Turkey emerging as Safe Haven amid Global Market Volatility
By: Cameron Deggin
In a week marked by rising geopolitical tension and market unease, the Trump Administration confirmed plans to proceed with new tariffs on Chinese imports, some reaching as high as 104%. The White House insists these measures have been implemented to protect domestic industries, but analysts warn of a new wave of international economic division.
Financial markets responded quickly. Stock markets dipped sharply across Asia and the US, while US Treasury yields fell to multi-week lows as investors moved money into safer assets – signalling rumours of future Federal Reserve rate cuts. The New York Times highlighted growing fears of retaliation from Beijing, with Chinese Premier Li Qiang stating that China is "fully equipped to neutralise external shocks."
Amid uncertainty, investors are beginning to look elsewhere, and a shift is quietly underway: emerging markets like Turkey are being re-evaluated through a new, more favourable lens.
Why Turkey is Gaining Ground amid Global Instability
Risk is always relative, and today, the risks associated with traditionally “safe” and developed economies are increasing. Slow growth in Europe, a divided political landscape in the US, and unstable relations between superpower nations are impacting investor confidence in a negative manner. In contrast, Turkey, long viewed as a high-risk, high-reward investment, suddenly looks like a calculated and strategic opportunity.
Turkey’s Central Bank, under new economic leadership, has committed to a policy of fiscal discipline and orthodox monetary reform, resulting in praise from the IMF. Inflation is on a controlled downward trajectory. According to the Turkish Statistical Institute, annual inflation fell from over 65% in mid-2023 to 38% by April 2025. Fitch Ratings, in a March 2025 report, revised Turkey’s outlook from “negative” to “stable”, noting a "credible commitment to macroeconomic rebalancing."
While financial markets have always been volatile, real estate offers something increasingly rare: tangible value. At Property Turkey, we are seeing a significant increase in real estate interest from global investors, particularly from Europe, the Middle East, and North America. Property in places like Istanbul, Bodrum, Izmir, and Antalya provides a combination of:
- Undervalued assets compared to Western markets.
- High rental yields with Istanbul averaging 5 – 7% in central districts.
- Solid infrastructure including airports, hospitals, universities, transport.
- Appealing lifestyle factors attracting retirees, remote workers, and families.
Istanbul: Turkey’s economic and cultural capital, Istanbul offers a dynamic real estate market supported by high demand, limited central inventory, and strong international interest. Rental yields range from 5 – 7% in areas like Beyoglu, Besiktas, Sisli, and Kadikoy. Istanbul is also a tech and finance hub, attracting expats and business professionals. According to data, property prices in Istanbul increased by 31% in real terms in 2024. SUGGESTED PROPERTIES: SENSE SISLI AND SENSE LEVENT.
Izmir: Often named as Turkey’s most liveable city, Izmir is known for its relaxed lifestyle, coastal charm, and modern infrastructure. It has a growing population of local professionals, students, and expats. Property prices are more affordable than Istanbul, providing excellent potential for long-term capital appreciation. Izmir’s urban transformation projects and efficient public transport system add to its appeal.
Bodrum:Bodrum is an established favourite among international buyers, celebrities, and lifestyle investors. In 2024, Bodrum welcomed over one million visitors, stimulating strong seasonal rental demand, particularly in areas like Yalikavak, Bodrum Town, and Gumusluk where yields can average between 5% and 7%. Bodrum is ideal for those looking to balance return on investment with a premium coastal lifestyle. SUGGESTED PROPERTIES: BODRUM U HOUSE AND BODRUM L HOUSE.
Antalya: One of the top tourism hotspots in Europe, Antalya combines Mediterranean living with strong investment potential. In 2024, Antalya welcomed over 16 million tourists, setting a new record. This demand has converted into 90%+ occupancy rates for short-term rentals. With rising numbers of foreign property buyers and retirees, Antalya is a favourite for those seeking strong returns and a high-quality lifestyle.
Bursa: Just a two-hour drive from Istanbul, Bursa offers affordable housing options, historical charm, and growing industrial zones. Bursa is a hub for Turkish car manufacturing and green technology. As the government in Turkey invests in new infrastructure and an inter-city rail line, Bursa is fast-becoming a strong contender for mid-to-long-term capital appreciation and investment.
Turkey vs Other Emerging Markets
Investors looking to diversify often compare Turkey with other emerging market economies such as Brazil, Thailand, South Africa, India, Argentina, or Indonesia. While each has distinct advantages, Turkey presents a unique proposition for capital appreciation and strategic asset allocation.
Political and Economic Stability: Compared to many emerging economies, Turkey has made significant progress towards macroeconomic stability. Under new fiscal leadership, monetary tightening, and a commitment to orthodox economic policies, Turkey's reform trajectory is more defined than countries like Argentina.
Accessibility and Global Connectivity: Turkey’s customs union with the EU allows for duty-free access to one of the world’s largest consumer markets. In contrast, Brazil’s trade and South Africa’s infrastructure limit ease of doing business. Turkey is home to three of Europe’s busiest airports, with Istanbul serving as a hub between Europe, Asia, and Africa.
Infrastructure and Urban Growth: Turkey has invested in infrastructure, with over $150 billion spent on new roads, airports, hospitals, and metro systems over the past two decades. While Indonesia and India are improving infrastructure, project delivery is often slow. Istanbul now rivals major cities in terms of lifestyle quality, transport efficiency, and services.
Real Estate Affordability and ROI: In Istanbul, rental yields range from 5% to 7%, often outperforming comparable cities in Brazil, Thailand, or South Africa. Turkey’s Citizenship by Investment Programme (CBI) has been a resounding success for attracting global investors and CBI is something that is not offered in many other emerging markets.
Demographics and Innovation: Turkey’s population is young, with a median age of 33 and strong digital knowledge. As such, Turkey is gaining recognition as a tech and start-up hub. Unicorns like Trendyol and Peak Games put Istanbul on the map for venture capital. While India dominate IT services, Turkey's ecosystem is integrated into European markets, making it attractive for start-ups.
Is Turkey a Safe Investment in 2025?
If safe means overvalued, sluggish, and hyper-regulated, Western markets are certainly safe. But if you define safety as strong fundamentals in place, lots of room for growth, and favourable timing, then Turkey undeniably stands out.
According to the World Bank, Turkey's economy is forecast to grow by 3.2% in 2025, beating many EU economies. The Central Bank’s inflation targeting, fiscal tightening, and rebuilding of foreign reserves indicates a wider shift towards long-term stability.
An IMF analyst quoted by Bloomberg, said: "Turkey is not without challenges, but the current trajectory suggests real commitment to reform, which the markets are starting to believe."
Make the Most of this Emerging Trend
Risk that once deterred large international investors is reducing, not because Turkey has changed overnight, but because the global picture has. Investments in growing cities like Istanbul, Izmir, and Antalya are not just about lifestyle, they’re becoming strategic plays in globally diversified portfolios.
“At Property Turkey, we’re helping global investors rethink their portfolios, whether that’s for lifestyle relocation, yield-driven investment, or long-term capital appreciation. The world is changing and for those who understand timing and value, this is a window of opportunity.”
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