Turkish Investors Shift $2.42bn Overseas as Turkey Real Estate Prices Soar

Turkey real estate: why local buyers are choosing homes abroad

Turkey real estate has become a seller’s market. In the first eleven months of 2025 rising prices at home and weak rental returns pushed many Turkish buyers to buy property overseas. The result is a reversal in flows: Turkish investors spent $2.42 billion on foreign real estate between January and November 2025, while foreign purchasers bought $2.06 billion of property in Türkiye over the same period, according to research by EVA Real Estate Valuation. In the trailing 12 months, net foreign purchases in Türkiye were $2.308 billion and Turkish acquisitions abroad hit a historic $2.657 billion.

Those figures are not small distortions; they show a structural shift. We asked what is driving the change, where capital is going, and what it means for buyers, sellers and agents in both Turkey and popular destination markets.

What is driving the outbound surge? Four practical reasons

EVA Real Estate Valuation’s general manager, Cansel Turgut Yazıcı, points to several factors that explain why Turkish investors are increasingly looking overseas. From my reporting and contacts in the field, these factors play out differently depending on the buyer profile — speculators, long-term savers, families moving abroad.

Key drivers include:

• Visa and residency advantages — buyers target countries where a property purchase can simplify residency or give a route to citizenship, particularly for families planning education or long-term relocation.
• Foreign-currency asset appeal — investors want assets priced and rented in euros, pounds or dirhams to protect savings from lira volatility.
• Rental income and yield differentials — despite rapid domestic price growth, rental yields in Türkiye have not followed. Rent controls and limits on rent increases have further suppressed the case for buy-to-let at home.
• Relative affordability and diversification — rising price-to-rent and price-to-income ratios in city markets push investors to seek better value or different risk exposure abroad.

These are not abstract. Yazıcı told EVA’s researchers that family-driven purchases for education and long-term relocation represent a significant share of outbound investment, which changes the mix of buyers and the holding strategies they adopt.

Destinations Turkish buyers are favouring

EVA’s analysis highlights a clear list of preferred markets. The most commonly cited destinations are:

• Montenegro
• Portugal
• Greece
• United Kingdom
• Spain
• Dubai (United Arab Emirates)

Each market attracts different motivations:

• Montenegro and Portugal: residency and comparatively affordable coastal inventory.
• Greece and Spain: geographic and cultural proximity, established tourist-rental markets.
• United Kingdom: education and long-term residency for families.
• Dubai: investment-grade new-builds, strong short-term rental demand, and assets priced in dollars or dirhams.

From an investor’s standpoint, the choice of country depends on whether the buyer prioritises yield, capital protection in a hard currency, residency rights, or education access. We see growing numbers of mixed-motive buyers who want both a place for their children to study and an asset that earns foreign-currency rent.

How outbound flows reshape local supply and demand

There are three consequences worth tracking for anyone involved in Turkey property markets:

• Price pressure: rapid domestic price growth discourages many foreign buyers, which in turn cools a key source of demand in some coastal and Istanbul neighborhoods. The $2.06 billion of foreign purchases Jan–Nov 2025 is meaningful, but it is smaller than outbound flows.
• Rental market squeeze: rent caps and restrictions on annual rent increases have constrained landlords’ ability to keep pace with inflation and interest rates; this pushes investors to markets with freer rent-setting and better gross yields.
• Capital outflow: the historic $2.657 billion outbound over the last year signals a widening of capital that would otherwise have remained in local construction, refurbishment and rental sectors.

In short, domestic developers and letting agents face a changed buyer profile: fewer foreign buyers in some segments, more local buyers who plan to hold assets for different reasons, and increasing competition from buyers who can and will invest abroad.

What it means for foreign buyers of Turkey real estate

If you are a non-Turkish buyer considering property in Türkiye, this moment carries both opportunity and complexity.

Opportunities:

• Less competition in certain neighborhoods may create negotiation room, especially outside the ultra-prime coastal pockets.
• Developers may offer incentives or price adjustments to attract foreign demand if inbound sales slow further.

Risks and realities:

• Domestic price appreciation has been rapid; short-term upside may be limited if currency and macro policy remain unsettled.
• Rental regulation: rent-setting rules have constrained yields, reducing the attractiveness of buy-to-let strategies unless you target segments where short-term holiday lets remain legal and profitable.

Practical advice for foreign buyers:

• Run gross and net yield calculations in both lira and in your home currency. Price swings in the lira can wipe out nominal gains.
• Factor in transaction costs, taxes and the time needed to repatriate rental income if necessary.
• Work with local lawyers to confirm title, building permits and any vacancy or rental limitations.

From our reporting, the markets that will remain attractive to foreign buyers are those where currency exposure, rental flexibility and legal clarity align.

What Turkish investors should consider when buying overseas

Turkish buyers are increasingly sophisticated, and their motives go beyond short-term profit. Many are buying with a view to schooling, residency or currency protection. If you are a Turkish investor considering an overseas property purchase, keep these points in mind:

• Define your main objective: residency, rental income, capital gains, or a family home.