Property Prices in Istanbul: Trends and Forecast for Investors

Last Updated: July 30, 2025 by Michael Kahn. Published: July 11, 2025.

Istanbul, where continents meet and cultures blend, has become one of the most dynamic property markets in the world. With its rich history, modern infrastructure, and strategic location between Europe and Asia, the city attracts a growing number of international investors each year. Whether you’re looking for a stylish apartment with Bosphorus views, a luxury villa in a secure compound, or a commercial property with high rental yield, Istanbul offers a wide variety of opportunities.

Table of Contents

• Why Invest in Istanbul?
• 1. Beylikdüzü and Esenyurt
• 2. Başakşehir
• 3. Kadıköy
• 4. Beşiktaş and Sarıyer
•  Legal Process for Foreign Buyers
•  Investment Potential and Rental Income
• Property Types Available
• 🇹🇷 Turkish Citizenship by Investment
•  Key Considerations Before Buying
•  Taxes and Costs

Why Invest in Istanbul?

Istanbul’s real estate market is driven by consistent demand, population growth, and increasing interest from foreign buyers. The Turkish government has also introduced favorable policies, such as the Turkish Citizenship by Investment Program, which makes purchasing property even more attractive for international investors.

Istanbul’s unique advantage is its dual identity: a modern megacity and a historical marvel. Districts such as Beşiktaş, Şişli, Kadıköy, and Üsküdar offer a mix of contemporary lifestyle and cultural charm, appealing to both residents and tourists.

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 Popular Areas to Buy Property in Istanbul

1. Beylikdüzü and Esenyurt

Located on the European side, these districts offer affordable apartments with high investment potential. Modern residential complexes, shopping malls, and metro access make these areas especially appealing to first-time buyers.

2. Başakşehir

A hub for families and long-term investors, Başakşehir has seen rapid growth in recent years. Proximity to Istanbul Airport and the planned Kanal Istanbul project boost its strategic value.

3. Kadıköy

This trendy neighborhood on the Asian side is a cultural hotspot. It attracts young professionals and creatives looking for stylish apartments, vibrant nightlife, and walkable streets.

4. Beşiktaş and Sarıyer

Ideal for luxury buyers. Think villas with sea views, historical mansions, and high-end residences. These neighborhoods are popular among diplomats and business elites.

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Legal Process for Foreign Buyers

Foreign nationals can easily buy property in Istanbul. Here are the main steps:

• Get a Tax Number (Vergi Numarası) from any tax office.
• Open a bank account in Turkey.
• Sign a sales contract and pay the deposit.
• Complete Title Deed (Tapu) transfer at the Land Registry Office.
• Hire a solicitor to help with legal procedures, translations, and due diligence.

Thanks to recent reforms, the process is faster and more transparent than ever.

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Investment Potential and Rental Income

Istanbul’s booming population — currently over 16 million — drives housing demand. New infrastructure projects like Marmaray, Eurasia Tunnel, and metro expansions have increased the value of properties near transport lines.

Average annual rental yields in central districts range between 4% and 7%, making Istanbul one of the top cities in Europe for rental income potential.

Additionally, short-term rental platforms such as Airbnb and Booking.com perform well in tourist-friendly areas like Taksim, Galata, and Sultanahmet.

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Property Types Available

• Studio & 1+1 apartments – Ideal for singles or rental income.
• Family-size 2+1 and 3+1 flats – Great for long-term living.
• Luxury penthouses and duplexes – Located in high-end districts.
• Villas in gated communities – Often include private gardens and pools.
• Commercial real estate – Offices, retail stores, and hotels.

You can find both off-plan projects and resale properties, depending on your budget and goals.

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🇹🇷 Turkish Citizenship by Investment

One of the strongest incentives to buy property in Istanbul is the citizenship program. By purchasing real estate worth at least $400,000 USD, foreign investors can qualify for Turkish citizenship within a few months.

This allows visa-free or visa-on-arrival access to 110+ countries, business advantages, and the ability to live, work, or study in Turkey.

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Key Considerations Before Buying

• Location is everything – consider future infrastructure projects nearby.
• Developer reputation – Check previous projects and reviews.
• Title deed (Tapu) – Ensure there are no legal encumbrances.
• Maintenance fees – Check monthly dues in residential complexes.
• Resale potential – Properties near transport, schools, or malls have better appreciation.

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Taxes and Costs

While property prices are generally lower than in most European cities, be prepared for additional expenses:

• Title deed transfer tax: 4% of the declared sale price.
• VAT (if applicable): Between 1% and 18%, depending on property type and buyer status.
• Annual property tax: 0.1% to 0.3% depending on location and size.
• Agent fees: Usually 2% to 3% of the sale price.
• Legal and translation services: €1,000–€2,000 on average.

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Istanbul is not just a city – it’s an experience, an investment, and a lifestyle. For international buyers looking to diversify their portfolio, secure second citizenship, or simply live in a city that breathes culture and energy, buying property in Istanbul is a rewarding decision.

From affordable starter apartments to luxurious waterside villas, Istanbul’s real estate market caters to every investor profile. With expert guidance and the right property partner, your journey to owning a slice of this vibrant city can begin today.