Posted on 23 August 2012
I feel a bit hard-done-by sometimes. Before the crash practically anyone could pick a figure out of the air for a rental yield or potential capital appreciation for any part of the world and be taken at face value, but now, when I use my expertise and experience of the Turkish market to quote rental yields, people sniff at it. Because the predicted and stated rental yields people would give for Dubai when courting buyers vanished into dust, now no one’s predictions on rental yields can be right unless they are below 3%.
Don’t get me wrong, when I can quote figures or give hard evidence it is fine, which is fine for the likes of istanbul where the population growth and limited supply speak for themselves, and there are hard figures to use on rental prices. But for Turkey’s holiday rental markets it is much harder to convince using anecdotal evidence like prices and availability on holiday lettings sites and what owners tell me.
On one hand I can see why, because during the boom it didn’t matter where you looked because everywhere in the world was yielding 6% or above in rentals, on the other hand I feel deeply agrieved. So it is always nice when somebody with an impartial looking title backs up my assertions.
According to Marmaris Real Estate Association President Hasan Ateş rents in Bodrum, Fethiye and Marmaris have almost doubled to around 1000 liras per week due to demand outstripping supply for quality rental properties by the sea.
“The lack of rental units first became an issue last year, and has reached its pinnacle this year. Finding an affordable 500-600 lira-per-month rental unit has become very difficult. Rental prices have gone up more than we expected,” Ateş told the Anatolia news agency.
The problem is exacerbated because many seasonal workers who used to vacate their homes at the end of the summer now rent year-round, aware of the difficulties they will face finding rentals the following summer, Ateş said.