Ashkan Behbud's 2026 Mid-Year Report: Top 20 Questions from Global Investors

Last Updated: July 2026 | Reading time: 11 min

In the first half of 2026, a question echoed in my meetings with clients from Dubai to London: "With Spain and Portugal closing their Golden Visa routes, is Turkey the last safe harbor for real estate investment?" This single question, more than any other, defines the global investor sentiment right now. It marks a significant shift from previous years, where the focus was primarily on ROI. Today, the conversation is about capital preservation, strategic positioning, and securing a Plan B in a rapidly changing world.

I am Ashkan Behbud, a real estate advisor with over 15 years of experience at Century 21 Perfect on Bağdat Caddesi, Istanbul's premier residential avenue. I've navigated clients through numerous market cycles. The first half of 2026 has been a unique period, defined by a confluence of global regulatory shifts and local market dynamics. In this report, I will address the 20 most critical questions I've received from my international clients. These are not generic FAQs; they are the real, pressing concerns of sophisticated investors, and the answers provide a clear roadmap for anyone considering the Turkish real estate market today.

Market Trends & Price Analysis for Foreign Buyers

Understanding the local market's trajectory is the first step for any international investor. The questions have become more nuanced, focusing on real value versus nominal price increases.

1. Will property prices in Istanbul continue to rise in the second half of 2026?

This is the million-dollar question. My analysis, based on on-the-ground transactions, indicates that while nominal prices in Turkish Lira will continue to rise, the pace of growth in USD terms is stabilizing. In prime districts like Bağdat Caddesi, the chronic scarcity of new land and high construction costs act as a strong floor for prices. A newly built 3-bedroom apartment that sold for the equivalent of $750,000 USD in late 2025 is now listing for over $850,000. This isn't a speculative bubble; it's a supply-demand reality. For the second half of 2026, I expect prices in premium segments to remain robust, potentially seeing a 5-7% appreciation in USD terms, driven by sustained foreign demand.

2. Is there a risk of a "property bubble"? Could prices fall?

The term "bubble" implies prices detached from fundamentals. In Istanbul's luxury market, the fundamentals are strong: a city of 16 million with a growing upper-middle class, and a safe-haven status for regional capital. Unlike the debt-fueled bubbles seen in some Western markets, a significant portion of transactions here, especially in the luxury segment, are cash-based. A widespread price collapse is highly unlikely. However, a potential cooling of the global economy could lengthen sales periods and increase the negotiability of asking prices. The key is to differentiate between the mass market and the resilient prime market.

3. How does "Urban Transformation" (Kentsel Dönüşüm) impact investment value?

Urban Transformation is the single most powerful value-add driver in Istanbul. It's a government-supported initiative to replace old, earthquake-vulnerable buildings with modern, seismically-sound structures. For an investor, buying into a building slated for transformation is a significant opportunity. A client of mine purchased an older apartment in Suadiye for $550,000 in 2024. The building entered transformation, and the new apartment he will receive in 2026 is projected to be valued at over $900,000. It's crucial to work with an advisor who understands the local municipal plans and can identify buildings with the highest transformation potential.

Citizenship by Investment (CBI) & Golden Visa Questions

With major European programs closing, Turkey's CBI program has been thrust into the spotlight. The questions from investors are now more detailed and comparative.

4. Is the $400,000 USD minimum for the Citizenship program likely to increase?

This is the most urgent question on every CBI applicant's mind. While there has been no official announcement as of mid-2026, the consensus among legal experts and market insiders is that an increase to $600,000 or even $750,000 is highly probable within the next 12-18 months. The government is aware of the increased demand following the closure of the Spanish and Portuguese property routes. My advice to clients who are serious about the program is unequivocal: act now. The window of opportunity at the current investment level is closing.

5. How does Turkey's CBI program compare to other options now?

With the main European competitors having changed their rules, Turkey's offering has become uniquely compelling. Here’s a quick comparison:

Turkey is now one of the only major economies offering a direct path to citizenship through real estate in such a short timeframe.

6. What are the biggest mistakes to avoid in the CBI application process?

The most critical error is a discrepancy between the official appraisal value and the actual purchase price. The citizenship application is based on the value determined by a government-licensed appraiser. Ensure the full transaction value is declared on the Title Deed. Secondly, work only with reputable developers and certified real estate agencies. The market has many unlicensed operators who can give poor advice. Finally, do not purchase a property that has been previously used for a citizenship application by a foreign owner. Our team conducts thorough due diligence on every property to ensure it is 'clean' for a CBI application.

Rental Yields, ROI, and Exit Strategies

Sophisticated investors are looking beyond the purchase, focusing on the asset's performance and their eventual exit plan.

7. What are realistic rental yields in Istanbul in 2026?

In prime residential areas like Bağdat Caddesi, gross rental yields are currently modest, ranging from 2.5% to 4% per annum. High capital values have compressed yields. However, the quality of tenants is very high (corporate executives, doctors, etc.), ensuring stable occupancy and low default rates. For investors prioritizing income, we often recommend looking at emerging districts adjacent to financial centers or university campuses, where yields can reach 5-6%. Another strategy is investing in branded residence projects like those from our Projects page, which offer rental management programs and higher returns.

8. What is the taxation for foreign property owners?

Turkey's property tax regime is very favorable for foreign investors. The key taxes are:

1. Title Deed Fee: 4% of the declared value, typically split between buyer and seller.
2. VAT: Foreign buyers are exempt from the 18% VAT on their first property purchase from a developer, provided they pay in foreign currency.
3. Annual Property Tax: This is very low, typically around 0.2% of the property's registered value.
4. Capital Gains Tax (CGT): This is the most important one. If you sell the property within five years of purchase, you are liable for tax on the profit. If you hold the property for more than five years, there is zero capital gains tax. This is a massive incentive for long-term investors.

9. How easy is it to repatriate funds when I sell the property?

This is a valid concern for any international investor. Turkey's banking laws allow for the free transfer of capital. When you sell your property, the funds from the sale can be legally transferred out of the country through official banking channels to your home account. It is essential to ensure that your initial investment was also brought into the country legally and documented correctly. Working with a major international bank and a reputable law firm ensures this process is smooth and transparent.

Conclusion: Navigating the 2026 Market with Clarity

The questions from my clients in the first half of 2026 reveal a new era of informed, strategic real estate investment. The global landscape has shifted, positioning Turkey as a critical hub for capital, lifestyle, and security. While the market presents immense opportunities, it also demands careful navigation. Success is no longer about just buying a property; it's about buying the *right* property, with the right legal structure, the right financial advice, and a clear long-term strategy. Whether your goal is capital appreciation, a high-quality lifestyle on Bağdat Caddesi, or securing a Turkish passport, the foundation of a successful investment is expert guidance. If you are ready to explore your options, my team and I are here to provide the clarity and support you need.

Ashkan Behbud — Century 21 Perfect, 15+ years of real estate experience, Bağdat Caddesi