Istanbul Property Prices Jump 7% in Q2 Year-on-Year, Driven by Foreign Buyers and Urban Hotspots

Residential property prices in Istanbul have climbed an average of 7% in the second quarter of 2026 compared to the same period last year, with demand in premium districts and foreign investment continuing to fuel the city’s resilient market.

This marks the third consecutive quarter of annualized price growth above 5%, according to data released this week by the Istanbul Chamber of Commerce (ITO). The sustained increase comes even as rising inflation and concerns over power supply have tempered activity in other Turkish cities. For Istanbul homeowners and investors, the numbers reinforce the city’s status as a relatively safe harbor—particularly for those with holdings in central and up-and-coming neighborhoods.

Besiktas, Sisli and Kadikoy Outpace the City Average

Hotspots along the Bosphorus continue to lead growth. In Besiktas, apartments around Nisbetiye Caddesi and the luxury complexes that have sprung up near Zorlu Center saw average sales prices reach USD 4,800 per square meter in June, up from USD 4,410 last summer—an increase of almost 9%. Meanwhile, Beyoglu recorded annual growth of 8%, with renovation projects driving up values in Taksim and around the pedestrianized Istiklal Avenue.

Sisli’s residential market has also heated up, notably on Halaskargazi Street, where midsize flats now fetch USD 3,100 per square meter. On the Asian side, Kadikoy remains in high demand among domestic buyers and young professionals. The Moda quarter, with its popular cafes and bars like Moda Teras, has nudged up to USD 3,350 per square meter, not far behind pre-pandemic records.

Foreign Buyers and Heatwaves Shape Trends

The citizenship by investment program continues to drive interest from Russia, Iran, and Gulf states, according to Emlakjet, which reported a 12% uptick in foreign-driven transactions in the second quarter compared to 2025. With the city’s minimum investment threshold still set at USD 400,000, requests for legal consultation in the Nisantasi shopping precinct have tripled since April, based on figures from local property law firm Genc & Partners.

For middle-class Istanbul families, however, the relentless rise in prices and persistent inflation—currently running at an annual 18%—have made homeownership harder to attain. The average price per square meter citywide is now just under USD 2,700, up from USD 2,520 in Q2 last year. Bank mortgage approvals have fallen by nearly 14% year-on-year, according to data from Garanti BBVA, as both interest rates and energy bills stretch household budgets.

Still, limited new supply and a wave of urban renewal—especially in historical neighborhoods near Pera and Galata—are keeping prices high. Some agents report longer closing times for non-prime units, but for anything near main transit lines or with Bosphorus views, competition remains fierce.

What to Watch for Buyers and Sellers

Property consultants warn that further quarterly price gains are likely if foreign demand stays strong. Tight short-term rental regulations coming later this year may shift investor preferences toward long-term lets, especially near business districts like Levent and Mecidiyekoy. For buyers hoping to enter the market, areas just outside the city center—such as Kagithane and parts of Maltepe—still offer flats under USD 2,200 per square meter, although these prices are also climbing steadily.

Looking ahead to the autumn, realtors expect more volatility if energy costs continue to rise or if additional economic sanctions affect the lira. For now, the advice for sellers in prime areas is to price confidently, but buyers hunting for value may need to cast their nets wider as Istanbul’s residential market shows few signs of slowing down.