London property values have surged by more than 5,400% in Turkish lira terms since 2005, highlighting the capital’s appeal as a long-term safe haven for Turkish investors amid continued currency depreciation, according to new research from Benham and Reeves.
The London lettings and estate agency analysed the historic performance of the Turkish lira against sterling and compared it against average London house prices and rental yields over the last two decades.
The research found that the average London home was worth £251,933 in 2005, equivalent to around ₺594,080 at the exchange rate at the time. In 2026, the average London property is valued at £547,685, or approximately ₺32.6m.
While London house prices have increased by 117% in sterling terms over the period, the value increase for Turkish investors equates to 5,490% when measured in Turkish lira.
CURRENCY EXCHANGE
Rental income has also strengthened the investment case. Based on a 5% rental yield, the average London property would have generated around £12,597 per year in 2005, equivalent to ₺29,704. In 2026, that same 5% yield equates to £27,384 annually, or around ₺1.63m in lira terms.
The analysis also found that since 2020, the average annual movement in the pound-to-lira exchange rate has stood at 36%, while average London house price growth in sterling terms averaged 1.2% annually.
However, once converted into Turkish lira, average London house prices increased by an average of 37.9% per year over the same timeframe.
INTERNATIONAL MARKET
Marc von Grundherr, Director of Benham and Reeves, says: “For Turkish investors, London property has long been about more than capital growth alone.
“It is a hard asset, held in one of the world’s most stable and transparent property markets, and that makes it a powerful store of wealth when viewed against the long-term depreciation of the Turkish lira.
“Even in periods where London house price growth has been modest in sterling terms, the currency effect for Turkish buyers has been substantial. When you then factor in rental income, particularly across well-located London stock, the case becomes even stronger.
“This is exactly why London continues to appeal to international investors who are seeking stability, income and long-term value preservation. For Turkish buyers in particular, the data shows that property ownership in the capital has provided an exceptional hedge against currency weakness over the last two decades.”
INVESTOR FREINDLY
Belit Unluturk (main picture, inset), Head of Sales at Benham and Reeves Turkey, adds: “In recent years, rising inflation, economic volatility and higher financing costs in Turkey have encouraged many investors to explore alternative opportunities overseas.
“At the same time, the accessibility of the mortgage market in Turkey remains far more limited compared to more developed markets such as the UK, which has further increased interest in international property investment.
“As a result, many Turkish investors are now allocating a greater proportion of their portfolios towards overseas real estate in order to generate foreign currency-based rental income, preserve capital and diversify risk.
“London continues to stand out in this respect due to its strong economy, consistent rental demand, international appeal and long-term potential for capital growth.
“In addition, the UK’s transparent legal system and investor-friendly framework make London a secure and sustainable destination for Turkish buyers seeking long-term stability.”
