The issue of purchasing real estate in Turkey in 2025 remains relevant for foreign investors, especially those from CIS countries.

The issue of purchasing real estate in Turkey in 2025 remains relevant for foreign investors, especially from CIS countries. However, against the backdrop of recent legislative changes, economic instability, and tightening control over Turkey’s rental market, the potential of such an investment requires particularly careful evaluation.

Despite the growing number of risks, buying real estate in Turkey can still be attractive for several reasons:

Relatively low price per square meter compared to Europe.

Relatively high rental yield in tourist regions.

Fast transaction processing.

Turkish citizenship program for investments starting from USD 400,000 in depressed local markets.

Access to high-level infrastructure in coastal areas.

The average rental yield in Antalya in 2024 was estimated at 6–8% annually for long-term rentals. At the same time, the average housing price in Antalya ranges from EUR 1,000 to 2,000 per square meter.

However, even major players in the Turkish market are under pressure due to the instability of the lira and rising construction material costs. Therefore, alongside the potential benefits, it is important to note the significant number of risks faced by foreign real estate buyers in Turkey in 2025.

Inflation and depreciation of the lira

The Turkish lira remains one of the most volatile currencies among emerging markets. In 2024, it depreciated by about 35% against the US dollar and more than 40% against the euro. At the same time, official inflation, according to TÜİK, was 65.1%, but independent analysts from ENAG (Inflation Research Group) estimated it at over 120%. This means that the actual increase in the cost of goods and services for the population and investors is felt more strongly than recorded in official statistics.

Real estate prices also increased in 2024, but in real terms (i.e., adjusted for inflation), the growth was moderate or non-existent. For example, in Antalya and Istanbul, housing prices rose by 45–50% annually, which, given inflation above 60%, means an effective decline. This is especially critical for foreign buyers relying on income in hard currency: with the lira depreciating by 30–40%, the annual yield in national currency may simply be eaten away by currency losses during capital repatriation.

Exchange rate instability also creates difficulties in calculations and planning. Many sellers and developers set prices in lira but are willing to accept payment in dollars or euros, which can lead to unexpected price adjustments in case of sharp exchange rate changes. At the same time, rental payments are usually denominated in lira, and it is legally prohibited to set rent in foreign currency. This means that even if your property is rented out, you are not protected from income loss due to currency depreciation.

An additional risk factor is the monetary policy of the Central Bank of Turkey, which, according to Euronews, raised the key interest rate (up to 45% by early 2025) in 2023–2024 in an attempt to combat inflation. However, amid structural economic problems and political pressure on the regulator, the effectiveness of these measures remains limited. The high lending rate negatively affects the construction sector and housing demand, especially in the secondary market, which may lead to stagnation or slowdown in price growth while operating and tax costs increase.

Thus, inflation and depreciation of the lira are not just abstract macroeconomic risks but a specific threat to the profitability of real estate investments in Turkey. Without a clear currency strategy, capital protection, and understanding of inflationary pressure dynamics, investments in Turkish real estate may become unprofitable even with apparent price growth in lira.


Restrictions on short-term rental

As of January 1, 2024, Law No. 7464 came into force in Turkey, radically changing the rules of the short-term rental market. This law was a response to growing dissatisfaction among locals, increased social tension in tourist areas, and the state’s efforts to control the unregulated flow of tourists staying outside the hotel sector, according to the expert firm Balcıoğlu Selçuk Eymirlioğlu Ardıyok Keki.

According to the law, individuals owning an apartment or house are not allowed to rent out their property on a short-term basis without obtaining a special short-term rental license issued by the Turkish Ministry of Culture and Tourism. This license is not granted automatically but only upon meeting a strict set of requirements.

Key requirements for obtaining a license:

Written consent of all neighbors in the apartment building. This means that every property owner or tenant in the building must provide written confirmation that they do not object to short-term rentals. In practice, obtaining such consent is extremely difficult, especially in buildings with many owners where even one objection makes licensing impossible.

Compliance of the property with sanitary and fire safety regulations equivalent to hotel standards. This includes not only fire extinguishers and evacuation plans but also regular inspections, reporting, disinfection, and specific standards for windows and ventilation.

Surveillance and digital guest tracking systems. The property must be equipped with surveillance cameras at entrances and exits and a digital guest registration system. Each renter must be registered in the Ministry's unified electronic system with passport details, stay duration, and purpose of visit.

Tax compliance and business registration. In most cases, to meet the legal requirements, the owner must register as an individual entrepreneur in Turkey, maintain accounting records, file tax returns, and pay taxes.

Penalties for violation:

An individual renting out property short-term without a license faces a fine ranging from 100,000 to 1,000,000 Turkish lira (approximately EUR 3,000 to 30,000 as of April 2025). Fines may apply for the violation itself and for each unregistered rental incident.

In case of repeated violations, the property may be forcibly closed, the owner’s residence permit revoked, and entry into the country banned. In severe cases (especially if combined with tax evasion), criminal charges and deportation are possible.

Additional complications:

Even if a license is obtained, it is valid for only one calendar year. Upon expiry, all conditions must be reconfirmed.

The license is tied to a specific property and cannot be transferred or extended to other units owned by the same person.

In some municipalities (e.g., in Antalya and Muğla), local authorities introduce additional restrictions, including quotas on the number of licenses per area.

Properties rented without a license are subject to immediate tenant eviction and may be sealed until the violations are rectified.

Thus, the short-term rental market, once attractive to investors, has effectively become closed to individuals without a full-fledged business infrastructure and legal setup. The risk of high fines, legal consequences, and even entry bans makes using Turkish real estate for short-term rentals extremely risky and often impractical for most private investors.


Difficulties in obtaining a residence permit

Until recently, purchasing property in Turkey was a popular and relatively simple way to obtain a residence permit (ikamet). This route was especially popular among citizens of Russia, Ukraine, Iran, and Middle Eastern countries. However, since 2022 and especially from mid-2023, Turkish authorities began introducing significant restrictions aimed at reducing the number of foreigners in oversaturated regions and combating illegal residency, as noted by analysts from Yekta Homes.

The main change is the introduction of restricted zones, in which residence permits based on property purchase are suspended. These zones are updated monthly by the Turkish Ministry of Interior and published on the official websites of provincial and migration services. As of April 2025, more than 1,200 neighborhoods across the country are designated as “closed,” including key tourist and investment-attractive areas.

Examples of closed districts:

Antalya: Mahmutlar, Avsallar, Konyaaltı, Lara

Istanbul: Fatih, Esenyurt, Başakşehir

Mersin: Yenişehir, Mezitli

In these zones, obtaining a residence permit is impossible even if property is owned, regardless of its value or intended use.

In addition to geographical restrictions, financial thresholds apply. The minimum property value required for a residence permit application is USD 75,000 in densely populated provinces (e.g., Istanbul, Antalya, Izmir) and USD 50,000 in others. This value must be officially recorded in a certified valuation report (ekspertiz). Often the real price exceeds the contract price, making the property ineligible for residency purposes.

Additional complications:

Quotas on residence permits in areas with a high concentration of foreigners. Even if a district is not formally closed, it may have reached the limit — for example, 25% of the registered population being foreign nationals. In such cases, residency applications are automatically rejected.

Shortened permit durations. In 2024, many immigration offices began issuing residence permits for 6 months or 1 year instead of the previous 2 years, and often refused renewals without explanation.

Increased number of denials with no right to appeal. Residence permits are a discretionary decision, meaning the state can deny them without providing reasons. This particularly affects applicants from politically or migration-sensitive countries.

Tighter document requirements. In addition to standard documents (passport, insurance, TAPU, valuation report), the following are increasingly required:

Bank statement confirming financial solvency

Certificate of no criminal record

Proof of residence in the purchased property (photos, utility bills, etc.)

Delayed processing times. Processing may take 3–6 months, during which the applicant must remain in the country legally but without the rights associated with residency (e.g., access to healthcare, obtaining a driver’s license, etc.).

Political factor. Amid growing migration pressure and public dissatisfaction, especially in resort areas, authorities are striving to reduce the share of foreigners in residential neighborhoods. This leads to ongoing tightening of regulations without predictability or stability.

Thus, purchasing real estate in Turkey no longer guarantees a residence permit. The conditions are becoming increasingly complex, non-transparent, and unpredictable, especially for private investors. Relying on this route as a means of legalizing one's stay in the country in 2025 is only feasible in limited cases and only after consulting a migration lawyer.


Legal Instability

One of the key risks when investing in real estate in Turkey is the instability and unpredictability of legal regulations. Legislation concerning foreign investors, rental rules, taxation, and residence permit procedures is subject to frequent changes. These changes are often implemented on short notice, without broad public discussion and without sufficient transition periods for property owners and investors to adapt.

In practice, this means that decisions made based on existing laws may quickly become obsolete. For example:

In 2022, a sharp increase in demand for housing from foreigners led to restrictions on real estate purchases in certain zones. By 2023, lists of "closed districts" were introduced, where obtaining a residence permit through property purchase became impossible — and this list continues to expand.

Law No. 7464, regulating short-term rentals, was adopted in 2023 and came into force in January 2024. Many investors who purchased property in 2022–2023 for rental purposes found themselves unable to use it as originally intended. In essence, this law has retroactive effect.

The minimum property value required for applying for a residence permit was revised and increased from USD 50,000 to USD 75,000 for major cities. These changes significantly affect the accessibility of programs for investors with a medium budget.

In 2024, Turkey's tax authority launched a campaign to revise cadastral values and strengthen oversight of rental income tax payments. In some cases, administrative penalties were applied retroactively — for periods before the new rules came into force (again, retroactive application of law).

Judicial practice and administrative interpretations are also unstable. Different immigration offices in Turkey may interpret the same regulations differently. This creates a situation where obtaining a residence permit may be possible in one city but not in another, even with an identical set of documents.

There is growing administrative pressure: housing inspections, revocation of previously issued residence permits, reviews of granted rental licenses, requirements for property revaluation, and tax recalculations.

Foreigners face restrictions on purchasing land and certain types of property, especially in coastal and protected areas. The list of restrictions may change without prior notice, creating the risk of legal invalidity of the transaction or inability to register property rights.

Thus, investing in real estate in Turkey involves high legal uncertainty. Potential investors must understand that even if all formal requirements are met at the time of purchase, the situation may later change, leading to additional costs, restrictions, or even inability to use the property as intended. Without ongoing legal support and readiness to adapt to new rules, long-term investments in Turkish housing are becoming increasingly risky.

Tax Burden and Hidden Costs

For a foreign investor, purchasing real estate in Turkey comes with a number of additional expenses and tax obligations beyond the apparent cost of the property, which can significantly affect the final return on investment. Moreover, some of these costs are not always evident at the time of the deal, and others arise during ownership.

Main tax obligations:

Real estate purchase tax (tapu harcı)
The buyer is required to pay 4% of the declared value of the property. In practice, this amount is calculated based on the cadastral value, which is often lower than the market value. However, in recent years Turkish authorities have been conducting campaigns to align cadastral values with market prices, gradually increasing the tax amount.

Annual property tax (emlak vergisi)
The amount depends on the property's location and type:

0.1% of the cadastral value for housing in regular areas

Up to 0.6% for properties in metropolitan and tourist zones
Additionally, municipalities can impose surcharges — in some areas, this raises the rate by another 25–30%.

Rental income tax (kira geliri vergisi)
If the property is rented out, the owner must file an annual tax return and pay income tax. Rates are progressive — from 15% to 35%, depending on the income. Individuals are allowed a non-taxable minimum (around 33,000 lira in 2025), but this is quickly exceeded even by modest rental income. Failure to submit a declaration may result in fines and back taxes with interest.

Capital gains tax on sale
If the owner sells the property within 5 years of purchase, capital gains tax must be paid. It is calculated as the difference between the selling price and the official purchase price stated in the TAPU. This encourages investors to understate the purchase price in documents, which carries legal risks and can lead to disputes during resale.

Hidden and additional expenses:

Translator services (mandatory during transaction) – from 1,000 to 3,000 lira

Notary services and land registry – 2,000 to 5,000 lira

Property valuation report (ekspertiz raporu) – 5,000 to 10,000 lira, depending on region

Mandatory earthquake insurance (DASK) – annual fee, based on area and type of property

Additional property insurance – voluntary, but strongly recommended

Real estate agency commission – usually 3% to 5% of property value

Monthly maintenance fees (aidat) – range from 300 to 3,000 lira or more, especially in complexes with pools, security, and infrastructure. Since 2024, some municipalities have introduced extra infrastructure and beautification fees.

It is important to note that in some cases, aidat must be paid regardless of actual occupancy or rental activity. Failure to pay may lead to legal action, penalties, and blockage of transactions involving the property.

Overall burden

In total, these taxes and fees can reach 8–10% of the property's value at the time of purchase and up to 2–3% annually during ownership. For investors relying on passive income, especially through rentals, these expenses significantly reduce real returns — sometimes falling below what a bank deposit in a stable jurisdiction would yield. Moreover, the ongoing tightening of fiscal controls and rising tax rates make long-term calculations highly uncertain.



Declining Investment Demand

Decreasing liquidity of properties
Supply on the market is increasing, while the number of active buyers is shrinking. This is particularly evident in the secondary market: many foreigners who bought properties in 2020–2022 are now trying to sell them due to difficulties with renting or obtaining residence permits, but are facing a lack of demand.

Longer time on market
In 2021, the average time to sell an apartment in Antalya was 2–3 months, but in 2024–2025 it is 6–9 months in some districts, and in certain cases exceeds a year. This leads to price reductions and intensified competition among sellers.

Correction in the secondary market
According to several analytical agencies, in the second half of 2024, a local price correction began in the secondary market. In dollar and euro terms, housing prices in Antalya and Alanya fell by 10–15% compared to the 2022 peak. Meanwhile, prices for new properties continue to rise, but mainly due to inflation rather than real purchasing activity.

Decreased interest from developers
Some developers are suspending new projects or shifting focus to the domestic market, where demand remains stable thanks to mortgage programs and subsidies. However, the foreign market is no longer seen as a guaranteed source of profit.

Real estate in Turkey, especially in coastal areas, is losing its investment appeal. Stricter regulations, legal instability, lira depreciation, and declining demand are making the market increasingly illiquid and unpredictable. A potential investor must consider not only the high risks of declining returns but also the difficulty of reselling a property amid abundant supply and falling interest.


Problems with Developers

Despite ongoing development and improvements in infrastructure, the real estate market in Turkey faces a number of issues related to the practices of local developers. These problems are particularly noticeable for foreign investors, who often struggle to understand local laws, customs, and market practices. Although Turkey has a rating system called “Turkish Developers” to help select more reliable and experienced players, the lack of oversight, financial instability of many construction companies, and frequent breaches of contractual obligations create significant risks for buyers.

Delays in Project Delivery
One of the most common problems is failure to meet construction deadlines. Developers, especially under conditions of economic instability, often face financing challenges, shortages of building materials and labor, or technical difficulties. This leads to significant delays that can range from several months to several years.

Often, buyers—especially those who purchase property during the construction phase—do not receive accurate information about actual completion dates. In many cases, developers do not compensate for delays, leaving investors with financial losses and no access to the property.

Construction Company Bankruptcies
In recent years, there has been a noticeable increase in bankruptcies among Turkish developers. This is due to financial difficulties, market instability, and economic crises that lead to project suspensions and underfunding. As a result, buyers lose their money, since construction companies often do not provide guarantees or financial safeguards that would protect clients’ interests.

Buyers, especially foreigners, frequently encounter situations in which the developer is unable to complete the construction, leaving property owners in a legal limbo. This makes it impossible to recover funds or finish the project without legal proceedings, further increasing costs and time.

Fraud and Deception by Developers
Some unscrupulous developers lure clients with attractive offers such as “low prices,” “quick move-in,” or “guaranteed high quality.” In reality, the properties often have defects, do not meet declared standards, or are not built at all. There have been cases where developers hide important technical or legal problems with the land under construction or with the project itself.

In some instances, buyers end up purchasing properties that are illegal (for example, built on land without proper construction permits). Such properties may be demolished or seized by authorities, resulting in the total loss of invested funds.

Legal Loopholes in Contracts
Real estate purchase contracts in Turkey are often drafted in Turkish, and most buyers—particularly foreigners—cannot fully understand the terms of the agreement. These contracts may contain legal loopholes or vague language that can be used by the developer to their advantage.

Frequently, contracts lack clear terms for compensation in case of delays and may include clauses allowing the developer to change the project or upgrades without the buyer’s consent. For instance, the contract may permit the developer to alter the layout or size of the units as needed. These changes can affect the property's value and its functional characteristics.

Lack of Quality Control and Non-Compliance with Standards
Construction projects do not always meet international quality standards. Even if a buyer pays attention to the quality of materials and workmanship, they may still encounter poor execution, low-grade materials, planning errors, or unforeseen technical issues during use.

In some cases, developers may use cheap materials or ignore building codes, resulting in defects that become apparent only after construction is complete.

Need for Legal Assistance
To minimize risks related to contracts and legal aspects of transactions, foreign buyers are advised to hire a lawyer well-versed in local law and developer practices. This is essential to avoid legal mistakes when signing the contract and to protect the buyer’s interests in case of disputes.

A lawyer can help interpret contracts written in Turkish and verify the legality of all property-related documents (e.g., TAPU and building permits). This reduces the chance of falling into legal traps and protects the buyer from fraud.

Problems with developers in Turkey can significantly reduce the investment appeal of the real estate market, especially for foreign investors. Delays, bankruptcies, contract loopholes, and fraudulent practices all create additional risks that can result in financial losses. Therefore, before purchasing real estate in Turkey, it is critical to thoroughly vet the developer, examine all legal documents, and engage experienced legal counsel to avoid negative consequences.


Geopolitical Instability

Turkey, situated at the crossroads of Europe and Asia, has traditionally played an important role in international politics. However, its geographical location and political situation create additional risks for real estate investors. Despite the Turkish market’s appeal to foreigners, geopolitical instability remains a key factor that affects property prices, liquidity, and overall investment security.

Proximity to Conflict Zones (Syria, Caucasus)
Turkey borders Syria, where a civil war is ongoing, as well as Iraq, where instability persists and armed clashes may occur in some regions. These conflicts create security risks, especially for people investing in real estate near these borders. Tensions along Turkey’s eastern and southern borders can also impact economic and social stability within the country, negatively affecting the property market.

In addition, Turkey is involved in conflicts with Kurdish groups, which increases risks for residents and investors in some regions, such as the southeastern provinces. These areas may be subject to terrorist attacks, mass protests, and military operations, reducing demand for real estate.

Rising Tensions with the EU and the US
In recent years, Turkey has faced political and economic pressure from the West, particularly the European Union and the United States. The country has been criticized for its domestic political leadership, human rights violations, and actions in Syria, Libya, and the Eastern Mediterranean. Sanctions, economic pressure, and diplomatic cooling may have long-term consequences for the Turkish economy, including the real estate sector.

Tensions with the EU and the US lead to economic instability, which affects purchasing power and the flow of foreign investments. If relations with Western countries deteriorate further, additional sanctions may be imposed, limiting financial flows and investments.

Internal Political Polarization
Turkey also faces internal political instability caused by growing polarization and tensions between different political groups. The divide between government supporters and the opposition often leads to mass protests, civil unrest, and political crises. This creates uncertainty that affects investor confidence in the real estate market.

Political instability may lead to unpredictable changes in economic policy, including reforms affecting taxes, property regulation, legal norms, and other key areas. This increases risks for long-term investments in Turkey, especially for foreign investors unfamiliar with the nuances of the political landscape.

Economic Impact of Geopolitical Instability
External and internal political instability often causes fluctuations in the Turkish economy, directly affecting the real estate market. Exchange rate volatility of the Turkish lira and high inflation related to geopolitical risks can severely undermine the purchasing power of both local and foreign investors. If the geopolitical situation worsens, sharp changes in property prices may occur, making it difficult to sell or rent out real estate.

Investors who overlook geopolitical risks may find themselves in a situation where the value of their assets drops significantly or the market becomes frozen due to foreign economic isolation.

Increased Risks for Foreign Investors
For foreign investors—who may not always be well-informed about local political and economic realities—Turkey can prove to be a more volatile market compared to other countries. Uncertainty in political and economic matters increases the likelihood of facing additional challenges, such as property rights issues, tax changes, and administrative barriers.

Moreover, in the event of geopolitical deterioration, there may be mass protests or unrest that affect properties in major cities or tourist areas.

Geopolitical instability in Turkey—caused by its proximity to conflict zones, rising tensions with the EU and the US, and internal political issues—represents a significant risk factor for property buyers. These risks can affect the real estate market by reducing liquidity, altering prices, and increasing uncertainty. Investors should carefully consider these factors before investing in Turkish real estate and thoroughly analyze the external economic and political situation.


Conclusion

Purchasing real estate in Turkey in 2025 can only be justified with thorough due diligence, a clear objective (such as long-term residence or acquiring citizenship), and a willingness to manage numerous associated risks. As a tool for passive investment—especially for short-term rentals—property in Turkey has become outright unattractive. Legislative changes, inflationary pressure, and administrative barriers have turned the market into a highly complex and unpredictable environment for foreign investors.