In recent years, Turkey has become one of the most talked-about financial markets. Inflation, fluctuations in the lira, and global economic instability are pushing investors to seriously consider: is it better to keep money in Turkish banks or invest in real estate? The question of where the money really works has become crucial for those looking not just to preserve their capital, but to grow it—especially for foreigners viewing Turkey as an investment destination. In this article, we’ll break down what actually generates income today and what only appears profitable at first glance.
Turkey’s Economic Situation – Interest Rates Rise, Profits Disappear
Since early 2024, Turkey has become one of the few countries with a record-high base interest rate. The Central Bank has been steadily increasing it in an attempt to curb growing inflation. By early 2025, it had already reached nearly 60% annually—a figure that may initially seem like a gift for depositors. However, behind this eye-catching number lie hidden pitfalls: the official inflation rate in the country exceeds 65%, and according to independent estimates, it may be even higher. This means that real income from deposits often ends up in the negative—interest rates may be high, but the purchasing power of savings continues to decline.
As noted by Ayrin Green, a real estate specialist and investment expert in Turkey:
“Many clients see the high interest rates advertised by banks and think it’s a great opportunity. But you have to look at the bigger picture—money is losing value faster than it can generate returns.”
That’s exactly why the question of where the money really works requires a deeper analysis than simply comparing numbers in bank ads.
On Paper It’s a Lot, In Reality – Not So Much
If you deposit one million Turkish lira at 60% annual interest, you’ll theoretically earn 600,000 lira in a year. Sounds impressive—until you factor in inflation. When consumer prices are rising by 5–6% per month on average, those interest earnings quickly evaporate. Instead of making real money, investors find their funds steadily losing purchasing power. What’s more, bank deposits in Turkey are subject to taxes, which further reduce net profits.
Additionally, deposits are only guaranteed by the government up to around 650,000 lira. Any amount above that could be at risk during economic upheavals. So expecting your banked money to “work” like in a traditional investment model isn’t entirely accurate in the Turkish context. That’s why it’s becoming increasingly relevant to consider alternatives—such as investing in real estate.
The Investment Appeal of Turkish Real Estate
Unlike bank deposits, real estate in Turkey represents a more stable asset with long-term returns. Despite currency fluctuations, demand for housing—especially in popular tourist regions—continues to grow. Cities like Antalya, Istanbul, and Alanya attract not only tourists but also those seeking stable investment opportunities. In such areas, buying property becomes a smart move.
Housing prices in Turkey have risen significantly in recent years, and many experts—including Ayrin Green—point to real estate as one of the most profitable forms of investment. According to her:
“The real estate market in Turkey continues to grow, and property in popular districts doesn’t lose its value, even when the economy goes through difficult times.”
Her words are supported by the high volume of transactions and rising demand for rental properties.
Where the Money Really Works: A Practical Comparison
Now let’s take a practical look at where the money truly works—in a bank or in real estate. If you deposit 1 million lira at 60% annual interest, after taxes and inflation, the real income may be significantly lower than the initial amount. In contrast, investing the same 1 million lira into property can yield stable rental income—about 4–6% annually in popular resort areas. On top of that, property values are steadily rising, providing an additional source of income—capital appreciation.
For example, if you invest in an apartment worth 1 million lira in Alanya and rent it out, you can expect to earn around 40,000 to 60,000 lira in net income per year. And that’s not even counting the appreciation in property value, which could reach 10–15% annually as tourism and housing demand continue to grow. Therefore, even when factoring in income tax, real estate investment offers far greater income potential than a bank deposit.
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Important Legal Aspects of Renting Out Property
Investing in real estate can be highly profitable, but it’s important to remember that renting out an apartment in Turkey must be done legally and in compliance with all local regulations. This applies to both Turkish citizens and foreign investors. If you decide to rent out your property, you are required to register this activity and pay taxes on your rental income. Failure to do so can lead to serious issues with the tax authorities, including fines and other legal sanctions.
Officially renting out property is not only a legal obligation but also a safeguard for your rights as an investor. Violating tax laws can lead to significant consequences that should not be underestimated. It’s also essential to remember that rental income is subject to income tax, which varies depending on the amount earned. Accurate accounting of all expenses and income is crucial to minimize tax liability and preserve profitability.
What Does Expert Ayrin Green Say?
Ayrin Green, founder of a real estate company and a recognized expert in Turkey’s property market, always emphasizes that the right choice between a bank deposit and real estate depends on the investor’s long-term strategy.
“If you’re looking for short-term security, then a bank deposit might be the right choice. But if you aim for stable income and capital growth, real estate is a more reliable and profitable path,” says Ayrin Green.
Her extensive experience in the Turkish real estate market shows that purchasing property for rental purposes remains one of the most effective ways to preserve and grow capital. In addition, Ayrin consistently highlights the importance of complying with rental laws to avoid unnecessary trouble with tax authorities.
Where Does the Money Really Work?
In conclusion, it’s clear that the question of where the money really works doesn’t have a one-size-fits-all answer. It depends entirely on your investment goals and time horizon. If your aim is short-term security and a guaranteed but limited income, bank deposits may be a suitable option—even with high interest rates. However, it’s important to remember that inflation and income taxes can ultimately consume a significant portion of your earnings.
On the other hand, real estate in Turkey remains one of the most attractive assets for long-term investment. Purchasing apartments, especially in tourist-heavy and high-demand areas, offers not only stable rental income but also capital appreciation over time. The key is to comply with all laws and regulations to avoid issues with the tax authorities.
As Ayrin Green notes, “Investing in real estate in Turkey requires responsibility, but with the right approach, it yields far greater returns than bank deposits.”
In the end, money truly works where there is not only potential for growth but also a reasonable degree of security.
