Has Turkey Become Expensive? A Realistic Look at Prices, Real Estate, and the Economy in 2025
In recent years, conversations about the rising cost of living in Turkey have grown louder, with many claiming that the country has become more expensive than parts of Europe. Rent prices and consumer goods are often cited as major burdens for residents and expats alike. But is this picture entirely accurate? And what are the real economic factors shaping this reality?
Real Estate and Rental Prices: Falling Sales, Rising Rents
Since 2021, Turkey’s real estate market witnessed a sharp price surge. However, by late 2024 and early 2025, property sale prices dropped significantly. For example:
- A 1-bedroom apartment that used to sell for $160,000 – $170,000 can now be purchased for around $100,000.
- A 2-bedroom apartment that once sold for $250,000 has now fallen to $160,000 – $180,000.
Rents, on the other hand, moved in the opposite direction. A property that rented for $200/month now costs $800 – $1,000, particularly in modern, earthquake-resistant developments. Older or less central properties, however, remain relatively affordable.
This dynamic presents a golden opportunity for investors: buying at historically low prices while earning rental yields of 8–10%, well above the global average.
Tourism: Temporary Surge Due to Taxes
Turkey’s tourism sector was directly affected by government austerity policies and tax hikes following the southern earthquake. Accommodation, transportation, and service costs have nearly doubled compared to previous years.
Still, this increase is temporary. The government has announced that higher taxes will remain in place until late 2025 or early 2026, after which they will be gradually reduced as inflation stabilizes and the economy strengthens.
Consumer Goods and Daily Living
Food, fuel, and clothing have all experienced notable price hikes, driven by:
- Rising wages and higher operational costs for businesses.
- Increased fuel prices feeding into transportation and production costs.
- Expanded taxation across multiple sectors.
Despite this, prices are entering a phase of relative stability as inflation plateaus, with expectations of a gradual decline once tax relief begins in the coming years.
The Turkish Economy: Moving Toward Long-Term Stability
One of the most significant shifts in Turkey’s economy has been aligning with global monetary standards in managing interest rates and inflation. Interest rate decisions are no longer purely political but are instead tied to inflation indicators, which builds greater trust among foreign investors.
Similarly, Turkish households have shifted their investment behavior. Cars and consumer goods are no longer seen as reliable stores of value. Instead, focus has returned to real estate and productive investments, a change that supports long-term market stability.
Outlook for the Future
- 2025–2026: The beginning of gradual economic relief as taxes ease and inflation declines.
- Real estate: Prices are at their lowest since 2018, making now an ideal time to buy.
- Rents: Expected to remain relatively high, especially in new developments, ensuring attractive returns for investors.
- Daily living: Relative stabilization, with the potential for gradual price reductions after 2026.
Conclusion
Turkey today is not “more expensive than Europe” as some claim. Instead, it is in a transitional economic phase driven by temporary taxes and post-earthquake recovery measures.
The reality is:
- Buying real estate is currently a strong investment opportunity.
- Rents are high but reflect market demand and supply.
- Tourism and daily living costs are impacted by temporary taxes, but are set to normalize soon.
In other words, those who look closely at the Turkish market can see that today’s “high costs” are not the end of the story but a temporary stage preceding stronger stability and greater opportunities.