The market for holiday properties and second homes in Turkey remains on an upward trend. In the coastal regions around Bodrum and Fethiye, the Engel & Völkers Shops are registering an increase in the level of demand. Accordingly, prices for residential property in good and very good locations also rose significantly over 2013 in the first half-year of 2014.
In Fethiye and the surrounding area, prices for high-end properties have risen by 8 to 10 percent over the previous year. The upper price bracket for villas in very good locations has increased from 950,000 euros in 2013 to 1.1 million euros. On Kalamar Bay around the town of Kalkan, Engel & Völkers has witnessed price rises of as much as 15 percent. The most desirable locations also include Çaliş and Koça Çaliş in Fethiye, as well as the peninsula of Kaş. “At the moment we are seeing the highest demand focused on villas with sea views, in a Bauhaus style, for sale for around 500,000 euros,” said Kai Heiselmeier, Managing Partner of Engel & Völkers Fethiye.
Most buyer enquiries are from clients in German-speaking countries, although there is increasing interest for second homes in Fethiye and the surrounding area amongst clients from Scandinavian countries and from major Turkish cities such as Istanbul and Ankara. The region is a sought-after holiday destination, thanks to its direct location on the Mediterranean, its many sandy beaches, its strict building regulations whereby properties cannot exceed two-and-a-half storeys, and its good infrastructure with the nearby airport in Dalaman. “Fethiye is a long way off from being taken over by mass tourism and, compared to other holiday regions, properties here remain relatively low priced,” Mr. Heiselmeier added.
Bodrum: High-end real estate in high demand
The average prices for villas in the prestigious city of Bodrum range from 500,000 euros in average locations to as much as 4.2 million euros in very good locations, whereby there is no upward price limit for truly exceptional homes here. The best addresses on the peninsula include Bodrum, which is flanked on both sides by the Turkish Aegean Sea, Paradise Bay and the town of Yalikavak, which affords views stretching as far as the Greek Islands. Up to 10,000 euros per square metre are being fetched for top-end freehold apartments directly on the coast. “Apartments and houses with direct access to the sea are in particularly high demand, as are properties with an individual style of their own and a large plot in a private setting,” said Heike Tanbay, Managing Partner of Engel & Völkers Bodrum.
The majority of buyers of holiday homes in Bodrum in the superior market segment are wealthy Turkish citizens, usually from Istanbul or Ankara. “Although we are registering an increasing number of enquiries from interested German buyers,” said Ms. Tanbay. New high-end developments such as “The Residences at Mandarin Oriental” pose great potential. As much as 7 million euros were reached on several occasions in 2013 for outstanding properties here.