Migration from Istanbul to Muğla: Reasons and Potential for Investors

In recent months, Turkey has experienced a surge in internal migration because people distressed by the earthquakes in Kahramanmaraş and its surroundings feared earthquakes in Istanbul. This is the largest Turkish city located in a seismic danger zone.

Content:

• The relevant data are detailed in the following tables:
• Sale
• Rent
• Land for construction

Many felt it safer and more secure to move their families from provinces closest to the metropolis, like Edirne and Kırklareli, to quieter areas, choosing resort regions, such as Muğla, which is one of the most sought-after provinces.

Nizameddin Aşa, President of the Istanbul Chamber of Realtors, recognised Muğla as the leader in attracting internal immigrants from Istanbul. Moreover, as summer approaches, this territory – especially Bodrum – draws more and more attention not only from Turks, but also from citizens of the Russian Federation.

Bodrum’s popularity is undeniable. Serkan Zeki Oztuncay, Chairman of the Board of Directors of the Bodrum Real Estate Consultants Association, noted: "Russians used to prefer Alanya, the Antalya region. However, they are coming to Bodrum now. It looks like its population is going to increase to 1.5-2 million."

Bodrum was a small fishing village, but quickly turned into a popular resort. When the city's population reached one million people, authorities were concerned about social, sanitary and transport infrastructure becoming overloaded.

Locals prefer to rent out their properties to tenants for a short period, not for the long term (this type of rental is in high demand).

Owners are not ready to enter into long-term agreements (contracts over 12-months with annual renewal), because they do not want to be stuck with a maximum 25% increase in the rental rate when the contract is extended for another few months to a year.

The range of prices in Bodrum is very large: from 10,000 to 25,000 TL per month for apartments. Numerous luxury villas are much more expensive. The income from seasonal rentals is even higher: residences can be rented for a week or a day.

Bodrum real estate attracts investors, and foreigners buy out almost every fourth residence here.

High demand for housing is typical for Muğla. Zia Ercan, Head of the Muğla Professional Chamber of Real Estate Consultants, said that Muğla was overcrowded in the most popular locations: many people were looking for rental housing, but there were no vacant residences. Where they are, the prices are very high. This is more true for the most sought-after places, but there is a shortage of rental houses and apartments throughout the province. The situation is complicated by the fact that there is not enough free land in Muğla to build sufficient residential units.

Muğla has been in high demand since the pandemic. After the February earthquakes, the number of visitors increased dramatically in the province. The Muğla real estate market cannot provide housing for everyone. Therefore, according to Zia Ercan, the prices for renting and buying properties in the most in-demand areas, for example in Bodrum, can be – at least this season – impressively high.

The average rent in Muğla is 15,336 TL, and the average value of a housing unit for sale is 4.41 million TL, which is twice as much as the average price of housing elsewhere in the country.

We verified the information using statistics by Endeksa, which calculates real estate values with artificial intelligence and "big data" analysis. Endeksa confirms free housing stock has decreased in Yatağan, Dalaman, and Milas. Meanwhile, the most popular — Bodrum — is the leader both in the average price of real estate for sale at over 7 million TL per unit, which is 3.5 times more than the average price of an apartment anywhere else in Turkey, with rental rates of over 16,000 TL per month (on average).

The average price per housing unit in Dalaman, which ranks second place, is 1.81 million TL, with rents reaching 6,362 TL. In Datça, another resort town, little known to Russian investors, but extremely popular with Turks, despite its small size, the average housing price is 4.43 million TL, and the average rent is 8,014 TL.

The relevant data are detailed in the following tables:

Sale

Bodrum, Marmaris, and Datça top the sales chart: these are the most expensive properties. They are followed by Milas by a relatively slim margin.

The highest price growth for the month is in Ula, while these figures do not exceed 8% in other districts.

Rent

The most expensive rentals are in Bodrum and Marmaris, as well as in Fethiye, another popular Turkish resort.

Land for construction

If you are going to invest in real estate in Turkey, land plots in Fethiye, prices for local properties start at several million TL, may be interesting.

Plots in Menteşe, Milas or Seydikemer are more affordable, ranging from one million TL.

There are many more options for investing in non-resort territories around Muğla. There are former state-owned properties in the real estate market of this province. For example, on April 19, 2023, the municipality of Ula put 8 land plots up for sale, the areas of which vary from 411.58 to 4,765 m², with starting prices at auction from 1 to 7 million TL.

Foreigners also have the right to purchase land in Turkey, with some restrictions. For detailed information about the status of a land plot and whether foreign citizens can purchase it, we recommend contacting agents specialising in the sale of non-residential real estate.