Turkey Ends Currency Protection: Why Real Estate Is the Safest Route to Citizenship
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Turkey has once again taken center stage in the world of investment migration. On 23 August 2025, the Central Bank of Turkey officially ended its foreign exchange–protected deposit program (known locally as KKM). This program has provided investors with an additional layer of reassurance when selecting the deposit route under the Citizenship by Investment program.
With KKM now closed, the deposit option is no longer as attractive as it once was. Instead, attention is moving toward real estate, the government’s preferred route and the most reliable path for investors seeking Turkish citizenship.
Beyond being the most stable route to citizenship, real estate plays a vital role in Turkey’s economy. It drives construction, creates jobs, and attracts both domestic and international demand. For investors, this means not only fulfilling program requirements but also holding an asset with long-term growth potential in one of the region’s most dynamic property markets.
Government Preference for Property
The closure of KKM aligns with what many in the industry have observed for years: the Turkish government has always wanted CBI applicants to buy property. Real estate not only supports urban development but also boosts construction, tourism, and domestic consumption — all pillars of Turkey’s economic growth strategy.
Bank deposits may have been technically allowed, but policymakers consistently signaled that real estate was the preferred channel. With KKM gone, that direction is now even clearer.
Investment Options for Turkish Citizenship
With KKM gone, it’s important to assess the different investment paths still open under Turkey’s Citizenship by Investment program. To qualify for Turkish citizenship, investors must commit to one of the government-approved routes. Each has its own requirements and risk profile:
1. Real Estate Investment
- Requirement: Invest at least USD 400,000 in Turkish property (residential, commercial, or land). It must be held for a minimum of 3 years.
- Risk Profile:
- Tangible, income-producing asset with intrinsic value.
- Serves as a hedge against inflation in Turkey’s fast-growing economy.
- Properties can generate rental income during the holding period.
- Active resale market after 3 years.
- Risk: Low — most secure and popular route.
- Tangible, income-producing asset with intrinsic value.
2. Other Investments (Fund Shares)
- Requirement: Purchase real estate investment fund (REIF) or venture capital investment fund (VCIF) shares worth at least USD 500,000. Must be held for 3 years, confirmed by the Capital Markets Board of Türkiye.
- Risk Profile:
- Provides exposure to property or venture projects without direct ownership.
- Relies heavily on fund managers and overall market cycles.
- Less flexibility and control compared to owning property outright.
- Risk: Medium — viable but not as secure as direct real estate.
- Provides exposure to property or venture projects without direct ownership.
3. Bank Deposit
- Requirement: Place at least USD 500,000 in a Turkish bank for 3 years.
- Risk Profile:
- Previously protected by KKM but now exposed to lira depreciation.
- The Turkish lira has experienced fluctuations over time.
- Funds are locked, leaving no ability to respond to currency swings.
- Risk: Very High — unattractive after KKM termination.
- Previously protected by KKM but now exposed to lira depreciation.
4. Government Bonds
- Requirement: Invest USD 500,000 in Turkish government debt securities for 3 years.
- Risk Profile:
- Denominated in lira, so exposed to volatility and inflation.
- Returns are often eroded by rising prices and economic policy changes.
- Bonds may look “safe,” but dollar value can fall rapidly.
- Risk: High — not favored by investors today.
- Denominated in lira, so exposed to volatility and inflation.
5. Job Creation
- Requirement: Create at least 50 jobs, certified by the Ministry of Labor.
- Risk Profile:
- Typically, relevant only to companies already operating in Turkey.
- Requires ongoing management and compliance.
- Not practical for individual investors.
- Risk: Variable/High — rarely used in practice.
- Requires ongoing management and compliance.
Why Real Estate Is the Safest Choice
1. Tangible Asset
Real estate is real, physical, and enduring. Unlike deposits or bonds, which exist only on paper, property retains value regardless of short-term market shocks.
2. Hedge Against Inflation
Turkey has a high-inflation economy. Instead of eroding value, inflation often pushes property prices upward. Investors not only protect their wealth but often see gains over the mandatory holding period.
3. Steady Domestic Demand
In 2024, around 1.48 million homes were sold in Türkiye, almost all to local buyers. By comparison, only a small fraction of sales are linked to CBI investors. This strong domestic market provides natural liquidity and supports long-term housing demand.
4. Rental Income Potential
Investors don’t need to let their properties sit idle. Many choose to lease out their apartments or villas, generating steady rental income while they wait for the three-year mark to sell.
5. Clear Exit Strategy
Once the required holding period is over, the property can be sold on the open market. With strong demand from both Turkish and international buyers, resale is relatively straightforward.
6. Dual Benefit
Real estate offers both a path to citizenship and a solid financial asset that can grow in value. Few other investment types can match this dual advantage.
Demand for Citizenship Will Not Fall
Industry experts agree that the end of KKM will not reduce the appeal of Turkey’s Citizenship by Investment program. If anything, it will redirect demand.
Investors who once looked at deposits will now move toward property. Applicants are not withdrawing; they are simply choosing the safer, more stable path.
How Investors Are Responding in 2025
The end of KKM has clarified priorities. There has been no rush into deposits, and many advisors confirm that interest in deposit-based CBI was always limited compared to real estate.
Now, with protection gone, most new applicants are turning to property. Cities like Istanbul, Antalya, and Izmir remain highly attractive, both for their lifestyle appeal and their investment potential. Tourism growth, infrastructure development, and urban expansion continue to support property values.
Even with recent market corrections, real estate is positioned to benefit from Turkey’s economic recovery. GDP growth accelerated to 5% in the second quarter of 2025, and a balanced supply of new housing is expected to strengthen prices over the coming years.
Conclusion
Turkey’s decision to end its foreign exchange–protected deposit program has redrawn the investment map. The deposit route, once shielded, is now highly risky. Bonds and funds carry their own uncertainties.
Real estate, however, stands firm. It is tangible, inflation-resistant, income-producing, and backed by strong domestic demand. For investors seeking both security and a Turkish passport, property remains the clear winner.
How UNO Capital Helps
At UNO Capital, we specialize in guiding clients through approved real estate projects that meet all legal requirements while delivering strong financial outcomes.
If you’re considering Turkish citizenship, now is the time to explore property opportunities that safeguard both your investment and your future.
Speak with our advisors today to explore the most secure real estate opportunities in Türkiye.
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