Istanbul Property Prices Surge 11% Over Last Year, Outpacing Recent Quarters

Residential property prices in Istanbul rose 11% in the second quarter of 2026 compared to the same period last year, according to new data compiled by the Istanbul Chamber of Real Estate Agents. The city’s average home price now stands at $2,530 per square metre, with sharpest increases recorded in both the historic core and the buzzing Asian side.

The numbers come as affordability and housing supply have come under new scrutiny amid ongoing international turbulence. Real estate market watchers say Istanbul’s status as a safe-haven city, and the ongoing draw of its citizenship-by-investment program, are fuelling persistent, above-trend price pressures. This has become especially pressing as global instability—from the Ukraine conflict to the recent spike in energy prices—is pushing more buyers from Eastern Europe and Central Asia to view Istanbul as a haven.

Besiktas, Beyoglu and Kadikoy See Double-Digit Gains

Ask agents around Besiktas Square or along Istiklal Caddesi in Beyoglu, and you’ll hear the same story: sellers are receiving offers above asking price, particularly for newly renovated stock. Over on the Asian side, Kadikoy’s Moda and Suadiye districts remain favourites for foreign buyers and young professionals. "We’re regularly seeing listings on Bagdat Caddesi close within just a few days, often to buyers from Ukraine or Russia," said a property manager from a leading brokerage in Kadikoy, who did not wish to be named due to company policy.

The city’s property demand has benefited from the government’s $400,000 citizenship-by-investment scheme, still a magnet for overseas purchasers despite sporadic calls for tighter controls. Market intelligence from REIDIN and Endeksa show that foreign buyers now account for more than 28% of transactions in central districts, up from 19% a year ago. Local buyers, meanwhile, are being pushed further out, with new hotspots popping up in Kagithane and Atasehir’s business parks.

Quarterly Data Shows Largest Year-on-Year Jump Since 2021

The Chamber’s report, released this week, puts average Q2 prices at $2,530/sqm, compared to $2,278 last year. Both Besiktas and Beyoglu clocked gains above 13%, with prime units on Akaretler Street and in Cihangir now fetching well over $4,200/sqm. Meanwhile, Kadikoy’s coastal districts notched annual growth of up to 16%, driven by pent-up demand for mid-sized flats with sea views. In contrast, some peripheral areas saw slower gains: Esenyurt and Avcilar posted increases closer to 6%, as buyers focused on well-connected, central locations amid citywide infrastructure upgrades and tram expansions.

Sales volumes have remained strong, with over 14,000 residential transactions filed in May alone, according to the Istanbul Land Registry. However, brokers say some local first-time buyers are struggling with tighter bank mortgage conditions following the Central Bank’s May 2026 rate hike.

Looking ahead, industry analysts expect demand to hold steady through the autumn, especially if the citizenship program remains unchanged and foreign investor interest persists. Prospective buyers are advised to look closely at districts due for transport or urban renewal upgrades—such as the Besiktas-Kadikoy ferry line extension, which is expected to bolster values along the Asian shore. For sellers, experts caution that while price momentum remains strong, more listings could ease pressure in some overheated hubs by year-end.