Investing in Turkish Real Estate: How to Choose Properties with High ROI

Each country and city has its own specifics in market investment analysis. Istanbul and the resort city of Alanya have little in common, with fundamentally different real estate formats. Both regions are consistently in the TOP-3 in demand among foreign investors.

Let’s explore the unique aspects, search methods, and criteria for choosing apartments and villas in Alanya — a district and city in the Antalya Province on the Mediterranean Sea.

Investment Math

ROI (Return On Investment) is a return on investment ratio that shows profitability or loss.
Formula: ROI = (operating income + sale price of investment – purchase price) / purchase price.
According to the S&P 500 index, the average return on residential real estate investments in the USA is 10.6%. Returns above 10% are considered high.

Before the pandemic, apartment prices in Turkey increased by 30-70% over 1.5-2 years. Those times have passed, and market conditions are now different.

However, with a well-chosen property, one can still aim for up to 30% growth when buying through an exclusive investment club, at pre-launch or initial sale stages.

Why Alanya Is Always Profitable for Investment

High returns from real estate investments in Turkish resorts are always possible, as the demand for seaside property is constant. Turkey offers a long tourist season (more than six months, with swimming possible until late October or early November) and year-round rental demand. The sea, climate, and tourism remain with Alanya regardless of the economy, global crises, or other factors. There is both domestic demand from Turkish citizens and international buyers from around the world. This makes Alanya a safe, smart, and profitable option for investing in real estate.

How to Profit from Real Estate in Alanya

Property prices with developers increase in stages. The first, or starting price, is when a project is just approved and construction has not yet started. Then, depending on the complex’s readiness, prices rise at specific intervals according to the price schedule. Often, one can expect a minimum discount of 3% and even up to 10% with 100% cash payment. The apartment price will inevitably rise if one invests early in a project, with profits depending on the construction stage at which the investment is made.

The price increase of an apartment in a completed Alanya complex depends on several factors, such as neighborhood development, new infrastructure, surroundings, views, number of similar competitive offers, migration policy (residence permit availability in the area), and others.

How to Buy and Where to Find a Realtor

Stay Investment Club’s guaranteed profits reach up to 30%, depending on the investment amount and type of package. The packages cater to different investment strategies: starter, rental income, partnership, or business. ROI is pre-determined and guaranteed. Our catalog includes proprietary projects and the best developments in Alanya. Support continues until full exit from the investment, with optional rental management.

Criteria Affecting ROI on Alanya Real Estate

Alanya is a resort town suited for year-round living, not just seasonal vacations. People buy apartments here for various purposes: for personal holidays, renting, resale, relocation, or as a quick investment. Each goal has its selection criteria.

The success of a purchase depends on how well you communicate your goals to your realtor. Therefore, it is important to clearly outline your purchase goals, investment expectations, and post-investment plans.

Location

Proximity to the sea in Alanya affects the initial investment price, especially in new projects. For example, in the popular Mahmutlar district, apartment prices vary depending on distance to the sea:

• First coastline: 1+1 apartments from €230,000 – €300,000
• Up to 300m from the sea: 1+1 apartments from €180,000
• 400-700m from the sea: 1+1 apartments from €150,000
• 1km or more from the sea: from €100,000

These are approximate prices, as apartment costs depend on numerous other features.

Conclusion: properties on the first coastline are ideal for investors targeting the premium and luxury segments. An exception applies to promising locations that currently lack sufficient social and tourist infrastructure.

It is always important to consider the future potential of the area. Growing districts with a “construction boom” like Payallar, Demirtas, and Gazipasa are worth attention. In the city center, new buildings may be surrounded by older Turkish houses, while in these areas, modern residential complexes are forming.

Not only proximity to the sea matters. Many buyers prefer large residences with spacious grounds surrounded by greenery and hills rather than city-center properties with compact infrastructure, traffic, and noise. Stay Property offers comfortable transfers in projects further from the sea, covered in the monthly service fee.

Another major factor in apartment pricing in Alanya is residence permit eligibility. Some areas are closed for residence permits, but it is essential to understand that this is temporary. You can purchase an apartment at one price and, when the district opens for residence permits, sell at a significantly higher price. In 2024, Mahmutlar, Kargicak, Avsallar, and Kestel are closed to residence permits.

To make location decisions effectively, it is crucial to understand the specifics of the district and demand in the area. Some areas are developing shopping centers, others have notable public schools, and others boast sea views from the hills. Each location has advantages and disadvantages, and location may not always be the primary factor in choosing an apartment in Alanya for investment.

Residential Complex Format

Alanya is a unique city and resort where every modern residential building offers hotel-like amenities. A standard minimum for infrastructure includes a swimming pool, hammam, sauna, steam room, fitness center, gazebo, playground, and parking. Complexes with heated indoor pools are suitable for year-round stays, with internal amenities operational in winter.

The larger the complex and more luxurious its social areas, the higher the demand for apartments. For example, in a prestigious developer project in the Turkler area with infrastructure better than top hotels, 1+1 apartments in the final construction stages cost from €250,000, with limited units available. In the same area, 1+1 apartments in smaller residences with standard amenities range from €90,000 – €120,000.

The “Days on Market” (DOM) period for top projects is short, with only a few units left at completion and investor resale options available. When reselling, sellers often raise prices when demand exceeds available options.
The more diverse a complex’s social areas, the faster it sells. Proximity to the sea is not the primary price factor, as opportunities for owners and renters weigh more.

For resale, project format and quality are crucial, especially when a complex is occupied, and buyers can see its advantages firsthand.

Property Prices

Alanya offers a wide range of options for any budget and requirement. All projects offer interest-free payment plans until construction is completed. Apartments are delivered fully finished and, in some cases, with furniture and appliances.

IMPORTANT! Not all developers allow assignment of the purchase rights. Quick investment exits should be clarified with the developer before buying. Timely payments are the buyer’s responsibility. If payment deadlines are significantly missed, the developer may unilaterally cancel the contract, potentially with compensation fees. Your property will have appreciated by the time the contract is canceled, but you will only receive the invested amount back. If uncertain about meeting the payment plan, it is best not to risk it.

Resale speed depends on the number of similar options on the market, competition with the developer and other project investors, and market conditions.

Rental Income

Rental income from short- or long-term leasing depends on the complex and apartment and the property manager overseeing bookings. It is important to consider that management companies charge up to 30% of profits, plus depreciation, taxes, and other expenses. Renting independently with the proper paperwork for short-term leasing is also possible.

In the current real estate market, a rental yield of 5% annually in euros is reasonable under professional management. Premium properties may yield 7% or more. Returns of 10% are achievable when an apartment has been on the market for some time, attracting regular tenants, good reviews, and a reputable complex.

IMPORTANT! In 2024, new regulations require residential complexes to obtain permits for short-term rentals. 80% of apartment owners must approve short-term rentals, along with other specific requirements. This is not an issue for new projects designed with short-term rental in mind. However, secondary market options for tourist rentals in 2024 remain limited. If a complex allows short-term rentals, this greatly increases the investment appeal and demand for apartments.

Stay Property complexes in various Alanya neighborhoods are already rental-ready and can generate income, helping cover payment installments.