Let us know that you approve our cookie policy.
We use our own and third-party cookies to optimize your property searching experience on our website. If you continue, we assume that you agree with our use of cookies.
SHARE
Turkish Real Estate Market Forecast for 2026 Investments
As we enter 2026, the direction of the property market in Turkey is a question on every investor's mind. Last year was one of the most active years for real estate investments. Building on the interest and momentum from late 2024 and through 2025, property sales increased and hit record-breaking numbers. This growth was driven particularly by domestic buyers, more and more people choosing to buy homes instead of renting, and the search for investments with strong value. Now, one of the biggest questions is whether this momentum will continue and offer investors new opportunities. While professionals have been cautiously optimistic about its positive trajectory, let's see what changes are expected in Turkey’s real estate market in 2026.
Is Turkey Real Estate a Good Investment in 2026?
In 2025, property sales in Turkey surpassed previous years' performance and were expected to reach over 1.6 million residential units. While final figures will be confirmed in the coming weeks, last year was indeed an exceptional time for the Turkish real estate market. Industry experts are also optimistic that the momentum will continue, with a shift from only nominal growth to real price growth in real estate, especially in the second half of the year.
Many domestic buyers have chosen property as the best investment instrument in Turkey to hedge against inflation in 2025, despite rising home prices. Foreign buyers have shown strong interest, particularly in properties around popular expat cities like Antalya and Istanbul, as well as coastal destinations like Mersin. While 2025 did not have the COVID-era numbers, foreign property buyers continue to show steady interest, particularly in lifestyle and tourism-oriented markets. Additionally, although Turkey's social housing project has delivered over 500k homes, supply still falls short of demand. As 2025 was a good year for investing in real estate in Turkey, this year seems to be positioned to continue that positive trajectory.
For 2026, the Turkish real estate market's sales activity is expected to reach similar levels to 2025, though experts and analysts anticipate a shift in market character. While last year was built on spikes, this year is predicted to move toward stability and sustainable growth.
Financing in Turkey: How Interest Rate Cuts Will Affect Turkish Housing Market
Early 2025 had seen peak mortgage rates around 46%, one of the highest levels on record, pricing out many buyers who relied on financing. With the Central Bank of Turkey beginning its monetary easing cycle towards the latter half of the year, rates were cut gradually to just over 35%. In the upcoming year, more reductions are expected, with rates projected to reach 25% towards the latter half of this year, opening up new opportunities.
These rate cuts will enable middle-class investors and buyers to enter the market once again with manageable financing terms. This will also provide an opportunity for cash buyers to negotiate better prices as competition from financed buyers remains limited in the first half. As mortgage rates ease and investor confidence grows, demand from both domestic and foreign buyers is expected to strengthen.
Beyond buyers, construction and developers also expect high levels of activity with the easing rates. Şeref Demir, Chairman of the Board of the Association of Construction Contractors, Industrialists and Businesspeople (IMSİAD), said that with inflation moderating and rate cuts, the construction sector is set to accelerate in 2026, particularly towards the third and fourth quarters. With this momentum, newly built property sales could reach higher levels than in 2025.
Turkey’s Real EstateTax Changes in 2026
The Turkish government has updated property tax valuations, marking the first major change in recent years. The official property values have been reassessed for this year, with increases in some areas as the base moves closer to actual market prices. This change does not affect the tax rate itself, but does impact annual property tax and other related calculations, like the title deed fee (4%). While the tax rates remain unchanged, the base on which they're calculated increases significantly. This reassessment aims for a more transparent valuation system and better clarity in property transactions. While increasing the base may seem substantial, given Turkey's low tax rates compared to Western markets, this only means bringing valuations in line with normal standards for developed markets.
Another change is the new cap for 2026 taxable values. Now, building and land taxable values cannot exceed twice the 2025 values. With this limit on how high taxable values can jump, the government has softened the immediate impact on property owners.
How Will the Foreign Buyer Rules Affect Property Purchases in 2026
Foreign property buyers have been drawn to Turkey for its affordable prices, lifestyle advantages, and Citizenship by Investment program for years. In the upcoming year, there are no overall changes to these fundamentals, as foreign property ownership rights remain stable and predictable. The Turkish Citizenship pathway keeps its rules unchanged, with investment properties requiring a minimum of 400,000 dollars based on official valuation and a three-year holding period. The administrative process continues to follow a more professional and established structure with enhanced compliance and documentation requirements.
Data shows that although overall home sales in Turkey increased in 2025, foreign buyer volumes have been modest. As the economy stabilizes and confidence returns, foreign investors are also expected to return gradually. Additionally, though the initial capital for the citizenship by investment pathway in Turkey has risen over the years, it is still competitive compared to similar programs in Europe. With its strong rental yields and capital gains tax exemption after 5 years of ownership, Turkish real estate remains a highly attractive option. Particularly for buyers from Russia, the Gulf region, and Europe, Turkey offers both investment returns and residency flexibility.
Regional Outlook: Best Cities to Invest in Turkey 2026
2026 is expected to see continuous real estate investments in both premium cities and rising hotspots, with distinct characteristics across regions.
Antalya: Consistently ranked as Turkey's top foreign buyer and rental market, Antalya offers both established neighborhoods and rising areas. Coastal districts like Lara have a high average rental yield, while developing areas like Kepez provide value opportunities. If you're considering Antalya, check our blog for your 2026 real estate investment in Altıntaş vs Konyaaltı.
İzmir: With foreign buyers' interest growing steadily, İzmir is also gaining momentum. While coastal towns like Alaçatı and Çeşme attract premium buyers, properties in the city center offer strong rental fundamentals. Investing here provides a balanced approach and appeals to buyers seeking lifestyle quality alongside investment stability, with less seasonal volatility.
Istanbul: This metropolitan city remains Turkey's largest real estate market with high liquidity and demand from both domestic and foreign buyers. Though it has lower rental yields than coastal hotspots, Istanbul property investment offers diversified options and capital appreciation potential.
Mersin: An emerging market, Mersin has drawn increasing interest from domestic and foreign investors. This coastal city combines relatively lower property prices and strong growth potential.
Coastal markets offer some of the highest rental yield cities in Turkey, particularly for holiday lets, while inland markets balance liquidity in a major metropolitan with value opportunities in emerging cities.
What's Ahead in 2026
The Turkish real estate market offers a promising outlook based on 2025 performance and momentum. If economic reforms continue and current policies stabilize inflation rates, the real estate market is positioned to deliver real gains. Experts and analysts expect similar sale volumes to last year, but with less fluctuations and greater sustainability. For the best investments, outline your goals, do your homework, and partner with reliable local experts. Unlike last year, 2026 may not be as explosive, but for informed investors willing to take the right steps, it could deliver steady, measurable returns.
Do You Have More Questions? ASK AN EXPERT
SEND
Created: 12.01.2026, 11.26Updated: 12.01.2026, 15.22
RELATED PAGES
COMMENTS
LEAVE A COMMENT
LATEST POSTS