INVESTMENTS IN MUĞLA AND ANTALYA ARE NOW THE MOST PERSPECTIVE

Emlakgundemi.com.tr with reference to the statistics portal Endeksa.com has published statistics on the results of the third month of 2021 clarifying indicators number dynamics in residential real estate sales segment in Turkey at once by a number of parameters.

Perhaps the most important fact is that, despite economic crisis and pandemic, the increase in the value of residential real estate in Turkey at the end of March 2021 was 33.84%. Moreover, Muğla was the undisputed champion among 30 provinces in three parameters at once where the largest increase in housing prices was recorded (the region where such popular resort towns and villages as Bodrum, Marmaris, Fethiye, Gecek and Oludeniz are located):

• maximum increase in price (+ 65.4%)
• maximum average cost per square meter (7 582 TL)
• maximum average cost per housing unit (847 210 TL)

This is largely due to the explosive demand growth for real estate in Turkey's most expensive resort, Bodrum, where only $ 2 billion was invested last year, and where the rental price increased by 50% or more. However, Marmaris is also popular, where the amount of rent has increased by 80% over the past 12 months. The demand for housing in this city is so high that fraudsters have become more active; and local estate agents warn potential buyers against making an advance payment for the allegedly put up for sale housing, which in fact does not exist.

The largest increase in price is observed in Izmir among the provinces where the most residential real estate was sold, where a large-scale urban transformation is coming (37%). Prices have risen by 25.3% in Istanbul.

The three leaders in terms of sales are Istanbul, Ankara, Izmir.

Despite the leadership in a number of indicators, in March 2021 Muğla accounted for only 1.8% of the total sales number: 2005 apartments or houses.

Aydın and Antalya were on the second and third ranking lines, which determined the provinces with the highest price growth (after Muğla). Moreover, the gap between them is minimal: only 0.4%.

The annual increase in the average price for housing in Aydin is 53.7%, the average price for 1 sq.m. is 3 997 TL, the average cost of a housing unit is 480 900 TL.

In Antalya, with an annual increase in house prices of 53.3%, the average price per 1 sq.m. is also literally a few liras lower than in Aydin (3 804 TL), and the average cost of a housing unit is 411 250 TL.

According to Endeksa.com, the largest increase in price among the top three provinces with the highest sales was recorded in Izmir: 37%. There were sold 6 636 apartments or houses, the average cost per square meter was 4 106 TL, and the average amount paid per housing unit was a little less than half a million liras: 458 375 TL.

In Istanbul, 22 007 housing units were sold in March 2021, or 19.8% of the total number of transactions. Over the past year, the average price of residential real estate in the city has grown by more than 25%, the cost of 1 square meter is 4 551 TL, the average final price is slightly higher than in Izmir: 484 035 TL.

In Ankara, the city next to Istanbul in terms of sales, 11 003 apartments or houses have been sold. This is 9.9% of the total. The increase in value there is even higher than in Istanbul: + 30.2%. The average price for 1 square meter is 2 396 TL, the average price for a house in general is 285 610 TL.

Izmir - 6%, we have indicated the price per meter and unit of housing above.

The following provinces by sales volume are Antalya (4.7%), Bursa (3.7%), Mersin (3.0%), Gaziantep (2.5%), Konya and Tekirdağ (2.4% each), and Kocaeli (2.3%).

And, conversely, the least number of transactions is in Elâzığ (719), Ordu (764), Çanakkale (819), Trabzon (843) and Malatya, where the indicator differs from Trabzon by only one transaction (844).

According to the results of the current rating, the provinces where the investors who have invested in housing will recover their funds the fastest are Şanlıurfa (17 years), Gaziantep and Ankara (18 years), Mersin and Yalova (19 years). Investment return in five provinces is approximately 20 years: Antalya, Diyarbakır, Sakarya, Tekirdağ and Elâzığ.

Kahramanmaraş, Adana and Hatay promise 21 years for investment return.

The most long-term housing according to the latest statistics from Endeksa.com, is in the rapidly growing price of Muğla (30 years old). Muğla is followed by Kayseri (27 years), Balıkesir (25 years) and Ordu (24 years).

CONCLUSION:

• Antalya region is still among the most promising in terms of purchasing real estate for profit both by price growth rate and by investment return time
• It is over the past year that the investment potential of Muğla region, in particular - Bodrum and the surrounding area, has especially grown; thus, it makes sense for investors with funds (real estate is more expensive there than in other resorts) to take a closer look at this option
• In 2021 we recommend taking a closer look at Istanbul, Ankara and Mersin where real estate is in demand for rent all year round,
• Izmir is also an invariably popular destination, both for recreation and for year-round living. However, given that this region is more earthquake-prone, we recommend you to be especially careful when choosing a property, preferring new buildings (more reliable) and contacting a trusted developer.

Those interested can view house prices and price changes in 30 highest-selling provinces summarized in the Table: