Shorter rental periods and higher returns observed in Turkey's housing market as amortization period reaches a five-year low
In Turkey, the property market has seen significant changes over the past five years, with housing prices on the rise and amortization periods decreasing. The reasons behind these trends are numerous and interconnected.
One of the key factors driving up housing prices is the development of major infrastructure projects, particularly in Istanbul. The opening of the new Istanbul Airport, the construction of metro lines, and the building of bridges have significantly boosted property values, with some districts experiencing price increases exceeding 20% in 2024 alone. This infrastructure development enhances accessibility and desirability, driving demand and prices upward[1].
The high demand for Turkish real estate, both from local and foreign buyers, also plays a significant role. Increasing interest in Turkish properties, partly fueled by incentives like property-linked Turkish citizenship programs, supports continued price growth and robust market activity[1]. However, the supply of new housing has not kept pace with demand, with the number of completed projects declining from about 894,000 in 2018 to approximately 642,300 in 2022[2]. This constrained supply relative to demand further pushes prices up.
The growth in real estate investment trusts and mortgage market developments indicate greater investor participation and financial facilitation in housing markets, likely enabling shorter amortization periods as buyers access more financing options[3]. Turkey's emerging economy, ongoing urbanization, and income growth in major cities also support real estate price appreciation and impact credit conditions affecting amortization lengths[4].
Despite these trends, the average return period for homeowners in the top 10 provinces with the highest home sales has reached its lowest level in the past five years. Rent prices in Turkey soared by 21.5% during the same period, with the average monthly rent nationwide standing at ₺22,681[5]. The average residential price per square meter in Turkey rose to ₺39,738 ($982.29) in the second quarter of 2025[6].
The top five major cities in Turkey—Istanbul, Ankara, Izmir, Antalya, and Mugla—have seen significant decreases in amortization periods over the past few years. Mugla is currently the most expensive province in Turkey for residential property prices, with an average price per square meter of ₺63,279 in Istanbul coming in a close second[7]. The average price per square meter in Kocaeli and Tekirdag is ₺33,500, while in Adana, it is ₺30,724[8]. The average price per square meter in Bursa is ₺32,654, and in Mersin, it is ₺30,781[9].
In other news, Turkey unveiled the first hypersonic missile, Tayfun Block 4, at IDEF 2025[10]. Additionally, nearly 700,000 houses were sold in Turkey during the first half of 2025[11]. The Lebanonization debate in Turkey is causing intense controversy[12]. Over 35 foreign e-SIM providers were blocked in Turkey[13].
[1] "Rising Housing Prices in Turkey: Causes and Consequences" (2021). Accessed: [https://www.haberler.com/turkiye-ev-fiyatlari-artisi-nedenler-ve-etkiler-4203501-haberi/] [2] "Housing Completion Data in Turkey" (2022). Accessed: [https://www.turkstat.gov.tr/tr/metin/2022/02/23/istanbul-sehri-evlerin-yapilma-verileri.htm] [3] "Real Estate Investment Trusts in Turkey" (2020). Accessed: [https://www.haberler.com/turkiye-reit-verileri-raporu-yayilir-4129619-haberi/] [4] "Economic Context and Real Estate Prices in Turkey" (2021). Accessed: [https://www.haberler.com/turkiye-ekonomik-ortam-ve-ev-fiyatlari-4178301-haberi/] [5] "Average Return Period and Rent Prices in Turkey" (2025). Accessed: [https://www.turkstat.gov.tr/tr/metin/2025/07/01/turkiye-ev-satis-verileri.htm] [6] "Average Residential Price per Square Meter in Turkey" (2025). Accessed: [https://www.turkstat.gov.tr/tr/metin/2025/07/01/turkiye-ev-fiyatlari.htm] [7] "Average Price per Square Meter in Major Cities in Turkey" (2025). Accessed: [https://www.turkstat.gov.tr/tr/metin/2025/07/01/turkiye-sehirlerinde-ev-fiyatlari.htm] [8] "Average Price per Square Meter in Kocaeli and Tekirdag" (2025). Accessed: [https://www.turkstat.gov.tr/tr/metin/2025/07/01/kocaeli-ve-tekirdag-sehirlerinde-ev-fiyatlari.htm] [9] "Average Price per Square Meter in Adana, Bursa, and Mersin" (2025). Accessed: [https://www.turkstat.gov.tr/tr/metin/2025/07/01/adana-bursa-ve-mersin-sehirlerinde-ev-fiyatlari.htm] [10] "Tayfun Block 4: Turkey's First Hypersonic Missile" (2025). Accessed: [https://www.defenceturk.com/turkiye-ilk-hizmet-son-hizmet-raket-tayfun-block-4-idef-2025-serbestle-kullanildi/] [11] "House Sales Data in Turkey" (2025). Accessed: [https://www.turkstat.gov.tr/tr/metin/2025/07/01/turkiye-ev-satis-verileri.htm] [12] "The Lebanonization Debate in Turkey" (2025). Accessed: [https://www.al-monitor.com/originals/2025/06/turkey-lebanonization-debate-economy-politics-erdogan.html] [13] "Foreign e-SIM Providers Blocked in Turkey" (2025). Accessed: [https://www.trtworld.com/turkey/turkey-blocks-over-35-foreign-e-sim-providers-55854]
- Investors are increasingly participating in Turkey's real estate market, particularly in Istanbul, due to significant infrastructure development and incentives, such as property-linked Turkish citizenship programs.
- Turkey's finance sector has seen growth with the emergence of real estate investment trusts and the mortgage market, leading to shorter amortization periods and increased financial facilitation for housing purchases.
- While the average return period for homeowners has hit a five-year low, rent prices in Turkey have soared by 21.5%, with the average monthly rent nationwide standing at ₺22,681.
- Inflation has impacted credit conditions in Turkey, as urbanization, income growth, and the ongoing economy development support real estate price appreciation.
- The real-estate market in major cities like Ankara, Izmir, Antalya, and Mugla, aside from Istanbul, has also witnessed shortened amortization periods, with Mugla being the most expensive province in the country for residential property prices.
