Turkish residents reduced their overseas property spending by 26% between March and May, while foreign investment in Türkiye’s real estate market increased by 28.3% over the same period.
According to balance of payments data from the Central Bank of the Republic of Türkiye, Turkish residents spent $517 million on property abroad during the three-month period. Foreign residents, meanwhile, invested $590 million in real estate in Türkiye.
The figures represent cross-border property payments rather than the number of homes sold.
Overseas property spending falls after strong start
Turkish demand for overseas property had reached record levels before the decline.
Residents spent $2.68 billion on real estate abroad in 2025, the highest annual total recorded. The upward trend continued into early 2026, with payments rising to $208 million in January and $225 million in February.
Spending began to fall after the conflict involving Iran, Israel and the United States expanded across the Gulf region in late February.
Payments for overseas property declined to $187 million in March and remained at the same level in April. In May, spending fell to $143 million, marking a 40% annual decline and the lowest monthly level in 29 months.
The three-month total was 26% lower than during the same period of the previous year.
Foreign property investment in Türkiye increases
Foreign investment in Türkiye moved in the opposite direction.
Non-residents spent $242 million on Turkish real estate in March, an annual increase of 62.4%. Payments reached $164 million in April and $184 million in May.
The total for the March-May period rose to $590 million, up 28.3% from a year earlier.
Bayram Tekçe, president of the Real Estate Service Exporters Association, said Dubai and Greece had been among the most popular overseas markets for Turkish buyers.
According to Tekçe, the escalation of security risks in the Gulf sharply reduced Turkish demand for property in Dubai. Political tensions with Greece also weakened investor interest in the country, he added.
Tekçe attributed the increase in foreign investment in Türkiye partly to stronger demand from Russian buyers and improvements in administrative procedures.
Investors wait for uncertainty to ease
International property specialist Burak Ustaoğlu said the decline did not indicate that Turkish investors had abandoned their overseas plans.
Instead, he argued, buyers had become more cautious and were waiting for geopolitical uncertainty to ease. The change was particularly visible in Dubai, which had attracted strong interest from Turkish investors before the conflict.
Türkiye’s domestic market has also become more competitive. Slower local demand has encouraged some developers to offer completed and immediately available properties at lower prices.
Ustaoğlu said housing prices in Türkiye remained attractive in foreign-currency terms compared with many international markets. He added that interest had recently increased among investors from Gulf countries, Russia, Azerbaijan and Kazakhstan.
The latest figures show a clear shift in cross-border property flows following the escalation in the Gulf. However, geopolitical risk is unlikely to be the only factor. Exchange rates, financing conditions, regulation and seasonal trends may also have influenced investment decisions.