Has Turkey's Real Estate Crisis Ended? Strong Indicators of a Market Comeback in 2025

Amid rapidly evolving global economic shifts, one key question persists in Turkey’s real estate sector:
Has Turkey reached the end of its real estate struggles—or are new opportunities emerging on the horizon?

A Volatile Global Landscape Reflecting on Turkey

As wars and global conflicts escalate, and as major economies adopt contrasting policies to tackle inflation and interest rates—some raising rates above 50% to curb inflation, others slashing them to encourage growth—Turkey, like other emerging markets, is deeply affected.

So the question is:
Is the Turkish economy finally showing signs of recovery?

Interest Rates & Inflation: Is the Spiral Ending?

Over the past two years, Turkey has faced significant economic challenges, including inflation levels approaching 70%, pushing the Central Bank to raise interest rates up to 50% in an attempt to stabilize prices.

However, there are now clear signs of stabilization:

• Prices of essential goods and services have remained largely unchanged for over seven months.
• The interest rate has held steady at 50% for several months, with no further increases.

These indicators suggest that Turkey may be emerging from the high-interest spiral—a key turning point for reviving the investment climate, particularly in real estate.

Is Turkish Real Estate Still a Smart Investment?

Despite economic headwinds, Turkey’s real estate market has shown remarkable resilience. In fact, signs of a domestic revival are already visible:

• A large number of Turkish citizens who had parked their money in banks to benefit from high interest rates are now reinvesting their returns into real estate.
• This shift has boosted local demand, gradually pushing property prices upward in recent months.
• Official statistics confirm a rise in real estate transactions—especially among Turkish buyers—even as foreign purchases have declined temporarily.

Additionally, real estate remains a safer hedge compared to other tools like gold, which is volatile and heavily taxed in Turkey.

🇹🇷 A “New Turkey” with a New Economic Mindset

Recent political and economic developments, especially renewed ties with the U.S., highlight Turkey’s intent to rebuild both its domestic and international positioning.

• Improved foreign relations—particularly if Donald Trump returns to office—could strengthen the Turkish lira and enhance the business environment.
• The government’s current policies clearly indicate a move away from prolonged high interest rates toward real economic productivity and investment incentives.

Have Real Estate Prices Hit the "Bottom"?

According to market analysts, we are likely very close to the pricing bottom in many Turkish regions. This means:

• Property prices may not drop further.
• A balanced price increase is expected in 2025 and 2026, driven by supply and demand—not a speculative bubble.
• Major cities like Istanbul, Ankara, and Izmir are regaining momentum, especially in mid-range developments less prone to speculation.

Bottom Line: Should You Invest Now or Wait?

The short answer: If you know where to buy, now is the right time.

• Prices are more balanced than ever.
• Bank interest rates are no longer as attractive, especially with the lira showing signs of relative stability.
• Real estate remains the best long-term investment, particularly with interest rates expected to decline and macroeconomic indicators improving.

Turkey hasn’t exited the global real estate investment map—
It’s simply preparing for a comeback, this time on a foundation of greater economic maturity and stability.