London property remains a safe haven for Turkish wealth amid currency decline

The latest research by London lettings and estate agent, Benham and Reeves, has shown how London property has helped Turkish investors preserve wealth against the dramatic depreciation of the Turkish lira, with the average London home increasing by 5,490% in lira terms since 2005.

Benham and Reeves analysed the historic performance of the Turkish lira against the pound, before applying this to the average London house price, as well as the annual rental income generated from a 5% yield, to demonstrate the value of London property ownership from the perspective of a Turkish investor.

The research shows that in 2005, the average London home was valued at £251,933, equivalent to ₺594,080 based on the average exchange rate at the time. In 2026 so far, the average London house price sits at £547,685, equivalent to ₺32.6m.

This means that while the average London house price has increased by 117% in sterling terms since 2005, it has climbed by 5,490% when measured in Turkish lira.

The impact of rental income further strengthens the case for London property as a wealth preservation asset. Based on a 5% rental yield, the average London home would have generated an estimated £12,597 per year in 2005, equivalent to ₺29,704. In 2026 so far, the same 5% yield equates to £27,384 per year, or ₺1.63m when converted into Turkish lira.

The pace of change has accelerated significantly in recent years. Since 2020, the average annual change in the GBP to TRY exchange rate has stood at 36%, while average London house price growth in sterling terms has averaged just 1.2% per year. However, once converted into Turkish lira, the average London house price has increased by an average of 37.9% per year over the same period.

Director of Benham and Reeves, Marc von Grundherr, commented:

"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."

Head of Sales at Benham and Reeves Turkey, Belit Unluturk, commented:

"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."