Published on and written by Cyril Jarnias
In Turkey, housing has become both a social issue and a playground for investors. Prices are rising in local currency, inflation is eating away at purchasing power, interest rates remain high, and major cities are each following their own trajectory. Behind the title “Comparison of Real Estate Prices Between Cities in Turkey” lies in reality a multi-speed map, where Istanbul, Ankara, Izmir, Antalya, Bursa, Mersin, and Muğla occupy very different positions.
Average price per square meter of residential property in Turkey in the second quarter of 2025, according to the Central Bank.
A National Market Overheating Nominally but Declining in Real Terms
Despite the diversity of local situations, several common trends shape the overall picture. Turkey is still experiencing strong sales momentum: 834,751 homes were sold between January and July 2025, an increase of over 24% year-on-year. Existing homes dominate overwhelmingly, accounting for 70% of transactions, which is largely explained by the high cost of new construction and rising material prices.
In July 2025, real estate prices in Turkey increased by 32.82% in Turkish lira year-on-year. However, with inflation hovering around 33%, this nominal increase actually translates to a slight decline of 0.52% in real terms, once adjusted for inflation. Thus, a property whose value rises 30% in local currency does not represent a real gain in purchasing power for its owner.
Mortgage loans remain a major obstacle. Average rates on new housing loans are around 40% in summer 2025, despite a cut in the CBRT policy rate from 46% to 43%. As a result, the share of purchases financed by mortgages collapsed to 10.7% of sales in 2024 – its lowest level in ten years – before rebounding to 14.5% over the first seven months of 2025 thanks to a resurgence in lending. Cash sales weigh heavily, which benefits wealthy households and investors with liquidity, including foreigners.
Actual rents in Turkey surged 74.3% year-on-year in August 2025.
Numerical Overview: Who Pays What Per Square Meter?
To understand the price hierarchy, just look at the figures from the second quarter of 2025. They show an impressive gap between the major metropolises, the tourist coastal cities, and the more affordable industrial cities.
Table 1 – Average Prices per m² in Major Turkish Cities (Q2 2025)
| City | Average Price (TRY/m²) | Average Price (USD/m²) | Annual Nominal Increase |
|---|---|---|---|
| Muğla | 79,077 | 2,042 | +9.72% |
| Istanbul | 63,125 | 1,630 | +28.83% |
| Antalya | 46,395 | 1,198 | +22.88% |
| Izmir | 43,970 | 1,135 | +19.50% |
| Ankara | 35,690 | 922 | +33.58% |
| Bursa | 32,669 | 844 | +25.24% |
| Mersin | 30,783 | 795 | +18.28% |
| Turkey Average | 39,697 | 1,025 | +22.40% |
This table immediately highlights several points:
The Turkish real estate market exhibits marked regional disparities. Muğla, with its prestigious seaside resorts (Bodrum, Fethiye), limited land supply, and affluent clientele, dominates the price ranking. Istanbul remains the most expensive metropolis among the traditional large cities. Antalya and Izmir, driven by tourism and coastal lifestyle, follow closely. Ankara, the capital, is more affordable in price but shows rapid annual growth. Finally, Bursa and Mersin position themselves as markets with good value for money, below the national average.
Istanbul: The Most Expensive City, but Not the Most Dynamic in Real Terms
It is impossible to discuss a comparison of real estate prices between cities in Turkey without focusing on Istanbul. The mega-city accounts for 17% of national sales between January and July 2025, with 139,635 transactions over this period. In value, it also dominates the market: 63,125 TRY/m² on average in the second quarter of 2025, well above the Turkish average.
Istanbul’s Residential Property Price Index (RPPI) shows an annual increase of 33.54% in July 2025. However, adjusted for inflation, this growth translates into near stagnation in real terms. Buyers thus pay more in Turkish lira, but the real value of their properties hardly increases relative to the cost of living.
Another characteristic of Istanbul is the weight of prime neighborhoods and luxury projects, which pull averages upward. In some areas, particularly along the Bosphorus waterfront, prices far exceed the national average.
Table 2 – Price and Rent Benchmarks in Istanbul
| Indicator | Approximate Value |
|---|---|
| Average Price Q2 2025 | 63,125 TRY/m² ($1,630/m²) |
| Common Range (central) | $1,300–$1,800/m² |
| High-end Waterfront | > $4,000/m² |
| Average Listed Rent (July 2025) | 325 TRY/m² ($8.1/m²) |
| Nominal Rent Growth | +39.3% / year |
| Average Gross Rental Yield | approx. 8.15% |
This combination of high prices and very tight rents explains attractive yields for some investors, particularly in emerging peripheral neighborhoods or areas undergoing urban renewal like Kağıthane or Başakşehir. But it poses a critical affordability problem for local households, who must choose between nearly unaffordable credit and exploding rents.
Ankara: A Capital Still Affordable but Catching Up Quickly
At first glance, Ankara appears more accessible than Istanbul, with an average price of 35,690 TRY/m² ($922/m²) in the second quarter of 2025. But the dynamics are particularly vigorous. Its RPPI index shows the highest increase among the three major cities, with +42.91% year-on-year in July 2025, implying an estimated positive real growth of 7.03%.
Sales figures confirm this trend: 75,935 homes changed hands between January and July 2025, up nearly 29%. The number of transactions to foreigners remains marginal (384 sales, or 0.5% of the total), but is growing.
Annual increase in average rent in Ankara in July 2025
Table 3 – Ankara vs. National Average
| Indicator | Ankara | National Average (approx.) |
|---|---|---|
| Average Price Q2 2025 | 35,690 TRY/m² ($922/m²) | 39,697 TRY/m² ($1,025/m²) |
| Price Increase (Q2 2025, nominal) | +33.58% | +22.40% |
| RPPI Increase (July 2025) | +42.91% (≈ +7% real) | +32.82% (≈ -0.5% real) |
| Average Rent (July 2025) | 242.1 TRY/m² ($6/m²) | 238.8 TRY/m² ($5.9/m²) |
| Estimated Gross Rental Yield | ≈ 8.67% | ≈ 7.76% |
For an investor, Ankara thus combines a lower entry price than Istanbul, strong nominal growth, and a superior rental yield. For a local household, the capital remains more “affordable” even though the recent rise imposes increasing financial constraints, especially as long as mortgage rates remain at these levels.
Izmir: A Dynamic Coastal City but Subject to Erosion from Inflation
Izmir occupies an intermediate zone: more expensive than Ankara, less expensive than Istanbul on average, with strong residential and tourist appeal. In the second quarter of 2025, the average price per m² was 43,970 TRY ($1,135/m²), above the national average.
Izmir’s RPPI index rose by 30.99% year-on-year in July 2025, which, given inflation, translates into a real decline of about 1.9%. In other words, the “true” value of real estate assets there stagnates, even slightly declines, despite solid demand.
This is the number of real estate transactions carried out between January and July 2025, representing an increase of 35.1% year-on-year.
On the rent side, Izmir shows an average listed rent of 279.1 TRY/m² ($6.9/m²) in July 2025, with an annual increase of 32.6%. In real terms, this amounts to a slight decline of 0.7%, a sign that rents closely follow the inflation curve without exceeding it.
For a buyer, Izmir thus represents an interesting compromise: prices higher than Ankara but still far from Istanbul’s peaks, coastal living environment, dynamic rental market, particularly in student and tourist neighborhoods. For an investor, gross yields are around 7%, with peaks in certain segments.
Antalya: A Tourist Market Where Prices Exceed Ankara and Izmir
Antalya embodies the model of the Mediterranean tourist metropolis. Its average price per m² reached 46,395 TRY ($1,198/m²) in the second quarter of 2025, above Izmir and Ankara, but still below Istanbul. Over one year, the nominal increase reached 22.88%.
Sales figures, however, show more moderate growth than in other major cities: 44,813 homes sold between January and July 2025, up +18.86%. On the other hand, the share of foreign buyers is very high: 3,804 sales to non-residents over this period, representing 8.5% of local transactions. This is much higher than in Istanbul (3%) or Mersin (3.1%), and incomparable with Ankara, Izmir, or Bursa.
Over ten years, real estate values in Antalya have increased by more than 140%.
However, gross rental yields are paradoxically lower than in other cities: about 6.28% on average, the lowest among the major markets studied. The explanation lies in the high purchase prices, while rents, even supported by tourism and demand for second homes, are not always sufficient to compensate over the year, especially off-season.
Nevertheless, in tourist neighborhoods close to the sea, short-term rentals (like Airbnb) can generate high seasonal yields, with occupancy rates around 45–50% and monthly incomes maximizing profitability during the summer months.
Bursa: A Large Industrial City More Affordable
Bursa offers an interesting counterpoint to the better-known metropolises. As the country’s fourth-largest city and a major industrial hub, it shows an average price of 32,669 TRY/m² ($844/m²) in the second quarter of 2025, well below the national average and far from Muğla, Istanbul, or Antalya.
Sales are nonetheless progressing at a healthy pace, with 28,362 transactions between January and July 2025, up 13.57%. Foreign purchases are very minor (224 sales, 0.8% of the total), making Bursa a primarily domestic market.
On the rental front, gross yields are around 7.8%, slightly above the national average. Rents are supported by a growing population and a solid industrial base, allowing the city to combine a moderate price level with decent rental income.
For households, Bursa appears as a credible alternative to Istanbul: the cost of daily life is significantly lower, housing is more accessible, and proximity to the metropolis (by road and ferry links) allows one to enjoy both worlds. For an investor, the long-term appreciation potential relies on continued urbanization, infrastructure projects, and an estimated price increase rate of over 15–20% per year in the most sought-after areas.
Mersin: Emerging Coastal Market with Still Contained Prices
Mersin, a port city on the Mediterranean, positions itself as a more affordable coastal market than Antalya or Muğla. The average square meter trades at 30,783 TRY ($795/m²) in the second quarter of 2025, below the national average. The annual price increase of 18.28% remains solid but less explosive than in some very tight markets.
Number of real estate transactions recorded in the region between January and July 2025, an increase of 33.53% year-on-year.
For an investor, Mersin combines several advantages: lower entry prices than major cities, coastal city status with growing tourism potential, improving infrastructure, and estimated rental yields in the range of 7 to 8%. Analysts also anticipate land price increases of 15 to 25% in developing neighborhoods.
Muğla and Bodrum: The Peak of Prices on the Aegean Coast
Muğla holds a unique place on the price map. With an average of 79,077 TRY/m² ($2,042/m²) in the second quarter of 2025, the province far exceeds all others. The reason lies in the very structure of the market: little developable land, strict urban regulations, very high demand for luxury seaside properties, especially in Bodrum.
Although a minority (1.7% of transactions), purchases by non-residents mainly concern very high-end properties, often paid in cash. These transactions help push real estate market prices upward.
In Bodrum, luxury villa prices reach dizzying levels, well above the Muğla average: properties sell for several million euros, with a price per square meter that can exceed $2,800 according to some estimates. In this segment, comparing prices between cities in Turkey is almost theoretical: it is a niche market, closer to the French Riviera than to Turkish standards, even if, on average, waterfront villas remain about 50% cheaper than their equivalents in Spain or France.
Overall Comparison: Price Hierarchy and Relative Attractiveness
By gathering data from the main cities, a clear hierarchy among markets emerges. Prices do not merely respond to city size, but also to its economic profile, tourist appeal, presence of foreign buyers, and land supply constraints.
Table 4 – Synthetic Comparison of Major Turkish Cities (Q2 2025)
| City | Price (TRY/m²) | % vs National Average | Share of National Sales | Share of Sales to Foreigners | Gross Rental Yield (approx.) |
|---|---|---|---|---|---|
| Muğla | 79,077 | +99% | 1.5% (12,336 sales) | 1.7% | 5–8% (higher in Bodrum) |
| Istanbul | 63,125 | +59% | 17% (139,635 sales) | 3.0% | ≈ 8.15% |
| Antalya | 46,395 | +17% | 5.4% (44,813 sales) | 8.5% | ≈ 6.28% |
| Izmir | 43,970 | +11% | 6.0% (49,679 sales) | 0.4% | ≈ 7% |
| Ankara | 35,690 | -10% | 9.1% (75,935 sales) | 0.5% | ≈ 8.67% |
| Bursa | 32,669 | -18% | 3.4% (28,362 sales) | 0.8% | ≈ 7.79% |
| Mersin | 30,783 | -22% | 3.5% (29,519 sales) | 3.1% | 7–8% |
| Turkey | 39,697 | – | 100% (834,751 sales) | 1.3% | 7.76% |
This summary allows at a glance the main logics of the market to be read:
Highly tourist and luxury provinces, such as Muğla and Antalya, have very high real estate prices, driven by demand for second homes and villas. In these markets, the share of sales to foreigners is significantly above average, making them more sensitive to international economic cycles and exchange rate fluctuations.
Large inland or semi-coastal metropolises (Istanbul, Izmir, Ankara) are in a second tier, with a diversity of neighborhoods ranging from hyper-luxury to more affordable areas. Istanbul remains the most expensive and most liquid, but Ankara today offers the best nominal growth and one of the best price-to-rental-yield ratios.
Large industrial cities like Bursa and emerging coastal markets like Mersin show prices below the average but vigorous sales dynamics, making them prime targets for medium-term investments, especially if one anticipates continued urbanization and infrastructure projects.
Prices, Rents, and Inflation: A Fragile Balance
Comparing prices between cities in Turkey only makes sense if these figures are put into perspective with inflation and rent trends. On this front, several observations stand out.
In most major cities, nominal prices are rising, but real gains are more limited, even negative. Istanbul and Izmir thus record nominal increases close to 30% year-on-year, but real declines of about 8 to 9% once inflation is factored in. Only Ankara manages to achieve positive real growth in the RPPI.
Annual increase in rents in Istanbul in July 2025, the highest increase among major Turkish cities.
For investors, this setup creates a paradox. The gross yields displayed – around 7.76% nationally, with peaks near 9% in Adana, Ankara, or Istanbul – may seem attractive. But they must be weighed against nominally very high interest rates and still strong inflation. In real terms, the net return after fees, taxes, and currency depreciation is far from being as spectacular.
Choosing Your City: Balancing Price, Yield, and Risk Profile
Faced with these disparities, comparing real estate prices between cities in Turkey becomes a strategic exercise. The choice of location depends as much on budget as on objectives: primary residence, long-term rental investment, seasonal rental, land speculation, or seeking appreciation through new build programs.
For a household looking for affordable housing with good urban services, the cities of Ankara, Bursa, or Mersin are relevant, as they offer prices below the national average, decent rental yields, and benefit from population growth supporting demand. For an investor aiming to maximize rental yield, cities like Ankara and Adana, or certain neighborhoods of Istanbul, may be priorities due to a favorable rent-to-price ratio.
Conversely, a buyer interested in prestige, international tourism, and long-term asset appreciation will look more toward Muğla (and particularly Bodrum), Antalya, or Izmir, accepting more modest rental yields and greater exposure to tourist cycles. In these cities, the non-financial value – lifestyle, image, attractiveness to foreigners – often weighs as much as the strict calculation of yield.
How Are Price Gaps Between Cities Evolving?
Medium-term prospects suggest that the price hierarchy between cities is not going to be upended overnight. Muğla and Istanbul should remain at the top in absolute value, Ankara and Izmir continue to assert themselves as second-tier major metropolises, and cities like Bursa or Mersin will attract more and more households seeking contained prices.
Projected five-year compound annual growth rate for the residential real estate sector.
The other key factor will be the evolution of inflation and interest rates. If the government’s economic program manages to bring inflation down to single digits by 2027, as announced, nominal price increases could finally translate into real gains. In that case, today’s “catching-up” markets like Ankara, Bursa, or Mersin could offer better relative prospects than already very expensive markets like Muğla or certain areas of Istanbul.
Comparing prices between Turkish cities is essential for navigating a constantly evolving market. Price trends, internal migration, infrastructure projects, and decisions by local and foreign investors change the country’s land value map each year.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
