The purpose of this paper is to examine the spatial distribution of housing prices at the metropolitan and at the district level of Istanbul. At the metropolitan level, the most important factors which affect housing prices are sub-market, floor area and sea view. At the district level, housing prices vary from district to district according to locational, socio-economic and property characteristics. High-income sub-markets have higher coefficient of determinations and more significant variables than low-income sub-markets. Furthermore, the results suggest that planned districts have higher housing prices; thus, restructuring squatter areas and revitalizing inner city areas provide not only benefits to individuals but also higher tax revenues to the city.