Istanbul Property Market Reaches Record October 2025 Sales Amid High Demand

October 2025: Record Property Sales in Istanbul

In an unprecedented upturn, Istanbul's property market witnessed a record-breaking month in October 2025, with 26,305 property sales. This marks the highest monthly figure for the year, underscoring Istanbul's pivotal role in Türkiye’s real estate landscape. The surge is fueled by rising rents, safety concerns, and an increased penchant for homeownership. Notably, mortgage-financed transactions have risen by 11.5% year-on-year, reflecting a robust buyer confidence despite the challenges of elevated prices and borrowing costs. According to Turkey Expert insights, residential prices in prime districts like Beşiktaş, Kadıköy, and Şişli average $1,800 per sqm, with luxury waterfront properties exceeding $4,000 per sqm. These price hikes, coupled with demand, highlight the city's enduring allure for both domestic and international buyers.

Mortgage-Financed Transactions Surge by 11.5%

As Istanbul continues to captivate investors, mortgage-financed property transactions have seen a notable increase, rising by 11.5% compared to the previous year. This growth underscores a sustained confidence in the city's property market, despite higher borrowing costs. The average price per square meter in Istanbul has seen a significant rise, indicative of a competitive market. According to Skyline Holdings, home prices in Turkey have soared to record levels, with Istanbul witnessing a nominal price increase of 29.6% year-over-year in January 2025. However, when adjusted for inflation, real prices have decreased by 8.8%. This complex dynamic illustrates the intricate balance between demand, pricing strategies, and inflationary pressures in the market.

High Demand in Central Districts Outstrips Supply

Despite the introduction of over 150,000 new units into the Istanbul market in 2025, demand in central districts continues to surpass supply. The scarcity of premium inventory in areas such as Sultanahmet and Beyoğlu has driven prices upwards, with short-term rental yields via platforms like Airbnb averaging between 7% and 10%. This trend is emphasized by Investropa, which highlights the ongoing nominal price growth. The burgeoning demand is also propelled by Istanbul's rapidly expanding population and shifting demographics, creating a dynamic environment for property investment.

Rising Prices and Limited Inventory in Prime Locations

Price trends indicate a consistent rise, particularly in prime locations where scarcity of inventory continues to influence market dynamics. In districts such as Beşiktaş, Kadıköy, and Şişli, residential property prices have experienced a 12-15% increase compared to 2024, as reported by Istanbul Homes. This is largely due to the high demand in central districts, where the availability of premium housing options remains limited. As prices continue to climb, investors are keenly watching the market for opportunities to capitalize on these trends.

Impact of Foreign Investment on Istanbul’s Market

The influence of foreign investment in Istanbul's real estate market has been noteworthy, albeit with some fluctuations. While the share of foreign investors in property sales declined to about 1.6% in 2024, as indicated by Skyline Holdings, the city's global appeal remains strong. These investors are often drawn to Istanbul's blend of historical allure and modern development opportunities. The market's resilience, bolstered by strategic infrastructure projects and residence-permit programs, continues to attract international attention.

Future Implications for Istanbul’s Real Estate Market

Looking forward, the Istanbul property market is projected to maintain its growth trajectory, albeit at a moderated pace. Real estate analysts predict continued nominal price growth of 5-10% annually as the market stabilizes from recent peaks. The combination of robust local demand, an expanding population, and the city's strategic position as a bridge between East and West ensures that Istanbul will remain a focal point for real estate investment. However, investors must navigate the challenges posed by fluctuating foreign investment levels and inflationary pressures, as noted in Investropa's analysis. At RealEstateAbroad.com, we see Istanbul's market as a bellwether for broader trends in Türkiye's real estate sector, providing valuable insights for international investors.