Mate, I don't see Real Madrid letting him go on loan anytime soon. Arda is such a game changer for them, though he often gets subbed off. I know his playtime is our main concern. Giving him more minutes is one solution. But he easily starts for mid-table teams in a competitive league.
There's no freaking way to rent him back to Fenerbahce; he deserves to be rented to a bigger club. He needs it to ensure he can step up higher than this time. He is a very promising player to be wasted on a club that wouldn't help develop himself.
Real Madrid need Arda in his current form and I don't think they will loan him back to Fenerbahce. He is still playing very little at the moment but as time goes by Ancelotti will definitely give Arda a chance, as long as he can improve his game. If he has to go out on loan, I agree that it should be in a much better team than Fenerbahce so he can continue to develop as Arda is still quite young.
Real Madrid are unlikely to spend a lot of money on a player who has no potential and Arda just needs to adapt to become a player needed in the first team. Although currently he has not been able to get this opportunity because of the tight competition within the team.
Ancelotti has previously confirmed that Arda will still be part of their squad this season, so at that time several clubs who were interested in borrowing him slowly withdrew, especially since Arda has confirmed that he wants to compete with other players in Madrid for the main place although the chances are very small, now that the season has run and I think there is no more chance to borrow Arda from Madrid so they must to wait for the transfer market open again, Arda does have great potential and Madrid definitely see him as a long-term investment so they continue to try to keep him in the current squad, beside that, the storm of injuries that are hitting Madrid at the moment there is a great opportunity for him to show his quality and ability to Ancelotti.
I think at the moment he just needs a chance and the trust of the coach, so if he can get it of course he can show his prowess in playing, Ancelotti will probably give him more opportunities as time goes on, but I think to get that opportunity of course he has to keep working hard to get it because currently Madrid is filled with a lot of talented players.