home Property Turkey Blog AirAsia’s Istanbul Debut Signals Turkey Tourism and Investment Boom

AirAsia’s Istanbul Debut Signals Turkey Tourism and Investment Boom

Created 09 Sep 2025

AirAsia X, the long-haul arm of the Malaysian low-cost airline, has announced that new direct flights from Kuala Lumpur to Istanbul’s Sabiha Gökçen Airport will begin from November 14, 2025. The flights, the first from AirAsia to Europe in more than a decade, will fly four times per week and marks a significant boost to Turkey’s global connectivity.

The new route will offer seamless “Fly-Thru” connections for travellers from across Southeast Asia, including hubs like Hong Kong and Macao, to reach the historic city on the Bosphorus. In turn, it gives Istanbulites and European travellers convenient access to AirAsia’s vast Asian network of 130 destinations at affordable fares.

AirAsia X’s CEO, Benyamin Ismail, said that flying to Istanbul had always been a dream route for the airline to add, praising the city as “the only metropolis built on two continents” – fitting AirAsia’s vision of bridging Asia to the world.

Air Asia

 

Istanbul’s Tourism Surge to the Top of Global Rankings

AirAsia’s flights come as Istanbul is experiencing a tourism boom. Data shows that, in 2023, Istanbul welcomed 20.2 million international visitors, a 26% jump from the previous year. This made Istanbul the world’s number-one city for international arrivals – surpassing tourism hubs like London with 18.8 million visitors and Dubai with 16.8 million. To put the Istanbul’s rise in perspective, a decade ago it attracted just half the number of tourists it does today.

The city’s allure comes from its unique blend of rich history, cultural wonders and modern amenities. Visitors and tourists come to stroll the storied streets where Europe meets Asia – from iconic landmarks including the Hagia Sophia and the Blue Mosque, to the bustling Grand Bazaar – and increasingly, to enjoy world-class hotels, luxury restaurants and unmatched shopping.

2023’s tourism surge was part of a broader recovery in global travel. With pandemic restrictions eased, Turkey benefited from pent-up demand, including the return of Asian travellers and tourists. The reopening of outbound tourism from countries like China helped drive visitor numbers upward.

Alongside this, Turkey’s government has actively courted more international visitors and tourist numbers, even taking the decision to simplify entry formalities to the country. For example, as of 2024 Turkey waived tourist visa requirements for citizens from the United States and Canada.

Istanbul Istiklal Avenue

 

A Global Hub at the Crossroads of Continents

Istanbul’s strategic geographical location – straddling Europe and Asia – has always been its defining asset, and recent infrastructure investments are fully leveraging this advantage. The city’s aviation sector, in particular, has transformed Istanbul into a major international hub for global travel.

In 2019, Turkey opened the new Istanbul Airport (IST) on the European side, an ultramodern airport with the capacity to eventually serve 150 to 200 million passengers per year. By 2024, Istanbul Airport was already Europe’s second-busiest airport, handling well-over 80 million passengers annually, including 63 million international passengers, and ranking amongst the top seven globally by traffic numbers.

Meanwhile, Sabiha Gökçen Airport, located on the Asian side – where AirAsia X will land from Kuala Lumpur – has also grown into a busy hub in its own right, offering connections to more than 117 international destinations and 40 domestic cities. Together, both of Istanbul’s airports create a powerful aviation network that bridges the East and West.

Data shows that more than 200 airlines now fly directly to Istanbul, linking the city to 350 destinations worldwide. Turkish Airlines has become one of the world’s largest airlines, often topping Europe’s rankings for destinations served and airline standards. This reinforces the city’s importance as a logistics and business gateway – Turkey’s strategic location makes it a cost-effective route for travel and trade between Europe, Asia, the Middle East, and Africa.

Alongside this, new Turkish highways, high-speed rail lines, and seaport projects are further expanding Turkey’s transport grid and travel options, ensuring that Istanbul isn’t just a city to enjoy a layover, but is a thriving tourist destination and commercial business hub.

AirAsia’s new service capitalises on this hub status. With its Kuala Lumpur to Istanbul route, the airline is effectively adding Southeast Asia to Turkey’s expansive network. Travellers from Malaysia, the Philippines, Indonesia, and more, will find it easier and more affordable to reach Istanbul, whether that’s for tourism or business reasons. At the same time, Europeans and Turkish citizens will gain a budget-friendly link to Southeast Asian destinations via AirAsia’s Kuala Lumpur hub.

Istanbul Bosphorus Bridge

 

Booming Hospitality: Hotels Filling Up in Istanbul

One impact of increasing visitor numbers is seen in Istanbul’s hospitality sector. Hotels in Istanbul have reported record occupancy rates and revenues. In 2024, Istanbul’s hotels led the country with an average occupancy of around 68%. The revenue per available room (RevPAR) also increased significantly, with higher room rates combining with more occupied rooms to boost total hotel income.

International and boutique hotel brands have been quick to capitalise on Istanbul’s renewed popularity. Several new hotels have opened, including: Marriott’s trendy Moxy Hotels opened in Istanbul’s Beyoğlu district in 2025 and Radisson opened a new hotel in the Merter area. Industry experts note that Istanbul’s mix of leisure and business travel demand, plus its role as a regional air travel hub, give it a strong year-round hotel market.

CEO of Property Turkey, Cameron Deggin, said: “Istanbul’s hotel industry is booming on the back of record tourism numbers. Occupancy rates are high, and investors are taking note – we are seeing new hotels and refurbished properties coming online to cater to the increasing demand. It’s a virtuous cycle: more visitors stimulate investment, which further elevates the appeal of Istanbul.”

High occupancy and rising room rates are attracting interest from international hotel groups and real estate investors looking to develop everything from boutique concept hotels to large branded luxury resorts. Istanbul’s ability to offer diverse accommodations options – from Sultanahmet’s boutique hotels to skyscraper hotels in the city’s financial districts – means it can keep elevating its tourism appeal and offers.

Sisli Istanbul

 

Investors Eye Turkish Citizenship and Real Estate

It’s not just tourists who are flocking to Turkey – foreign investors are too, drawn by the country’s thriving economy, real estate opportunities, and innovative incentive programs. The Turkish government actively encourages foreign investment in property through its Turkish Citizenship by Investment (CBI) program.

Launched in 2017, Turkey grants full Turkish citizenship rights to investors who purchase qualifying real estate priced above $400,000 USD. Data shows that, as of 2025, over 35,000 foreign nationals have acquired Turkish citizenship by buying property. Successful applicants typically receive Turkish Passports in as little as 3 to 6 months. And unlike some countries, Turkey imposes no residency requirement, meaning that investors aren’t obligated to live in Turkey before or after obtaining citizenship.

The benefits of a Turkish passport are also substantial: visa-free or visa-on-arrival access to over 110 countries, easy electronic visa access to many more, and the ability to apply for programs like the US E-2 Investor Visa. Cameron Deggin said: “Turkey has strategically positioned itself as the go-to destination for foreign investors seeking, not just solid returns, but also the opportunity to purchase a strong passport.”

Middle Eastern, Russian, and Asian investors have been especially active within the program, seeing Turkey as a safe haven and a vibrant market for their capital. Lately, there’s also been growing interest from European and North American buyers who recognise the lifestyle and investment potential that Turkey offers.

The influx of foreign capital through programs like Turkey’s CBI has provided a huge boost to the real estate sector. In 2024, international buyers invested over $6.5 billion USD in Turkish properties. These purchases ranged from apartments in Istanbul, seaside villas in Bodrum, commercial units, and even development land. Istanbul remains the top choice for investors. Other regions including Bodrum, Antalya, and Fethiye attract buyers looking for luxury holiday homes with high rental income.

According to a hospitality industry report, Turkey’s CBI scheme has driven global investment into Turkey’s real estate sector, alongside infrastructure upgrades and urban regeneration projects. Simply, Turkey has made it easy for foreigners to invest and settle in the country, creating a win-win scenario where investors gain access to a growing market and a passport, while Turkey gains an influx of funds and international talent.

 

Istanbul Set to Soar – A Property Turkey Perspective

Looking at the future ahead, Istanbul’s trajectory as a global city seems almost unstoppable. The combination of increasing flight connectivity, as exemplified by AirAsia X’s new route, booming tourist arrivals and new records, and strong investor confidence is creating powerful momentum.

As the city draws in visitors from Asia, Europe, the Middle East and beyond, it boosts sectors ranging from hospitality, retail, and construction. There is an undeniable buzz in the market, with hotel projects, shopping malls, and mixed-use developments being built to accommodate growth. Data shows that Turkey’s tourism revenues hit a record $54 billion in 2023, and that prosperity is feeding into local infrastructure and real estate investment in Istanbul, creating a cycle of improvement.

Cameron Deggin said: “AirAsia’s expansion into Istanbul is testimony to the city’s rising global status. Year by year we are seeing more visitors from across Asia discover Turkey. Istanbul in particular, has cemented itself as a true world hub at the crossroads of Europe, Asia, the Middle East and Russia. This growing connectivity is fuelling not only tourism but also a wave of investment interest in Istanbul’s hotels and real estate sector.”

Industry experts agree. Istanbul’s appeal extends beyond tourism: it is viewed as a strategic place to own property, establish regional headquarters, or to develop projects with its youthful population and improving business climate. The evidence on the ground is clear for all to see. 5-star hotels in Istanbul are reporting their highest occupancy rates in years, the city’s airports are handling record passenger numbers, and foreign property investors continue to snap up apartments and real estate.

Istanbul Galata

 

A New Era for Visitors and Investors – Contact Us Today

Istanbul’s blend of ancient charm and modern ambition gives it an edge that only a few cities can match. As Turkey continues to invest in its infrastructure and open its doors to the world, Istanbul is poised to climb even higher in the latest global rankings – whether that is tourism, investment, or liveability.

For investors and world travellers, the message is the same: keep your eyes on Istanbul. The arrival of AirAsia and other international brands is the latest vote of global confidence in this dynamic metropolis and won’t be the last. Turkey’s crossroads city is entering into a new era, and both visitors and investors stand to benefit.

If you are interested in discovering the latest real estate opportunities in Istanbul, please call or contact Property Turkey today to speak with our local agents and advisors. With over 20 years of experience and unmatched expertise, we have thousands of Istanbul apartments, villas, family homes, hotels, commercial investments, and everything else on our books. We are your comprehensive A – Z real estate partner in Istanbul and Turkey.

Sisli real estate

Aleksandra Cihanoğlu
Aleksandra Cihanoğlu Verified author Senior Advisor

Aleksandra Cihanoğlu is a Senior Advisor at Property Turkey and a regular contributor on topics including Citizenship by Investment, relocation, travel, and lifestyle opportunities in Turkey. Her writing focuses on helping international readers understand the practical realities of living, investing, and building a long-term future in the country.

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