Alanya, Turkey, a Mediterranean seaside resort area is a bustling city of about two hundred and fifty thousand residents. Situated roughly seventy-two miles east of the airport in Antalya, the area is rich in history with landmarks such as the Citadel of Alanya, the Red Tower, and the Sharapsa Inn. Because of the historic value of the city deriving from its strategic position on the Mediterranean Sea, the temperate weather and natural attractions, Alanya is a large tourist area.
Indeed, the first reaction when thinking about investing in Turkey would be that Alanya is a great place for property investment due to the massive increase in tourism. But before deciding, let’s take a look at reasons for and against the investment.
Reasons to Invest in Alanya:
- Property prices are low compared to other places in the world. In addition, the cost of living is lower so in general an investment would make sense.
- For investors living in countries such as the US where the economy is failing, investment in other markets would be advantageous.
- In regards to retirees who are purchasing solely to live in Alanya, the resale value may not be as important as the quality of day-to-day living.
- The infrastructure is modern with proper access to airports, water, electricity and other utilities.
- Alanya has a major advantage over other coastal areas that close in the winter months because Alanya is a year-round location.
- The new airport close to Alanya will stimulate investment.
Reasons Against Investing in Alanya:
- Development of Alanya has been steady if not furious since 1958 when the tourism market started. While a ground floor opportunity is not necessary to make money, it certainly would have been better to make an investment decision earlier on in the game.
- Because of the rush to develop and service the millions of tourists, there is actually a glut of real estate on the market. The question remains whether this will adversely affect pricing or whether returns will remain steady. In fact, according to Turkish newspapers, the economy is already depressed as a result of locals investing in as many as twenty thousand properties that are empty and unable to sell.
- The locals have not been receptive to chain stores and large stores operating in Alanya. Despite their protests against a home building supply company and a major supermarket in November 2007, the stores, however, did succeed.
- Restrictions on high rise buildings within the city proper limit expansion and investment.
- The outskirts, on the other hand, have seen uncontrolled expansion that may also lead to an excess of buildings on the market.
- Since 2005, the tourism industry has been declining.
In summary, Turkey is one of those countries whose investment depends on the person you ask. While there are very favorable reasons to invest in Turkish properties, there are some disadvantages that might be overwhelming for some investors. The main point is for potential investors to complete an exhaustive due diligence, visit the sites personally, hire a legitimate lawyer and find a registered real estate agent. Also remember that property owners or management companies will be bias in their assessments as they need to sell the property or investment.