Istanbul is experiencing significant growth in its real estate market, making it one of the most active property markets in Turkey and Europe. Given the local and international economic and political changes, many wonder about the future of real estate prices in this vibrant city throughout 2025.

Economic Situation in Turkey for 2024

• Reports from the International Monetary Fund indicate that the Turkish economy experienced a growth rate of 4% in 2024, with forecasts suggesting this trend will continue in the coming years. This growth is attributed to improvements in investments, particularly in infrastructure.
• A report from the Turkish Statistical Institute (TUIK) indicated that real estate prices in Istanbul rose by 10% in 2024 compared to 2023. The areas that experienced the highest increases include:

• Basaksehir: 12% increase in prices.
• Kadikoy: 9% increase.

• Data from the Ministry of Environment and Urban Planning reveals that foreign investors purchased nearly 60,000 properties in Turkey during 2024, with a significant proportion of these purchases occurring in Istanbul. The top nationalities purchasing properties were:

• Iraq: 25%.
• Saudi Arabia: 20%.
• Iran: 15%.

Factors Influencing Real Estate Prices in Istanbul

1. Turkish Economy:

The overall economic performance of Turkey is a key factor influencing real estate prices. Economic growth, unemployment levels, and inflation rates can all have a direct impact on the real estate market. According to reports from the World Bank and the International Monetary Fund, Turkey's GDP grew between 3.5% and 4.5% during 2023 and 2024. Analysts expect this growth to continue in 2025 due to ongoing economic reforms and structural adjustment policies. These figures positively impact citizens' purchasing power and increase foreign investment.

1. Domestic and International Demand:

Istanbul attracts both local and international investors, whether for residency or secure investment opportunities. With rising demand, prices are likely to increase significantly. A report from the Turkish Investors Association (GYODER) stated that foreigners accounted for approximately 7% of property purchases in Istanbul in 2023. This percentage is expected to rise, given the continuous demand from Gulf countries and others. The report also highlighted that areas like Basaksehir and Kadikoy saw property prices increase by as much as 15% in recent years.

1. Urban Development:

Istanbul is witnessing numerous large-scale development projects, such as infrastructure and transportation improvements. Such enhancements can increase the value of different areas, thereby boosting property prices.

1. Government Policies:

The Turkish government is implementing policies to support real estate investment, such as tax reductions and financial incentives for foreign buyers. Such measures can enhance the attractiveness of property investments. Various initiatives have been launched to support the real estate market, including residency programs for foreign investors. Statistics from the Turkish Ministry of Interior indicate that the program attracted nearly 3.000 foreign investors in the first half of 2024, further boosting demand and leading to price increases.

Future Predictions:

Prices in Istanbul are expected to continue rising in 2025, influenced by the aforementioned factors. Growth is anticipated to be between 5% to 10%, depending on the economic and political conditions in the country and the level of domestic and international demand.

Conclusion:

Given the influencing factors, Istanbul is set to remain an attractive destination for real estate investors in 2025. However, investors should continuously monitor economic and political developments to identify the best times for investment and to achieve optimal returns.