Turkey’s Rental Shock: Why Investors Are Fleeing Big Cities for Anatolia

Turkey’s rental market continues its rapid climb, and the latest data shows that the country’s property investment dynamics are shifting in striking ways. According to Endeksa’s October 2025 report, the average monthly rent across Turkey has risen to 24,923 TL, pushing rental yields and amortization periods back into the spotlight for investors seeking reliable returns. Nationwide, the gross annual rental yield stands at 7.57%, and the average payback period for a home is calculated at 13 years, a benchmark still considered attractive in today’s high-cost environment.

While rents rise across major metropolitan areas, the real surprise comes from mid-sized Anatolian cities. These smaller urban markets now dominate Turkey’s rental-yield rankings—outperforming many of the country’s high-demand metropolitan centers.

Turkey continues to experience vigorous nationwide housing activity as well. According to TÜİK, 164,306 homes were sold in October, an increase of roughly 14,000 units compared with the previous month. A significant portion of these transactions was made for investment purposes, further emphasizing rental-yield performance and amortization potential.

As investors weigh the rising cost of properties against potential income, new data confirms a noteworthy trend: high rental yields are increasingly found outside the major cities.

Where Rental Yields Are Highest: Small Cities Dominate the Top of the List

Endeksa’s ranking of rental-yield performance shows a clear winner: Anatolian cities. Except for three major metropolitan areas, the top 15 cities with the highest rental returns are primarily mid-sized, non-metropolitan provinces. These cities offer lower purchase prices relative to rent levels, creating stronger yield opportunities compared with more expensive urban centers.

The top-yield cities are:

• Kırıkkale: 2,583,490 TL – 9.01%

• Ankara: 4,219,670 TL – 8.90%

• Kars: 2,347,259 TL – 8.76%

• Karaman: 3,216,510 TL – 8.57%

• Artvin: 3,423,060 TL – 8.45%

• Şanlıurfa: 3,313,920 TL – 8.18%

• Kütahya: 3,121,316 TL – 8.18%

• Muş: 3,306,460 TL – 8.17%

• Tekirdağ: 3,495,240 TL – 8.12%

• Kilis: 1,921,800 TL – 8.11%

• Bilecik: 3,299,790 TL – 8.07%

• Yozgat: 3,093,120 TL – 7.96%

• Bingöl: 3,525,665 TL – 7.81%

• Edirne: 4,241,598 TL – 7.76%

• Ağrı: 3,117,280 TL – 7.74%

The dominance of small cities in this list highlights a structural trend: lower entry prices combined with rising local rental demand are creating powerful yield pockets far from Turkey’s largest metropolitan markets.

Kilis stands out in particular. With an average home price below 2 million TL, it offers the most affordable entry point among the top 15. Meanwhile, Ankara, with an average price exceeding 4.2 million TL, is one of the few large cities to match smaller provinces in rental-yield performance.

Turkey’s Average Rent Nears 25,000 TL

Nationwide, the rental market continues to tighten. As of October 2025:

• Average rent: 24,923 TL

• Gross annual rental yield: 7.57%

• Average amortization period: 13 years

This means that, despite rising prices, real estate remains a viable investment for many households—especially in regions where both purchase prices and rents are in balance.

The Istanbul Exception: Low Rental Yield, High Long-Term Gains

Despite being the epicenter of Turkey’s real estate market, Istanbul does not appear in the top 15 rental-yield list. The city’s high housing prices significantly reduce yield potential, even though it remains a strong capital-appreciation market.

Key Istanbul metrics:

• Average home price: 6,290,000 TL

• Annual rental yield: 7.32%

• Annual value appreciation: nearly 40%, among the highest in Turkey

This positions Istanbul as a long-term capital-gain market, rather than a strong performer in year-to-year rental income.

Rising Interest in Small Cities Signals a Broader Shift

The data suggests a growing phenomenon: as affordability tightens in major urban centers, investors are turning toward smaller provinces with healthier yield structures. These markets offer:

• Lower purchase prices

• Strong local rental demand

• Higher yield potential

• Faster amortization periods

With average yields stabilizing and rents climbing, Turkey’s real estate investment map is shifting, favoring regions that previously attracted far less national attention.