Istanbul awaits new housing boom

Istanbul on the brink of a new housing boom

Located at the crossroads of Europe and Asia, Istanbul is not only a cultural and historical gem of Turkey, but also its economic and financial center. However, the rapid development of the city gives rise to serious challenges, among which the housing issue is particularly acute. According to real estate experts, Istanbul needs at least 122,000 new apartments annually to cover the growing demand and balance the situation.

Reasons for the growing demand for housing in Istanbul

• Population boom and urbanization — the population of Istanbul is steadily growing due to natural growth and the influx of residents from other regions of the country seeking better economic opportunities and a higher standard of living. In the last 20 years alone, the number of Istanbul residents has increased from 9 to 15 million people and continues to grow. Increasing population density and urbanization inevitably lead to an increase in the number of households and an increased demand for high-quality modern housing.
• Migration and international attractiveness — Istanbul's unique geographical location at the crossroads of two continents, developed infrastructure and extensive business opportunities attract not only internal migrants to the city, but also a significant number of foreign professionals, students, entrepreneurs and investors. Many of them prefer to rent or buy real estate in Istanbul, which further stimulates the demand for modern apartments, especially in prestigious areas with good transport accessibility and developed infrastructure.
• Economic growth and business activity — Istanbul is the main industrial, commercial and financial center of Turkey. It accounts for about 40% of the country's total industrial production and almost half of its exports. The city attracts large international companies, small and medium-sized businesses, services and tourism are actively developing here. Economic growth and expansion of business activity contribute to the influx of workers and specialists from other regions and from abroad to Istanbul, which in turn increases the need for residential space.

The impact of housing shortage on the real estate market

The shortage of new housing in the context of constantly growing demand inevitably leads to an increase in real estate prices in Istanbul. Despite active construction, supply often fails to keep up with the real needs of the market. According to 2025 data, demand still outstrips supply, which is reflected in the cost per square meter in both new buildings and the secondary market, as well as in the constant rise in rent. The average price of housing in Istanbul starts at $ 2,500 per square meter, but in prestigious areas and modern residential complexes, the cost is significantly higher. At the same time, investors — both local and foreign — are actively investing in Istanbul real estate with the aim of renting it out or reselling it at a higher price in the future. This further fuels price growth and panic demand. According to official data, from 2020 to 2025, housing sales in Turkey steadily grew by an average of 11% per year, with the lion's share of transactions occurring in Istanbul. Market analysts predict that this trend will continue in the coming years, especially given the attractiveness of Turkish real estate for foreign buyers.

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Features and trends of housing construction in Istanbul

• Mass construction of modern residential complexes — to meet the growing demand, construction companies and developers are actively building modern residential complexes of different classes and price segments in Istanbul. The offer includes both relatively budget apartments for the middle class and luxury residences in prestigious areas on the shores of the Bosphorus. At the same time, many projects involve the creation of fundamentally new areas or microdistricts with their own full-fledged infrastructure — shopping and entertainment centers, schools, medical institutions, parks and green areas.
• Comparative affordability against the background of world megacities — although real estate prices in Istanbul are steadily growing, in comparison with other large cities in Europe and the world, they remain quite attractive to buyers. The cost per square meter here is still lower than in most European capitals, not to mention such megacities as London, Paris or New York. This makes Istanbul especially interesting for foreign investors seeking not only to preserve, but also to increase their capital through subsequent resale or rental of housing.
• Popularity among foreign buyers — not only local residents, but also citizens of other countries are actively showing interest in Istanbul real estate. Turkish legislation is quite loyal to foreign buyers, offering them attractive conditions and opportunities, including obtaining citizenship with investments in real estate from $ 400,000. According to data for the first half of 2023, more than 6 thousand residential properties were sold to foreigners in Istanbul alone, and the resort of Antalya showed even more impressive results. This clearly indicates the growing popularity of the Turkish market among international investors.

Investment prospects and forecast for 2025

Despite the difficult economic situation and global challenges, the demand for housing in Istanbul remains consistently high in 2025. Moreover, leading developers announce new large-scale projects, and the state continues to stimulate housing construction as one of the drivers of economic growth. According to experts, the investment potential of real estate in Istanbul is still quite significant. This applies to both long-term investments with the expectation of further growth in the cost per square meter, and short-term strategies involving rental income or a quick resale of the property at a higher price. Istanbul's unique geographical location, its rich historical and cultural heritage, powerful economy, developed infrastructure and a constant influx of new residents make the city one of the most promising and dynamically developing real estate markets in the region. At the same time, the need for at least 122,000 new apartments annually clearly demonstrates the scale of demand and the opportunities opening up for investors and developers. However, to effectively solve the housing issue, these efforts must be combined with a well-thought-out urban policy, strategic infrastructure planning and the creation of a comfortable environment for all residents and guests of Istanbul.

In conclusion, we note that the rush demand and supply shortage inevitably lead to an increase in the price per square meter and a decrease in the availability of housing for some categories of the population. In addition, mass development and the growth in the number of residents increase the burden on the urban infrastructure, transport system, utilities, educational and health care institutions. Therefore, to effectively solve the housing issue in Istanbul, it is not enough to simply increase the volume of construction. A comprehensive urban policy is needed that takes into account the interests of all groups of the population and is aimed at creating a balanced, sustainable and comfortable urban environment. This involves strategic planning of infrastructure development, thoughtful zoning, consideration of environmental factors, preservation of historical heritage, development of public spaces and support for socially significant projects. Only a systematic approach based on a dialogue between government, business and society will not only satisfy the growing demand for housing, but also ensure the harmonious, sustainable development of Istanbul as one of the key megacities of Eurasia.