June sees us well into the property season in Turkey. Traditionally, those serious about purchasing a property in Turkey tend to do so towards the beginning and end of the summer season.
From May to October there are frequent flights from most international airports, prices of tickets are cheaper and the weather in Turkey is the ideal temperature to look around prospective properties and developments without melting.
Most purchasers do their homework. They surf the internet taking note of properties and areas of interest, speak to accredited Turkish estate agents, organise finances and only then head out on a Turkey inspection trip to look around. These are sensible preliminaries but few actually know what factors actually make up the price of the properties on offer.
Take the two examples of villas in Ovacik presented here. Both properties have a similar interior size, 3 bedrooms, are located in the village of Ovacik near Oludeniz and are currently on the market. Which is most expensive? Why a difference in price? The answer is made up of a number of main factors.
Main Factors in a Turkish Property Price
LOCATION: We have all heard the saying “location, location, location” in terms of property purchase. There is a lot of truth in it. Location is the primary factor affecting a property’s value. Anything close to a beach, site of interest or resort centre is likely to secure a far higher value. Those with clear sea views a premium, and properties close to transport links, shops and sporting facilities more than those that lie further away.
NEW BUILD vs RESALE: New builds are generally dearer than resale properties. Construction and material costs have grown significantly over recent years, as has the price of land. Developers are now being charged additional taxes therefore have to offset these costs in the purchase price.
SIZE: Larger builds on bigger land plots are usually dearer.
LACK OF DEVELOPMENT LAND: Many popular areas like Ovacik now have a shortage of development land thereby inflating the price of properties in the area. Where a location is in demand or attracts a rental premium, prices will be more expensive.
EXCHANGE AND CURRENCY FLUCTUATIONS: Take note of what currency a property is advertised in, and also in what currency you are expected to pay in order to secure your property. The exchange rate varies considerably from day to day meaning your agreed purchase figure can also differ dramatically dependent on that day’s exchange rate. This is often a reason you see properties advertised at different prices between estate agencies (they have worked out the GBP or Euro equivalent on a specific days rate).
FURNISHED / NON-FURNISHED: Properties including furniture or luxury additions are normally advertised at a higher price.
PROSPECTIVE RENTAL RETURNS: Areas such as Ovacik attract excellent rental returns during the tourist season. Villas and apartments in tourist areas, or already with a rental arrangement in place, will attract more than those more remote or in areas holidaymakers don’t favour.
AGENT COMMISSIONS: Most agents charge a commission for their services. Although the normal and legal commission fee in Turkey is 3 percent to both buyer and seller, some agents charge or include higher fees in their prices to cover additional marketing and administration costs. (Please note: Oceanwide Properties charge only the legal 3 percent on purchase of a property to clients with no hidden charges or fees).
So what is the price of the properties listed above?
Property A is 225,000 GBP. It is a luxury, modern developer new build in a highly sought after area where little development land is left to build upon. Close to amenities and within easy reach of the beach, it comes with a rental arrangement and five year builder’s guarantee in place. It has a modern interior and built in compliance to modern standards therefore currently on offer at a high price.
Property B is 145,000 GBP. It is an older, less modern resale property. Again, it is close to the resort center but has no builder’s guarantee or rental arrangement in place. It represents excellent value for money but owners would have to arrange maintenance and upkeep themselves hence it is on offer at a lower price.
For more information and current property listings visit the Oceanwide Properties website at www.oceanwideproperties.co.uk or call 0207 424 7892 to speak to one of our specialist consultants.