Short-Term Rentals in Istanbul: Is Airbnb Still a Good Investment?
Istanbul has long been a magnet for tourists, business travelers, and digital nomads. For property investors, Airbnb and other short-term rental (STR) models have looked very attractive — higher nightly rates, flexibility, and the ability to generate more income than many long-term leases. But with recent regulatory changes, shifting market dynamics and evolving costs, the question is: Is Airbnb still a good investment in Istanbul in 2025?
Below is a breakdown of the current situation — pros, cons, and what an investor needs to watch out for — so you can decide if short-term rentals still make sense in your portfolio.
Recent Legal & Regulatory Changes
Before anything else: short-term rentals now come with a much stronger regulatory framework in Türkiye, which took effect on January 1, 2024. Some of the key changes:
Law No. 7464: new law regulating the rental of residential properties for tourism purposes, covering stays up to 100 days.
Permit (“Touristic Rental Permit” / “Accommodation for Tourist Purposes”) requirement for owners of residences rented out under 100 days.
If the property is in a multi-unit building, you often need unanimous consent (or at least consent from all co-owners in the same building) in order for a permit to be issued.
You must display a plaque (sign) at the entrance indicating that the property is licensed/approved for tourist rental.
Strong penalties for non-compliance: fines of 100,000-500,000 Turkish Lira or more, and in repeated or severe cases up to 1,000,000 TRY.
Sub-letting rules tightened; advertisement rules; documents/tax compliance etc.
These new rules are not just tick-boxes — they affect how easy or hard it is to run an STR, how much it costs, and which properties are eligible.
Market Data: What the Numbers Show
Even with the tighter rules, the demand side is still quite strong. Here are some of the up-to-date stats and trends:
Average occupancy rate for Airbnbs in Istanbul is around 59% (Sep 2024-Aug 2025).
Average daily rate (ADR) is roughly TRY 2,266 (~ US$70 depending on exchange rates) over the same period.
Annual Airbnb revenue (for a typical listing) is reported at around TRY 467,000 (~US$14,000).
Number of active listings in Istanbul: ~13,692 as of that same period.
These numbers suggest that for properly licensed properties in attractive locations, there is still considerable upside.
Pros and Cons of Investing in Airbnb Properties in Istanbul
The Advantages
One of the biggest advantages of short-term rentals in Istanbul is the potential for higher income. In popular districts such as Beyoğlu, Galata, or Kadıköy, nightly rates and occupancy levels can generate significantly more revenue than traditional long-term leases.
Tourist demand remains strong — Istanbul continues to attract millions of visitors every year, from international travelers to digital nomads. Even with the new regulations, this steady flow of visitors helps maintain a solid base of potential guests.
Another advantage is that supply is decreasing. Many property owners have left the short-term rental market because of the new legal requirements, which means less competition for those who remain compliant. For the right property, this can translate into higher occupancy and stronger returns.
There’s also a degree of flexibility. If market conditions or regulations change, owners can pivot from short-term rentals to long-term leases without being locked into a single business model. And finally, capital appreciation in central, high-demand areas continues to make Istanbul real estate an attractive long-term investment.
The Challenges
That said, the short-term rental market now comes with more hurdles than before. The most important issue is regulation and compliance. The new law requires a tourism rental permit, and in many apartment buildings you need approval from every other owner. This can make getting licensed difficult and time-consuming.
There’s also increased cost and complexity. Owners must pay for permits, signage, management, cleaning, and maintenance — all of which add up quickly. Running an Airbnb is not passive income; it requires hands-on work or a reliable property manager.
Another risk is seasonality. While the summer and holiday seasons are busy, occupancy can drop significantly in winter months, especially in neighborhoods further from major attractions or transport links.
Currency volatility and macroeconomic uncertainty are also worth noting. Fluctuations in the Turkish Lira, inflation, and rising operating expenses can all affect profitability.
Finally, building restrictions and local opposition are becoming more common. Some building management plans now explicitly prohibit short-term rentals, and local authorities are increasing enforcement and penalties for unlicensed operations.
Key Questions an Investor Should Ask
Before deciding to invest with the Airbnb / short-term rental model in Istanbul, here are some “due diligence” questions to run through:
Does the building permit tourism rentals?
Does the building management plan or apartment owners’ charter allow short-term rentals or is there a clause forbidding it?
Can you get unanimous consent from co-owners if needed?
Can you get the required tourism / STR permit?
Are there special requirements (inspections, proof of safety, fire code, etc.)?
What are the permit fees or administrative costs?
What are all the ongoing costs?
Management / cleaning / maintenance / utilities / repair costs (which tend to be higher per guest than in long-term leases).
Taxes, VAT obligations (if applicable), liability insurance.
Marketing / platform fees.
How seasonal is the area?
Can you maintain a sufficiently high occupancy or nightly rate off-season?
How far is the property from transportation, attractions, events, etc.?
What is the purchase price vs expected returns?
Calculate the yield: net income (after all costs) divided by the purchase price.
Compare to what long-term rental yield would be for the same property.
Legal risk and enforcement
Are authorities actively policing non-compliant rentals in your area?
What penalties could you face if you are non-compliant?
Are platforms cooperating in enforcement (e.g. requiring listings to show permit numbers)?
Exit strategy
If the STR route becomes too burdensome, can you switch to long-term lease?
Is the property in a location with solid demand for long-term tenants?
Conclusion: Is Airbnb Still a Good Investment in Istanbul?
Short answer: Yes — but only for the right properties, in the right locations, and with full compliance.
If you are buying a property that already meets or can reasonably meet the new regulatory requirements (permit, co-owner consent, building allows STRs), in a high-demand area, then STR via Airbnb could still offer significantly higher returns than long-term rental, especially when tourism is strong and when you manage operations well.
However, the “easy money” days are probably over. The regulatory overhead, risk of non-compliance, rising costs, inflation, and variability all mean that you must do careful calculations. Properties that are out of the way, or that face permitting obstacles, may end up being much less profitable, or even loss-making, once you account for all costs, taxes, and risks.
If I were advising a client, I would recommend:
Start small — try with one property that is fully compliant, see how the numbers work in real life.
Use local expertise — legal advisors, property managers, accountants who understand the new Airbnb law and tax situation.
Monitor regulations closely — laws can be enforced more strictly, new decrees or local rules may appear.
