Bodrum
Turkey
Sun, sea, sights and a thriving local economy make this jewel on the Aegean Sea an excellent opportunity for property investors.
Set in a stunning location overlooking the Aegean sea, Bodrum is fast proving itself one of the most attractive destinations for property investors in Turkey. With a new mega-yacht marina, money is flowing into the area from around the world, and with the support of a favourable regulatory environment, it offers a host of affordable and attractive investment opportunities.
Bodrum is a place where the ancient sits comfortably alongside the new. Its history stretches back to Ancient Greece and you can still see the remains everywhere you go, such as the Mausoleum at Halicarnassus which was once considered one of the seven wonders of the world and the magnificent Bodrum Castle.
This vast medieval fortification dates back to the 15th century and was built by the Knights of St John. It retains most of its original design and effectively captures the spirit of the age. It’s also home to a museum showcasing underwater discoveries from ships wrecked in the Aegean.
This rich history, together with a welcoming Mediterranean climate, makes Bodrum an increasingly attractive tourist location. With friendly people, lovely beaches and fantastic local cuisine, numbers have been climbing steadily over the past few years.
It has everything that a good holiday destination should possess including a vibrant nightlife, plenty of restaurants, bars, shopping malls and cinemas as well as plenty of beaches dotted along the coast.
Despite this influx of tourism, though, the town has managed to keep its unique character and even at the height of tourist season, you’ll still be able to find a small corner out of the way or a quiet little café.
This city is much more than just a tourist destination though. Despite the pandemic, it continued to attract foreign investment throughout 2020 with the value of infrastructure topping $5bn according to its mayor.
The booming trade in agriculture and tourism is bringing domestic and international companies flocking into the city, with some of the biggest luxury restaurant and hotel names from the US and Europe setting up in the region.
The population is rising, and so is demand.
Much of this demand comes from its class of well-heeled tourists. As the luxury yachts in the port show, this is a popular destination for many of the wealthiest people in Europe. Once bitten by the city’s charm, many choose to invest in a holiday pad of their own.
Indeed Turkey’s tourism revenues hit a new record high of $34.5 billion in 2019.
The future is bright. Bodrum is a vibrant city which is breaking free of its reputation as a holiday hotspot and becoming a thriving hub of economic activity and investment. It’s a heady combination which makes it a truly exciting proposition for any property investor.
Our experts say
“Bodrum is one of the most exciting destinations for investors as it’s so very versatile. On the one hand, you have the super-wealthy arriving in their mega-yachts at the super marina who bring a lot to the local economy, driving up rental prices and demand.
At the other end of the scale, Bodrum is one of the most popular holiday destinations for those looking for an affordable break from many European countries.
With the crash of the Turkish Lira, Bodrum offers probably one of the most attractive entry-level pricing for investment, and you can get such good value for your money”.
How to get there
By road
There are well-connected, good-quality roads along the southern and western coastlines of Turkey. A road runs north-south from the extreme southwest of Turkey up north to Izmir and eventually Istanbul, where it links to Bodrum just north of Mugla at Yagatan.
By train
The closest station to Bodrum is in Izmir and Turkey is currently updating its high-speed rail systems connecting across the country. Buses frequently run to Izmir and other rail transport hubs and are exceptionally affordable.
By air
Bodrum is well served by air. The main income airport is Bodrum (BJV) located 19 miles away from the city. However, Kos, Rhodes and Dalaman are still within easy reach, meaning that it is a destination accessible from a wealth of countries directly.
By boat
Ferries link Bodrum to the nearby Greek Islands of Rhodes, Kalymnos, Symi and Kos. Kos is the closest with the hovercraft journey short enough that it is hardly worth sitting down. More people arrive by charter yacht from points to the north and east.
Weather
Bodrum enjoys a typically Mediterranean climate, with hot and humid summers followed by average autumn temperatures of 20+°C, short winters with lows of 10°C and an early spring.
Spring/Summer
From March the weather starts to heat up in Bodrum, with average temperatures in April of between 20-21 degrees. Summers in Bodrum tend to be hot, dry and sunny with minimal (if any) rainfall through July, August and September. August is the driest and hottest month of the year for Bodrum. The daily average temperature rarely drops below 30°C, with highs of 36°C and above.
Autumn/Winter
Early autumn is often a great time to visit Bodrum, as in October Bodrum still sees a fair amount of sunshine, and even the sea temperature is still a comfortable average of 23°C. The winter months do see higher rainfall and dropping temperatures. Across the winter months, the average low is around 7°C.
Why invest
A growing population is boosting the demand for rentals. At the same time, a wealthy class of holidaymakers mean there’s a constant need for high-quality accommodation from both holidaymakers and those who reside in Bodrum.
The key to everything is diversity. There is something for every budget and every purpose, whether it’s people looking to access the luxury market to cash in on its status as a celebrity hotspot, or for people looking for buy-to-let properties. Rising prices mean properties at all levels offer attractive capital appreciation prospects.
The economy
The Turkish Lira fell to record lows in 2021, peaking at 18.00 against the U.S. dollar. Inflation passed an immense 70% in 2022. Despite this, economic growth remains positive.
Turkey’s GDP was $810.0 billion in 2021 with a growth of 11 per cent. It also grew 7.6% year-on-year in the second quarter of 2022.
Goldman Sachs raised its forecast for Turkey’s GDP growth in 2022 from 3.5% to 5.5%. It also lifted its current account deficit forecast from $36 billion to $45 billion.
The property market
Many of Turkey’s own citizens are turning to property as an inflation hedge (luxury properties are particularly sought after by the wealthy). This is keeping demand high and prices climbing across the market.
A low lira (in comparison to the euro and the dollar) is an attractive proposition for foreign investors, who can now get a lot more for their money.
Furthermore, the President’s determination to keep interest rates low, despite inflation, means that mortgage products remain affordable. The government brought out a number of schemes this year offering low mortgage loan interest rates; it is hoped that this will encourage people to buy property.
Figures from TurkStat have revealed that sales to foreign buyers rose 58% y-o-y in April as the real estate market in Turkey attracts global attention.
Thanks to Turkey’s Golden Visa, there are opportunities for foreign investors to obtain a Turkish passport by purchasing a property with a value of at least $400,000.
For those who are looking for a long-term investment, Bodrum has an advantage over many other European cities, as prices have not yet peaked. It is a hub for investment, a magnet for money and a great place to live. Moreover, Bodrum is full of foreign property owners who form a vibrant local and mutually supportive ex-pat community.
So whatever your property investment goals are, there is something for everyone in Bodrum.
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