From Ottoman streets to smart cities: Tech shaping Türkiye’s future

Istanbul’s skyline is a mix of modern ambition and constant construction. Do its skyscrapers point to a high-tech future, or are they just adding to the city’s daily chaos? While the glass towers suggest progress, the heavy traffic and weak infrastructure tell another story.

This tension defines not just Istanbul, but Türkiye’s broader real estate landscape. Economic, bureaucratic, and infrastructural hurdles often leave progress feeling uneven. Since 2020, my experience in the sector has been both exhilarating and frustrating—full of promise yet tangled in obstacles.

The question remains: are we building toward a smarter, more resilient future, or merely laying the foundation for new struggles?

PropTech Boom: A genuine game-changer or merely a buzzword?

Finding property in Türkiye has long felt like navigating through fog—complicated, unclear, and full of obstacles. But technology, especially AI, is starting to change that.

AI-powered platforms like HepsiEmlak, Zingat, and Endeksa have transformed the real estate market by bringing transparency to pricing, reducing reliance on middlemen, and streamlining bureaucracy. With real-time property valuations, buyers and sellers can make quicker, more informed decisions. Virtual tours now allow people to explore properties without stepping foot inside, offering a high-end digital experience.

Perhaps the biggest game-changer is the WebTapu system. Integrated with e-Devlet, this online deed system eliminates the hassle of in-person visits, making property transactions seamless. Buyers in cities like Dubai or Berlin can now complete purchases remotely, without needing a local representative.

These advancements make real estate more accessible to overseas investors, but they also raise a critical question: should convenience come at the cost of stability? Fluctuating interest rates, high inflation, and shifting government policies continue to cast a shadow over the market. While technology enhances efficiency, it cannot erase the deeper economic uncertainties that shape the industry.

Smart cities: Future within reach or distant dream?

Türkiye’s vision for smart cities is ambitious, promising AI-driven urban environments where technology enhances transportation, energy management, and governance. The government has announced bold initiatives, and municipalities are actively exploring AI-related projects. Istanbul is investing in digital public services, while Konya is experimenting with intelligent traffic systems. On paper, the plans sound promising—traffic signals adapting in real-time, AI optimizing electricity distribution, and smart grids preventing power outages in densely populated areas. But are these advancements truly within reach?

The reality tells a different story. Istanbul remains one of the most congested cities in the world, with drivers losing an average of 142 hours per year to traffic. It now hits the list of most choked cities worldwide. Power failures are still common, disrupting daily life. Despite efforts to integrate technology, many digital initiatives remain stuck in bureaucratic inefficiencies. The gap between vision and execution is stark.

The real issue? A lack of integration. Scattered projects—an AI-powered bus stop here, a digital traffic signal there—offer only temporary fixes. Without a city-wide framework that connects these innovations, they remain isolated efforts rather than transformative solutions. True progress demands a holistic approach. Smart cities can’t be built in fragments; they need a unified system that works seamlessly, ensuring technology delivers on its promise rather than becoming just another unfulfilled ambition.

Real challenge: Execution, not tech

It’s easy to blame outdated infrastructure, but Türkiye has the talent and resources to build a truly smart real estate and urban ecosystem. The real problem isn’t a lack of potential—it’s systemic barriers that keep progress from taking shape.

Key roadblocks:

• Governing blockages: Real estate laws and regulations are slow to adapt, stifling PropTech innovation. Bureaucracy lags behind technology, making modernization an uphill battle.
• Commercial dilemma: Economic instability discourages long-term investments in smart infrastructure. Both the public and private sectors remain hesitant, unsure whether today’s investments will survive tomorrow’s financial turbulence.
• Short-term vision: Türkiye excels at announcing ambitious projects with great enthusiasm, but execution is an afterthought. Poor planning, lack of funding, and fragmented implementation often lead to abandoned or ineffective initiatives.

One of the prominent examples of execution problems is a multi-billion-dollar project: Istanbul Finance Center (IFC) —a multi-billion-dollar project meant to position Istanbul as a global financial hub. It promised cutting-edge infrastructure and financial innovation at its core. Yet, without a proper execution plan, the project now struggles, falling short of its grand ambitions. It’s a glaring example of how big ideas collapse without the right strategy to sustain them.

Even Türkiye’s advanced fiber-optic network—one of the most promising in the region—is underutilized due to weak collaboration between public and private stakeholders. The result? Digital transformation efforts in critical sectors like real estate remain half-baked, unable to deliver their full potential.

If Türkiye truly wants to lead in smart cities and real estate innovation, it’s time to move beyond flashy announcements and start focusing on integration, long-term strategy, and meaningful execution.

A Global view: Where does Türkiye fit in?

The pursuit of savvy real estate and urban transformation has also influenced countries like Singapore and Estonia. While these countries have positively leveraged technology to rationalize bureaucracy and form digital-first governance models, Türkiye is yet to discover its true potential. Dubai has kept a stronger foot with its positioning as an international leader in blockchain-based property transactions. It has made investors feel secure and transparent on a global level.

Türkiye has the potential to follow suit, but potential alone isn’t enough. The key lies in a government and industry leadership committed to long-term execution, integration, and real results—not just ambitious announcements. If Türkiye truly wants to lead in smart real estate and urban development, it must shift from vision to action.

The Verdict: Future worth the bet—if done right

The revolution is here, and the momentum is building. But are we truly on the path to Türkiye’s PropTech and smart city triumph?

The key lies in execution, strong policies, and financial stability. AI-driven cities and blockchain-based transactions can reshape the real estate market, but only if they prioritize accessibility and transparency—serving all citizens, not just as government showcases.

Transforming Türkiye into a global example in real estate and urban innovation requires a combination of sustainable infrastructure, firm economic policies, and monitoring transparency. Otherwise, we will only go in circles with big promises and low impacts.

Having worked in this industry for years, I see the potential—it’s undeniable. Now, it’s time to turn vision into reality. Let’s make it happen!

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ABOUT THE AUTHOR: Sana Majeed is a licensed real estate broker, enterprise sales expert, and analyst with extensive experience working with global corporations. She specializes in market analysis, strategic sales, and high-value property transactions.