Sun, sea, history, and the majestic Mediterranean coastline of Turkey are just some of the reasons why Antalya has been top of the chart for many tourists over the years. However, recently, this city has also attracted many real estate investors and homebuyers in the local and global context. As a result, prices of houses in not only the traditional sense but also the Mediterranean city of Antalya have gone up because the demand for property for example in Antalya has increased. This raises a pertinent question: why is it that houses in Antalya are so costly?
In this blog, we delve into why property prices in Antalya are on the rise and illustrate the reasons why it is one of the most sought-after, yet expensive, places in Turkey to buy a property.
1. Expanding Tourism Sector
Antalya being the center of tourism in Turkey attracts hundreds of thousands of tourists each year. It is famous for its beaches, historic places, and warm temperatures, making it a very popular tourist spot, especially for Europeans, Russians, and people from the Middle East, who make up a majority of the tourists. The geography of the country has mass tourism driven and favorable conditions for vacation homes or rental properties resulting in increased demand and escalation in house prices.
While on holiday in Antalya many of the tourists who find the city charming opt to buy or build their own holiday cottages residential properties to let for short-term seasons, the effect of such activity rarely produces a decrease in the property rates. Such property development is mainly caused by tourism as it is cheap to sell property in most coastal areas and even in areas with tourist attractions.
2. Interest and Investment from Foreigners
The tendencies of foreign geologists in the real estate property of Antalya have intensively developed in the last few years. Non-native property buyers have an ace up their sleeves to help them along the way: they can invest in the property and become Turkish citizens. It is therefore easy to see why the city of Antalya has become so appealing to foreign investors who require citizenship. For the reason that the citizenship application comes hand in hand with the requirement to purchase at least USD 400,000.00 of real estate in the country.
There are also many people, particularly from the cold countries of Russia, Germany, the United Kingdom, and the Scandinavian countries who view Antalya as an ideal place for retirement or buying a vacation home. Due to the moderate winter season and high standard of living, rich foreigners try to acquire high-end villas and properties by the beach or luxurious condominiums.
The presence of foreign investments in the economy of the region helped raise the bar of the local real estate market. This has resulted in a sharp rise in property prices, especially for prime real estate.
3. Increasing Demand from Residents
Although foreign purchasers account for a large portion of the market, local demand for homes in the city has also been growing. Many of the Turkish inhabitants of the more populous cities such as Istanbul, Ankara, and Izmir have started moving to Antalya, which is rather attractive to this group because of its relaxed atmosphere, warm weather, and relatively cheap living expenses (not quite considering the cost of housing).
4. Limited Land Availability
Given the increasing attention towards Antalya city, one of the insurmountable obstacles is the limited developable land, more so in the prime regions. To the south lies the Mediterranean Sea whilst to the north there are mountains hence making it difficult for expansion. Most of the land that can be worked on has been worked on already and therefore with an increase in demand, the cost of land has also improved.
5. Opulent Real Estate Projects and Advancement of Facilities
Antalya's real estate market is also affected by an upsurge in luxury buildings and upscale real estate projects. Many newly constructed buildings are for rich customers with features such as private swimming pools, smart home technology, and breathtaking views of the ocean. Developers are also constructing large exclusive enclaves with all facilities including gyms, saunas, and even private beaches.
6. Inflation and Economic Factors
Over the last several years, Turkey has seen a high rate of inflation which extends to the real estate sector. The increase in property price can be attributed to construction costs connected to the raw material revaluation, increased labor costs, and high energy rates. Furthermore, the constant depreciation of the Turkish lira has rendered the construction of new houses costlier and more challenging, compelling builders in the region to increase the prices charged for housing to remain profitable.
Conclusion
Several factors have contributed to the increased cost of housing in Antalya such as the growing foreign investments and the booming tourism sector, the limited availability of land, the increase in luxury housing developments, inflation, and the general desirability of living in the city. Though prices may be high, the very blend of lifestyle, location, and investment opportunities still puts Antalya on the list of many homebuyers and investors.
