With inflation eroding real property returns in Türkiye and domestic mortgage access remaining constrained, Turkish investors are once again directing capital toward the London market. The long-term depreciation of the lira has turned London property into both a wealth preservation asset and a source of hard-currency rental income for Turkish buyers over the past two decades. Proximate Investment, advising clients from offices in London and Ankara, notes that today's enquiries reflect a more informed investor base increasingly focused on multi-market portfolio diversification.
PROPERTY INVESTMENT | SECTOR NEWS
As inflation and currency volatility persist at home, Turkish investors are once again turning their attention to the London property market, and advisors say the trend shows no sign of slowing.
Türkiye's residential market closed 2025 on a high note in volume terms, with national statistics showing 1.76 million homes changing hands over the year. Yet figures from the Central Bank's Residential Property Price Index tell a more complicated story: nominal price growth has continued to lag behind inflation, leaving real returns in negative territory. For investors looking to preserve capital, that backdrop is once again steering attention toward foreign-currency markets seen as more predictable, and London remains the destination Turkish investors have long regarded as a safe haven.
Research published by London-based estate agencies shows that average London house prices have risen by roughly 117% in sterling terms over the past two decades, a figure that translates into a far larger gain once converted into lira. Since 2020, the average annual movement in the pound-to-lira exchange rate has run at around 36%, while sterling-denominated London price growth has averaged just 1.2% a year, underlining how much the currency effect, rather than the underlying property market, has driven returns for Turkish buyers.
Industry voices note that the effect extends to rental income as well as capital value. Based on a typical 5% yield, the lira value of annual rental income from an average London property has climbed substantially over the same period, reinforcing the view of sterling assets as both a store of value and a source of hard-currency income for Turkish investors.
High policy rates and constrained mortgage access in Türkiye continue to make domestic buyers cautious, while relatively more accessible financing in developed markets such as the UK makes overseas property attractive to investors with foreign-currency income or a desire to diversify. Advisors say this shift is no longer confined to residential purchases: corporate relocation, commercial property and hotel investments are seeing similar interest from Turkish capital looking abroad.
Proximate Investment, an advisory firm operating from offices in London and Ankara, says recent enquiries reflect a more informed and comparison-driven client base than in previous years. Co-founder Kübra Nur Eroğlu notes that rising demand has come hand in hand with more complex legal and financial considerations.
“Investors today aren't just weighing price. They're looking at title security, tax exposure and financing terms together, and that makes the advisory process far more layered than it used to be.”
— Kübra Nur Eroğlu, Co-Founder, Proximate Investment
According to Eroğlu, most investors are no longer focused on a single city, but on building a portfolio spread across several markets, a shift that is raising the bar for the kind of multi-market expertise advisory firms are expected to provide.
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