Real Estate in Turkey: Current Overview and Trends for 2025
Real Estate in Turkey: Current Overview and Trends for 2025
Turkey has become an attractive destination for foreign real estate investors in recent years. With a diverse offer, favorable prices and a strategic location between Europe and Asia, it offers many opportunities. However, in 2025, several new rules and trends came into force that will affect buyers' decisions.
Changes in legislation for foreign buyers
From 2025, new rules apply for foreigners interested in purchasing real estate in Turkey:
Increased Minimum Deposit for Citizenship : To obtain Turkish citizenship through real estate investment, a minimum investment of 500,000 USD is now required, an increase from
the previous 400,000 USD.
Restrictions in some areas : New restrictions have been imposed on foreign property owners in popular neighborhoods of Istanbul such as Beşiktaş, Şişli, Kadıköy and Fatih due to high demand.
Compulsory Insurance : In addition to the compulsory earthquake insurance (DASK), foreign buyers must also take out valid health insurance in Turkey.
Market trends and investment opportunities
The Turkish real estate market saw significant growth in 2024, with nearly 1.5 million homes sold, a 21% increase over the previous year. Istanbul remains the most active market with over 239,000 properties sold.
Foreign buyers account for approximately 25% of all property purchases in Istanbul, with Russian citizens leading the list of foreign buyers.
Growing interest in green and smart living
In response to global environmental challenges and technological advances, the demand for eco-friendly and smart homes is increasing in Turkey:
Green housing : The government supports the construction of energy-efficient buildings through grants covering up to 30% of the costs of energy efficiency projects.
Smart Homes : By 2025, 50% of new residential buildings in Istanbul will be equipped with smart home technologies such as automated lighting, security and energy management systems.
Tax obligations and fees
Foreign buyers should be aware of the following taxes and fees:
VAT (VAT) : The standard VAT rate for new residential properties is 10%.
Annual property tax : It ranges between 0.2% and 0.6% of the property value, depending on the location.
Transfer Fees : Usually 4% of the declared value of the property, divided between the buyer and the seller.
Conclusion
Investing in real estate in Turkey in 2025 offers many opportunities, especially in the areas of green and smart housing. However, due to new legislative changes and tax obligations, it is important to thoroughly familiarize yourself with the current rules and seek professional advice before making an investment.
For those looking for long-term investment opportunities or a second home in a country with a rich culture and strategic location, Turkey remains an attractive choice.
