Muğla: What Makes the Province Attractive to Investors

With the start of the summer season, investor focus has partly shifted back to resort towns, which is not surprising. Let's discuss what makes the province of Muğla interesting, where several large and small resorts are located.

The location is in the southwest of Turkey, on the shores of the Mediterranean and Aegean Seas. It is considered the Turkish Riviera, although this term often refers not to the entire province but to its most expensive resort, Bodrum.

Muğla is a true gem of the Mediterranean: in addition to several interesting towns, numerous architectural monuments, and cultural centers, it boasts clean and beautiful beaches, including the Blue Lagoon, one of the most photographed locations in the world, with a milder climate than the Antalya coast.

We will detail in which seaside resort locations, not just cities, you can purchase real estate.

Marmaris

A resort and simultaneously a port city. Ferries to Rhodes depart from here. It is located on the Mediterranean coast. Marmaris also has a yacht marina well known to most yachtsmen, and many Russian oligarchs have relocated their yachts here from France and Italy, fearing confiscation in the EU.

The advantage of Marmaris for investors is that real estate in Turkey in this area is quite expensive and will continue to increase in price since the area is almost fully developed, and new projects will not appear. The possible future development might include new hotel complexes outside the resort and its surroundings. Marmaris is a resort preferred by many Europeans (British, Germans, Italians, Spaniards, etc.), with a significant number of Western tourists. These wealthy individuals often come for the winter, so those not planning to buy property here are willing to pay high rental prices. Conclusion: demand for rental property will always be high. Additionally, the small size of the city means that practically any part is within walking distance, not dividing the areas into "good" and "bad" neighborhoods; the only question is the proximity to the sea.

Muğla: What Makes the Province Attractive to Investors

Fethiye

Located at the junction of the Mediterranean and Aegean Seas. It has almost the same characteristics as Marmaris: a beautiful city with many European tourists, but new housing continues to be built here, which is convenient as there is more choice, especially for new properties.

Oludeniz (part of the Fethiye area)

A resort village spread out behind the mountain pass from Fethiye, where the highlight of this area is the Blue Lagoon, a world-famous beach and recreation area. The road between Fethiye and Oludeniz passes through the village of Hisaronu (not to be confused with Hisaronu in Marmaris), where real estate is also in demand. However, the housing is mostly built on the slopes of hills, and the road from the sea goes uphill, so it's better to use cars, but this is compensated by the magnificent panoramic views from almost all local houses. Such views are not found in other resort locations in Muğla situated on flat land.

Gocek (part of the Fethiye area)

Also a few minutes’ drive by car or minibus from Fethiye, like Oludeniz. However, there is essentially no beach here. Gocek is a well-known yacht marina and a very beautiful village. Sailors who love tranquility prefer to settle here: it offers complete comfort with the yacht always at hand.

Dalaman

A city where the international airport is located, yet it is a little-known resort because it started developing relatively recently; however, it has established 5-star hotels of famous brands recognizing the location's value. The transport accessibility speaks for itself: both the sea and the airport are just minutes away, which is very convenient.

Bodrum

This resort is known worldwide: magnificent beaches, luxurious hotels, expensive restaurants and shops, fashionable clubs. The location is very expensive, mainly prioritizing villas. However, apartments can also be found if the price is not a concern. A significant advantage of Bodrum is the ban on high-rise buildings: the maximum is 4 floors, often 1–3. Despite being an earthquake-prone area, not a single building has been destroyed here for many decades, as the low height ensures additional stability.

Sarigerme (part of the Dalaman area)

Not a city but rather a resort village 15 km from Dalaman airport on the border of the Mediterranean and Aegean Seas. It is famous for its excellent nature and luxurious beaches, and it is easier to find property for sale here since Sarigerme is less known. Yet, its advantages have also been appreciated by hoteliers: one of the main Hilton hotels in Muğla is located here.

Datca

Another small resort village with a very "Greek" appearance. Unsurprisingly, the majority of the population here are descendants of Greeks. This resort is expensive, and despite its modest size, it is incredibly comfortable, so wealthy Turks who, for various reasons, do not like Bodrum prefer to buy property here. You can reach it either from Marmaris (about 2 hours by bus) or from Bodrum (an hour by ferry).

Property Prices:

The most expensive areas in the province are Bodrum, Marmaris, Datca, Ula – all over $2,000 per square meter of residential real estate. Prices in Bodrum are even higher – from $2,800 per square meter; Mid-priced areas: Milas, Mentese, Fethiye, and Koycegiz (from $1,100 to $1,500 per square meter); Relatively cheap compared to the previous ones: Ortaca, Yatagan, Dalaman, Seydikemer (from $700 to $900-1,000 per square meter).

Price Dynamics per Square Meter:

May 2019 – $749;
May 2020 – $784;
May 2021 – $1,051;
May 2022 – $1,419 (almost +100% in two years compared to 2020);
May 2023 – $1,904, with a peak around that time: by July, the price dropped to $1,611. However, it started to rise again and returned to $1,800-1,900 by May 2024.

The autumn-winter price decline gave investors who took advantage of the opportunity to purchase property about 10% cheaper, allowing them to earn these 10% in just a few months, not even a year. Moreover, property in Muğla, with its abundance of resorts and their demand, will likely continue to increase in value in summer.

The average price per square meter is now $1,835;
The average area of a residence is 129 square meters;
The average price per housing unit is $236,680 (higher in Marmaris, Bodrum, and Datca);
Investment return period – 22 years;
Minimum/maximum cost per square meter (as of May 2024) – $845/4,475;
Currently, 27,404 residential units (apartments, townhouses, villas, etc.) are ready for sale.

Muğla: What Makes the Province Attractive to Investors

Exact Figures by District

District	Cost per 1 m² ($)	Average Housing Price ($)	Return on Investment (Years)	Payback (Years)
Bodrum	2,899	405,858	24	4.09
Datca	2,108	231,935	24	4.23
Fethiye	1,503	195,452	25	4.05
Koycegiz	1,411	196,158	24	4.10
Marmaris	1,993	267,108	21	4.77
Milas	1,359	165,789	21	4.77
Ula	2,022	254,767	27	3.73
Yatagan	684	79,999	15	6.59
Dalaman	910	91,041	17	6.03
Ortaca	908	92,650	17	5.81
Mentese	1,103	131,286	17	5.81
Seydikemer	927	116,854	21	4.86

Key Conclusions:

As of late May 2024, housing prices in Muğla province have increased by 60.29% over the last 12 months.
Areas with the highest property price growth in Muğla: Fethiye, Koycegiz, Marmaris, Datca, and Milas.
Areas with the lowest property price growth: Seydikemer, Ortaca, Yatagan, Dalaman, and Mentese.
The fastest investment return period is in: Yatagan, Dalaman, Ortaca, Mentese, and Marmaris, with Yatagan being the record holder at just 15 years.
The longest property payback period is in: Ula, Fethiye, Bodrum, Datca, and Koycegiz.
It is theoretically possible to fit within $100,000 for purchasing property in Yatagan, Dalaman, and Ortaca; of these, Ortaca and Dalaman have sea access, while Yatagan (the cheapest) does not.