How much can you earn from renting?

Why Investors Choose Turkey for Rental Business

Turkey remains one of the most attractive destinations for rental property investments. The mild climate, developed infrastructure, steady tourist flow (even outside peak seasons), and relatively affordable housing prices create favorable conditions for generating passive income. With a smart approach, renting an apartment or flat in Turkey can yield 4% to 8% per annum in foreign currency, and in some cases even more.

But the actual figures depend on many factors: location, type of rental, seasonality, tax burden, and the current economic situation. Let's examine how much you can earn from rental property in Turkey in 2025, based on current data and verified sources.

Average Rental Yield: What Figures to Expect

According to the Global Property Guide analytics portal, the average gross rental yield in Turkey in the first quarter of 2025 reached 7.41% – a noticeable increase from 7.14% a year earlier. However, this figure represents the nationwide average. In practice, yields range from a modest 3–4% in less prestigious districts of major cities to 7–8% and above in resort locations on the first coastline.

To avoid dealing with abstract percentages, let's look at a concrete example. Suppose you bought an apartment for $200,000. Taking into account all associated costs (title deed transfer tax – 4%, agent fees, money transfer, insurance), the actual purchase cost will be around $210,000–215,000. If the annual rental income is $12,000, and annual expenses for utilities, aidat (management fees), minor repairs, and taxes amount to $2,000, the net income will be $10,000. Dividing that by the total purchase cost gives a 4.76% net annual yield.

This is a realistic and fairly conservative calculation. With a better location, smart management, and short-term rentals during the high season, the net yield can reach 6–8%.

Regional Yields: Istanbul, Antalya, and Alanya

Choosing the region is a key factor that determines the rental income amount. The three main destinations for investors in 2025:

Istanbul – Stability and Long-Term Growth

Turkey's largest metropolis attracts tenants year-round: students, expats, business travelers, and locals create steady demand. Rental rates here are among the highest in the country: in spring 2025, the average rent was $8 per square meter per month. A 1+1 apartment in central districts (Şişli, Beşiktaş, Beyoğlu) can be rented for $1,200–1,500 per month. However, the entry threshold is higher: prices for liquid properties start from $150,000–200,000. The yield in Istanbul is usually 4–6% per annum – lower than in resorts, but with less seasonal volatility.

Antalya – Resort Income with High Yield

Antalya is a recognized leader in rental yields among Turkish resorts. With an average rental rate of $7 per sqm and a lower entry cost (a 1+1 apartment can be found from $85,000), the price-to-income ratio is very attractive. According to expert estimates, yields in Antalya reach 6–8%, and the payback period for a quality property near the sea is about 6 years. Key investment districts are Konyaaltı, Lara, and Muratpaşa.

Alanya – A Growing Market with Potential

Alanya is a more affordable alternative to Antalya, rapidly gaining popularity. According to Turk.Estate portal data, rental yields here range from 5.78% to 7.11% per year. The districts of Oba, Mahmutlar, and Avsallar show the highest results. The development of Gazipaşa Airport and the new marina further stimulates demand and price growth. Seaside studios of 25–40 sqm are one of the most profitable formats for short-term rental.

Short-Term vs. Long-Term Rental: Which Is More Profitable?

The choice between short-term and long-term rental directly affects the final income. Each format has its own pros and risks.

Short-Term Rental

During the high tourist season (May–October), short-term letting can yield 1.5–2 times more than long-term. For example, an apartment that could be rented long-term for $850 per month can generate $1,500–2,000 monthly when rented short-term in the season. However, this format requires constant involvement: searching for guests, cleaning, check-ins, and solving operational issues. Moreover, in the off-season (November–March), occupancy drops sharply, and income may be lower than expected. To manage short-term rentals, many investors hire professional services that charge 15–25% of revenue.

Long-Term Rental

Leasing for a period of 6 months or more provides a predictable and stable cash flow. You receive a fixed amount each month without needing to constantly find new tenants. The downside is a smaller total annual income compared to short-term rent. This option is ideal for investors who do not want to get involved in operational management, and for properties in urban areas where tourist flow is limited.

Taxes and Expenses: Calculating Net Profit

Rental income in Turkey is subject to progressive income tax. In 2025, the following rules apply:

• Tax-free threshold: residential rental income up to 47,000 Turkish liras (for 2025) is exempt from tax. For 2024 income, the threshold was 33,000 TL.
• Tax rates (on income above the tax-free threshold): up to 110,000 TL – 15%, from 110,000 to 230,000 TL – 20%, from 230,000 to 580,000 TL – 27%, from 580,000 to 3,000,000 TL – 35%, over 3,000,000 TL – 40%.
• Filing a tax return: annually from March 1 to April 2 for the previous calendar year.

In addition to taxes, annual expenses include:

• Aidat (monthly maintenance fee to the management company) – from $30 to $150 depending on the complex;
• Utilities (electricity, water, gas, internet) – $50–120 per month with regular use;
• Insurance – from $100 to $300 per year (earthquake insurance – DASK – is mandatory);
• Maintenance and minor repairs – budget 5–10% of annual rental income.

Thus, with an annual rental income of $10,000, the actual net profit after all deductions will be around $7,000–8,000.

How to Increase Yield: Practical Tips

1. Choose the first coastline. Apartments and flats within a 5–10 minute walk from the sea, other things being equal, yield 1–2% more annually than properties further away.
2. Invest in small formats. Studios and 1+1 apartments (25–50 sqm) show the best price-to-rental-income ratio, especially in resort areas.
3. Consider off-plan new builds. Prices at early construction stages are 20–35% lower, directly increasing future returns upon completion.
4. Furnish the apartment well. A fully equipped and stylishly furnished apartment rents for 20–30% more than an empty one or one with basic furniture.
5. Use professional platforms. Airbnb, Booking.com and local aggregators (Sahibinden, HepsiEmlak) expand audience reach and help maintain high occupancy.
6. Factor in seasonality. If you rent short-term, build a realistic occupancy rate into your financial model: 70–85% in high season and 30–50% in low season.
7. Keep track of tax changes. Timely filing of tax returns and proper use of deductions help avoid penalties and reduce the tax burden.

Is It Realistic to Recoup an Apartment in 5–7 Years?

At current prices and rental rates, the average payback period for residential property in Turkey is 12–17 years with long-term renting – comparable to European markets. However, in resort locations, by combining short-term and long-term rentals, the payback can be shortened to 6–10 years. For example, in Antalya, experts report payback periods of around 6 years for well-located properties.

It is important to understand: rental income is only part of the investment appeal. The growth in the asset's value itself (in Antalya and Alanya, property prices have risen 2–2.5 times over the past 5 years) adds another 5–15% per annum in dollar terms to the total return. Thus, the total ROI (capital growth + rental income) for quality properties can reach 12–20% per annum.

Conclusion

Earning from rental property in Turkey is realistic and profitable with the right approach. The expected net yield in 2025 is 4–7% per annum in dollars for long-term rentals and 6–9% for actively managed short-term rentals. The highest returns come from compact apartments in resort areas (Antalya, Alanya) on the first coastline, purchased in the early stages of construction. At the same time, don't forget about taxes, operating expenses, and seasonal demand fluctuations. Thorough calculation and realistic expectations are the key to a successful investment in Turkish real estate.