Airbnb vs. Long-Term Rental: Which is More Profitable in Istanbul?

When considering investing in real estate, understanding the rental market’s nuances is essential to maximize your returns, especially if your property is in a metropolitan city like Istanbul. Deciding between short-term rentals like Airbnb and traditional long-term leasing can significantly impact your income, management responsibilities, and risk exposure.

Brought to you by Istanbul Homes ®, this blog article offers a detailed comparison of Airbnb vs long-term rental Istanbul to guide you evaluate short-term vs long-term rental profitability in Istanbul. Therefore, after reading it, you can choose the best rental strategy in Istanbul 2025 tailored to your goals. Let’s analyze step by step and start with the real estate market trends in the city!

1 . Istanbul’s Property Market Trends and Growth Opportunities

The real estate market in the city remains one of the most dynamic globally in 2025. It makes investments more relevant than ever. Rental yields in prime areas remain attractive, ranging between 5% and 8%, which is notably higher than many global cities such as London or New York.

The city’s growing population, combined with an influx of expats, students, and business professionals, continues to fuel demand for both short-term apartment rentals Istanbul Turkey and long term apartment rentals in Istanbul. This demand is especially strong near new metro stations, commercial hubs, and international schools.

When it comes to buy to let strategies, residential prices in famous districts like Beyoğlu, Kadıköy and Şişli average around $1,800 per square meter, with luxury waterfront properties exceeding $4,000 per square meter. Over the past year, prices have risen 12–15%, driven by strong demand and limited supply of premium properties.

Moreover, major infrastructure projects are reshaping the city’s landscape, increasing interest in emerging neighborhoods such as Küçükçekmece, Başakşehir, and Arnavutköy. These developments contribute to the rental demand, with expectations of price growth between 10–15% in 2025. This creates excellent opportunities for investors looking to capitalize on rising values before they escalate further.

2. Income Comparison: Airbnb vs Long-Term Rental in Istanbul

If you are seeking for the rental income comparison Istanbul Airbnb vs long-term, you’ll notice that Airbnb often offers higher gross revenue. This option offers rental guarantees in Istanbul, particularly in trendy neighborhoods such as Moda or Kadıköy.

For instance, a 1-bedroom apartment rented long-term might bring in around $600 monthly, reflecting typical long-term rental yields in Istanbul of 6-9%. However, listing the same property on Airbnb can generate nearly double that amount during peak seasons, with monthly revenue from Airbnb in Istanbul reaching $1,200 or more due to elevated nightly rates and strong demand.

That said, you should consider vacancy risks in short-term rentals during off-peak periods when tourist numbers decline. Unlike Airbnb, long term apartment rentals in Istanbul provide you with steady income year-round, reducing financial uncertainty. The trade-off between Airbnb cash flow vs stable long-term income ultimately depends on whether you prefer higher but variable earnings or consistent monthly rent.

3. How Seasonality Affects Your Rental Income in Istanbul?

Understanding the Istanbul tourism season rental impact is crucial if you choose short-term rentals. The city’s peak tourism months, from spring through autumn, see occupancy rate for Airbnb Istanbul often exceed 80%, allowing you to maximize your Airbnb rental income in Istanbul with premium nightly pricing.

However, during the low season, bookings drop significantly, impacting your cash flow. This fluctuation highlights how seasonal trends affect Airbnb profitability and why some investors prefer the predictability of long-term leases. Tenants typically sign contracts lasting months or years, ensuring steady rental income regardless of season, which makes long-term rentals attractive for risk-averse investors.

4. Management Efforts and Costs in Istanbul

After buying real estate in Istanbul to make a wise investment, you need to manage your property. And managing an Airbnb property means you’ll handle guest communications, frequent cleanings, maintenance, and compliance with platform standards.

These factors increase your Airbnb hosting costs vs long-term landlord costs. Many owners hire professional Airbnb property management in Istanbul services to streamline operations, though this reduces net profits.

If you want a more passive investment, long term apartment rentals require less frequent tenant turnover and lower management intensity, making them appealing if you prefer minimal day-to-day involvement.

5. Navigating Regulations in Istanbul: What You Must Know

You need to be aware of the legal framework before investing in short-term rentals. For instance, there is a 100-day rental limit Airbnb Istanbul enforces, restricting how many days you can rent your property annually on renting platforms.

Additionally, you must obtain a tourism house license Turkey offers. Later you need to secure co-owner consent for Airbnb Turkey option if your property is in a shared building. Non-compliance with these rules can lead to severe Airbnb fines and penalties in Turkey, including hefty fines and potential listing suspensions.

On the other hand, long-term rentals face fewer legal hurdles, offering a more straightforward and secure investment path. If you are asking “How does Istanbul’s rental law affect Airbnb hosts?”, understanding these facts will help you avoid costly mistakes and protect your investment.

6. Which Rental Model Fits You Best as a Foreign Investor?

If you’re a buyer wondering which rental option is better for foreign investors in Turkey, the answer depends on your goals and risk tolerance. Airbnb can deliver the highest ROI rental strategy in Istanbul in famous districts, where tourism demand is strong. Smaller units often perform the best, aligning with the popular studio apartment rental strategy Istanbul for short-term rentals.

However, if you prefer steady income with less management effort, long term rentals remain a solid choice. Also, you can consider the rental demand and ROI between Istanbul’s European and Asian Sides, as the European side generally offers higher rental rates and occupancy for both rental models due to its central location and infrastructure.

7. Strategic Pricing and Property Types to Maximize Your Rental Income in Istanbul

To maximize your Airbnb returns in Beyoğlu, Kadıköy, Şişli, as they are the most preferred districts; you should apply strategic pricing for Airbnb listings Istanbul options. Further, you can use Airbnb dynamic pricing Istanbul 2025 tools for this too. These allow you to adjust nightly rates based on demand, seasonality, and local events, helping you optimize occupancy and revenue.

The most profitable property types for Airbnb in Istanbul are typically well-located, fully furnished studios and one-bedroom apartments with modern amenities. Properties near transport hubs, tourist attractions, and business centers tend to attract more bookings and higher rates.

Which Rental Model Should You Choose in Istanbul?

Is Airbnb more profitable than renting in Istanbul? It depends on your priorities. If you’re ready to actively manage your property and accept some regulatory risk, Airbnb can offer higher income during peak seasons. But if you want steady, predictable returns with less hassle, long-term rentals provide a safer and simpler alternative.

Carefully assess your goals, management capacity, and risk tolerance before deciding. You might even consider a hybrid strategy, combining both models to balance cash flow and stability.

If you are interested in investing in Istanbul's serviced apartments, or ready to maximize your property investment, Istanbul Homes ® is here to guide you. We provide personalized services to guide you navigate the complex rental market, understand rental demand, comply with regulations, and choose the right rental model for your property.