The outbreak of the US-Israel-Iran war in the Middle East has significantly boosted foreign real estate investment in Türkiye, with purchases by non-residents increasing 28.3% year-on-year between March and May, according to Turkish Central Bank data. Foreign investors spent a total of $590 million on Turkish property during the period, as the conflict reshaped regional investment patterns.
Shift in Turkish Overseas Investment
Turkish nationals’ overseas real estate investments had reached a record high of $2.6 billion in 2025, but the war reversed this trend. Overseas purchases fell 18% in March, 19.4% in April, and 40% in May, dropping to $143 million—the lowest level in 29 months. Bayram Tekçe, head of the Real Estate Services Exporters’ Association, attributed the decline to geopolitical uncertainty, particularly in Dubai, where attacks halted purchases, and in Greece, where tensions with Türkiye and cooperation with Israel dampened investor appetite.
Factors Driving Foreign Interest in Türkiye
Experts point to several factors behind the surge in foreign investment. Russia’s streamlined bureaucratic processes have led to increased purchases by Russian nationals, while Türkiye’s economic policies and financial stability have encouraged domestic investors to look inward. Burak Ustaoğlu, a global real estate expert, noted that Türkiye’s competitive housing prices in foreign currency terms and its diplomatic engagement on the global stage have reinforced confidence in the country. Investors from the Gulf, Russia, Azerbaijan, and Kazakhstan have shown particularly strong interest.
Temporary Caution or Long-Term Shift?
While investors remain cautious and have postponed overseas purchases, Ustaoğlu noted that they have not fully abandoned their plans. The war and heightened risk perception caused a temporary hesitation across overseas markets, with many waiting for uncertainties to subside. Turkey’s stable real estate market, combined with competitive pricing from construction firms eager to offload completed properties, continues to offer long-term opportunities.
