Executive Summary
 

Turkey's foreign real estate investment market in 2025 presents one of the most compelling contrarian opportunities in global property: a historically suppressed foreign buyer share sitting at a near-decade low, against a backdrop of fundamentally improving macroeconomic conditions, confirmed credit rating upgrades, and a citizenship-by-investment program that remains among the most competitive globally.
 

2025 Annual Headline Data (TURKSTAT):
 

- Total properties sold in Turkey in 2025: 1,688,910 — up 14.3% from 2024

- Istanbul alone: 280,262 properties sold — highest of any province

- Foreign buyer total 2025: approximately 23,000–25,000 units — representing roughly 1.4–1.6% of total sales

- Foreign sales recovery signal: June 2025 saw +8.7% YoY growth in foreign purchases — the first positive reading in over a year

- Largest foreign buyer nationality: Russia (3,649 homes)

- Second: Iran (1,878 homes)

- Third: Ukraine (1,541 homes)

- Istanbul's share of foreign purchases: ~38% of all foreign sales nationally

- Antalya's share: ~34.6% of all foreign sales nationally

- Mortgage sales grew 49.3% in 2025 — signaling early credit market recovery
 

The combination of depressed foreign activity, hard-currency price stability, improving fundamentals, and a fast-track citizenship program creates the conditions for a significant foreign buyer recovery in 2026–2027.
 

1: The Big Picture — 2025 in Context
 

1.1 The Rise, Peak, and Correction of Foreign Investment

To understand where foreign investment in Turkish real estate stands in 2025, it is essential to understand the trajectory of the preceding five years.
 

2020–2021: Strong pre-pandemic and early-pandemic demand, driven by currency depreciation making Turkey exceptionally affordable in hard currency terms. Foreign buyers from the Middle East, Russia, and Europe acquired significant volumes of Turkish property.
 

2022 — The Peak Year: Foreign property sales reached a multi-year high. Turkey topped global charts for nominal house price growth (+46%). Foreign buyers represented approximately 3–5% of total sales. The $250,000 citizenship threshold attracted enormous interest before being raised to $400,000 in mid-2022.
 

2023 — The Correction: Following the citizenship threshold increase to $400,000, more complex procedures, and the aftermath of the February 2023 earthquakes, foreign sales declined sharply. Total transactions nationally also fell as mortgage rates soared above 30%.
 

2024 — The Low Point: Foreign buyer share fell to approximately 1.6% — a near-decade low. Currency volatility, economic uncertainty, and stronger competition from other citizenship-by-investment programs dampened international demand.
 

2025 — Signs of Recovery: Total national sales recovered strongly (+14.3%). Foreign sales showed the first positive monthly growth in over a year (June 2025: +8.7% YoY). The stage is being set for a meaningful recovery in 2026.
 

1.2 Total Market Context
 

Year    Total Sales    Foreign Sales     Foreign Share

2022    ~1.49M           ~67,000              ~4.5%

2023    ~1.23M           ~35,000              ~2.8%

2024    ~1.48M          ~23,000              ~1.6%

2025    1,688,910     ~25,000              ~1.4–1.6%
2026    1.7M–1.9M    ~35k–50k           ~2–3% (forecast)
 

Sources: TURKSTAT, Property Turkey, market estimates. 2026 is a forecast.
 

2: Foreign Buyer Nationality Analysis — 2025
 

2.1 Top Foreign Buyer Nationalities (Full Year 2025)

TURKSTAT published full-year 2025 data confirming the following top buyer nationalities:
 

Rank       Nationality       Properties Purchased       Primary Markets

1                Russian               3,649                                      Antalya, Istanbul

2                Iranian                 1,878                                      Istanbul, Ankara

3               Ukrainian            1,541                                        Antalya, Mersin

4               German              Est. 700–900                  Antalya, Fethiye, Bodrum

5              Saudi Arabian   Est. 600–800                           Istanbul, Bodrum

6               British                 Est. 500–700                   Bodrum, Fethiye, Antalya

7               Kuwaiti               Est. 400–600                         Istanbul, Başakşehir

8                Iraqi                    Est. 400–550                           Istanbul, Ankara
 

Source: TURKSTAT 2025 Annual Data. Ranks 4–8 are estimates based on historical distribution patterns.
 

2.2 Nationality Profiles
 

Russian Buyers — #1 for Third Consecutive Year Russians maintained their position as Turkey's largest foreign buyer group for the third consecutive year, purchasing 3,649 homes in 2025. Antalya remains the primary destination, driven by lifestyle preferences, community infrastructure, and direct flight connectivity. Istanbul is the preferred market for higher-value citizenship and investment purchases.
 

Iranian Buyers — Strong and Steady Iran's 1,878 purchases in 2025 reflect the country's consistent demand driven by capital preservation, access to international banking, and citizenship acquisition. Istanbul and Ankara are the primary markets, with preference for apartment purchases in urban centers.
 

Ukrainian Buyers — Continued Demand Despite Conflict Ukraine's 1,541 purchases in 2025 demonstrate sustained demand driven by displacement, safety seeking, and long-term relocation. Antalya and Mersin — both offering a large established Ukrainian community — remain the primary destinations.
 

Gulf Buyers (Saudi Arabia, Kuwait, UAE) — Emerging Growth Segment Gulf national buyers represent one of the highest-value segments in the market. While numerically smaller, Gulf buyers tend to purchase higher-value properties — particularly in Istanbul's Başakşehir, Beylikdüzü, and premium Bosphorus-front developments. Citizenship acquisition is a primary motivation for many Gulf buyers, given the travel freedom the Turkish passport provides relative to GCC passports.
 

European Buyers — Lifestyle-Driven German, British, and other European buyers predominantly target coastal lifestyle markets — Antalya, Bodrum, Fethiye, and Alanya. The typical profile is a retirement or holiday home buyer rather than a pure investor, though rental yield increasingly factors into purchasing decisions.
 

2.3 Geographic Concentration of Foreign Purchases

Foreign buyers in Turkey are highly concentrated in a small number of markets:
 

City/Province       Share of Foreign Purchases     Primary Buyer Nationalities

Istanbul                  ~38%                                                  Gulf, Iranian, Russian, European

Antalya                   ~34.6%                                              Russian, Ukrainian, European

Mersin                    ~8–10%                                              Russian, Ukrainian, Iraqi

Ankara                   ~5–7%                                                 Iranian, Iraqi

Muğla                     ~4–6%                                                European, Gulf, British
 

3: Citizenship by Investment — 2025 Program Analysis
 

3.1 Program Overview

Turkey's Citizenship by Investment (CBI) program, launched in 2017 and updated through 2025, remains one of the world's most accessible direct citizenship routes:
 

Parameter                                                            Specification

Minimum real estate investment               $400,000 USD

Minimum bank deposit alternative           $500,000 USD

Holding period                                                   3 years minimum

Processing time                                                 4–8 months (standard); 3 months (fast-track)

Visa-free / on-arrival access                         110–120 countries

Family inclusion                                                 Spouse + children under 18

Residency requirement                                  None (short visit for fingerprinting only)

Language requirement                                   None

Dual citizenship                                                  Permitted
 

3.2 Key 2025 Program Updates

Several procedural changes were implemented in 2025:
 

-YUVAM account discontinued: The YUVAM account program (which allowed $500,000 deposits in Turkish Lira with exchange rate protection) is no longer available for new applicants as of 2025. The standard $500,000 bank deposit option remains.
 

- Spouse residence permit required: Spouses must now obtain a residence permit alongside the main applicant (previously only the main applicant was required to do so). Children remain unaffected.
 

- Criminal record certificates: Both the main applicant and spouse are now required to provide certified criminal records from their home country.
 

- Physical presence mandatory: A short visit to Turkey is required for fingerprinting and biometric data collection. The visit is brief (a few days) but unavoidable.
 

- Undeveloped land excluded: Since December 2023, citizenship applications cannot be based on undeveloped land purchases. The investment must involve land with existing buildings or a valid building permit.
 

- No resale to other CBI applicants: A property used to obtain citizenship cannot be resold to another citizenship-by-investment applicant.
 

3.3 The CBI Demand Driver

Citizenship-by-investment purchases represent a significant proportion of total foreign sales, particularly in Istanbul and Antalya coastal districts where foreign-buyer ratios in some months exceed 40% of monthly deed registrations.
 

Key CBI buyer motivations in 2025:

- Travel freedom: Turkish passport provides access to 110–120 countries visa-free, including Japan, South Korea, and Latin America — highly valuable for buyers from the Middle East, Iran, and CIS countries

- US E-2 Visa eligibility: Turkish citizenship allows eligible investors to apply for the US E-2 Treaty Investor visa — a highly sought benefit for non-US citizens
 

- Capital preservation: Turkey provides a stable jurisdiction for real estate-based wealth preservation

- No residency requirement: Rare among citizenship programs globally — investors do not need to live in Turkey
 

- Family inclusion: Spouse and minor children obtain citizenship at no additional investment cost
 

- Investment recovery: After the 3-year holding period, the property can be sold and capital recovered
 

4: The Hard Currency Advantage — Why 2025–2026 Is the Window
 

4.1 The Structural Buying Opportunity

For USD and EUR investors, Turkey currently offers a structural pricing advantage that is mathematically rare: nominal prices in Turkish Lira continue rising, but USD-denominated prices have stabilized — meaning the same hard currency buys materially more property in 2025 than at the 2022 peak.
 

Metric                                                       2022 (Peak)                                                 2025                                                  Change

Istanbul avg price (USD/m²)          ~$2,100                                                        ~$1,630                                             -22% in real USD terms

National avg price (USD/m²)         ~$1,400                                                       ~$825                                                 -41% in real USD terms

Foreign buyer share                          ~4.5%                                                            ~1.4 –1.6%                                         Near-decade low

Policy interest rate                             8.5% (pre-tightening)                             35% (on downward path)           Local buyers largely absent
 

This combination — lower USD prices, absent local competition, suppressed foreign buyer share — represents a compounding structural advantage that closes as:
 

1. Inflation falls and the lira stabilizes (restoring USD price growth)

2. Interest rates decline to 25% (domestic buyers return at scale)

3. Foreign buyer confidence recovers (increasing competition for the same properties)
 

4.2 Cash Buyer Dynamics

With domestic mortgage rates still in the 30–40% range through 2025, the overwhelming majority of transactions are cash purchases — approximately 86% of all deals in H1 2025. This creates exceptional conditions for foreign cash buyers:
 

- 5–15% negotiated discount typical for cash offers vs listed price

- Hard currency premium: Sellers strongly prefer EUR/USD payments, creating additional negotiating leverage

- Speed advantage: Cash deals close in days vs. months for mortgage buyers

- Reduced competition: High local rates have effectively excluded the majority of domestic buyers from the market
 

5: Top Investment Markets for Foreign Buyers
 

5.1 Istanbul — The Investment Capital

Istanbul dominates foreign buyer activity with approximately 38% of all foreign purchases. It is the only Turkish city that combines:
 

- Scale and liquidity (280,262 transactions in 2025)

- Citizenship-qualifying properties at multiple price points

- Year-round rental demand (business and tourism)

- Long-term capital appreciation driven by infrastructure investment

- Access to world-class amenities, schools, and healthcare
 

Best districts for foreign investors: Beşiktaş, Şişli, Başakşehir, Kağıthane, Beylikdüzü, Üsküdar, Kadıköy
 

5.2 Antalya — The Lifestyle & Yield Capital

Antalya captures approximately 34.6% of foreign purchases and is the fastest-growing major market with a 7.68% CAGR forecast to 2030. Its appeal is driven by:
 

- Strong lifestyle proposition (Mediterranean coast, year-round sunshine)

- Established international communities (Russian, Ukrainian, European)

- Short-term rental yields of 6–8%

- Lower entry prices than Istanbul (~$1,200/m²)

- Direct flight connectivity to 200+ European and Middle Eastern destinations
 

Best districts for foreign investors: Konyaaltı, Lara, Kepez (emerging), Belek (luxury resort)
 

5.3 Bodrum — The Luxury Market

Bodrum is Turkey's premier luxury coastal destination with average prices of ~$2,825/m² and up to $8,000/m² in prime waterfront locations. It attracts high-net-worth Gulf investors, European luxury buyers, and domestic Turkish elites.

Best for: Trophy asset acquisition, luxury villa investment, capital preservation
 

5.4 Mersin — The Value Opportunity

Mersin captures 8–10% of foreign purchases and offers the lowest entry prices of any major Turkish market. Growing infrastructure investment and port city dynamics create long-term appreciation potential.

Best for: Early-stage investors, budget entry, long-term value pl6: Regulatory Framework for Foreign Buyers

6: Regulatory Framework for Foreign Buyers
 

6.1 Ownership Rights

Foreign nationals can purchase residential and commercial property in Turkey with full ownership rights, subject to:
 

- Property must not be in a military forbidden zone or security zone

- Total landholding of a foreign national cannot exceed 30 hectares nationwide

- Citizens of Armenia, Cuba, Nigeria, North Korea, and Cyprus are excluded from the citizenship program (but can still purchase property)
 

6.2 Transaction Requirements

All property purchases must be completed through Turkish bank transfers. Foreign currency must be officially converted to Turkish Lira through the Central Bank, and a DAB (Document of Foreign Exchange Purchase) must be obtained — this is mandatory for citizenship applications.
 

6.3 Tax Summary for Foreign Buyers
 

Tax                                                          Rate                                                Notes

Title Deed Transfer Tax                  4%                                                   Of declared value; typically split buyer/seller

Annual Property Tax                       0.1–0.2%                                        0.1% standard; 0.2% in metro municipalities (Istanbul)

VAT on new properties                  1–18%                                             Foreign currency buyers often exempt on first purchase

Capital Gains Tax                             15–40%                                          Exempt after 5 years of ownership

Rental Income Tax                           15–40% progressive                 Below ~$1,340/year threshold is exempt
 

7: 2026 Outlook — Foreign Investment Recovery Forecast
 

7.1 Recovery Drivers

Multiple converging factors are expected to drive a recovery in foreign investment through 2026:
 

- Falling interest rates: The path from 46% (2024 peak) to ~25% (2026 target) will restore domestic buyer competition — but the window before this happens is the opportunity
 

- Macro stability: Credit rating upgrades from Fitch, S&P, and Moody's in 2024 signal to institutional and sophisticated investors that Turkey's economic reform is credible
 

- Lira stabilization: As inflation falls, lira depreciation should moderate — reducing the currency risk that deterred many foreign buyers in 2023–2024
 

- Citizenship program continuity: The $400,000 threshold and 3–6 month processing time remain intact, providing a clear and stable investment pathway
 

- Gulf buyer expansion: Visa liberalization measures and growing Gulf–Turkey investment ties are expanding the Middle Eastern buyer base
 

7.2 Foreign Sales Forecast
 

Year             Projected Foreign Sales                       Market Share                       Key Driver

2025           ~23,000–25,000                                      ~1.4–1.6%                               Base/recovery

2026F        ~35,000–50,000                                     ~2–3%                                     Rate cuts, macro stability

2027F        ~55,000–75,000                                      ~3–4%                                     Full boom cycle, strong lira
 

Forecasts are indicative estimates based on historical patterns and consensus market expectations.
 

7.3 Strategic Conclusion

The data presents a clear picture: Turkey's foreign real estate investment market is at a cyclical low point by nearly every measure — buyer share, transaction volume, and USD-denominated pricing. The macro conditions that suppressed this market (high inflation, high interest rates, currency volatility) are all in confirmed reversal.
 

For international investors, this creates a rare alignment:

- Buy at structural lows before domestic competition returns

- Acquire at hard-currency discounts vs. the 2022 peak

- Access a citizenship program that remains among the world's most competitive

- Benefit from a 7.32% rental yield while waiting for capital appreciation
 

History does not repeat in real estate — but it rhymes strongly. Turkey's previous interest rate cycles have consistently ended in property booms. The evidence strongly suggests the next one is approaching.
 

About This Report
 

This report was prepared by Regal Realty's research division based on data from TURKSTAT (TÜİK), the Central Bank of the Republic of Turkey (CBRT), Global Property Guide, Global Citizens Solutions, TERRA Real Estate, Property Turkey, and other cited sources. All data reflects the most recently available figures as of Q1 2026. This report is for informational purposes only and does not constitute investment advice.
 

Regal Realty is a premium real estate consultancy headquartered in Istanbul, Turkey, specializing in investment properties, luxury real estate, and citizenship by investment advisory for international clients.
 

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