Alaşehir-Sarıgöl sub-basin (ASSB) in Türkiye faces severe water stress mainly due to intensive agricultural irrigation. This has led to declining groundwater levels, aquifer compaction, and subsequent land subsidence. This study aims to evaluate the roles of tectonic activity and groundwater withdrawal in land-subsidence and investigate additional factors like faults and soft soil thickness. The P-SBAS algorithm was applied, using 98 and 123 Sentinel-1 SAR images in ascending and descending orbits, respectively, from 2016 to 2020. Independent Component Analysis separated long-term displacements from seasonal variations in the InSAR time series data. InSAR analysis showed displacement rates up to −6.40 cm/year. Results reveal a direct correlation between InSAR displacement and soft soil thickness, highlighting aquitard layer compaction due to groundwater withdrawal and piezometric head depletion as the primary causes of land subsidence. It was not possible to disentangle the multi-year displacements with different rates, i.e., to isolate the displacements caused by tectonic activity from displacements due to the soft soil compaction induced by groundwater withdrawal. Nonetheless, the analysis identified two spatiotemporal displacement trends: one linked to long-term, linear plastic compaction of the aquitard due to groundwater withdrawal and the other involving long-term displacements with seasonal rebounds caused by yearly water level fluctuations.