The events in February (namely, the earthquake that affected 11 provinces) and their aftermath stirred up the property market in Turkey. Above all, rentals: external migration — which increased dramatically a year ago, when a huge number of Russians left for Turkey — has been augmented by internal migration. Migrants from the areas affected by earthquakes are moving to other districts — both temporarily and permanently.
What does this mean in terms of investment? This means that homeowners who want to rent out or resell their property now have new opportunities.
Content:
- Properties for Sale
- Rental Properties
- Antalya/Alanya
- Mersin
- Muğla/Bodrum
- Most In-Demand Property Types
Influenced by internal migration, the volume of the rental stock is decreasing significantly. Ankara, Antalya, Muğla, Mersin, Kayseri, and Elazığ are the provinces experiencing the highest demand under current conditions. Availability of rental properties in Ankara decreased by 31% in just one month ; in Mersin, by 36%; in Kayseri, by 40%; and in Elazığ, by 60%.
The number of properties for sale in other provinces, on the contrary, is increasing. This is because people who no longer f eel their homes are safe enough and want to move to a less earthquake-prone area and are selling their properties while looking for rentals. They want to see whether they like it in a new place or not, and then decide whether to purchase, or not.
Below is detailed information for property prices rises in the most sought-after areas of Turkey:
- In Ankara, properties have gone up in price to TL1.6 million; and monthly rent, to TL7,589. As outlined above, the supply of residential rental properties has decreased by almost a third.
- In Antalya Province, the number of properties for sale in February 2023 increased by 17%, partly due to extensive development in the area. Despite new residential complexes being brought to the market, rental stock has not increased. The average monthly rent is TL13,015 and the average unit price is TL2.83 million.
- In Muğla Province, the number of properties for sale has increased by as much as 62%. However, the rental stock in the districts of Yatağan, Dalaman, and Milas has decreased. The average rent in Muğla is TL15,336, and the average sale price of a residence is TL4.4 million ( Muğla has been among the most expensive provinces to purchase property for several years).
- In Mersin, the stock of residential properties for sale has increased by 23%, while the volume of rental properties has decreased by as much as 36%. In February, the average rent was TL12,394 (an increase of 15% in one month); the average sale price of a residential unit has reached TL2 million. Thus, Mersin, which was considered a cheap area just a few years ago, has practically caught up with Antalya in terms of property value.
- The supply of properties for sale in Kayseri has increased by 12% while the rental stock has decreased by 42%. The average rent is TL4,172 and the average property price is TL1.39 million.
- In Elazığ, the number of units for sale increased by 12% in February of this year, while the volume of rental properties decreased by 60%. The average rent in the province is now TL1,817 and the average price of an apartment for sale is TL1.2 million.
Properties for Sale
| Location | Average Price per 1 m2 (TL) | Average Unit Price (TL) | Year-on-Year Price Increase (%) | February 2023 Price Increase (%) | Recorded Dynamics (%) |
|---|---|---|---|---|---|
| Ankara | 12,194 | 1,646,190 | 159.06 | 6.39 | +23 |
| Antalya | 23,596 | 2,831,520 | 176 | 6.98 | +17 |
| Muğla | 33,937 | 4,411,810 | 122.83 | 5.42 | +62 |
| Mersin | 14,205 | 2,059,725 | 155.53 | 5.17 | +23 |
| Kayseri | 8,448 | 1,393,920 | 114.09 | 5.41 | +12 |
| Elazığ | 7,167 | 1,204,056 | 124.25 | 12 | +14 |
Rental Properties
| Location | Average Price per 1 m2 (TL) | Average Monthly Unit Rent (TL) | Year-on-Year Price Increase (%) | February 2023 Price Increase (%) |
|---|---|---|---|---|
| Ankara | 63 | 7,589 | 187.06 | 6.1 |
| Antalya | 128 | 13,015 | 185.72 | 6.65 |
| Muğla | 139 | 15,336 | 125.89 | 2.69 |
| Mersin | 58 | 12,394 | 227.38 | 15.15 |
| Kayseri | 27 | 4,172 | 135.57 | 2.70 |
| Elazığ | 13 | 1,817 | 42.71 | 5.12 |
Many buyers and tenants want to live near the sea. Of the coastal provinces, Antalya and Mersin are considered the most earthquake-resistant.
Muğla is more prone to earthquakes, but low-rise buildings, which are widespread there, significantly reduce risks.
Alanya (a city in Antalya Province, which may well soon become a separate province), Bodrum (a popular resort in Muğla Province) and Mersin are now the most sought-after areas to live in. This is where investors seek to invest. Let’s review the most popular areas in each location.
Antalya/Alanya
Areas with the highest demand for properties are downtown Alanya, Tosmur, Cikcilli, Mahmutlar, Kestel, and Kargıcak. Off-plan projects in Gazipaşa, Demirtaş, Türkler, Payallar, and Okurcalar are also very popular.
The district of Gazipaşa is rapidly developing, among other things, thanks to the expansion and improvement of the airport, which became international a few years ago and now continues to increase its capacity with more and more flights being added.
Mersin
This province with the eponymous capital has gained more and more attention in recent years due to planned construction of the Akkuyu Nuclear Power Plant nearby and, as a result, Mersin turning into one of the most significant economic hubs in Turkey. An international airport is also under construction here, operation of which is planned to start by the end of 2023.
Mersin was considered an inexpensive (when it comes to properties) coastal city fairly recently, but now the prices here are almost the same as in Antalya and Alanya.
Another advantage of these areas most attractive to investors is potential to obtain a TAPU residence permit there.
We suggest that you consider Tece and Erdemli, as well as Tömük and Arpaçbahşiş.
Muğla/Bodrum
This area, which is also called the Turkish Riviera, has always been considered high-end. Europeans and wealthy Turks have been buying property here for a long time. Many residents of Istanbul and Ankara who can afford it purchase summer holiday homes here.
Regarding earthquakes, however, unlike Mersin and Antalya, located far from the junctions of tectonic plates (and therefore, as safe as possible in the Turkish context) Bodrum is relatively close to one of these junctions. However, it enjoys the advantage of being a peninsula in a rocky area, which is inherently more durable and stable. Also, multi-storey construction is legally restricted here. Bodrum real estate mostly consists of two-storey houses, mansions, and villas.
Bodrum also suffered a severe earthquake in 2016. The magnitude was about seven points, but generated little news because not a single house was damaged. The area has seen massive development only for the last 10 to 15 years. That is, there are no old buildings vulnerable to earthquakes: all houses are built using new technologies with the region’s geological disposition in mind.
Due to the growing demand, Bodrum has recently turned into a large locality with up to a million people at a time in the summer. It has become especially sought-after since the beginning of the pandemic, when people tried to self-isolate as conveniently and comfortably as possible.
Today, Bodrum is a fully-fledged city with all the necessary infrastructure: sufficient hospitals, schools, kindergartens, etc. The number of public beaches has increased. Besides densely populated areas, there are also quieter ones more predisposed to a solitary lifestyle.
How else is Bodrum different from Mersin and Alanya? Prices here have gone up at a more moderate pace: there have been no great increases of 30% per year, where 8 to 10% annual growth is the norm.
There is misperception about Bodrum as an expensive resort. Beyond its high-end towns, like Yalıkavak, in slightly less popular areas , properties are available from $150,000, for example in Adabükü.
Most In-Demand Property Types
In terms of investment literacy, two-bedroom apartments are perhaps the most in-demand and liquid. In any case, they experience significantly higher demand than one-bedroom properties.
The proportion of two-bedroom properties being built is lower, and this type is the first to sell out. This is due to both the number of rooms and the floor area, which ranges from 70 to 80 m2 compared to one-bedroom apartments' average area of 40 to 45 m2).
Moreover, apartments located on the upper floors and having a panoramic view of the sea or mountains are more popular. Almost all residential buildings in Bodrum are built to offer beautiful views from their windows, regardless of the floor or location of the apartment.
In any region apartments in residential complexes built by well-known developers are more popular than many budget residences built by poorly-recognised developers who have entered the market only recently.