Investing in Dubai from Turkey

For decades, real estate has been a core investment avenue in Turkey. However, with rising economic uncertainty and declining returns in the domestic market, many Turkish investors are now looking abroad for stronger opportunities.

Dubai has emerged as a prime destination, offering high capital appreciation, strong rental yields, and a stable investment environment. With a track record of resilience and investor-friendly policies, the emirate is increasingly attracting Turkish buyers seeking both wealth protection and long-term growth.

Hyperinflation continues to overshadow Turkey’s real estate market, with high interest rates and low real returns making property investment less attractive to both local and foreign buyers. As a result, sales to foreign investors declined by 37% between January and October.

Turkey’s inflation remains among the highest in the world. In February 2025, nationwide inflation stood at almost 40% - down from 42.12% in January and 67.07% a year earlier - and is largely attributed to easing price pressures in clothing and healthcare, according to TurkStat. However, inflation hit a record high of 75.45% in May 2024, demonstrating ongoing volatility.

On the surface, capital appreciation in Turkish real estate appears strong, with nationwide residential property prices rising by 32% YoY in January 2025 (according to the Central Bank of the Republic of Turkey), following 29.43% in 2024, 83.14% in 2023, and 151.88% in 2022. Yet, when adjusted for inflation, property prices actually fell by 7.16% YoY in January 2025, meaning investors are seeing diminishing real returns.

With ongoing currency depreciation, eroding asset values, and higher borrowing costs, Turkish investors are increasingly looking abroad for stable, high-yielding markets.