The Kalkan Property Market and 2022 Expectations
The Kalkan property market commands respect and admiration from all over Turkey. Homebuyers and real estate investors eagerly join the exclusive Mediterranean and Turkish Riviera destination offering unrivalled luxury living. As one of Turkey’s most prestigious property sectors, many people look to Kalkan as a forward-thinking leader in architectural design, real estate investment and, for a few, rental income from high-end luxury living.
Although old stone and wooden shutter houses promote nostalgia, much focus is on large luxury villas, which come with private infinity pool and those Mediterranean Sea views boosted by floor to ceiling windows, which makes waking up on a sunny day off to a good start. However, in 2021, we received increased questions about buying property in Kalkan because that was a turbulent year for many global housing industries with much uncertainty.
Naturally, real estate investors and house buyers want to know about property values and current real estate trends. So, in this article, we look at Kalkan’s housing market in 2021 and what to expect from 2022.
Property Values Increased
Historically, prices per square meter of property in Kalkan have always been high because the council prohibits the construction of large, tall skyscraper buildings. In addition, there is little available land for sale because of the green belt sector. This drives prices up with expectations that Kalkan will avoid bad urban planning. However, supply and demand changed in 2021 because of 3 significant factors.
COVID: Turkey entered 2021 on a lockdown, and this drastically slowed down foreign interest in property all over the country. Some sellers resorted to online property viewings, but these only took off in places like Istanbul, where people bought for investment reasons rather than lifestyle. As soon as Turkey opened its borders again, Kalkan took a completely unexpected turn. Since COVID had not gone away, villa owners and estate agents received more rental and buying inquires than an average year.
Turkish and foreign holidaymakers opted for private self-catering accommodation rather than hotels where crowds gather en-mass in dining halls and around pools. Additionally, with many Turks now working from home, Turkish buyers showed increased interest in Aegean and Mediterranean towns with lower population counts than big cities like Istanbul and Ankara. Opting to get out of big cities, demand rose across western and southern coast towns, including Kalkan. As we go into 2022, with COVID constantly mutating, these trends will continue.
Turkish Lira: Wow, if ever there was a year when money kept us on our toes, it was 2021. From December to September of 2021, the Turkish lira decreased by a staggering 40%. This prompted more hard cash property buyers from abroad. Additionally, holidaymakers converting their spending money from other currencies could have cheaper holidays than countries like Spain, France, or Portugal. For 2022, Turkey’s government implemented numerous policies to keep the Turkish lira stable; however, experts are undecided if they will work. In addition, history shows us that global events affect currency markets all over.
Property Construction Costs: Although demand in Kalkan rose thanks to Turkish buyers heading out of big cities, the Turkish lira’s devaluing negatively affected construction prices, mainly materials imported from abroad. Turkey’s construction industry makes significant contributions to the economy, and they dealt with soaring costs that triggered delays of new developments. At the beginning of 2022, Turkey’s government submitted a proposal to parliament to pay builders with public tenders, the price differences related to increases in foreign exchange rates. However, when it comes to property in Kalkan, the few new developments are private builds, and in addition, they are not large lifestyle residences as seen in places like Istanbul. Therefore, while the construction industry was affected in large cities, it did not affect Kalkan’s housing market, and won’t in 2022.
Increase in Rental Prices
As well as increased property values, Turkey and Kalkan saw increases in rental prices. Overall, there was a 40% increase in rental prices across the country. Additionally, Kalkan has always offered the highest rental yields on the Mediterranean coast. Turkey’s official tourism season runs from May to October, and with maximum occupancy, owners received 9% per annum because of Kalkan’s upmarket status. In 2022, the increase in demand from holiday makers seeking private self-catering residences shows no letdown. This will continue to drive prices up and keep occupancy rates at high figures.
Overall View for 2022
Kalkan has many distinct advantages over other property markets. Firstly, the town does not rely heavily on newly built property constructions simply because of green belt land and building prohibitions. Secondly, interest in Kalkan, both for purchasing and renting, will continue in 2022 since COVID is not going away soon. Finally, this mainly comes from Turks rather than foreigners; hence if travel restrictions and countrywide lockdowns occur again, Kalkan won’t be affected.
So overall, regardless of Turkish lira developments in 2022, Kalkan’s market will remain stable, and property and rental prices will continue to increase. But is it safe to buy property in Kalkan? Yes, it is. Turkey streamlined the home buying processes, abolished military searches which delayed receiving the title deeds, introduced valuation reports, and property buyers must use an official translator. If everything is in order, buyers receive title deeds in as little as a week.
Also, About Property in Kalkan
Best Neighbourhoods to Buy Property: Kalkan breaks down into six individual neighbourhoods, and buyers should know where shops, restaurants, banks, and transport links are. This article discusses that and looks at central neighbourhoods, including the town centre, Ortalaan, Kalamar, Kiziltas, Komurluk and Kisla
See Property for Sale: We are Turkey homes, a real estate agent operating in Kalkan. Call or email us today if you have any questions about the Kalkan property market. Alternatively, see our listings of apartments and villas for sale. Each listing contains everything to know, including price, location, home features and details to arrange property viewings in Kalkan, Turkey.