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The Karapinar basin, located in the Central Anatolian part of Turkey, is subjected to land subsidence and sinkhole activity due to extensive groundwater withdrawal that began in the early 2000s. In this study, we use Interferometric Synthetic Aperture Radar (InSAR), Global Navigation Satellite System (GNSS), and groundwater level data to monitor and better understand the relations between groundwater extraction, land subsidence, and sinkhole formation in the Karapinar basin. The main observations used in the study are InSAR-derived subsidence velocity maps calculated from both Sentinel-1 (2014–2018) and COSMO-SkyMed (2016–2017) SAR data. Our analysis reveals broad areas of subsidence with rates exceeding 70 mm/yr. The InSAR-derived subsidence was compared with GNSS data acquired by a continuously operating GNSS station located in the study area, which show a similar rate of subsidence. The temporal characteristic of both InSAR and GNSS time series indicate a long-term subsidence signal superimposed by seasonal variability, which follows the overall groundwater level changes, with over 80% cross-correlation consistency. Our results also indicate that sinkhole activity is limited to slow subsidence areas, reflecting strong cohesion of near-surface rock layers that resist subsidence but yield to collapse in response to aquifer system deformation induced by groundwater extraction.