it possible to rent out Turkish real estate on Airbnb?
Yes, short-term rentals are allowed and very popular. Many properties bring 15-20% per annum when rented out to tourists. It is necessary to obtain a tourist license and comply with local requirements for short-term rentals.
9. How to choose a reliable real estate developer in Turkey?
Check: construction license, previous projects of the developer, financial statements of the company, feedback from previous buyers. Work only with companies that have a bank guarantee of completion and liability insurance.
10. What are the prospects of the Turkish real estate market for the next 5 years?
Experts predict continued growth: an increase in tourist flow to 70 million people by 2028, the development of new resort areas, improving transportation infrastructure. Prices are expected to rise by 8-12% per annum and rental yields are expected to remain high.
Conclusion: Turkey as an ideal jurisdiction for real estate investment
Investing in real estate in Turkey represents a unique opportunity to combine high yields, obtaining a second citizenship and diversification of the investment portfolio. In 2025, the Turkish real estate market continues to show strong growth and attract international investors.
Key advantages of real estate in Turkey for investment:
- Exceptional yields of up to 15-18% per annum outperform most global markets
- Citizenship program provides additional value to the investment through obtaining a Turkish passport
- Developed tourist industry ensures stable demand for rental properties
- Geographical advantage between Europe and Asia makes Turkey attractive for international business
- State support for foreign investment through incentives and simplified procedures
- Affordable prices compared to European resorts with comparable quality
- Cultural proximity and large Russian-speaking communities simplify adaptation
Successful investment in Turkish real estate requires a professional approach, careful market analysis and competent risk management. It is recommended to start with liquid properties in proven locations
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