This report is part of PERSPECTIVES, a comprehensive look into the world of prime residential real estate. Access the full report here to discover the latest trends and dynamics shaping the market.
For some, a trip to Turkey means exploring the rich bazaars in Istanbul, floating in a hot air balloon above Cappadocia and touring beautiful mosques. For others, it alters their life course, transforming them from tourists to permanent residents.
“We tend to get a lot of sales through people who just come on holiday and fall in love with the place,” says Stephen Garvey, partner for Alanya-based Best Invest. “You have glorious sunshine, excellent beaches all along the coastlines and all of the history of the world here.”
After a fairly stagnant 2023, the luxury real estate market in Turkey is on track for a better year. With 70 million tourists expected in Turkey in 2024 and a slowing inflation rate, the market may start to see some relief by June. Coastal regions are poised to see the greatest real estate momentum.
Bodrum, a historic harbor city with turquoise water, designer shopping and luxury villas, has become a hotspot for the rich and famous. In the last decade, the value of real estate transactions in the glitzy city rose from $892 million in 2010 to more than $2.1 billion in 2020.
The Mediterranean coastline resorts of Antalya, from Kas to Alanya, also have seen unprecedented growth, with more than 10,730 properties sold to foreign buyers in 2023.
Luxurious Beachfront Mansion in Beykoz, Istanbul. Presented by Best Invest – Turkey
Istanbul, “the gateway between the East and the West,” also remains competitive. Prices in Turkey’s largest city—both for land and the cost of living—are among the highest in the country.
Most foreign buyers in Turkey come from the Middle East and Eastern Europe. Following closely are buyers from Germany, the United Kingdom, Poland and the United States
Besides the coastal allure, Turkey appeals to foreign buyers because of its exceptional luxury housing.
Culturally, Turkish homes primarily served as places where multiple generations would gather to eat and sleep, Garvey explains. There has been a noticeable shift, however, with more appreciation for contemporary design. This includes incorporating abundant sunlight, accessibility features and expansive open floor plans.
“Twenty years ago, a single villa with a beautiful view would have little narrow windows or smaller-scale windows,” Garvey says. “Now you’re looking at big glass frontages that absorb the whole environment and roller doors that open up the whole space to the outside.” There’s also superior carpentry, handmade tiles and painstaking attention to detail.
Enchanting Villa in Bodrum, Turkey. Presented by Best Invest – Turkey
Legislation and regulatory changes have also come into force. In 2023, the required minimum real estate investment for a Turkish residence permit was increased from US $75,000 to US $200,000, and regions that exceeded the foreigner’s quota are not permitted. The tightening of restrictions, coupled with radical changes in monetary policy, contributed to a slowdown in the market in 2023.
In December 2023, inflation jumped to 64.8%, its highest level since 2022. The soaring inflation came after the Turkish government drastically cut interest rates following destructive earthquakes.
“The devastating impact of the earthquake in February 2023 cannot be forgotten, our hearts and prayers are with those who suffered loss of life and livelihood. However, the Turkish are a resilient nation,” Garvey says.
The outlook is improving, however. The Turkish Central Bank forecasts inflation will drop to 36% by the end of 2024. And with tourism expected to reach record highs in summer, it could bring a wave of affluent buyers.
“There is an awful lot to offer,” Garvey says. “I’ve never had a difficult day in Turkey.”
