Foreign Home Sales in Türkiye Hit Nine-Year Low

Rising prices reshape demand in the property market

Türkiye’s housing market reached record price levels in 2025, yet foreign demand continued to weaken. Official data show that home purchases by non-residents fell to their lowest point in nine years, highlighting a growing disconnect between soaring domestic prices and international investor appetite. The trend signals a structural shift in how foreign buyers assess the Turkish property market.

TÜİK data confirm sharp decline

According to figures released by the Turkish Statistical Institute, foreigners bought 21,534 homes in 2025, representing a 9.4 percent decrease compared with 2024. This stands in stark contrast to 2022, when foreign purchases peaked at 67,490 units following the long-term impact of the Reciprocity Law. Over the past three years, the market has undergone a pronounced contraction.

Price inflation erodes investment appeal

Market analysts point to rapidly rising property prices as the primary driver of the downturn. High inflation, currency volatility and strong domestic demand have pushed housing values in major Turkish cities to levels closer to those seen in parts of Europe, while expected rental yields have narrowed. As a result, Türkiye has lost part of its appeal as a comparatively affordable investment destination.

Citizenship debate adds regulatory uncertainty

Uncertainty surrounding the citizenship-by-investment framework has further dampened foreign interest. Ongoing policy discussions include proposals to replace citizenship incentives with residence permits, altering the fundamental value proposition for international buyers. For many investors, the prospect of acquiring citizenship was a decisive factor, and the lack of clarity has encouraged a wait-and-see approach.

Buyer nationalities reflect geopolitical ties

Despite the overall decline, the composition of foreign buyers remains broadly consistent. Russian nationals led purchases in 2025, followed by buyers from Iran, Ukraine, Germany and Iraq. These patterns reflect a combination of geopolitical developments and established economic and social links with Türkiye, even as transaction volumes have retreated from earlier highs.

Istanbul and coastal markets still dominate

Istanbul retained its position as the leading destination for foreign home purchases, followed by Antalya and the southern province of Mersin. These markets continue to offer liquidity and infrastructure advantages, yet even they are feeling the impact of rising prices and regulatory uncertainty. Foreign demand is increasingly concentrated among long-term residents rather than short-term investors.

Market transitions toward a new equilibrium

The data suggest that Türkiye’s property market is moving beyond a phase driven by large-scale foreign inflows. Domestic buyers now play a more dominant role, while foreign participation becomes more selective. A potential shift from citizenship to residence-based incentives could redefine the profile of international investors and reduce speculative activity.

Conclusion

As experts at International Investment report, the fall in foreign home sales amid record prices indicates a structural rebalancing of Türkiye’s real estate market. Future foreign demand will likely depend on price stabilization and clearer migration and investment policies rather than on citizenship incentives alone.