In light of the recent events, the Antalya coast has acquired a new value for investors in residential real estate. The thing is that it is Antalya Province that is located on the territory least prone to serious earthquakes. That is why Antalya, and especially Alanya, became the focus of attention of foreigners who want to buy property in Turkey.
These days many people are particularly interested in the issue of seismic activity. The Antalya coast in Turkey, especially Alanya, wins by a big margin against the overall backdrop: it is located in the ‘white’, that is, the safest zone. Although even Antalya and Mersin are located on the ‘pink’ territory (a little more prone to strong earthquakes).
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History backs this up: in places near tectonic faults, serious earthquakes happen quite often— remember İzmir and Istanbul. Over the past hundred years, in contrast, there have been no strong earthquakes in Alanya at all, that is, destructive ones: seismic waves are still felt on the territory of almost the whole of Turkey regularly, and tremors imperceptible to humans are almost constant, and these are the realities of the country. So, those who are generally terribly afraid of earth vibrations of any force and are not ready to watch swaying chandeliers from time to time should probably not consider this country as an option for permanent residence (they are still welcome to invest).
Now back to purchasing property in Turkey in general and in Antalya Province in particular: the demand for it has been growing for many years.
Russian, Iranian, and Iraqi nationals are top property buyers in Turkey. If previously foreigners bought the most real estate in Istanbul, now the Antalya coast, Antalya, and Alanya are their top choices.
Prices are rising like crazy. Although the media cannot seem to stop saying that “the cost of resort property is a bubble that is about to burst.” However, let us look at the facts: the ‘bubble’ is already eight years old, and nothing has burst. Real estate values continue to rise rapidly. It is just that the region is developing, and prices are increasing accordingly.
This is particularly prominent in Alanya, since especially many people are moving here now. Alanya is not at all like the resort town that it was ten years ago. Why, even those who vacationed there a few years ago and will come now will be amazed.
So, there is no doubt the rise in real estate prices will continue here. Firstly, due to construction, which itself is becoming more expensive; secondly, they plan to separate Alanya from Antalya into an independent province very soon, and the acquired ‘sovereignty’ will also push prices up. The separation of Alanya from Antalya can theoretically happen even before the next presidential elections scheduled for May 14, 2023.
Thus, Alanya, along with Antalya and Istanbul, has become a ‘gold mine’ for real estate investors. Especially for foreigners. The Turks themselves are also actively moving here now. After all, after the events in Kahramanmaraş, which is not surprising, internal migration has increased: wealthy Turks are buying up real estate in Alanya, moving their families here at least for a while. Investment gushed into the region, and everyone who wants and is ready can easily make a profit at least by reselling residential properties.
However, although the Turks are actively moving here, most real estate (60%) in the resort of Alanya is still acquired by foreigners, primarily Russians.
According to recent statistics, Alanya accumulates 47% of all real estate transactions with foreigners. Over the past year, citizens of other countries bought 15,302 residential units here, which is about 60% of the total volume of transactions in the province. It will be recalled that in the Republic of Turkey, a total of 67,490 residential properties were sold to citizens of other countries in 2022, of which 15,302—or almost a whole quarter (23%)—are accounted for not just by Antalya Province but by Alanya.
Therefore, when it comes to buying real estate, Alanya is a) active and b) very promising. It is extremely important for an investor to understand how the market feels and where to invest, that is why we recommend that you take a closer look at this location.
Why Alanya?
So why choose Alanya? There are many reasons, and some of them are compelling.
- It is one of the southernmost cities in Turkey, bathed in sunshine: there are 320 sunny days a year. The swimming season lasts from April/May to November/December. And if we recall the past very warm winter, people swam and sunbathed in December and January.
- It boasts a well-developed road infrastructure and an especially good social infrastructure: hospitals here are better equipped than in other cities, except maybe metropolises like Istanbul, İzmir, or Ankara. New hospitals are being built, including municipal ones. The situation with educational institutions is a bit tricky but only because of the expats who poured into the city: everyone needs to send their children somewhere (to schools, kindergartens, or courses). There are simply not enough educational institutions, although there are a lot of schools and even its own university here.
- It is environmentally clean: there are no industrial facilities within a radius of about 200 kilometers.
- It has a very low crime rate, and thefts are extremely rare. Therefore, living here is comfortable and safe, even if you’ve just arrived, do not know anyone, and do not speak Turkish.
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And most importantly, real estate prices are growing faster than in other resort cities.
Here are some statistics: in recent years, many permits for new buildings have been issued in Alanya and its surroundings. In 2020, 811 new construction permits were successfully obtained; in 2021, twice as many – 1,642. In the first two quarters of 2022, more permits were issued than in the entire previous year. And, finally, according to forecasts, it is planned to build from 20,000 to 25,000 new houses in the next two years in Alanya alone.
ROI in figures
Now let’s talk about real estate investment returns, again citing specific figures: having assessed the prospects of the market, very many people buy property here almost blindly. If you do not plan to live in Alanya, such a decision cannot be called imprudent—does it make any difference if a year, two, or even just a few months pass between buying and selling?
So, the options for making money on real estate in Alanya are as follows. Firstly, land: you can buy land plots and resell them. Although not every land plot is allowed to be acquired by a foreigner due to a number of restrictions, such an opportunity exists, and there is a certain range of lots available to other countries’ nationals. So, they can be used as an investment tool.
Secondly, villas: the cost of buying land and building a detached house can be safely multiplied by two when selling a finished property, that is, 100% of the profit immediately. Or even more. Or even much more. Assuming that it is quite possible to build a small house, with a competent approach, on a pretty tight budget, staying within the amount equivalent to the price of a decent apartment in a good neighborhood. And there you have a finished lot for sale. It is an excellent investment tool. Now, many people seek to buy houses rather than apartments in high-rise buildings, being afraid of the already mentioned tremors, which, by the way, are practically not felt on the first or second floors during mild earthquakes, unlike the upper floors.
Many people wonder, how much time do I need to complete a turnkey house or villa? The answer is that it is quite possible to build a property within one construction season.
The third option is investing in off-plan properties in Alanya at an early stage of construction. There are a lot of developers in Alanya now; to be honest, it feels like everyone rushed into this business. And, unfortunately, not all companies have the necessary documents for a project. So, it is very important to choose a high-quality and trustworthy developer, since the quality of buildings, structures, walls, etc. is important not only with regard to earthquake resistance.
How Much Can You Earn?
On average, you can earn up to a 30% return by reselling real estate in Alanya. Not in Turkish liras but in euros. Moreover, you do not have to wait several years as before, now you can earn such an amount in just a few months.
Here are approximate but fairly accurate figures based on statistics obtained by Turk Estate from real estate agencies in Alanya and its surroundings:
- investing in the construction of villas − 50 to 100% per annum, investment of €200,000 or more;
- purchasing and reselling land plots − from 30% per annum, €100,000 or more;
- investing in off-plan properties at an early construction stage − 20 to 40% per annum, €5,000 or more;
- investing in profitable assignments − 20 to 40% per annum, €80,000 or more;
- purchasing and reselling short-sale lots or residences in need of renovation − 20 to 30% per annum, €100,000 or more;
- renting out a property − up to 10% per annum (including associated costs), €100,000 or more.
Neighborhood recommendations
There are many questions about where exactly to buy residential real estate, given that the most popular neighborhoods of Alanya are ‘closed’ for obtaining a Tapu (title deed) residence permit and, accordingly, cannot potentially give you citizenship.
However, in this article, we focus primarily on investment prospects rather than on residency/potential citizenship; besides, Europeans are free to go on vacation to Turkey, spending up to 180 days a year and up to 90 days within each six-month period without any additional documents.
If we put aside the most sought-after neighborhoods of Alanya where decent real estate is either already sold out or unaffordable, you can consider the following locations that future buyers of the property you purchased may like.
- Avsallar is a great neighborhood with three schools, several kindergartens, and health centers; there is one public hospital, an abundance of private clinics and dental offices. The neighborhood is famous for its gorgeous sandy beaches and especially the jewel in its crown, İncekum beach with the finest golden sand—after all, those who relocate here pay special attention to the quality of beaches. Geographically, Avsallar is located 115 km from Antalya International Airport and 64 km from Gazipaşa-Alanya Airport.
- Türkler is, by the way, still a neighborhood ‘open’ for obtaining a residence permit and potential citizenship, located 90 km from Antalya International Airport and 35 km from Gazipaşa-Alanya Airport. The sea and beaches here are beautiful, the coves with caves and crystal clear water are in abundance; and very close to Türkler are the picturesque Taurus Mountains. It is also in Türkler that Sealanya Seapark & Dolphinpark is located.
- Demirtaş is an incredibly clean city with modern high-rise buildings. Moreover, it is the closest to Gazipaşa-Alanya Airport, which is only 15 km away. Demirtaş is considered one of the most promising neighborhoods of the resort city due to its newness: many areas have not yet been developed here, so orange groves and banana plantations delight the locals. An incredible amount of greenery and excellent beaches are combined with a good bus connection to Alanya.
The most liquid neighborhoods (that is, neighborhoods with the maximum demand for residential real estate) are Oba, Tosmur, Cikcilli, Mahmutlar, Kargıcak, and Kestel.
