Unlike buying a holiday home, which is a heart-led decision, you’ll need to take a more analytical approach when thinking about your decision to invest in Turkey. However, that’s not to say an investment property is all about business, says Property Turkey director, Cameron Deggin.

“The way we look at investment depends on a few factors”, Deggin says. “This can include the way we view risks and rewards, our financial circumstances and how much return their capital is generating in its current form - for example, in an ISA, or sharemarket investments. 

“The word 'investment' means different things to different people, and while we know making an investment means being savvy, for most of us, who don’t have massive funds to play with, a real estate investment is as emotional as it is rational.”

Deggin says Turkey home to two real estate categories:

  1. Summer homes in resort towns
  2. Urban properties in cities

Summer homes

Located in resort areas, where the population swells along with the rising summer temperature, investment homes on Turkey’s south coastal areas are popular with buyers who wish to enjoy the benefits of a second home while their property gains in value.

Each has the great food, friendly locals and amazing weather that keep holidaymakers returning year after year. “If you’re looking for a second home or a summer home, any one of these lovely Mediterranean and Aegean towns would be a great choice,” Deggin says.  

Most buyers who purchase these summer home properties plan to stay in them for a few weeks each year, and rent them out the rest of the time, covering costs and earning valuable income to supplement future capital gains. While rental income can be lucrative, Deggin warns it comes at a cost.

“Summer lets are not very easy to manage, and management companies charge anywhere from 10 to 20 percent of your rental income in fees. Still, even after these fees, if your property is located in a popular coastal town, you could still find yourself earning up to 5 percent of your property’s value each year”, he says.

Where should you focus?

If a Turkish summer home sounds like something you might be interested in pursuing, the next steps are to consider the different areas on offer and which destination is most likely to deliver a solid return on investment. 

Deggin states that investment properties in summer resort areas are only as successful as the resort’s reputation.  “The viability of a resort town as a solid real estate investment depends on its tourism strength, and its visitor profile. The higher the profile of visitors, the more likely they will be to rent private apartments and villas, as opposed to being content with all-inclusive cheap and cheerful hotels.”

If you’re after a summer home that can be rented out all year round, it’s vital to opt for more upmarket areas with a good mix of domestic tourists and foreign visitors. That way, you’re less likely to target a market that’s easily swayed by cheaper all-inclusive hotels and instead, able to target an audience looking for villas in Turkey

Deggin suggests a select few resorts along Turkey’s south coast that attract the right market for a holiday rental property, places you might enjoy on your own holiday.


The port city and its surrounding areas offer an elegant getaway that, even during the busiest of times, emanates a peaceful setting, ideal for a summer holiday away from it all. This south coast peninsula is a particular hotspot amongst Turkish tourists looking for a relaxing holiday, but it is also growing in popularity amongst city dwellers from Istanbul and Ankara, who want to move away from the hustle and bustle in search of a better lifestyle. 

Bodrum’s economy is also thriving, playing host to a variety of global brands and having a reputation for some of the most sophisticated marinas worldwide, including the upmarket Palmarina, in Yalikavak. It is often referred to as the St Tropez of Turkey, and there’s plenty of opportunity here for anyone looking to invest in Turkey. 


Further along the south coast lies Fethiye, a flourishing town with a much more ‘local’ feel than that of Bodrum. It’s a thriving working town due to the large expanse of agricultural land surrounding the main area. However, it attracts sailors from all over the world between April and October - this is a typically upmarket audience that requires luxury rental properties to reside in during their time in Fethiye. 

“Thanks to its beaches and well-developed tourism infrastructure, Fethiye draws tourists from all over the world,” Deggin says. “And while price growth may not be as high as Bodrum, rental returns will certainly match the peninsula’s”. With this in mind, investing in Fethiye depends entirely on your personal taste and whether you will enjoy spending your holidays there. 


Antalya has become the fifth most popular city in Turkey, with a population of around 1.5million. As a province, Antalya has a number of smaller resort towns situated within its boundaries, including Side, Belek, Alanya and Kemer, so there’s plenty of variety when it comes to choosing the perfect spot for your summer home.

Antalya boasts an impressive array of things to do and discover, from ancient ruins to snow-capped mountains, the stunning beaches to the city’s gorgeous old harbour. It’s this variety of splendid scenery and intriguing history, mixed amongst essential modern amenities, that makes Antalya a rather appealing location for property investment in Turkey. 

Deggin offers some advice when it comes to investing in this area. “If you’re attracted to the Antalya area, I recommend heading toward Antalya city as opposed to the resort towns around it. Thanks to its amenities, thriving local economy and highly developed infrastructure, Antalya city is a year-round place which is growing in popularity year on year. You can expect long term rental income and strong capital appreciation here.”

Istanbul skyline

Urban investment

If you’re investing solely with your bottom line in mind, Deggin recommends focussing on an urban investment. 

A property in one of Turkey’s major cities will not only provide you with a range of investment properties, but you can also expect to receive a rather fruitful rental income while your investment gains value. 

Real estate in Istanbul 

Over the past 50 years, Istanbul's population has grown from three million to almost 20 million, and shows no signs of slowing. As a result of this growth, a number of suburban towns have sprouted up around the main city area, where you can expect to pay anything from $1,000 to $15,000 per square metre. With such a varied price range, there are options for investors across a fairly wide budget. 

What’s more, compared to the southern resort towns, which are often volatile in their popularity and capital gains prospects, Istanbul is a pretty safe bet. “You can pick a luxury apartment in upcoming areas of Istanbul from as little as $125,000 and safely expect it to put on minimum 10% capital growth each year for the foreseeable future,” Deggin says.

The future of Istanbul

Istanbul’s global profile is growing. With Google moving its headquarters to the city, along with Apple and others following in suit, Istanbul is soon to become a huge financial and business hub for the EMEA regions. 

On top of all this, the opening of Istanbul’s third airport - the largest airport in Europe - will only drive more tourists, businesses and new residents to the city, as accessibility to and from Istanbul becomes even greater. 

Each of these investments into Istanbul's future can only grow what is already a lucrative rental market. “For maximum capital growth and certainly long term, headache-free rental income, there are few cities in the world that would match this mega city”, says Deggin. “Around 6% rental income is achievable and the management infrastructure is firmly in place to professionally manage and deliver the same.”

All in all, Turkey has an array of property investment opportunities to satisfy all tastes. Whether you’re looking for a summer home for yourself that will earn you some income throughout the rest of year, or a city dwelling that’s strictly for providing maximum return on investment, you can be sure to find it all in in this ever developing country. Whether you choose to opt for the likes of Bodrum or invest in the mega city that is Istanbul, depends entirely on what you are hoping to gain from your very own rental property in Turkey. 


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