Istanbul is the largest city in Turkey and occupies a very strategic location between Asia and Europe, thus it has a very dynamic real estate market. The 1980s witnessed multi-centre development of the city with construction of peripheral highways and globalization playing an important role in the changes to the real estate market. This paper investigates the factors which effected real estate tax based land prices in Istanbul in 2002. Regression analysis is used for the investigation. According to the results of the analysis, the variables are ranked with respect to their importance as: Building coverage ratio, distance to the station, floor area ratio, distance to the sea shore, distance to the CBD, net population density, distance to the sub-centre, distance to industry and distance to the hospitals. The results of the study can be useful for the real estate investors, urban planners, tax assessors and policy makers. Investigation of the factors which effect land prices by the use of a time series analysis is suggested for further research.