Domestic Investors Drive Market Growth as Equity Assets Reach TRY 4.8 Trillion in 2025

Türkiye’s capital markets closed 2025 with strong asset growth, led primarily by domestic investors. According to the 2025 Financial Markets Summary Data released by the Turkish Capital Markets Association (TSPB), domestic investors’ equity holdings expanded by 32.1% year-on-year, reaching nearly TRY 4.8 trillion. The figures highlight a year in which portfolio growth outpaced inflation and signaled a gradual shift in investor behavior toward diversified capital market instruments.

The data, compiled by TSPB using sources from the Central Bank of the Republic of Türkiye (CBRT) and the Central Securities Depository (MKK), offers a comprehensive snapshot of trends among domestic and foreign investors across equities, deposits, bonds, and alternative assets.

Equity Holdings Grow Above Inflation

At the end of 2024, domestic investors’ equity assets stood at TRY 3.61 trillion. By the close of 2025, this figure had risen to TRY 4.76 trillion, reflecting growth slightly above the annual inflation rate of 30.9%. This performance suggests that equities continued to serve as a partial hedge against inflation, despite volatility in Borsa Istanbul throughout the year.

Foreign investors also increased their equity exposure. According to MKK data, foreign equity holdings rose by 28.6%, from TRY 2.11 trillion at the end of 2024 to TRY 2.71 trillion by the end of 2025. As a result, the total equity portfolio value in Türkiye reached TRY 7.47 trillion, with 63.7% held by domestic investors and 36.3% by foreign investors, including shares not in free float.

Domestic Financial Assets Expand by 48%

Beyond equities, domestic investors experienced substantial growth across their overall financial portfolios. TSPB data shows that total domestic financial assets increased by 48% year-on-year, reaching TRY 44.2 trillion by the end of 2025.

One of the most notable developments was in Eurobond investments. Domestic investors’ holdings of private sector Eurobonds surged by 92%, climbing to TRY 1.84 trillion, while government Eurobond holdings rose by 29%, exceeding TRY 2.35 trillion. This sharp increase reflects growing interest in foreign-currency-denominated instruments amid global uncertainty and exchange rate considerations.

Deposits Still Dominate, but Composition Shifts

CBRT data reveal that Turkish lira deposits remained the largest asset class for domestic investors. TL deposit holdings rose by 34%, from TRY 11.65 trillion at the end of 2024 to TRY 15.64 trillion by the end of 2025. In contrast, foreign currency deposit accounts showed limited growth, increasing by just 2% to TRY 5.86 trillion, signaling a relative stabilization in dollarization trends.

Domestic investors also increased their exposure to fixed-income instruments. Holdings of private sector debt securities expanded by 38%, surpassing TRY 457 billion, while government domestic debt securities (GDS) recorded a striking 68% increase, reaching TRY 9.37 trillion.

As a result of these shifts, the share of capital market instruments—including equities, asset-backed securities, covered bonds, Eurobonds, government bonds, warrants, and certificates—within total domestic financial assets rose by 1.5 percentage points, reaching 43.2% by the end of 2025. This increase underscores a gradual but meaningful deepening of Türkiye’s capital markets.

Foreign Investors’ Assets Surpass TRY 5 Trillion

Foreign investors also expanded their footprint in Türkiye’s financial system. According to TSPB’s 2025 summary data, total foreign financial assets grew by 30%, rising from TRY 3.89 trillion at the end of 2024 to TRY 5.05 trillion by the end of 2025.

Within this total, foreign currency deposit accounts increased by 42%, reaching TRY 963 billion, while TL deposits grew more modestly, up 8% to TRY 468.6 billion. The most dramatic growth, however, was recorded in precious metals deposit accounts, where foreign investors’ portfolios surged by 183%, climbing to TRY 118 billion.

Foreign participation in debt instruments also strengthened. Private sector debt security holdings more than doubled, rising by 109% to TRY 26.5 billion, while government domestic debt securities investments increased by 24%, reaching TRY 766.6 billion.

Fund Investors Rise as Equity Investor Numbers Decline

Despite the expansion in asset values, TSPB data indicates a decline in the number of equity investors during 2025. The number of investors with balances in Borsa Istanbul’s equity market fell from 6.84 million at the end of 2024 to 6.50 million by the end of 2025.

In contrast, investment funds managed by portfolio management companies continued to attract new participants. The number of fund investors increased from 5.41 million to 5.67 million over the same period. This divergence suggests that while some retail investors reduced direct equity exposure, many opted for professionally managed collective investment vehicles, reflecting a more cautious and diversified investment approach.

A Market in Transition

Overall, the 2025 data points to a capital market undergoing structural evolution. Asset growth remains robust, domestic investors continue to dominate equity ownership, and both local and foreign participants are increasingly diversifying across asset classes. While investor numbers in equities have softened, the rise in fund participation highlights a shift toward managed solutions rather than a retreat from financial markets altogether.