With so much uncertainty around the globe at the moment, you might expect property markets to be static or even in decline. And in some areas, the Covid-19 pandemic has certainly posed a challenge.
However, others have remained relatively buoyant and, on Turkey’s Turquoise Coast, the picturesque Mediterranean harbour town of Kalkan seems to be insulated from the difficulties of the outside world.
The prestigious resort benefits from some economic idiosyncrasies which have helped keep the heart of the local market beating strongly – and makes it a highly attractive proposition for investors in Turkish real estate.
Property in Kalkan in 2021
On top of the downturn in tourism due to the pandemic, last year was tumultuous for other reasons, too. Summer saw the area battling the worst forest fires in living memory, there was a prolonged drought, and rising inflation saw the cost of food and raw materials soar, not to mention rising energy prices. As winter arrived, the value of the Turkish lira on the international money markets also dropped.
You’d be forgiven for thinking so many negative headlines would cause local property markets to suffer – yet in upmarket Kalkan, demand has remained strong.
Why does property in Kalkan perform so well?
With the general cost of living still lower than Istanbul, Ankara and Izmir, and with the Turquoise Coast right on the doorstep, the town remains highly desirable – as an escape from the worst of the pandemic, as a fashionable but peaceful summer retreat, and as a lucrative buy-to-let proposition.
As a result, since 2020, quite a bit of ‘new money’ has arrived from the big cities – which means property prices are on the up, rather than falling. There are wealthy buyers with the capital to invest and, as Kalkan is a relatively small resort, demand often outstrips supply.
The plight of the Turkish lira has also made investment more attractive for buyers from overseas. Europeans, Russians and even investors from rich Middle Eastern states have been vying with each other for a piece of the action.
When you realise a luxury four-bedroom villa in Kalkan which might have fetched £250,000 in 2020 now commands an asking price of £350,000 or more, you can see why buyers are lining up.
However, the higher prices aren’t just due to Kalkan’s popularity. Import costs for metal and other raw construction materials have also increased sharply, while the Turkish minimum wage has gone up by some 50%, raising labour costs.
There’s one more reason for there being fewer properties on offer, too. Quite simply, homeowners in Kalkan are canny enough not to want to sell. This means the number of resale homes is remarkably low.
The Kalkan property rental market
So why are property owners in Kalkan choosing not to sell, despite the potential for a considerable return on their original investment? Well, that’s because the local rental market is also proving incredibly lucrative.
Not all those keen to escape the big cities want to make a permanent move, perhaps due to family ties or work commitments. Renting a secluded private villa in Kalkan provides a halfway house, allowing them to spend part of the year enjoying the benefits of Turkey’s Mediterranean coastline and the other half back at the centre of things in the metropolis.
To do this requires a degree of affluence, which means rental prices have also been on the up. The performance of the Turkish lira means, however, the increases are still well within the budgets of most Europeans, Russians and Arabs so, although tourism has been difficult for the past two years, it hasn’t been a complete disaster.
With UK-based airlines predicting the Brits will be back and ready to spend big in 2022, the prospects for Kalkan landlords in the 12 months to come look pretty good.
Thinking of buying property in Kalkan?
If you’re on the lookout for a realistically priced place to retire, a holiday home or a buy-to-let investment, Kalkan is a sound investment. Our experienced team would be delighted to discuss your options and answer any questions you might have.
We’ll be there every step of the way to help you find and complete the purchase of your ideal Kalkan property. Take a look at our full portfolio of Kalkan properties for sale and get in touch to learn more.