London to Istanbul: The Rise of One-Bedroom Apartments
By: Cameron Deggin
Data released from the Turkish Statistical Institute (TUIK), has shown that the average household size in Turkey decreased from 4.0 in 2008 to 3.11 in 2024. This demographic shift reflects changes in modern society and is reshaping demand across the country with Istanbul’s property market entering a new era defined by smaller homes and households.
Over the past five years, a significant surge in demand for one-bedroom apartments has been witnessed in Istanbul. This is especially seen in urban regeneration areas and central districts such as Kagithane and some parts of Sisli, where prices are still affordable, connectivity is excellent, and investment potential is high. Istanbul saw a 12% increase in one-bedroom apartment sales between 2022 and 2023.
The city is following a trend previously seen in major global cities across the past 20 to 30 years. From London to New York to Shanghai, these metropolis cities have all undergone the same modern lifestyle transformation, with one-bedroom Istanbul apartments becoming new hotspots for buyers as well as renters.
Global Cities: The One-Bedroom Apartment Trend
London: Adapting to Compact Urban Living
In London, there has been a dramatic shift in housing dynamics over the past 20 years. Data shows that between 2000 and 2020, the population of London increased by 23%, however housing stock only increased by 14%. This created a new demand for efficient living space at home, stimulating the rise of one-bedroom apartments.
Alongside this, rental prices in London have rocketed with the Office for National Statistics reporting a 6.9% annual increase in private rental prices in 2024 alone. The average price for a one-bedroom apartment in prime areas including Westminster or Kensington & Chelsea reached £2,121 GBP per month. This has led to tenants seeking more affordable alternatives in commuter towns and outer city boroughs.
Single-occupancy and couple-only households have also grown considerably during this same time period, with shifts towards people buying or renting smaller and well-connected homes evident across London. What was once considered a starter home is now a long-term living solution for thousands of people, couples, and commuters.
New York City: Space-Efficient Demand
Another example of the global rise in one-bedroom apartment popularity is New York City. Over the past decade, average rental prices have risen to an eye-watering $3,978 USD per month by 2025. This is over 50% higher when compared to early 2010s and is driven by high demand and limited apartment supply.
The proportion of single adults and childless couples choosing to live in Manhattan or Brooklyn has grown significantly. The desirability of smaller, private spaces has increased with the ability to work remotely from coffee shops or travel. New hotspots include the East Village where it is not uncommon to see queues for viewings of one-bedroom apartments for rent.
Investors in NYC have taken note and are increasingly focused on compact studio units and one-bedroom flats which regularly outperform larger properties in terms of rental price per square foot. This new definition of the urban housing model aligns with modern lifestyle preferences seeking a prime location and minimalism over larger interior space.
Shanghai: Compact Living in a Megacity
One of the world’s most dynamic urban environments, Shanghai housing shifts lead the way in terms of setting global trends. The city is rapidly evolving and quickly embraced high-density living with one-bedroom apartments now vastly popular amongst those buying real estate as well as those wanting to rent.
Data shows that by the end of mid-2022, the average monthly price for a one-bedroom apartment had reached 7,000 RMB. In popular districts including Luwan, prices are higher – reflecting the increasing demand by professionals and middle-class residents, who seem to prioritise accessibility and home convenience.
Government policies have supported the development and the building of smaller flats throughout the city. In various newer districts such as Pudong and Jinshan, well-planned smaller apartments offer a more accessible entry point for younger buyers, or a flexible option for investors seeking long-term rental income.
Istanbul: Following the Global Trend
Data from Istanbul tells a similar story. Statistics from TUIK show that single-person households now make up 20% of total households in Turkey, this is up from 14.9% in 2016. More and more people are choosing to live alone in one-bedroom apartments. The proportion of typical families living together has dropped to 63.5%, while households with extended family members living together has dropped to 13.3%.
Central neighbourhoods including Kagithane and Sisli are responding strategically to this change in behaviour and household sizes. Thanks to new infrastructure development, urban regeneration projects, and excellent accessibility, these areas have never been more popular. With affordable city centre one-bedroom apartments still available, these districts are ideal for working professionals, young couples, and international investors.
Data shows that between 2019 and 2024, the average price of one-bedroom properties in Kagithane increased by over 40%, while rental yields for Kagithane and Sisli currently average between 5.5% and 6.8% annually.
1. Affordability: Compared to neighbouring areas including Besiktas or Nisantasi, it is still possible to find affordable one-bedroom apartments in Kagithane or some parts of Sisli in central Istanbul. This opens the market to first-time buyers as well as mid-level investors.
2. High Rental Yields: One-bedroom flats are increasingly popular amongst working professionals, couples, and new university graduates – providing a pool of reliable renters and high rental income potential. Short-term platforms like Airbnb add flexibility.
3. Capital Appreciation: As urban regeneration projects continue throughout Istanbul and demand continues to grow, prices within these central districts are expected to grow – providing long-term value for investors.
4. Demographic Support: 72.6% of people in Turkey aged 25 – 29 who are not married, are still living at home with their parents. This highlights a huge future pool of renters and buyers of compact city centre apartments.
5. Digital Nomads and Remote Workers: Istanbul is rising as a hotspot for digital nomads and those able to work remotely. Nomads and remote workers tend to prioritise city-centre locations with fast internet and flexible renting – ideal for investors with one-bedroom Airbnb-style units.
Ready to invest in city centre affordable luxury homes? Explore our portfolio of one and two-bedroom apartments in central districts including Kagithane and Sisli. At Property Turkey, our local and friendly consultants are happy to answer all of your questions about how you can capitalise on Istanbul’s most exciting urban living trend.
Frequently Asked Questions
Can foreigners buy one-bedroom apartments in Istanbul? Yes. Foreign nationals can legally purchase properties in Istanbul, including in central districts where one-bedroom flats are most popular.
Are one-bedroom flats eligible for Turkish citizenship? Provided the value of the property exceeds $400,000 USD, it may be suitable for Turkish Citizenship by Investment. Contact our team if you are unsure.
What are average maintenance fees for a one-bed flat? Maintenance fees vary depending on complex and on-site amenities. Projects with swimming pools, gyms, playgrounds, will have higher monthly fees to pay.
Can I rent my one-bedroom apartment on Airbnb? Yes. Turkey introduced new laws in 2024 regarding renting your apartment on a short-term basis on platforms such as Airbnb. Click here for more information.
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