The outbreak of the war in the Middle East has boosted real estate investments by foreign investors in Türkiye by 28.3% on an annual basis in March, April and May, according to a report on Thursday citing data from the Turkish central bank.
At the same time, Turkish nationals' real estate investments abroad, which reached a record high of $2.6 billion in 2025, have dropped in recent months, the data shared by Central Bank of the Republic of Türkiye (CBRT) in its recent balance of payments data shows.
The figure rose 44.4% year-over-year in January to $208 million and climbed 18.4% in February to $225 million.
However, the war, which broke out at the end of the month, caused overseas residential property purchases by Turkish nationals to decline from March onward. Turkish nationals' real estate purchases abroad declined 18% year-over-year to $187 million in March.
In April, that figure decreased 19.4% to $187 million and in May, it dropped by a whopping 40% to $143 million, the lowest level in 29 months.
Accordingly, the total value of overseas real estate investments by Turkish nationals in March, April and May fell 26% to $517 million, while real estate investments by foreign nationals in Türkiye increased.
Non-residents paid $590 million to purchase real estate in Türkiye, marking a 29.3% year-on-year increase.
The figure rose 62.4% to $242 million in March, 17.1% to $164 million in April, and 7.6% to $184 million in May despite the nine-day Eid al-Adha holiday.
Bayram Tekçe, president of the Istanbul-based Real Estate Services Exporters’ Association (GIGDER), told Anadolu Agency (AA) that in recent years, Turkish nationals have traditionally invested in residential property abroad, particularly in Dubai and Greece, but the war in the Gulf and Athens' stance toward Ankara have affected those investments.
"The attacks in Dubai in March virtually halted real estate purchases, leading to a decline in sales, while Greece's hostile stance against Türkiye and its cooperation with Israel and the Greek Cypriot Administration, as well as its efforts to deploy armed troops on the islands, affected the Turkish appetite for purchasing real estate in the country," he said.
Tekçe said Russian nationals made more real estate purchases in Türkiye than last year, as bureaucratic processes have been streamlined to facilitate the process.
Burak Ustaoğlu, a global real estate expert, meanwhile, said that investors adopted a more cautious stance toward overseas purchases and postponed their investments following the war in the Gulf, particularly in Dubai, where Turkish investors had shown strong interest prior to the outbreak of the conflict.
"The war and the risk perception led to a temporary hesitation, not only in Dubai but across all overseas real estate investments," he said, noting that investors have yet to fully abandon their overseas investment plans and are instead waiting for uncertainties to subside.
Ustaoğlu stated that Türkiye’s recently implemented economic policies and steps taken to strengthen its financial stability encouraged some domestic investors to opt for opportunities at home, rather than abroad.
He said Türkiye still offers attractive opportunities for foreign buyers because housing prices are competitive in foreign currency terms compared with many other countries, while Ankara’s diplomatic engagement on the global stage has reinforced confidence in the country.
"The perception of Türkiye as a stable and trustworthy country prompted foreign visitors to monitor the country more closely," he said.
Ustaoğlu noted that Türkiye’s real estate market currently offers significant price advantages at present as many construction firms offer their completed and immediately available homes for highly competitive prices due to a slowdown in demand, creating opportunities for long-term investors.
He added that recently, investors from the Gulf, Russia, Azerbaijan and Kazakhstan, in particular, have exhibited increased interest in Turkish real estate offerings.