Why Investing in Land Instead of Real Estate in Turkey Offers Higher Returns in 2025

As of February 2025, Turkey remains a powerhouse in the global real estate market, attracting investors with its strategic location, economic growth, and vibrant urban centers. While residential and commercial properties in Turkey offer solid opportunities, investing in land can provide even higher returns, especially for those with a long-term vision. Land investment in Turkey presents unique advantages over traditional real estate, driven by affordability, appreciation potential, and fewer immediate financial commitments. Here’s why choosing land over real estate in Turkey could lead to superior returns.

1. Lower Initial Investment and Higher Appreciation Potential

One of the most compelling reasons to invest in land rather than real estate in Turkey is its affordability. While prime residential or commercial properties in cities like Istanbul, Ankara, or Antalya can command high prices—often starting in the hundreds of thousands or millions of dollars—undeveloped land, particularly in rural or semi-urban areas, is significantly cheaper. For example, agricultural or coastal land in regions like Anatolia, the Aegean, or Mediterranean coasts can be acquired at a fraction of the cost of a finished property. This lower entry price allows investors to allocate capital more efficiently, purchasing larger parcels with the potential for substantial appreciation as demand and development increase.

Land values in Turkey have historically risen sharply due to urbanization, infrastructure projects, and tourism growth. Unlike real estate, where construction costs, maintenance, and market saturation can limit returns, land can appreciate exponentially when rezoned for residential, commercial, or industrial use or when nearby infrastructure enhances its value. Over time, the price difference between land and developed real estate narrows, delivering outsized returns for early investors.

2. Flexibility for Future Development

Investing in land offers unparalleled flexibility compared to purchasing existing real estate. With land, investors have the freedom to decide when, how, and what to develop, tailoring projects to market demand and maximizing profitability. For instance, land in areas near Istanbul Airport, Canal Istanbul, or high-speed rail networks can be held until urban expansion creates opportunities for residential complexes, shopping centers, or hotels. This control allows investors to avoid the risks of buying an outdated or poorly located property, which may require expensive renovations or struggle to attract tenants.

In contrast, real estate investments often come with immediate obligations, such as maintenance, utilities, and property management, which can erode returns, especially if the property underperforms. Land, on the other hand, requires minimal upkeep and no immediate operational costs, preserving capital for future development or resale at a higher value.

3. Avoiding Market Saturation and Maintenance Costs

Turkey’s real estate market, particularly in major cities, has seen rapid development in recent years, leading to an oversupply of residential and commercial properties in some areas. This saturation can depress property prices, increase competition among landlords, and reduce rental yields or resale values. For example, certain districts in Istanbul or Antalya have seen an influx of new apartment complexes, diluting demand and pressuring prices downward.

Land investment sidesteps these risks by focusing on undeveloped areas with untapped potential. Since land doesn’t require maintenance, renovations, or tenant management, investors avoid the ongoing costs associated with real estate ownership. Instead, they can wait for market conditions to improve—such as infrastructure upgrades or zoning changes—before developing or selling, ensuring higher returns without the burden of operational expenses.

4. Strategic Location and Infrastructure Growth

Turkey’s ambitious infrastructure projects, including the Istanbul Airport, third Bosphorus bridge, Marmaray rail system, and Canal Istanbul, are transforming the country’s landscape and driving land values upward. Land near these developments often sees exponential appreciation as accessibility improves and urban expansion follows. For instance, agricultural or rural land in regions like Başakşehir, Esenyurt, or along the İzmir-Aydın highway has become prime real estate due to proximity to major transport hubs and planned urban centers.

While real estate in these areas may already reflect high prices due to completed developments, land offers a chance to capitalize on future growth at a lower initial cost. Investors can acquire land today in anticipation of zoning changes, population influx, or tourism development, positioning themselves for significant gains as the market catches up.

5. Booming Tourism and Agricultural Opportunities

Turkey’s tourism sector, which welcomed over 50 million visitors in 2024, creates massive demand for land in coastal and historical regions like Antalya, Bodrum, Çeşme, and Cappadocia. Undeveloped land in these areas can be transformed into resorts, vacation homes, or eco-tourism projects, tapping into the country’s natural beauty and cultural heritage. Unlike real estate, where existing properties may not meet modern tourism standards or require costly upgrades, land allows investors to design bespoke developments tailored to market needs, maximizing returns.

Additionally, Turkey’s rich agricultural land in Anatolia, the Aegean, and Southeastern regions presents another high-return opportunity. As global demand for sustainable agriculture, organic produce, and food security rises, investing in fertile land can yield both financial returns and long-term stability. Some agricultural land can also be rezoned for urban or commercial use, unlocking even greater value as cities expand, an option less available with existing real estate.

6. Government Incentives Favoring Land Investment

The Turkish government actively encourages real estate investment through policies like the Citizenship by Investment Program, which allows foreign investors to gain Turkish citizenship by purchasing property or land worth at least $400,000. While the program traditionally focuses on developed properties, land in designated development zones or strategic areas can qualify, offering a pathway to citizenship with higher potential returns. Tax incentives and relaxed foreign ownership regulations further enhance land investment opportunities, making it more attractive than real estate, which often comes with higher transaction taxes and maintenance costs.

7. Protection Against Inflation and Currency Volatility

Turkey’s economy, while growing rapidly, has experienced currency volatility and inflation in recent years. Investing in land provides a hedge against these economic challenges, as land is a tangible asset with intrinsic value that tends to appreciate over time, even during periods of market instability. Unlike real estate, which requires ongoing investment in maintenance and utilities, land can be held without immediate financial strain, preserving capital while benefiting from long-term value growth.

For foreign investors, purchasing land in Turkish lira during periods of currency depreciation can further increase returns when converted back to dollars or euros. This dynamic makes land a more resilient investment compared to real estate, which may face higher operational costs or reduced demand during economic downturns.

8. Diversification and Long-Term Wealth Creation

Land investment offers diversification for portfolios dominated by stocks, bonds, or urban properties. As a tangible asset, land is less susceptible to market volatility than other investments and provides a stable foundation for long-term wealth creation. In Turkey, land ownership allows investors to benefit from natural appreciation, driven by urbanization, tourism, and infrastructure development, without the immediate risks or costs associated with real estate.

While real estate can generate rental income, it also comes with tenant management, property taxes, and maintenance challenges that can erode profits. Land, conversely, requires minimal oversight and can be developed or sold at a higher value when market conditions are optimal, offering greater control and potential for outsized returns.

Considerations for Investing in Land Over Real Estate

While land offers higher return potential, it requires careful planning and patience. Investors should consider the following:

Due Diligence: Research zoning laws, title deeds, and development plans to ensure the land’s potential aligns with your goals. Work with local legal and real estate experts to navigate regulations and avoid disputes.

Location Analysis: Focus on areas with planned infrastructure, population growth, or tourism potential, such as coastal regions, urban outskirts, or areas near mega-projects.

Time Horizon: Land investment often requires a longer holding period than real estate, as returns depend on appreciation or development. Be prepared for delayed liquidity compared to buying and selling finished properties.

Market Trends: Monitor Turkey’s real estate market, economic conditions, and government policies to time your investment effectively.

Investing in land instead of real estate in Turkey in 2025 offers the potential for higher returns, driven by lower initial costs, flexibility for future development, and significant appreciation potential. With Turkey’s strategic location, rapid urbanization, booming tourism, and government incentives, land in regions like Istanbul, Antalya, and Anatolia presents a lucrative opportunity for savvy investors. While real estate provides immediate rental income, it often comes with higher risks, maintenance costs, and market saturation. Land, on the other hand, allows investors to capitalize on Turkey’s growth trajectory with minimal upfront expenses and maximum long-term value, making it a superior choice for those seeking outsized returns in one of the world’s most dynamic markets.