Property Prices Increased in Alanya

The decline in property prices in Alanya is not random but driven by multiple interconnected factors that have reshaped the market landscape. Here’s a deeper dive into what’s causing the downturn:

Heavy Dependence on Foreign Buyers

For years, Alanya’s real estate market thrived on international buyers who sought affordable luxury and residency permits. However, global uncertainties like economic instability and shifting visa policies have drastically reduced international demand. Properties that were once selling briskly are now sitting idle for months, leading to price drops of 20-30% in some areas.

Post-Earthquake Migration and Its Impact

The devastating earthquake in eastern Turkey led to a wave of domestic migration as Turkish citizens sought safer areas. Alanya became a favored destination. While this increased local demand for properties, it hasn’t offset the decline in international interest. Most domestic buyers are focused on mid-range properties, leaving luxury and sea-view homes unsold.

Residency Permit Restrictions for Foreigners

One of the most significant blows to Alanya’s market is the government’s decision to close popular neighborhoods to new residency permits for foreigners. This restriction has drastically reduced one of the key motivations for international buyers and pushed the market further into stagnation.

Market Oversupply and Stagnation

Alanya’s construction boom over the last decade has led to an oversupply of properties. With more homes on the market than buyers, prices have plummeted. In areas like Mahmutlar, sea-view apartments that sold for $2,500/m² last year are now available for $1,800-$2,000/m².

High Taxes and Hidden Costs

High property transfer taxes, licensing fees, and increased maintenance costs make Alanya less attractive to cost-sensitive buyers. Foreign investors, in particular, face higher tax burdens when purchasing and managing rental properties.