Many foreign investors are keen to buy a home in Turkey. And this is not surprising, because 2025 could be a great chance to profit from the ever-growing housing market and buy a house or apartment in one of the most promising locations in the country. What is in store for property buyers in the new year, how things will be with prices and what factors should be considered when planning investments in apartments in Turkey – let’s talk about it in this article.

Current Market Trends

As of the fourth quarter of 2024, the strong growth of the local property market is supported by foreign investment and increased demand among buyers from abroad. Housing located in tourist areas is the most popular. Foreigners are particularly interested in flats as Alanya and houses on the Mediterranean coast of Turkey, which allows to maintain high prices in such resorts, Antalya.

October 2024 marked the highest monthly housing sales since 2022. According to data from the Turkish Statistics Institute, the number of property transactions this month rose 76.1% year-on-year, with a total of 165,138 houses and flats sold. The highest demand was for apartments costing up to 4 million Turkish liras (about $116,000).

The cancellation of the 25% cap on annual rent increases in July played a major role in the increase in the number of transactions. After the introduction of this innovation, flat sales rose for four consecutive months and reached their peak in the last quarter of the year. Thanks to the improved price/rent ratio, buyers have become more active, making the coming year a favourable time for investment.

What’s In Store For Homebuyers In 2025

According to experts, the local housing market will see notable changes in 2025. Turkey’s economic realities, including rising interest rates and the devaluation of the lira, will play into the hands of foreign investors and allow for good returns on property investments. Expected trends for next year include:

• Increase in apartment prices. Compared to the previous ten years, the cost of flats in Turkey has increased by an average of 170%. This is due to both the increase in prices for construction materials and the simplified procedure of residence permit registration in the country. Forecast for 2025 promises further growth in the cost of housing, especially in the resorts, where apartments will rise in price by about 10-20%.
• Increased demand for luxury property. The accessibility of Turkish housing for investors from European and Middle Eastern countries will lead to increased interest in luxury villas and apartments in tourist areas.
• Increase in the number of transactions with foreign investors. After a long period of strict migration policies, Turkey has started to introduce relaxations and open new opportunities for foreigners. Thanks to this, property sales to foreign buyers applying for residence permits are expected to increase in 2025.

Factors That Will Influence The Purchase Of Flats In 2025

When investing in property in Turkey in 2025, you need to consider several factors that will determine the success from the investment:

• The location of residential property will remain one of the most important criteria when selecting properties for purchase. Apartments in resorts and large cities with good social infrastructure will bring the highest profit.
• Investment preferences of foreigners will be largely influenced by modern technologies and flexible planning solutions. ‘Smart homes’ will be in high demand among investors.
• Local authorities will continue to support the state policy of stimulating investment in property and increasing housing affordability. This factor will be especially relevant for buyers from abroad.
• The environmental friendliness of housing will be of particular importance. More and more investors are choosing energy-efficient and environmentally friendly property, so the demand for flats in eco-buildings will increase significantly in the new year.

By assessing these factors, buyers will be able to make the right decisions and capitalise on the opportunities presented by the housing market.