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Turkish Coffee with Darren Edwards – Part 1 of 3

Catching up with Darren Edwards of Luxury Property Turkey over a morning coffee at the Yalikavak Marina, potential investors actively posed the following questions to him:

How does the luxury real estate market along the Aegean and Mediterranean coast of Turkey currently compare to 5 years ago?

Reflecting back upon five years ago, my client would have purchased a beautiful villa with a pool in a good location for just over €200,000.  That same property would now cost double that amount.

What new real estate trends in the Turkish market have you observed?

We have observed that buyers are demanding a very high standard of product, and that developers are also delivering a high quality product, ensuring that supply meets demand, which is what is fueling the trend for continuing investments in the Turkish property market.

If an investor had purchased a property valued at one million USD durig 2013, what would the realistic ROI be if he/she sold in 2018?

I believe in the theory that one makes one’s money upon purchase.  That is, if the property isn’t purchased at the correct market value, it will hinder capital appreciation.  Presuming that an investor purchased wisely in 2013, that investor should and would have doubled the initial investment.  If the property had also been capitalized as a rental, another 10% per annum would indeed provide a very rewarding return.

Would that same investor expect a higher ROI for a property purchased today if sold in 5 years time?

While that is looking into a crystal ball, I would say yes, based upon the strong domestic pull that the Bodrum peninsula’s property market has for investors.  We are seeing a boom based upon internal migration, and a solid infrastructure as far as private hospitals, top-notch schools, consumer choices and the availability of global brands which have made the Bodrum peninsula an extremely attractive choice for people to reside all year around.   I strongly believe that Bodrum is the pick for an investment driven real estate purchase.