Turkey Property HotSpots


Where to invest in Turkey and why - a review of Turkey Property Hotspots 


1) Bodrum Peninsula

The bustling town of Bodrum, with its grand castle, stands on the site of an old Roman town and it is located within a highly protected conservation area. No buildings higher than two storeys are permitted, but despite this restriction, the town itself is actually very modern and upmarket.  Bodrum has three new marinas and a new international airport that enables you to reach the town in less than 25 minutes.  The latest marina that opened its moorings to prestigious boats is located in Yalikavak, which is an area we highly recommend for investment.  

There are many smaller resorts along the coast line of the Bodrum Peninsula. Villages on the south and west coast have access to a number of excellent beaches and many such as Gumbet, Bitez and Turgutreis are very popular among water sports. In contrast, the North Coast is characterised by secluded coves and hills that are swathed in olive trees. The nearest village to the north is the modern settlement of Torba. It only really comes to life in the summer, but its holiday homes are generally built to a fairly high standard. 

Bodrum property is rapidly becoming a hotspot among Turkish celebrities, although so far, the area remains unspoilt by commercialisation.  Bodrum real estate market is sustained by the Turkish elite as opposed to foreign buyers, yet another strong signal that it is not vulnerable to changes in overseas home buying trends.  Bodrum, also known as the outermost suburb of Istanbul, is a prestige location for Turks buying second homes.  Some of the most desirable properties in Bodrum are owned by wealthy Turks.  

Houses prices in Bodrum are expensive compared to the rest of Turkey, with prices having risen by 40% to 50% in recent years. However, a luxury two bedroom apartment with shared swimming pool and sea view can still be bought from as low as GBP 60,000 while a four bedroom villa can be purchased from as low as GBP 200,000.

The rental market is extremely buoyant in Bodrum, and with 40% of the country's domestic tourists heading for the town, rental properties here are almost guaranteed to be a good investment. The market on the peninsula is growing too as more people choose to visit the area. Property in Bodrum centre is popular with large numbers of young people who visit for the thriving nightlife and smaller two-bedroom apartments are the most sought after.

In the surrounding villages larger rental properties are more popular with families. In Bodrum, you can expect to receive around GBP 350 per week for a small apartment, or around GBP 850 for a three bedroom villa.    
Key Facts
          Population Bodrum 35, 200  /  Torba 7,000
          Airport Bodrum Milas Airport  35 min drive to the Bodrum town centre

Buying Points 
a)With its sugar-cube houses and palm-lined streets, Bodrum has been slightly more successful in retaining 
its original charm than other resorts         
b)The villages all along the peninsula offer stunning sea views and gorgeous scenery
c)The new airport has provided much easier access to the area and there are now large numbers of foreign visitors and inhabitants
d)Building restrictions in the municipality of Bodrum have meant that developers have been primarily concentrating on the previously unspoilt villages along the peninsula for new buildings              
e)The large number of tourists and weekend visitors from Istanbul making use of the new international airport have contributed to the general rise in prices in the area

Please click to view property for sale in Bodrum

2 ) Dalaman 

Dalaman is one of the few coastal areas which is still relatively undeveloped and unspoilt. The town itself is several miles inland and remains predominantly Turkish, with basic English spoken in most of the cafes and restaurants. Tourism is relatively new to the area, hence prices are lower than in many of the resort towns and villages.

The Turkish government has now designated the town a main tourist area, making Dalaman an ideal location for property investment. The time to buy in this area really is now!  With plans for a new marina and the newly developed golf course managed by the Hilton group, Dalaman is rapidly becoming a popular location for European property Investors. There is plenty to attract people to buying property in Dalaman. There are many shops and a growing number of restaurants, bars and tea gardens. Dalaman area offers a range of activities for the intrepid adventurer, from 'white water' rafting and sea kayaking to gentle strolls in the beautiful countryside there is something to suit every taste.

Dalaman's location could not be better, with many resort towns only minutes drive away, the sophisticated

dalaman01.jpg marina town of Gocek is only 10 mins drive away, Dalyan only 20 mins drive and the popular resorts towns of Marmaris and Fethiye just over an hour's drive.

The construction of a new airport terminal completed in 2006 will bring flights from the UK and other destinations all year round. Dalaman has an extensive bus network linking it to Marmaris, Fethiye and surrounding areas. Just 15km and a short bus ride away is the lively resort of Sarigerme with its sandy beach, thriving bars, restaurants, and shops. A little further are Dalyan and Kaunos, home to the Loggerhead turtle, and ancient rock tombs which overlook the river, daily activities such as paragliding, jeep safaris and horse riding are always on offer. Dalyan is home to the world famous 'mud-baths' with their well renowned beauty and healing secrets. Dalaman has so much to offer and is rapidly becoming recognised as a 'top tip' area for investment in Turkey, with a growing British community living in the town and surrounding areas.  

For property in Dalaman, please click

3) Antalya area

The stunning Gulf of Antalya is an area of extreme natural beauty. As well as ancient cities, visitors can explore the valleys, forests, waterfalls, caves and the nearby Taurus Mountains, which are snow-capped until the middle of summer. Golf capital Belek (one of the area's biggest resorts) is packed with golfers and beach tourists all year around. 

With a population that has risen by approximately 400% in the last 20 years, Antalya is the fastest growing city in Turkey and has become one of the country's most popular holiday destinations in recent years.

Perched on top of a limestone plateau, this stunning area is lush with banana plantations, citrus fruit orchards, palm groves and pine forests. The hub of the city centres on the old harbour that is built within the ancient Roman walls. The marina is a lively area packed with cafes, bars and restaurants.

Throughout the country, the property market is booming, and the Antalya region is no exception. Antalya real estate prices rose by an average of 50% in 2007 - 2012 period despite global economic slowdown. In Antalya region, a two-bedroom semi-detached house can be bought for GBP 90,000. Newly built top of the range three bedroom apartments with sea views can be picked from GBP 85,000.

In Kemer, brand new luxury four bedroom maisonettes with private gardens and swimming pool are available from GBP 200,000. 

Keen golfers can buy a brand new three or four bedroom villa with pool located close to Belek's international golf courses and sandy beaches for around GBP 150,000.

This is primarily a short-term rental market, with guaranteed rentals during the peak summer season. The market is strong, driven by tourists seeking sunshine. The area offers varied attractions, making it desirable to families, couples and singles.  One exception is Antalya city itself.  Districts of the city such as Konyaalti and Lara, both coastal towns with great beaches, enjoy year round occupancy and long term rentals.  We highly recommend luxury apartments in Konyaalti and Lara for investors looking for long term lets and healthy capital growth prospects.  

The average weekly rent for a three-bedroom villa in Antalya area is GBP 600 while a two-bedroom apartment generates around GBP 350 in the season.

Key facts
            Population: Antalya 1.2 million / Belek 12,000 / Kemer 20,000
            Airport: Antalya Internation Aiport only 35/40 min drive to Belek and 45min to Kemer
Buying Points
a) Antalya offers a wide range of year round facilities, including schools and hospitals
b) The city is also prime arrival and junction point of the region
c) Kemer is ideal for those seeking beach action and thriving nightlife, while Belek has become
Turkey's premier golf centre, with 17 international golf courses 
d) Properties have risen in value by 50% in some areas of the Belek / Kemer / Antalya coastlines in the last 5 years
f) Belek / Kemer and Antalya towns have some of the highest tourist densities of any town in Turkey

For our selection of property in Antalya, please click 
4) Kalkan & Kas

Despite the developments that have turned Kalkan & Kas into popular, modern tourist resorts, both have retained much of their original fishing village charm. Sheltering so close to the mountains, neither town has much by way of a beach. In Kalkan, swimmers usually have to enter the sea from special platforms, while in Kas the small, pebbled beaches are often overcrowded. This region is particularly popular with affluent British Holiday makers looking for more upmarket destinations and who tend to favour villa accommodation.

All top of the range homes have sea views in Kalkan and Kas in contrast to the majority of Turkish resorts where the seafront is a designated tourist area and given over to large hotel complexes. Prices for property in Kalkan are booming and have increased by 100% in recent years. Although it is now the most expensive location on the Turkish property market after parts of Bodrum, it is still a very popular investment area among British buyers.

The limited amount of land available is pushing prices up even further, with sales averaging GBP 350,000In Kas prices have soared by 30% since 2009 alone and despite the two and a half hour transfer time, demand for property in this chic harbour town shows no sign of waning.   With the opening of the new 500+ berth capacity marina in Kas, we expect further appreciation in the area's profile particularly amongst sailors.

Both Kalkan and Kas, have strong rental markets, primarily summer rentals of some 20-25 weeks a year. In winter, Kalkan in particularly is rather quiet.  Average rentals in Kalkan are GBP 1,000 for a three bedroom villa and GBP 400 for a two bedroom apartment per week. In Kas four bedroom villa costs around GBP 1,200 / GBP 1,350 per week in the high season.  Having said that some higher quality panoramic seaside villas in Kalkan can deliver up to GBP 3,000 per week for up to 25 weeks a year.  It is possible to achieve rental yields in Kalkan in excess of 7-8% per annum. 

Key facts:
            Population : Kalkan 7,500 / Kas 8,500
            Airport : Antalya International Airport- takes about two or two and a half hour drive.  Dalaman airport around 1.5 hour to Kalkan and 2 hours to Kas.
Buying Points 
a) Kalkan is an exclusive and elegant resort, while Kas is even more bohemian with an intellectual feel to it.  Both towns are exceptionally charming and scenic with some of the best views imaginable in entire Mediterranean.
b) There is a large British presence in Kalkan, whereas Kas tends to attract a more elite and multi-cultural traveller
c) Both towns boast good restaurants and shops
d) Prices in the area are rising by an average of 12% per year 
e) Despite recent developments, Kas has managed to maintain a distinctive character

5) Fethiye

This picturesque market town has a population of 75,000 and is very popular with British tourists. Fethiye stands on the site of the ancient city of Telmessos. The most interesting historical remains are the Lycian stone Tombs and the Tomb of Amyntas that is carved into the cliff-side. Upmarket yacht clubs, a marina and a small port make Fethiye a very desirable area. Since it is a working town, it offers year round living with plenty to do in all seasons.

The local beaches are superb, but are very busy during the summer, while the surrounding mountains are clad with lush, green pine trees. Dalaman International Airport is only 45 minutes drive away.

Fethiye property prices have risen 20% - 25% over the last 3 years. A two bedroom, newly built property costs around GBP 65,000 while, a four bedroom villa with private pool and a good sized garden can be bought from GBP 155,000. Smaller villas with communal pools cost around GBP 135,000. 

A popular resort with an abundance of accommodation makes this a superb investment. Prices are rising, although they are restricted by the large amount of competition. This resort benefits from short-term rentals and is popular with international rentals, as well as experiencing an influx of residents from the larger inland cities at the weekends and during holidays. A two-bedroom apartment costs around GBP 250 per week to rent and a three bedroom villa around GBP 650 on average.

Key Facts:
          Population: 75,000
          Airport : Dalaman International Airport 45 minutes
Buying Points
a) Fethiye is well situated for visiting some of the coast's fascinating ancient sites and Turkey's most pictured Blue Lagoon beach
b) It is a traditionally Turkish market town with a lively atmosphere
c) Nearby, there is a group of small islands in the Gulf of Fethiye that provide a chance to experience 
unspoiled Turkey by boat
d) Fethiye is well connected to Antalya, Dalaman, Kalkan, Kas and Marmaris by bus and to Rhodes by 
eIt has become very popular with European ex-pats making it home here

View our portfolio in the area by clicking on property for sale in Fethiye

6) Istanbul

Istanbul, the magnificent bridge connecting Asia and Europe - where East meets West
The capital of three biggest empires the world has ever seen
The meeting point of cultures
The unique sample of peace between religions with the mosques, churches, and synagogues

Istanbul is a fascinating living city with its legends, palaces, music, art, cuisine, multi coloured culture and impressive land-scape.     

Istanbul is Turkey's largest city even though it is not the capital. It sits right on the point where Europe meets Asia and has straddled both continents for centuries, initially as Byzantium and then as Constantinople. For anyone who knows their history, this grand city has had long periods of its past as the greatest city on Earth, and still carries the monuments and trophies to prove it.

These days Istanbul is home to an official population of around 14 million with some estimates as high as 18 million and is the powerhouse of the Turkish economy. Whilst most people look towards the coast when investing in property in Turkey, they fail to spot the potential in a market where mortgages are about to become widely available for the first time in history to the Turkish population. Millions of Istanbul residents are hoping to become home-owners at some time over the next couple of years and this has led to a shortage of suitable housing in the city.

Istanbul real estate has been tipped as the best investment market in Europe since 2009 by think tanks such as PWC and Deloitte Consulting.  Investors, who have taken the advice and invested in this amazing city have ripped significant benefits in the past 4-5 years.  The market is still new, therefore there are still many gains to be had.
We recommend the following investment strategies for Istanbul properties
  1. Upcoming suburbs, where you can enter the market from as low as GBP 45,000 for small apartments.  Please be careful in this segment - there are far too many offers on the market that are nothing more than packaged products with all sorts of promises such as rental guarantee and capital growth that will never materialise.  Not all suburbs are good for investment.  As a potential investor, you will either need a very good knowledge of Istanbul market and geography to tell the difference or you will need to seek advice from experts, who will give you objective and frank information.  Couple of areas we recommend are Bahcesehir on the European side and Maltepe on the Asian side.
  2. Renovation projects in inner cities of Istanbul such as Taksim, Beyoglu, Galata, Cihangir areas.  These tend to be for investors with deeper pockets, however, these are the real gems for investments in Istanbul.  As various Government supported regeneration projects are uplifting the profile of these inner cities, they are becoming more and more desirable prime locations.  Artists have already moved in, which is a major sign of things to come.  You can still pick old historic buildings in these areas relatively cheaply and renovate them in keeps with their era.  Once renovated, then they can be sold as apartments, rented out as residential and/or commercial properties.  Return on investment is significant.
  3. Purchasing a hotel in Istanbul mainly in central tourist destinations such as Beyoglu and Sultanahmet.  Istanbul currently has a major shortage of quality hotel accommodation and tourist trends are rising year on year.  This is domestic and foreign.  There is a significant opportunity in acquiring going concern hotels and renovating older buildings into hotels, the latter potentially having a quicker pay-back however, needing more involvement from the outset.    
To invest where East meets West, click on Istanbul real estate

For all your enquiries regarding investing in Turkey and/or for objective advice on where and how to invest, please do not hesitate to call Place Overseas on + 44 (0) 20 8371 0059.

Turkey Guide