Rental Markets in Regional Turkey vs Istanbul: A Tale of Two Cities

Istanbul's average property price has reached USD 2.5k/sqm, making it one of the most expensive cities in the region.

This matters now because the Turkish government's citizenship by investment program, which offers residency in exchange for a property purchase, has driven up demand for housing in Istanbul, pricing out many locals and foreigners alike. The program, launched in 2018, has been particularly popular among Middle Eastern investors, who are drawn to Istanbul's strategic location and relatively affordable prices compared to other major cities like London or New York. As a result, many are looking to regional markets like Izmir, Bursa, and Antalya for more affordable options.

In Istanbul, neighborhoods like Besiktas and Beyoglu are particularly popular among foreigners, with their upscale amenities and proximity to tourist attractions like the Bosphorus and Taksim Square. However, these areas come with a premium price tag, with average rents reaching TRY 10,000 (USD 550) per month for a one-bedroom apartment. In contrast, neighborhoods like Sisli and Kadikoy on the Asian side offer more affordable options, with average rents ranging from TRY 5,000-8,000 (USD 275-440) per month. The Istanbul Metropolitan Municipality's affordable housing initiative, which aims to provide subsidized housing to low-income families, has also been instrumental in addressing the city's housing shortage.

Regional Rental Markets: A More Affordable Alternative?

According to data from the Turkish Statistical Institute, the average rent in Istanbul is 30% higher than in other major cities like Izmir and Bursa. In Antalya, a popular tourist destination on the Mediterranean coast, average rents are 50% lower than in Istanbul, with a one-bedroom apartment costing around TRY 3,500 (USD 190) per month. This has led to an increase in demand for rental properties in these regional markets, with many Istanbul-based companies, like the Turkish conglomerate Koc Holding, investing in property development projects in these areas. As of June 2026, the Turkish government has also announced plans to invest TRY 1 billion (USD 55 million) in affordable housing projects in regional markets, which is expected to further drive down prices.

So what's next for renters and buyers in Turkey? With property prices in Istanbul showing no signs of slowing down, regional markets are likely to continue to attract those looking for more affordable options. The Turkish government's efforts to increase the supply of affordable housing, both in Istanbul and in regional markets, will be crucial in addressing the country's housing shortage and making property ownership more accessible to a wider range of people. As the property market continues to evolve, one thing is clear: renters and buyers will need to be savvy and flexible in order to find the best deals, whether in Istanbul or in regional Turkey.