Ankara: The outbreak of conflict involving the US, Israel, and Iran in the Middle East has led to a 28.3% annual increase in real estate investments by foreign investors in Trkiye during March, April, and May, as reported by the Turkish Central Bank (TCMB).
According to Anadolu Agency, Turkish nationals' investments in real estate abroad hit a record $2.6 billion in 2025, as indicated in the TCMB's recent balance of payments data. These investments rose 44.4% year-on-year to $208 million in January and increased by 18.4% to $225 million in February. However, the onset of the conflict at the end of February caused a decline in overseas property purchases by Turkish nationals from March onward.
In March, Turkish nationals' real estate purchases abroad decreased by 18% year-on-year to $187 million. This downward trend continued in April with a 19.4% decline to $187 million, and in May, the figure plummeted by 40% to $143 million, marking the lowest level in 29 months.
Overall, the total value of overseas real estate investments by Turkish nationals fell by 26% to $517 million in March, April, and May, while foreign nationals increased their investments in Trkiye. Non-residents spent $590 million on real estate purchases in Trkiye, reflecting a 29.3% year-on-year increase, with significant rises of 62.4% in March, 17.1% in April, and 7.6% in May, despite the nine-day Eid al-Adha holiday.
Bayram Tekce, president of the Istanbul-based Real Estate Services Exporters' Association (GIGDER), explained to Anadolu that Turkish nationals have traditionally invested in residential properties abroad, notably in Dubai and Greece. However, the Gulf conflict and Greece's stance toward Ankara have impacted these investments. Tekce noted that March attacks in Dubai significantly halted real estate purchases, while Greece's actions, including its cooperation with Israel and the Greek Administration of Southern Cyprus and military deployments, have deterred Turkish investors.
According to global real estate expert Burak Ustaoglu, the Gulf conflict prompted investors to adopt a cautious approach toward overseas purchases, particularly in Dubai. He noted that while there is hesitation, investors have not entirely abandoned their overseas investment plans, instead waiting for uncertainties to diminish.
Ustaoglu emphasized that Trkiye's recent economic policies and financial stability initiatives have encouraged domestic investors to consider local opportunities. He cited that Trkiye remains attractive to foreign buyers due to competitive housing prices in foreign currency terms and Ankara's active diplomatic engagement, which has bolstered confidence in the nation.
He further highlighted the significant price advantages in Trkiye's real estate market, with construction firms offering completed homes at competitive prices due to a slowdown in demand, thus creating opportunities for long-term investors. Recently, there has been increased interest from investors in the Gulf, Russia, Azerbaijan, and Kazakhstan in Turkish real estate.