Ankara Overtakes Istanbul as Turkey’s Fastest-Growing Housing Market

Risks and macro context you should weigh

The numbers are striking, but they come with caveats. As we review the report and the wider macro picture, these are the main risks to consider:

• Inflation and purchasing power: Although housing rose 29% nationally, consumer prices outpaced property price growth in the same period. That affects real returns when measured against inflation.
• Interest rate and monetary policy risk: Changes in Central Bank policy, lending conditions and mortgage availability will influence demand. Tighter credit can cool short-term price growth.
• Seismic risk and regulatory change: Policy responses to the 2023 earthquakes could alter redevelopment incentives, ownership costs or building standards, influencing supply and costs.
• Currency and repatriation risk for foreign investors: Turkey’s exchange-rate movements can significantly change foreign-currency denominated returns.

We advise investors to run stress tests on expected returns under scenarios of rising interest rates, slower GDP growth and potential new regulations.

Where to look now: neighbourhood types and investment strategies

Not every part of Ankara, Istanbul or Mugla behaves the same. Here’s how we would segment choices for different investor profiles.

• Buy-to-let, long-term tenants: Choose central neighbourhoods near transport hubs, universities or major employers. Stability of tenancy is key.
• Short-term holiday rentals: Target Mugla (Bodrum, Fethiye), Antalya and selected coastal strips in Çanakkale; accept seasonal income swings and higher management costs.
• Value play or redevelopment: Consider older stock in transitional parts of Ankara or Izmir where urban renewal could lift prices, but do thorough due diligence on permits and earthquake resilience.
• Diversification: If you hold multiple properties, mix coastal holiday units with inland long-term rental assets to smooth seasonality and demand cycles.

Due diligence checklist for buying in Turkey

When we advise clients, we always start with a checklist. For anyone serious about a purchase, make sure you have:

• Clear title deed (tapu) and up-to-date land registry searches
• Building completion certificates and seismic compliance documents
• Verified identity and legal representation if you are overseas
• Local tax advice on transfer taxes, annual property taxes and potential double-taxation
• A contractor or property manager with verifiable references if buying off-plan or for short-term rentals
• Currency transfer strategy and understanding of repatriation rules

How market watchers and policymakers should read the numbers

The Central Bank’s report is both a market snapshot and a policy signal. Migration-driven growth reveals where households choose to live when they reassess risk and amenities. For policymakers, the rise in Ankara suggests demand pressures on public services and the need for accelerated housing supply and infrastructure.

For market watchers, keep an eye on three indicators:

• Regional building permits and housing completions data
• Changes in mortgage lending volumes and rates
• Internal migration statistics and municipal planning decisions

Frequently Asked Questions

Why did Ankara grow faster than Istanbul in 2025?

Ankara’s 35% annual growth is largely explained by internal migration after the 2023 earthquakes, which made the capital a preferred safer option for many households. That shifted demand faster than supply could adjust.

Is Istanbul still the best place to invest in Turkish property?

Istanbul is still the most expensive market at $1704/m2 and remains important for international buyers and high-income renters. Its scale provides liquidity advantages, but entry costs are higher and recent growth, 28.5%, was lower than Ankara’s.

Which regions topped price growth and highest prices?

Mugla (including Bodrum and Fethiye) recorded the highest regional price at $1763/m2 and led growth among regions. Other top regions include Antalya, Çanakkale and Aydın.

Should foreign buyers worry about inflation and currency risk?

Yes. Although housing prices rose 29% nationally, consumer inflation was higher. Exchange-rate swings affect the real value of returns for foreign-currency investors, so hedging strategies and local tax advice are recommended.

Final assessment: where that leaves buyers

The Central Bank report shows a rebalancing of demand within Turkey. Ankara’s role has strengthened because it is perceived as safer and because internal migration created a tangible supply–demand mismatch. Coastal and historic centres remain the priciest in absolute terms, led by Mugla and Istanbul.

For buyers and investors, the concrete choices now are about trade-offs: pay a premium in Istanbul for liquidity and international appeal, accept seasonal variability in coastal holiday markets, or enter Ankara for lower per-square-metre prices and faster recent capital gains. Check structural safety, verify all legal documents, and model returns in real terms rather than nominal terms given high inflation.

A practical takeaway: Ankara’s current average price of $948 per square metre is roughly half Istanbul’s $1704—that gap is the clearest signal from the report and a real decision point for anyone considering property in Turkey.