What the price-to-rent multiple tells you

Divide the purchase price by the annual rent and you get the multiple — roughly how many years of rent it takes to pay for the property. A flat bought at ₺8,500,000 letting at ₺55,000 a month has a multiple of about 13. Lower is faster payback, but a very low multiple often signals limited capital growth or a rent that will not hold. Very high multiples usually mean the market has already priced in future appreciation.

Why gross and net yields differ so much in Turkey

The headline yield you see on listing portals is gross. What actually reaches a non-resident owner's account is what remains after:

  • Vacancy. Even half a month a year costs roughly 4% of gross rent, and tenant changeovers in Istanbul rarely take less.
  • Owner-paid costs. Any building fee (aidat) the tenant does not cover, DASK earthquake insurance, buildings insurance, property tax, and maintenance.
  • Management. If you are not in Turkey, someone has to collect the rent, apply the annual increase and handle repairs. Budget for it honestly — 8% of rent is a realistic figure.
  • Income tax. After the annual residential exemption and the 15% lump-sum expense deduction, the balance goes through the progressive tariff. For a single flat that typically lands at 14-17% of gross rent.

Together these turn a 7-8% gross yield into roughly 5% net. Our yields guide works a full example end to end.

Getting the inputs right

Use achieved prices, not asking prices. Turkish portals carry negotiation margin; the gap is wider on resale stock than on new build.

Use today's market rent, not the rent in the current contract. Annual increases are capped at CPI, so a long-standing tenancy is often well below market — which makes the property look worse than it is.

This tool assumes residential. Shops, offices and warehouses get no residential exemption and their rent is normally subject to withholding, so the tax line here understates commercial property.

Think in lira first. Rent is collected in lira and increases are indexed to Turkish CPI. Converting to a hard currency at each step makes multi-year comparisons misleading — model in lira, then apply your own currency view once, at the end.