New data from the Central Bank of the Republic of Türkiye (TCMB) has revealed a striking reversal in real estate investment flows. While Turkish citizens are increasingly turning to overseas property markets, foreign buyers are showing declining interest in Türkiye. This shift underscores broader changes in both domestic and international housing trends, raising important questions about affordability, investment strategies and the future of Türkiye’s property market.
According to TCMB figures, Turkish citizens invested 214 million dollars in real estate abroad in June alone, equivalent to 8.8 billion TL. In contrast, foreign purchases in Türkiye during the same period reached just 133 million dollars, or 5.4 billion TL.
Annual Data Shows the Scale of the Shift
Looking at cumulative figures over the past 12 months, the difference becomes even clearer. Foreigners purchased real estate worth 2.1 billion dollars in Türkiye, while Turkish citizens bought properties abroad totaling 2.3 billion dollars. This reversal represents an annual real estate deficit of 224 million dollars, equivalent to 9.2 billion TL. On a monthly basis, the deficit stood at 81 million dollars.
These numbers illustrate a trend that has been building for several years. Once a magnet for foreign buyers, Türkiye’s property market is losing some of its shine, while Turks themselves are increasingly exploring international markets for both financial returns and lifestyle opportunities.
Preferred Destinations for Turkish Investors
Among the top destinations for Turkish property buyers are the United Arab Emirates, Greece, Spain and Portugal. These countries offer diverse advantages, from stable economies and attractive rental yields to residency and citizenship opportunities through golden visa programs.
Experts note that in many of these destinations, properties amortize more quickly compared to Türkiye. Shorter payback periods make them appealing for investors seeking both capital appreciation and steady income streams.
The growing popularity of these countries also reflects Turks’ desire to diversify their assets beyond national borders, mitigating risks associated with currency fluctuations and local economic uncertainties.
Why Foreign Buyers Are Pulling Back from Türkiye
The decline in foreign demand for Turkish real estate has several underlying causes. According to industry analysts, property prices in Türkiye have risen to levels that are now less competitive compared to alternative markets. While Türkiye once offered attractive deals to foreigners, rising prices have narrowed the gap with Europe and the Middle East.
Additionally, legal processes for updating rental values in Türkiye often take longer than expected, creating uncertainty for investors seeking predictable returns. Exchange rate fluctuations in recent years have also introduced volatility into the returns earned by foreign buyers.
Ozan Kolcuoğlu, Deputy General Manager of TSKB Real Estate Appraisal, noted that cheaper countries are increasingly being seen as alternatives. Investors are rethinking their options as they assess risk, return and long-term stability.
Domestic Perspective on the Shift
From a domestic viewpoint, industry leaders have acknowledged that this reversal has been years in the making. Istanbul Chamber of Commerce President Şekip Avdagiç emphasized that sales to foreigners have been declining due to policy missteps and rising costs.
He pointed out that the recent surge in Turks purchasing property abroad cannot simply be explained by golden visa programs. Instead, he argued, policymakers need to reflect on why such a trend has emerged and how domestic conditions have contributed to the shift.
Regional Breakdown of Foreign Sales in Türkiye
Data from the Turkish Statistical Institute (TÜİK) further illustrates the changing landscape. Between January and June 2025, foreigners purchased 9,354 homes in Türkiye, a 10.6 percent decline compared to the same period in 2024, when 10,461 homes were sold.
The downturn was most pronounced in Antalya, where sales to foreigners dropped by 18.2 percent, and in Mersin, where the decline was 21.6 percent. Istanbul, historically the top destination for foreign buyers, saw a smaller decrease of 3.4 percent.
Notably, some regions bucked the trend. Sales to foreigners in Ankara rose by 26.2 percent, while Muğla saw an increase of 8.4 percent and Sakarya 5.2 percent. These variations suggest that while overall demand is declining, certain regions continue to attract international buyers due to local advantages such as coastal lifestyles or affordable pricing.
Broader Economic Implications
The changing flow of real estate investment has broader implications for Türkiye’s economy. Foreign direct investment in property has historically been a significant contributor to foreign currency inflows, helping to stabilize the balance of payments. A decline in foreign interest could reduce this inflow, adding pressure to external balances.
Meanwhile, Turks purchasing properties abroad represent an outflow of capital that might otherwise have supported domestic investment. This trend may exacerbate existing economic challenges, including current account deficits and exchange rate volatility.
The Motivations Behind Turkish Overseas Investments
For Turkish citizens, the appeal of overseas real estate goes beyond financial returns. Many buyers are motivated by lifestyle considerations, including access to better education, healthcare and business opportunities.
In addition, political and economic uncertainties in Türkiye have encouraged individuals to diversify their assets internationally. Real estate in stable countries is viewed as a safe haven, offering not just rental income but also security for families.
Shorter amortization periods in countries such as Spain and Portugal add to the attraction, as investors can recoup their costs more quickly and then enjoy long-term profits.
The Future of Türkiye’s Housing Market
The outlook for Türkiye’s property market depends on whether policymakers can address key issues such as affordability, rental regulations and investor confidence. If domestic prices continue to rise faster than incomes and rental yields, foreign buyers may continue to look elsewhere.
At the same time, the continued outflow of Turkish capital into overseas real estate raises questions about long-term domestic investment. Unless conditions improve, Türkiye risks losing a generation of investors who prefer to put their money into foreign markets.
Editorial Perspective
The current shift in real estate investment patterns reveals more than just market dynamics. It reflects broader societal and economic trends in Türkiye. Turks are increasingly looking abroad for financial stability and security, while foreign investors are reconsidering Türkiye’s competitiveness.
As an editor observing these developments, I see this as a critical turning point. The government and industry stakeholders must take the concerns of both domestic and foreign investors seriously if Türkiye is to maintain its place as a dynamic real estate hub. The conversation about housing is no longer just about property prices but about confidence, long-term vision and the country’s place in global investment flows.
