How Istanbul’s Real Estate Market Compares to Other Global Investment Destinations

07 Mar 2025

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Now, this has made Istanbul one of the most popular destinations for investment in real estate, drawing investors all over the world in search of maximum returns, reasonably priced sale prices and sustainable growth. But how does Istanbul stack up against other big property markets like London, Dubai, New York, or Bangkok?

This is a comprehensive review of the statistics and facts enabling you to compare Istanbul’s real estate market with other world cities in property prices, rental yields, market growth, and other investment advantages.

1. Property Prices: Istanbul vs. Other Major Cities

“Istanbul has one of the biggest and most advantageous features compared to other global investment cities: lower property prices.

City	Average Price per m² in City Center (USD)	Average Property Price (100m² Apartment)
Istanbul	$3,000 – $6,000	$300,000 – $600,000
London	$15,000 – $20,000	$1.5M – $2M
New York	$12,000 – $18,000	$1.2M – $1.8M
Dubai	$6,000 – $12,000	$600,000 – $1.2M
Bangkok	$4,000 – $8,000	$400,000 – $800,000

✅ Key Takeaway:

Istanbul has some of the least expensive real estate prices compared to other large cities worldwide.
Investors can buy very good real estate for a small fraction of the price of what the houses cost in London or New York or Dubai.

Which City Provides the Best Rental Yields?

2. Rental Yields: Which City Offers the Best ROI?

Rental yield is a crucial factor for investors looking for passive income. Istanbul provides competitive rental returns compared to other major cities.

City	Average Rental Yield (%)
Istanbul	5% – 8%
London	2% – 4%
New York	3% – 5%
Dubai	5% – 7%
Bangkok	4% – 6%

✅ Key Takeaway:

Istanbul’s 5-8% rental yield outstrips that of London and New York, making it an appealing buy-to-let market.
Yields in Dubai are similar, but the prices of property there are far more expensive than in Istanbul.

3. Capital Appreciation: Market Growth Potential

A healthy real estate market should provide long-term appreciation potential. Over the last decade, Istanbul has experienced steady price growth due to urban development, infrastructure projects and demand from foreign investors.

City	Annual Capital Growth (%)
Istanbul	10% – 25%
London	2% – 6%
New York	3% – 7%
Dubai	5% – 10%
Bangkok	4% – 8%

✅ Key Takeaway:

Certain Istanbul neighborhoods experience an annual increase of 20% than the last year making it one of the world’s cities with the highest capital growth.
Unlike developed markets like London and New York where entry prices are high and upside relatively limited, Istanbul is yet to feel the full impact of inflation due to its status as a developing country.

4. Investment Benefits: Taxes, Citizenship, and Foreign Ownership

Real estate investing isn’t only about returns, it’s about ease of purchasing, taxes and long-term benefits, as well.

Factor	Istanbul	London	New York	Dubai	Bangkok
Foreign Ownership	✅ Allowed	✅ Allowed	✅ Allowed	✅ Allowed	❌ Restricted for land
Property Tax	Low (0.1% – 0.2%)	High (0.5% – 1%)	High (0.8% – 1.5%)	Low (0.3% – 0.5%)	Medium (0.3% – 0.7%)
Rental Income Tax	Low (10% – 20%)	High (20% – 40%)	High (30% – 40%)	Low (0% – 15%)	Medium (5% – 10%)
Citizenship by Investment	✅ Yes ($400,000)	❌ No	❌ No	✅ Yes ($750,000)	❌ No

✅ Key Takeaway:

Property tax rates in Istanbul are among the lowest in the world.
Foreigners can purchase property with full ownership rights, which is not an option in Bangkok.
Compared to Dubai ($750,000+), Turkish citizenship by investment ($400,000) puts Istanbul among the cheapest options for citizenship.

5. Which Type of Investor Should Consider Istanbul?

Istanbul is Best for:

✔ Mid-to-Long-Term Investors – Lots of capital appreciation.

✔ Investors looking to Rent properties – Good rental yields and state property taxes

✔ Seeker of Citizenship – One of the cheapest real estate-based citizenship programs.

✔ Investors Looking for Cost Effective Investing – Property costs are still low in comparison with Western cities.

Istanbul Might Not Be Best for:

❌ Ultra-Luxury Buyers — The top-tier luxury landscape, in coveted urban markets such as London and New York has already matured.

❌ Investors Looking for Stability — Istanbul’s real estate market sways considerably with the economy.

6. Final Thoughts: Is Istanbul a Good Alternative to Other Global Markets?

Istanbul real estate is one of the top 10 real estate investment cities in the world for investors seeking low entry prices, high rental yields and fast capital growth.

✔ Property prices are cheaper than London, New York or Dubai.

✔ Rental yields higher than in most Western cities.

✔ Good tax policies and foreign ownership rights.

✔ One of the cheapest worldwide — $400,000 citizenship-by-investment option.

Bottom Line: Istanbul’s stack-up of affordability, growth and investment benefits trump all other investment markets, establishing it as a dominating global investment hub.