Buying a luxury home in Turkey
Your questions answered
We get asked all sorts of questions by buyers looking for homes in Turkey. Some are about the rules about pets and others about mortgages and residents’ permits.
But perhaps the most frequent is about location. Indeed, we’ve tried to cover off some of the options in previous posts on our blog.
However, we were dealing with a buyer keen to invest in the “luxury” property market in Turkey the other day, and it occurred that the topic might make a fresh post others might find helpful.
So here’s a summary of our advice for a caller who, for the sake of this blog, we’ll call Martyn (not his real name).
Martyn: “I’m looking for a luxury property. Is Istanbul the best bet? Is property there likely to keep its value?”
Answer: No matter where you are in the world, there’s an element of risk involved in the acquisition of property. After all, global events can affect the market quite radically. However, at the moment, luxury property in Istanbul is looking really attractive. This is because the banks are offering some generous mortgage deals and because of the weaker lira. Dollars, Euros and Sterling are going quite a bit further than they were a couple of years ago.
However, bear in mind, if you’re thinking of a quick resale and converting currency back the other way, the money markets are going to work against you if things stay as they are.
Having said that, parts of Istanbul are also developing quickly. Areas like Basiktas and Sariyer or along the shores of the Bosphorus have always been popular with the well-heeled. They’re closer to the city centre and, historically, they’ve been developed with more affluent buyers in mind.
But times have changed and so have tastes. These days, new developments which have sprung up away from the hectic and choked city centre come with access to additional amenities. These can include anything from communal gyms, rooftop eco-friendly gardens, indoor heated pools, garage parking and even their own shopping malls.
The city’s new airport and the expanding public transport infrastructure are also beginning to take affect. As a result, choosing a luxury property in Istanbul is not quite so cut-and-dried as it used to be. There’s plenty of choice between traditional and modern – so perhaps your first decision is what kind of life you prefer.
Martyn: “I keep hearing Bodrum’s the place to be. Is this true?”
Just like St Tropez or Nice on the French Riviera, the Turkish Turquoise Coast has its playgrounds for the rich and famous. At the moment, Bodrum’s enjoying a bit of a resurgence. It’s reputation as a cheap and cheerful package holiday destination has faded. Recently, more and more opulent hotels and holiday complexes have sprung up along its shores.
And it’s not just visitors from overseas who are helping to give the city a new lease of life. As Turkey’s economy has grown, Bodrum has also become the “garden” for the richer residents of Istanbul. Many now boast holiday homes in the area which they can visit within an hour if they have the money to hop on a plane every Friday.
Not just Bodrum but some of the quaint little bays and ports around the peninsula have grown speedily too. Smarter investors are also putting some of their capital into buy-to-let.
But will it all slow down soon? Admittedly, the local authorities have become so concerned about the speed of development in some areas, there’s been a clampdown on those not playing strictly by the book. Nevertheless, despite the COVID19 pandemic and a more challenging world economy, the appetite for Bodrum has by no means dissipated.
In our view, with so many big players involved that’s not likely to change any time soon. With such a significant global reputation attracting Russian oligarchs, world celebrities and even European royalty, property in the area seems likely to remain a sound investment for a few years to come.
Martyn: “Kalkan seems to offer a lot of luxury homes – but it seems so small. Is property here a good investment?”
The short answer is yes – particularly if you’re thinking of buy-to-let. Kalkan may not have a reputation as a party town like Bodrum. However, that’s its attraction. It appeals to those who like understated luxury rather than being seen to be seen.
The town does have some beach clubs and some lovely harbour-side restaurants. Nevertheless, the local vibe is about quaint alleys of whitewashed homes festooned with bougainvillea. The town’s outlying districts also boast modern sea-view villas – some with private beaches and jetties and others with spectacular terraced grounds with infinity pools overlooking the bay.
The prices here are often higher than you would expect in, say, Fethiye a few miles up the coast, But then they’re also lower than in Istanbul and Bodrum – but still not necessarily what most would call cheap.
A holiday home in Kalkan is an attractive prospect in itself, but, if you wanted to put it to work, a villa with a pool is in such high demand you could expect very little void time and a significant return on your investment.
But, as ever, the choice is very much down to the individual. If you’d like any further advice on a move overseas, the current availability of Golden Visas in Portugal or citizenship in Turkey, or just a general chat about the logistics involved in a fresh start overseas, please let us know. We’d love to help if we can.
Alternatively, feel free to browse other blog posts or why not have a look at some of the villas and apartments we have for sale by clicking here.