Foreign Buyers Spend $590m on Turkish Property as Turks Pull Back Abroad

Why $590 million and a slide in outbound purchases matter for the real estate Turkey market

Foreign demand for real estate Turkey has surged while Turkish buyers are stepping back from overseas markets. The Turkish Central Bank (TCMB) reports that non-residents spent $590 million on Turkish property during March–May, a year-on-year rise of about 28.3%. Over the same months Turkish nationals’ purchases of foreign property fell 26% to $517 million, after a record $2.6 billion of overseas purchases earlier in 2025.

Those two trends are linked. They change where capital flows, alter developer strategies, and shift risk profiles for investors at home and abroad. In our analysis below we explain who is buying in Türkiye, why Turkish buyers reduced activity overseas, and what both groups should weigh before acting.

What the numbers show: an exact look at TCMB’s latest figures

The central bank’s balance of payments data gives a clear monthly picture:

• Foreign purchases in Türkiye (Mar–May): $590 million, up ~28.3% year-on-year.
  • March: $242 million (up 62.4% year-on-year)
  • April: $164 million (up 17.1%)
  • May: $184 million (up 7.6%)
• Turkish nationals’ purchases abroad (Mar–May): $517 million, down 26% year-on-year.
  • January 2025: $208 million (+44.4% year-on-year)
  • February 2025: $225 million (+18.4%)
  • March 2025: $187 million (-18% year-on-year)
  • April 2025: $187 million (-19.4%)
  • May 2025: $143 million (-40%) — the lowest monthly level in 29 months

You can see the pivot: activity was strong at the start of 2025 then reversed after the conflict in the Gulf escalated at the end of February.

Who is buying Turkish property and why

Several buyer groups are visible in the transaction data and statements from market participants.

• Russian buyers increased their activity. Representatives from Istanbul real estate associations say simplified bureaucracy and faster processing made purchases easier for Russians.
• Gulf investors remain active, though the conflict in the Middle East and security incidents in Dubai reduced some cross-border confidence.
• Buyers from Azerbaijan and Kazakhstan have shown increased interest.

Why are these buyers attracted? From our conversations with industry experts, several consistent motives appear:

• Price competitiveness in foreign-currency terms. With Turkish housing asking prices lower when measured in dollars or euros compared with many regional alternatives, foreign buyers can find immediate value.
• Supply of completed stock at discount-like prices. Developers with unsold inventory are offering ready-to-move-in units at more aggressive pricing, which appeals to investors seeking rental income or capital appreciation.
• Perception of political and economic stability. Officials and analysts say that recent diplomatic engagement and domestic economic policy adjustments have improved confidence among some foreign investors.

Those factors make Turkish real estate attractive for both buy-to-let investors and owners seeking second homes. But the market is not without caveats, which we address below.

Why Turkish buyers cut back on purchases abroad

The drop in outbound purchases by Turkish nationals is notable because Turkish investors have been among the most active buyers in markets such as Dubai and Greece.

Key reasons for the downturn:

• War and security concerns in the Gulf. Attacks and heightened risk perception in Dubai effectively paused many transactions in March and beyond. When a market is perceived as unstable, buyers delay decisions involving large capital outlays.
• Strained relations with Greece. Political tensions, including Athens’ positions toward Ankara and cooperative moves with other regional actors, reduced appetite for property purchases there among Turkish investors.
• A shift back to domestic opportunities. Turkish economic policy measures designed to strengthen financial stability have nudged some investors to favour local purchases rather than overseas bets.

Burak Ustaoglu, a global real estate expert, told Anadolu that the war “led to a temporary hesitation” among investors across overseas markets, and that many Turkish buyers postponed their plans rather than abandoning them permanently. That is a critical nuance: demand is latent, not dead.

Market implications for developers, agents and local investors

This reallocation of demand affects pricing, inventory strategies, and marketing approaches.

• Developers with completed projects have less pressure to discount if foreign demand remains steady; however, where supply is ample, prices can soften and negotiation room grows.
• Real estate agents and promoters are retooling to court foreign buyers: streamlined residency or citizenship-through-investment paperwork is a selling point, especially for nationals from Russia, the Gulf and nearby Turkic states.
• For domestic investors who had been considering diversification abroad, the short-term pause offers an opportunity to reassess portfolio risk and currency exposure.

From a practical standpoint, buyers should expect:

• More listings of immediately available units with flexible pricing.
• Sales campaigns targeted at foreign currencies, meaning price tags in dollars or euros alongside lira amounts.
• Increased focus on legal clarity for foreign ownership and title due diligence.

Risks and red flags buyers and investors must consider

We avoid hype. There are clear upsides but also notable risks.

• Currency risk. The Turkish lira is volatile. A property priced in lira can be attractive today when converted to dollars, but further lira movement will change returns for foreign-currency holders.
• Geopolitical exposure. Regional conflicts and tensions with neighbouring countries are real forces that can change investor perception quickly and affect tourism-driven rental markets.
• Policy risk. Changes in rules governing foreign ownership, residency permits linked to property purchase, or tax treatment can alter investment economics.
• Liquidity and market cycles.