Is Real Estate a Safer Option for Turkey CBI 2025 After KKM Ends?

Turkey, a country in the Middle East, is famous among global investors for its citizenship by investment program benefits. The country, due to its strategic geographical position, bordered by the Black Sea, the Aegean Sea, and the Mediterranean Sea, is a perfect pathway to Europe. The country links Europe to Asia and provides great opportunities to real estate developers and investors. On August 23, 2025, Turkey officially ended its Foreign Exchange-Protected Deposit Program (KKM), increasing currency loss risks for those choosing the deposit route under Turkey CBI 2025. Still, the overall demand for Turkey citizenship investment is not expected to fall, as after the end of the KKM scheme, investors are taking more interest in Turkish real estate investment.

What was Turkey’s KKM Program?

The Foreign Exchange-Protected Deposit Program (KKM) was introduced by Turkey’s Central Bank in December 2021. The KKM program provided relief to many investors as it allowed them to keep their savings in Turkish lira without worrying about the currency depreciation, because if the lira lost more value than the interest rate earned during the deposit period, then the government would compensate depositors for their loss.

Turkey Citizenship By Investment 2025: Deposit Route Risks

Turkey's currency protection program provided both the Turkish savers and Turkey CBI applicants a sense of security, as if their money was held in US dollars instead of Turkish liras. The KKM scheme was especially valuable for the investors of Turkey citizenship by investment because the CBI program requires $500,000 Turkish lira deposits from the investors in order to qualify and get a second passport. The program provided crucial protection against currency volatility.

But after the end of Turkey's KKM program, the applicants lost this sense of protection. The central bank terminated the program in August 2025, which means the individuals who choose the deposit route for the Turkey CBI 2025 will be exposed to the risks of lira depreciation. In case of loss, the government would no longer cover the difference, rather the investors will themselves bear it. This made the deposit option very risky and uncertain for the investors of Turkey citizenship by investment program.

Aran Hawker Considered the Deposit Route Always Risky

Aran Hawker, the co-founder of CIP Turkey, always warned people about the deposit option for Turkey citizenship by investment. Even before the end of the KKM scheme, he said the option was not reliable. He said, “he has watched the Turkish lira tank for 30 years solid, and if they’re going to give you two-year protection on a three-year deposit, it can devalue 100% overnight. “

He further said that the experienced bankers who thought they could manage the risks ended up losing a lot of money because the lira kept losing value while their deposits were still locked.

After the end of the currency protection scheme, Hawkers says that the investors now face both the currency risk and credit risk, as the deposit insurance is only $10,000, while the investors of Turkey CBI 2025 have to deposit $500,000.

Why is Turkish Real Estate Investment a Preferred Path for CBI 2025?

Although the end of Turkey’s Foreign Exchange Protection scheme increases currency risks, the country’s CBI program still highly attracts a large number of investors, and the reason behind this global recognition is Turkish real estate investment and the strong passport of Turkey that allows visa-free access to 114 countries, including Japan and Singapore. In the first seven months of 2025, the Turkish real estate investment saw remarkable growth as the transactions surged by 25% with the total sales reaching 835,000. According to predictions, the real estate sector of Turkey will reach $186.67 billion by 2030.

The government of Turkey always preferred that CBI applicants choose the real estate investment option instead of the deposit option because the domestic market is huge and over 2 million locals buy homes every year, where only 60,000 are foreign buyers, and even fewer, around 6,000, are Turkish Citizenship by investment applicants. This demonstrates that supply and demand are shaped by the domestic market, not by the foreign buyers. Furthermore, in Q2 2025, the construction sector grew by 11% year-on-year. Despite this increase, the foreign purchase fell by 19% in July 2025, with only 1913 home sales to non-residents.

The Residential Price Index showed the property values growing by 33% in nominal terms in July 2025, but declined 1% in real terms. This means that the prices are still rising but have not yet outpaced Turkey's high inflation. Hence, for CBI applicants, real estate investment is a safer and more reliable option compared to lira deposits, which now carry full currency risks after the end of the KKM program.

Conclusion

Turkey's real estate benefits from Turkey’s large domestic demand and economic growth hence Turkish real estate investment is a very beneficial option for CBI applicants after the termination of the currency protection scheme by the government. Applicants of Turkish citizenship by investment real estate need to invest a minimum amount of $400,000 in real estate, i.e, owning, buying, or renting out a property in Turkey. Hence, for being a secure option, real estate is expected to become a global choice for applicants of Turkish citizenship by investment in 2025.