Why Property is So Cheap in Turkey
As a real estate agent with clients worldwide, some ask us why is property so cheap in Turkey? With starting prices of roughly $40,000 to $50,000 for an apartment, it is an excellent question. Before we answer it, though, it is essential to know some regional housing markets in Turkey make a roaring trade in luxury properties. Therefore, if you want to buy cheap property, it is better to look at regions than the whole country.
For example, the Bosphorus mansions of Istanbul count themselves as some of the most expensive in the world. One even sold for 155 million dollars. Likewise, head to Yalikavak on the Bodrum peninsula, which often hosts Saudi royalty, celebrities and wealthy businesspeople and the average price of a luxury villa is 4 million USD. So, in this article, we talk about districts known for cheap property prices and factors that make homes an international bargain.
Why Property is So Cheap in Turkey
1: 2023 Vision Plan
Twenty years ago, Turkey’s housing market was in a dire state. Mortgages were not available; hence many families had more than one generation living in a home. There was no development or modernisation. Regulations and rules were haphazard hence the low quality of housing. Additionally, there were many Gecekondus, which are houses built illegally without permission. A Gecekondu Bolgesi is a neighbourhood consisting purely of these, and there were many in the big cities like Istanbul and Izmir. In those days, the average price of a property was roughly $5,000, but there were few buyers.
Then the Turkish government embarked on a project called the 2023 Vision Plan. The ambitious aim was to transform Turkey’s economy into one of the world’s best performers, even to match the likes of the USA and Britain. Within this project was a detailed plan of how they would change Turkey’s housing market. First, banks started offering mortgages to the masses. Second, they introduced rules to allow foreigners to buy houses. Finally, they encouraged developers and builders to embark on new, modern housing to replace the old, worn-out structures from years before. So, one reason the property is so cheap is Turkey’s housing market is still in its infancy.
2: Supply and Demand
The 2023 vision plan evoked a business model called supply and demand. When applying this to housing market, it refers to the number of properties up for sale versus the demand, i.e. number of interest and buyers. In some places like Didim, Altinkum, masses of land available for building and empty properties outrank the demand, hence low prices per square meter. Real estate investors like these areas. Simply because if they keep the property mid to long term, the market changes and they have ideal capital appreciation.
An excellent example of this is the outskirt districts of European Istanbul. Masses of development have taken place in neighbourhoods like Buyukcekmece and Kucukcekmece. Additionally, the new Istanbul airport boosted real estate prices, and speculation around the planned Istanbul canal route also attracts real estate investors. However, in other areas, the number of vacant properties and available land versus interest from buyers is low therefore driving prices up.
3: COVID Effect
The other aspect affecting a regional housing market’s prices is the type of properties for sale. Head to Kalkan, and luxury villas far outweigh available apartments. Likewise, for Istanbul, apartment living is more popular than stand-alone homes. Now, prices of villas are rising in certain coastal resorts. This is because more Turks have realised COVID is not going away quickly and are getting out of the big cities to the seaside resorts. They want less congested living, with private pools and gardens. As a result, the surge in demand is driving up prices locally.
So, as you can see, rather than looking at Turkey as a whole, it is better to assess each region’s housing market because many factors influence the prices of apartments and villas. But, aside from prices, there are many other reasons to buy property in Turkey. So, let us look at them and where to head to for cheap property prices.
4: Why Buy Property in Turkey
- Cheap household bills, running costs and maintenance
- Cheap purchasing costs like notary fees, translators, and taxes
- Cheap prices of furnishing
- Cheap cost of living, especially when compared to places like Spain
- Clear rules for apartment living called the condominium law
- Ideal weather climate of roughly 300 days of sunshine a year
- State-of-the-art airports that make getting here easy
- Wide range of tourist attractions, historical sites, and things to do
- Outdoor lifestyle
- Mid to long term potential capital appreciation
5: Where to Buy Cheap Property
Didim: Also known as Altinkum, Didim sits on the Aegean coast and is popular with British property buyers. Some own holiday homes here, but the town also has a large expat community. There are two distinct areas to Didim. The beachfront area has a more touristy ambience, while the old town centre is typically Turkish. Didim sits 90 minutes’ drive from Bodrum airport and 2 hours from Izmir.
Dalaman: Heading over to the Mugla region, Dalaman is a small community sitting near the airport of the same name. Tourism is low key, but there is plenty to do in the area. A 10-to-15-minute drive away is Sarigerme beach, an incredible family-friendly stretch of sand. Likewise, Dalyan and Koycegiz lake are also a short drive away.
Trabzon: Sitting in northeast Turkey, Trabzon mainly attracts Middle-Eastern buyers because of the many similarities in culture and traditions. Many properties for sale are in the city centre. Still, property buyers also have the added advantage of the nearby Kackar mountain range that is famous for plateau tourism and getting out and about into nature.
Alanya: Alanya is a large area belonging to the Antalya province that covers the eastern Mediterranean. One neighbourhood for cheap property prices is Mahmutlar that started growing as soon as the Gazipasa airport opened. Buyers should also look at Avsallar, one hour’s drive from Gazipasa.
Istanbul: The centre of Istanbul is Turkey’s most expensive housing market, yet the outskirt districts where masses of new lifestyle residences are being built offer many cheap prices for 1-, 2- and 3-bedroom apartments and penthouses. Many lifestyle residences offer a discount for cash payment, or long-term interest-free payment plans of up to five years, hence presenting more opportunities to save money.
Find out More
Turkey Homes is a real estate specialist firm who has helped thousands of buyers invest in Turkey’s housing market. We hope we have answered your question of why is property so cheap in Turkey. If you would like to buy an apartment, contact us today, and we will send a portfolio of homes for sale starting at a price of roughly $40,000.
Alternatively, browse our portfolio of properties for sale. Each listing contains everything to know, including price, location, photos, floorplans, property features and contact details to find out more or arrange a viewing. Our blog about Turkey also features lots more information for house buyers to find the property of their dreams without breaking the bank.