On 11 September 2025, the Central Bank of Türkiye (TCMB) surprised markets by cutting the policy rate by 250 basis points to 40.5%.
This larger-than-expected move has already sparked debate regarding its impact on the economy, investment flows, and most importantly, real estate.

Why Did the Central Bank Cut Rates?

The government’s strategy is clear: stimulate economic activity by lowering borrowing costs.

Cheaper credit enables businesses to expand more easily.

Lower loan rates make it easier for individuals to access mortgages, especially in sectors like construction and property.

This isn’t new — in previous cycles of falling interest rates, Turkish buyers flocked into the property market, triggering strong price growth across major cities.

How It Affects Real Estate

What does this mean for investors and buyers today?

Cheaper borrowing: Reduced rates lower mortgage expenses, enabling more Turkish families to buy homes.

Stronger demand: Domestic buyers tend to spark momentum, which foreign investors are usually quick to follow.

Rising prices: More buyers chasing limited supply — particularly in hotspots like Istanbul, Antalya, and Bodrum — will likely push property values higher.

Safe haven effect: Turkish real estate has historically been a reliable store of value in times of financial uncertainty.

The Bigger Picture

Foreign investors already view Türkiye as a prime destination for:

Lifestyle appeal and cultural richness

Strong rental yields, particularly in major urban and coastal areas

Access to citizenship by investment programs

With interest rates now lower, these factors are expected to accelerate investment flows and push property prices even higher in the coming months.

Is Now the Time to Invest?

History suggests a familiar pattern:

Turkish buyers re-enter the market first.

Foreign investors follow quickly behind.

Demand from both sides drives prices upward.

For those still waiting, this may be the right moment to act — before the next surge in demand makes the marketplace more competitive and property values rise further.

Conclusion

The Central Bank’s recent rate cut signals the beginning of a new cycle for Türkiye’s real estate market.

For both domestic and international investors, the message is clear:
Opportunity comes early in the wave.

Turkish property remains one of the safest, most resilient, and most rewarding long-term investments available today.