1. Current Market Overview (2025)

As of 2025, Turkey’s real estate market demonstrates resilience and growth potential. The residential real estate sector is projected to reach USD 110.10 billion in 2025 and further grow to USD 186.87 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 11.16% during the forecast period .

2. Economic and Demographic Drivers

• Urbanization: Turkey’s urban population continues to rise, with projections indicating that by 2045, a significant majority will reside in urban areas.

• Population Growth: The country’s population is expected to grow steadily, increasing demand for housing and infrastructure.

• Economic Development: Ongoing economic reforms and investments in infrastructure are anticipated to bolster the real estate sector.

3. Regional Market Insights

• Istanbul: As Turkey’s largest city, Istanbul remains a focal point for real estate investment, driven by its economic significance and cultural appeal.

• Ankara and Izmir: These cities are experiencing growth due to government initiatives and infrastructural developments.

• Coastal Regions: Areas like Antalya and Muğla attract both domestic and international buyers, particularly for holiday homes and retirement properties.

4. Foreign Investment Trends

Foreign investment in Turkish real estate has seen fluctuations. In 2024, foreign home purchases in Turkey decreased by 32.1% compared to the previous year . However, with anticipated economic stabilization and regulatory reforms, foreign interest is expected to rebound over the next two decades.

5. Technological Advancements and Smart Homes

The integration of smart home technologies is becoming increasingly prevalent in Turkey’s real estate market. By 2024, over 70% of Turkish buyers desired smart home features, prompting developers to incorporate these into new projects . This trend is expected to continue, enhancing property values and appeal.

6. Sustainability and Green Building Initiatives

Environmental considerations are shaping the future of real estate in Turkey. Developers are focusing on sustainable building practices, energy efficiency, and green certifications to meet both regulatory requirements and consumer demand.

7. Government Policies and Infrastructure Projects

The Turkish government is investing in large-scale infrastructure projects, including transportation networks and urban renewal initiatives, which are anticipated to positively impact the real estate market. Programs like TOKİ (Mass Housing Development Administration) aim to provide affordable housing and stimulate market growth.

8. Challenges and Risks

• Economic Volatility: Fluctuations in inflation and currency exchange rates can impact investor confidence.

• Regulatory Changes: Potential shifts in property laws and taxation policies may affect market dynamics.

• Climate Change: Environmental factors, such as water scarcity and extreme weather events, could influence property values and development patterns .

9. Long-Term Projections (2025–2045)

Considering current trends and anticipated developments, Turkey’s real estate market is poised for sustained growth over the next two decades. Urban expansion, technological integration, and infrastructural investments are expected to drive demand and enhance property values. However, investors should remain vigilant of economic indicators and policy changes that may influence the market landscape.