WANA (Nov 22) – The latest report from the Turkish Statistical Institute (TÜİK) shows that Iranians continue to rank among the most active foreign buyers in Turkey’s housing market. According to the data, Iranian citizens purchased 202 residential units in September 2025, placing them second among foreign buyers. Russians topped the list with 267 units, while Iraqis ranked third with 146 units.

 

These figures come as total property sales to foreign nationals fell to 1,867 units in September, marking a 7.7% decline compared to the same month last year. From January to September, sales to foreign buyers dropped 12.6% to 14,944 units. Istanbul, Antalya and Mersin accounted for the largest shares of these transactions.

Capital Flight: A Cycle That Fuels Instability

Economist Vahid Shaghaghi-Shahri explains that the surge in property purchases by Iranians in Turkey reflects broader concerns around political and economic uncertainty inside Iran. He notes that whenever a country’s economic outlook becomes unclear, both investors and ordinary citizens tend to move their assets abroad.

 

“Capital flight can itself become a driver of further instability,” he says. “When it exceeds a certain threshold, it leads to a capital account deficit, pressure on the currency market, exchange-rate shocks and inflation—creating a vicious cycle that feeds on itself.”

 

Shaghaghi-Shahri highlights two main factors behind the growing sense of insecurity among Iranian investors:

 

  1. Sanctions and domestic political-economic instability
  2. The worsening water crisis and land subsidence in major cities such as Tehran, Mashhad and Isfahan

 

These issues, he argues, undermine confidence in the long-term security of real estate investments inside Iran. In contrast, Turkey—with its more stable climatic conditions and lower exposure to environmental crises—is increasingly viewed as a safer destination for property investment.

Economic Consequences for Iran’s Housing Sector

Many analysts warn that the outward flow of Iranian capital into foreign real estate markets could have significant negative effects on Iran’s economy. Shaghaghi-Shahri notes that the construction and housing sector is traditionally one of the key engines of economic growth and employment. A shift in investment away from domestic housing weakens this engine, deepening the supply–demand gap, exacerbating price pressures and intensifying recession in construction-related industries.

 

Iran, he adds, is facing capital flight at a time when it desperately needs investment to address internal challenges and rebuild critical infrastructure.

A general view of buildings in Tehran, Iran December, 2024. Majid Asgaripour/WANA (West Asia News Agency)

Housing Market in Turkey: Istanbul Leads the Way

According to official data released by Turkey’s Directorate of European Affairs, 150,657 housing units were sold nationwide in September—an increase of 6.9% compared to the previous year. Istanbul remained the epicenter of Turkey’s real estate market with 24,119 transactions, followed by Ankara (13,417) and Izmir (8,544).

 

Meanwhile, smaller provinces recorded the lowest sales: Ardahan (70), Bayburt (117) and Tunceli (142).

A general view of buildings in Tehran, Iran December, 2024. Majid Asgaripour/WANA (West Asia News Agency)

Strong Demand for Second-Hand Homes

TÜİK data indicates that second-hand housing continues to dominate the Turkish market. In September, 103,540 second-hand units were sold, making up 68.7% of all transactions and showing a 7.8% increase from the previous year. First-hand home sales reached 47,117 units, accounting for 31.3% of the market and reflecting a 5% growth.

 

Between January and September, second-hand home sales climbed 21.6% to 786,086 units, highlighting buyers’ preference for ready-to-move-in properties at more affordable prices—an outcome influenced by inflation and declining purchasing power. Despite this, first-hand sales also grew steadily, indicating continued construction activity across the country.

 

Turkey remains a major destination for Iranian capital, and despite the overall decline in foreign purchases, Iranians maintained their position as the second-largest group of foreign buyers in September. Analysts warn that this trend reflects deepening concerns about Iran’s economic and environmental future. If policymakers fail to address these issues, the ongoing capital outflow could have far-reaching consequences for housing affordability, employment and economic stability within Iran.