CONTENT:
- Why is Mersin so attractive in regards to residential investments?
- Region
- Flight connection
- Local real estate in a nutshell
- Price behavior for residential real estate in recent times
- Current housing prices
- Conclusion (statistics)
- Housing prices forecast in Turkey for 2021
WHY IS MERSIN SO ATTRACTIVE IN REGARDS TO RESIDENTIAL INVESTMENTS?
Mersin, a region that has not been very familiar to Russians earlier, is on everyone’s lips in recent years thanks to the launch of a joint project with Rosatom: construction of Akkuyu Nuclear Power Plant of a new type. As a result, residential real estate prices in Mersin have been growing like mushrooms for many months, and apart from those who purchase real estate for themselves (wintering or regular vacations), there are also investors who buy apartments in the region with the purpose of renting. What is more, sometimes they buy not only one apartment. And little wonder: from November 2019 to November 2020, housing in Mersin and in the near vicinity became perhaps two times more expensive, while rental apartments in the nearest village to the Akkuyu construction site - sometime four times or even more. But first things first.
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REGION
Mersin is often called "The Pearl of the Mediterranean". It has a little less than 2 million inhabitants. The coastal strip of the region stretches along the sea for more than 320 km uniting Mersin, towns and villages into a single resort area. Mersin is famous for its hot and dry climate; the sun shines here almost 300 days a year. Average temperature is +34°C in summer and +16°C in winter. The city boasts both a historical heritage and a rich cultural life.
FLIGHT CONNECTION
As for transport accessibility, the closest air hub to Mersin is Adana International Airport which is 85 km away. However, much closer, 45 km away, a new Cukurova airport (Çukurova Uluslararsı Havaalanı) is already under construction: the authorities are investing about 360 million euros in the project. Its opening is scheduled for the end of 2022.
According to preliminary data, Turkish Airlines will deliver direct flights from Moscow to Cukurova airport. It will be possible to reach the new Mersin airport from other cities of the Russian Federation by a connecting flight via Istanbul.
LOCAL REAL ESTATE IN A NUTSHELL
Given that Mersin is not inferior to the resorts of the Antalya and Aegean coasts in terms of climate and comfort of life, housing is more affordable here. Thus, prices for apartments of similar size and location can be several thousand euros cheaper. Housing prices start from about 24,000 euros with an area of 60 sq.m. Thus, there is one of the most budget options is a 1 + 1 primary seafront apartment on the 11th floor of a residential complex, fully furnished and with household appliances on our website (https://turk.estate/apartments/mersin/). The price is only 25,000 euros.
Nevertheless, apartments in Mersin have been actively offered at Russian international real estate exhibitions for several years now. Local residential complexes on the Antalya and Aegean coasts are inferior only in the sense that not all complexes have extensive infrastructure such as their own swimming pools and fitness centers. Though, there are apartments with heating in Mersin unlike the aforementioned resort areas.
You can also buy townhouses, detached houses, villas or just residential allotment.
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PRICE BEHAVIOR FOR RESIDENTIAL REAL ESTATE IN RECENT TIMES
Previously, real estate prices in Mersin and the immediate vicinity have been increasing by about 5-10% per year but with the start of the Akkuyu NPP construction the price jumped high. Akkuyu attracted thousands of specialists to the region including Russian (https://turk.estate/news/v-mersine-iz-za-napliva-rossiyan-dorozhaet-nedvizhimost/). And if around November 2019, apartments in Mersin cost only 180-200 thousand lira, then according to data for November 2020, their price had already increased to 350-400 thousand. And to rent an apartment, which previously could be easily selected based on the budget of 1000 lira per month, now you will need an amount of up to 4000-5000 lira. Moreover, it is not inflation that is to blame but increased demand: earlier the population of Tasucu village, closest to the future nuclear power plant, was equal to 10,000 in winter, but now it has doubled due to imported workers and specialists.
Thus, it is not surprising that the region is seeing explosive construction growth in new housing and commercial real estate. The joint project with Rosatom is guaranteed to revive the region and attract additional funds there. Although the rate of further growth in housing prices will determine construction site development (https://turk.estate/news/stroitelstvo-aes-v-mersine-nedvizhimost-podorozhaet-ili-podesheveet/).
CURRENT HOUSING PRICES
In December 2020, the average price per housing square meter in the region was 2124 liras. Stable growth has been observed since January 2020 (then the figure was equal to 1,698 liras per sq.m.). Prior to that, the tariff was stable for almost a year (from 1,597 lira in July 2018 to 1,633 lira in September 2019).
Price ranges from 1206 (minimum) to 2320 (maximum) depending on a particular area of the region.
Average cost per square meter for 2020 by 13 districts in ascending order:
Akdeniz – 1206 TL
Mut – 1454 TL
Toroslar – 1591 TL
Tarsus – 1731 TL
Erdemli – 1825 TL
Mezitli – 1845 TL
Gülnar – 1920 TL
Anamur – 2118 TL
Yenişehir – 2152 TL
Aydıncık – 2174 TL
Bozyazı – 2182 TL
Silifke – 2278 TL
Çamlıyayla – 2320 TL
Dynamics of price growth in Mersin for the previous period (data for December 2020): +26.96% for one year; + 31.6% for two years; + 52.26% for over four years. The payback period for residential real estate so far ranges from 16 to 30 years depending on the region, however, nuclear power plant construction can significantly reduce this period.
Statistics for some individual districts (region = price per square meter in December 2020 / average price for 2020 / investment return period):
Akdeniz = 1309 TL / 1206 TL / 16 years
Anamur = 2328 TL / 2118 TL / 30 years
Erdemli = 2158 TL / 1825 TL / 22 years
Mezitli = 2080TL / 1845 TL / 21 years
Tarsus = 1849 TL / 1731 TL / 22 years
Yenişehir = 2398 TL / 2152 TL / 18 years
For other regions, please contact TurkEstate consultants.
CONCLUSION (STATISTICS)
Prices for housing for sale increased by 26.96% in the province of Mersin in December 2020, (the source does not specify for what period). The average area of residential real estate for sale is 160 square meters, the average return on investment (ROI) in this region is 19 years.
As of December 2020, an average cost per square meter is 1,888 TL.
As for the average annual indicators, in December 2020, housing prices in Mersin mainly increased in Gülnar, Çamlıyayla, Tarsus, Akdeniz, Yenişehir (in descending order), and decreased in Aydıncık, Mut, Bozyazı, Silifke, Toroslar districts (also in descending order).
The best - the shortest payback period as of December was demonstrated by the following districts:
Çamlıyayla, Bozyazı, Aydıncık, Silifke, Gülnar (in descending order), and the longest is Akdeniz, Yenişehir, Mezitli, Erdemli.
For current offers from TurkEstate, see here (https://turk.estate/apartments/mersin/).
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HOUSING PRICES FORECAST IN TURKEY FOR 2021
The pandemic could not but affect the real estate market, but Turkey has partly won from the infamous coronacrisis: people prefer to spend winter and wait out lockdowns on the warm coast. As a result, housing in Izmir and Ankara in 2020 rose in price by almost 30%, in Ankara - by 25% (link to previous news, not yet published). As for demand specifics, buyers are now more interested in detached houses with their own gardens and swimming pools, as well as townhouses or, in extreme cases, spacious apartments with balconies: interest in buying studios has decreased (link to previous news). And due to the fact that in the next couple of years the choice of available apartments in Turkey will be somewhat limited (https://turk.estate/news/v-blizhajshie-dva-goda-vibor-novih-kvartir-v-turtcii-budet-ogranichennim/ ), housing may even rise in price. Both construction cost and land plots themselves are becoming more expensive (https://turk.estate/news/opublikovan-prognoz-tcen-na-nedvizhimost-turtcii-v-2021-godu/), so it makes sense to hurry up for those who want to buy real estate in Turkey.