$16M mansion, $535K home spark debate: Is Türkiye facing a real estate bubble?
The $15.52 million seaside mansion in Izmir (left) and a luxury residential project in Cekmekoy, Istanbul, where an apartment is listed for $535K (right). (Photo combination by Türkiye Today)
As Türkiye’s real estate market remains a hot topic, particularly due to soaring property prices, recent luxury home listings have reignited discussions among Turkish social media users about a potential real estate bubble.
A villa in Seferihisar, Izmir, has been listed for ₺564.3 million ($15.52 million), while an unfinished luxury residence apartment in Cekmekoy, Istanbul, is on the market for ₺19.43 million. The listings, featured on the popular Turkish social networking platform eksisozluk.com, have sparked debate over whether property values in the country are becoming inflated.
Many users argued that prices are overvalued, citing various economic concerns such as high inflation and disproportionate real estate market trends.
A seaside mansion competing with US prices
The mansion in Izmir put up for sale, boasts nine rooms, including six bedrooms, along with amenities such as indoor and outdoor parking, a prime seafront location, a 2,367-square-meter (25,478 square feet) living space, and a total land area of 4,730 square meters. It is equipped with a smart home management system and luxury furnishings.
The ground floor of the mansion features a grand entrance, a spacious living room with a gallery ceiling, a dining area with a bar, a breakfast room opening to a garden terrace, a closed island-style kitchen, and a technical room with advanced security systems.
Additional facilities include a private cinema, a TV and game room, a Turkish bath, a steam room, a relaxation area, and two en-suite guest bedrooms with balconies and dressing rooms, as well as two en-suite staff bedrooms.
The listing, available in Turkish, English, and Russian, appears to target foreign investors. However, interest from foreign buyers in Türkiye has declined in recent years, as house sales to non-residents fell by 32.1% in 2024 compared to the previous year, dropping from 35,005 to 23,781 units.
According to real estate listings in other countries, such as the U.S., many similar mansions are listed at similar prices, further fueling the debate.
‘Best residential project in Istanbul’
Meanwhile, the unfinished Istanbul residence apartment, though more modest in comparison, features three rooms, a kitchen, two bathrooms, one balcony, and spans 167 square meters.
The project includes a 137,000-square-meter private green area, a hospital, and a school within its premises. Additionally, it offers easy access to metro lines and highways, making it a short drive from Istanbul’s city center and the renowned Sile beach.
The project has been mainly criticized for its price, as well as concerns about the safety of the surrounding environment, as it is located near one of Istanbul’s largest natural parks, the Polonezkoy forest.
Speaking to Türkiye Today, one of the representatives from the project’s real estate agent firm Investra undermined the critiques, remarking the project is among the best residential projects in Istanbul. He argued that several key factors contribute to its premium valuation.
One of the main selling points of the project is its location—situated in an isolated yet central part of the city, it offers both privacy and convenience, the agent said. He argued that, unlike many urban developments that suffer from congestion and a lack of green space, this project is designed to provide a more tranquil environment while still ensuring easy access to key parts of the city.
Another standout feature is the on-site hospital, a rare addition to residential projects. The agent firm asserted that having a health care facility within the complex adds significant value, particularly for families and elderly residents who prioritize immediate access to medical services.
The project is also being marketed as one of the best developments by the Turkish Real Estate Investment Company (Emlak Konut), Türkiye’s state-owned largest real estate investment company. Given Emlak Konut’s strong reputation for high-end, government-backed projects, the real estate firm expressed their belief this branding alone boosts demand and raises price expectations.
Additionally, the real estate agent emphasized the strong demand for units in the project, with many buyers showing keen interest despite concerns over pricing. The influx of inquiries and reservations, he argued, reflects the project’s unique value proposition in an increasingly competitive real estate market.
However, he cautioned that this demand is not without its flaws, as some customers are taking on significant debt to secure a unit.
“Some potential buyers have even abandoned their ongoing residential projects by handing them over at lower prices, taking on high-interest mortgages to secure a unit in here,” he explained, describing the current demand boom for the project.
The agent also dismissed criticisms regarding environmental harm, emphasizing that the project area was already a residential zone before construction and had previously been used as a military base.
‘There is no real estate bubble, won’t be’
According to the Organisation for Economic Co-operation and Development (OECD), Türkiye is the leading country in the house price index, which indicates house price inflation in the countries, among all countries in 2024 in both real and nominal terms.
Responding to concerns about a “real estate bubble,” the real estate firm representative firmly rejected the notion of overvaluation in Türkiye’s residential sector, particularly in Istanbul.
Expressing the reasons behind the exponential rise in housing prices, the agent pointed to several key factors impacting the market. He cited substantial risks associated with currency fluctuations in recent years, high inflation, rising land and material costs, and soaring interest rates on bank loans, all of which have significantly affected both buyers and developers.
Additionally, he highlighted a significant supply imbalance caused by these factors, noting that new residential developments are not expanding into central urban areas where demand is highest but rather into less desirable locations, leading to a mismatch between supply and demand. As a result, prospective homeowners and investors are finding fewer options in prime locations, further intensifying competition for existing properties.
Furthermore, he emphasized that high construction costs have made it increasingly difficult for developers to undertake projects within city centers. Many contractors who wish to build in prime locations are unable to do so due to soaring costs, forcing them to either abandon potential projects or shift their focus to more affordable but less sought-after areas.
This trend, he argued, has further exacerbated price increases in central locations, as the limited supply continues to drive up demand and create affordability challenges for many buyers.
With the ongoing situation of higher risks and increasing demand amid limited housing supply, he warned that this trend is unlikely to end, continuously driving prices higher.
“I honestly don’t know if it will ever come to an end,” he concluded.
