A New Era in Foreign Real Estate Investment: The Gulf Effect
How did foreign real estate investments in Türkiye shift during the first half of 2026? Explore the rise of Gulf capital and the investment potential of Istanbul.
Preferences among foreign investors in the Turkish real estate market are shifting. Data from the first six months of 2026 point to notable developments in investor profiles and geographical preferences.
According to research published by EVA Real Estate Appraisal, real estate acquisitions by foreigners in Türkiye during the first half of 2026 declined by 8% in terms of total surface area compared to the same period last year—dropping from 431,439 square meters to 397,256 square meters. Conversely, the number of transactions increased by 4%.
This trend suggests that foreign investors are increasingly gravitating toward smaller properties.
Growing influence of Gulf investors
One of the most striking findings of the research is the growth in investments originating from Gulf countries.
Real estate acquisitions by investors from the Gulf region rose by 109%—from 63,196 square meters in the first half of 2025 to 132,202 square meters during the same period in 2026.
Consequently, the share of Gulf countries in total foreign real estate acquisitions (by surface area) climbed from 15% to 33%.
This development underscores that Türkiye remains a significant destination for capital, particularly from the Middle East.
Istanbul in the Spotlight for Foreign Investors
Istanbul continues to hold the top spot as the preferred destination for foreign investors in the real estate market.
In the city, real estate acquisitions by foreign nationals increased by 29% in terms of surface area, reaching 66,413 square meters. The number of residential properties sold to foreigners also rose by 14.4%, totaling 4,420 units.
Nationwide, the share of residential properties sold to foreigners relative to total sales declined from 1.39% to 1.30%.
In other words, the activity in Istanbul stands apart from the general trend of foreign demand for housing across Turkey.
While Iranian investors lead in the number of transactions in Istanbul, Russian investors remain the leaders in total real estate sales across Turkey. Germany, meanwhile, ranks first in terms of the total surface area acquired.
Where do new opportunities lie in real estate investment?
These data indicate that evaluating the foreign investor market through a single customer profile is no longer sufficient.
In Istanbul, in particular, premium residences, properties with Bosphorus views, high-quality commercial real estate, and assets with the potential for long-term value retention may appeal to distinct groups of investors.
However, it would be inaccurate to interpret the rise in investments from the Gulf region solely as demand for premium real estate. Factors such as investor budgets, location preferences, intended use, and return expectations must be analyzed individually.
In the Turkish real estate market, the competitive advantage in the coming period will not be limited to simply identifying the right property. Success will depend on the ability to present the right asset to the right investor, supported by the right strategy. When working with foreign investors, professional valuation, international marketing and investor relations become the fundamental components of strategic real estate asset management.
Ozkan OZEL
Strategic Real Estate Asset Management
Besiktas / Istanbul
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