Antalya – and the Turquoise Coast in general – has long been a favourite area for those seeking to invest in Turkish real estate. Alongside excellent transport links, superb facilities and stunning natural beauty, reasonable property prices have added to the area’s attractions when it comes to buying a holiday home.
In recent times, though, prospective buyers have commented on rising prices. While some areas still offer a decent amount of bang for your buck, overall, you can expect to pay quite a bit more now than in years gone by.
But why? Why have property prices in Antalya increased over the past year?
A countrywide trend
Real estate prices across Turkey as a whole have risen in recent times. The Central Bank of the Republic of Turkey puts the figure at an incredible 30.6% over the past year; this doesn’t take inflation into account, however, with experts saying the real rise is in the region of 13%. Still, that’s a considerable increase.
According to leading independent real estate consultant Knight Frank, many countries are seeing the highest rises in the cost of real estate since 2006. One expert said: “Turkey leads the rankings for annual price growth for the fifth consecutive quarter but strip out inflation and real prices are rising at around 16% per annum.”
The effects of Covid-19
The global pandemic has affected every area of life – and the property market is no exception. People wanted to escape crowded cities and urban areas in favour of the countryside and coastal regions.
As people got used to working from home, they realised the dream of a private luxury villa with a secluded garden and pool could be a reality. Quite simply, with demand outstripping supply, prices have been pushed up. The situation is unlikely to change; Covid-19 is here to stay and remote working – at least for some of the time – has become the norm. This means there’ll be no shortage of buyers seeking homes along the Turkish Riviera – keeping prices high.
The cost of land in Antalya has increased sharply, as much as 50%-60% in some places such as Belek. Developers have no choice but to add this to their build costs and, ultimately, pass it on to their buyers.
In addition, inflation has pushed up the prices of raw materials. As an example, construction iron was selling at $0.50 per kilo in 2020 whereas now it’s fetching almost $1. That’s almost double in just a year.
Rental demand has increased
As a long-time draw for holidaymakers, it’s no surprise that advance bookings for 2022 are already high in Antalya. This is also driven by the expectation that we’ll have learned to manage life with Covid-19 and, after stringent restrictions in 2020 and most of 2021, people are eager to travel once more.
Figures show rental revenue has increased all over Turkey; in Antalya, for example, the figure rose to 8.64%. This makes areas such as exclusive Kalkan, a prime location for anyone looking to invest in a Turkish holiday home, especially attractive; rental yields are around 9% between May and October alone, the highest in the region.
What happens next?
Turkish real estate prices will only continue to rise, so if you’re considering buying property in Antalya, the time to do so is now.
It’s expected that the number of overseas buyers will increase as global travel restrictions are relaxed; in particular, there is a great number of buyers from the Gulf states. The number of Turkish citizens from the cities seeking a coastal retreat also means demand will stay high.
While prices are rising, even buyers on a budget can still find their ideal home in Antalya. While an exclusive sea view villa with an infinity pool in Kalkan might be out of your price range, other areas offer excellent options – a modern two-bedroom apartment in Side, for example, is surprisingly affordable.
Thinking of buying?
If you’re considering investing in Antalya real estate, whether you’re buying a holiday rental property, a second home, or making your own permanent move to the area, then we’d love to help you. Our experienced team can help at every stage of the buying process, from identifying suitable properties to sealing the deal. You can view our full portfolio of current properties here and just get in touch when you’re ready; we’re here to answer any questions you may have.