Buying a property in Bodrum: a complete guide

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Yes, the analysis of Bodrum's property market is included in our pack

Thinking of buying a property in Bodrum? You're not alone!

Many people are enchanted by Bodrum's Aegean charm and dream of owning a luxurious villa or a stylish sea-facing apartment there.

Would it be a good investment, though? Are property prices increasing in Bodrum? Is it expensive? Should I buy property in the town center or near the coast? Is there any hidden tax? What rental yields should I expect?

We have all the answers you need.

The Investropa team has thoroughly explored this market. As a matter of fact, we've put all our findings together in a pack. Get it now.

In the lines below, we will share some of this knowledge.

How is the property market in Bodrum?

How is the property market faring? Let's gather and interpret the data to know for sure.

Property types

In Bodrum, there are various types of properties available for sale to suit different preferences and needs.

These include charming villas, offering privacy and a peaceful atmosphere with stunning sea views; modern apartments, perfect for individuals or small families looking for a cozy and low-maintenance home; luxurious beachfront properties, ideal for those seeking a lavish lifestyle with direct access to the beautiful coastline; and spacious land plots, great for investors looking to build their dream home or develop projects.

Whether you desire a serene escape, a contemporary living space, a lavish waterfront retreat, or a blank canvas to create your vision, Bodrum has a diverse range of properties to offer.

Buy or rent?

(If you're purchasing for personal use and not for renting)

Whether you've already made Bodrum your home or are contemplating it for the future, you might be considering whether to buy or rent a property in this picturesque Turkish coastal town.

Usually, buying is better than renting in Bodrum due to its high demand for holiday homes and potential for long-term capital growth.

On the other hand, renting might be the better fit if you value flexibility.

Property prices in Bodrum

On average, according to the last data from Central Bank of the Republic of Turkey, purchasing a property in Bodrum should cost you around $4,500 per square meter.

Obviously, there are some big differences. A villa in Bodrum might have a different price per square meter than an apartment in Turgutreis. We actually give you a more detailed breakdown in our pack for buying property in Bodrum and in Turkey.

To give you some context, it means that, instead of buying an apartment in Paris or London, you can afford 3 properties in Bodrum.

Also, housing prices in Bodrum are 47% cheaper than in Ibiza.

The most expensive neighbourhoods in Bodrum are probably Yalıkavak, Gümüşlük, and Türkbükü, while the most affordable areas are likely Ortakent, Göltürkbükü, and Gündoğan.

Trends

First and foremost, we have to acknowledge that Turkey is, nowadays, a relatively stable country. The last Fragile State Index that has been reported for this place is 78.1.

It is something to have in mind when wondering whether it's a good investment to buy a property in Bodrum.

Besides that, if we look at the IMF's GDP forecasts, Turkey's economy is expected to soar by 13.9% in the coming 5 years, resulting in an average GDP growth rate of 2.8%.

If you intend to invest in real estate in Bodrum it's a good thing because a growing economy (usually) leads to higher incomes for citizens, enabling them to invest in real estate, which boosts demand and prices for properties.

Also, in Turkey, the average GDP per capita has changed by 17.2% over the last 5 years. Very few countries have achieved superior results.

These are positive signals showing that property prices in Bodrum might increase in 2024 and during the coming years.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Turkey right now.

Buying property in Bodrum

Buying real estate in Bodrum can be difficult due to the lack of reliable and updated information available, making it the most challenging part of the buying process. That's why we have created the pack to buy property in Bodrum and in Turkey.

Buying process

In the pack of documents we have built, we've covered everything about buying a property, from the contacts you'll need to the taxes that need to be paid, and even where to look for available properties.

Now, we're presenting a simpler version to make it easier for you to understand and follow along.

This is the step-by-step process to purchase a property in Bodrum:

1. Research properties and market trends in Bodrum, Turkey.
2. Engage a reputable real estate agent specialized in Bodrum properties.
3. View properties that match your criteria, considering the unique coastal features of Bodrum.
4. Conduct due diligence, including checking the property's title deed (TAPU) at the Land Registry Office.
5. Agree on the price and terms with the seller, using a legally binding contract called "Satis Vaadi."
6. Hire a solicitor familiar with Bodrum's property laws and obtain a tax number from the local tax office.
7. Sign a preliminary sales contract (Sözleşme) and pay a deposit (usually 10%).
8. Non-Turkish citizens must apply for military clearance through the Land Registry Office.
9. Finalize the purchase contract (Tapu Senedi) with your solicitor and the seller.
10. Pay the remaining balance and applicable fees, including the stamp duty and title deed transfer fees.
11. Register the property under your name at the Land Registry Office in Bodrum.
12. Receive the title deed (TAPU) in your name, completing the property purchase process in Bodrum.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Turkey.

Make a profitable investment in Bodrum

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Where to find a property

Discover your dream property in Bodrum through these websites:

• Property Turkey - Offering a wide range of real estate options in Turkey, including properties in Istanbul, Bodrum, Antalya, and more.
• Turkey Homes - Specializing in Turkish real estate, providing guidance for property, investment, and lifestyle needs. They offer properties across various regions.
• Turk Estate - A platform offering a comprehensive selection of properties in Turkey, including apartments, villas, penthouses, and commercial properties.
• Turkey Expert - A well-established Turkish real estate agent and property developer guiding foreign property buyers interested in real estate purchases.
• Zingat - A real estate portal offering various properties for sale, such as apartments, villas, commercial spaces, land, and tourism-related properties.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Turkey.

What you can get

As mentioned before, the average price per sqm in Bodrum is $4,500. A 1-bedroom property of 60 square meters would cost approximately $270,000, and a 2-bedroom property of 85 square meters would cost approximately $383,000.

However, the cost of properties will fluctuate depending on both their characteristics and their location.

Top neighborhoods in Bodrum usually come with higher price tags. For around $520,000, you could consider an apartment in Yalikavak, but a residence in Türkbükü might be priced at $1,010,000.

Some spots will be friendlier to your wallet. You might encounter a condominium in Milas priced at $150,000, or you may find a condominium in Turgutreis for just $120,000.

Find a more detailed breakdown in our full pack for buying property in Turkey.

Risks and pitfalls

Here are the main pitfalls specific to buying property in Bodrum, Turkey:

• Foreign ownership restrictions for certain property types.
• Compliance with Turkish property inheritance laws.
• Checking the Tapu (property title) authenticity and clarity.
• Beware of historical sites and protected areas, which may limit construction or usage.
• Understanding the complexities of the Turkish property market, such as TAPU discrepancies and informal agreements.
• Infrastructure and utility issues in certain regions.
• Potential coastal development restrictions and environmental regulations.
• Local bureaucratic procedures and language barriers.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Turkey Property Pack

Living in Bodrum

Living in Bodrum is a dream come true, with its stunning scenery, warm climate, and vibrant culture, it's an ideal place to purchase a property.

Cost of living

The cost of living in Bodrum is generally considered to be quite reasonable. Prices for basic necessities such as food, housing, and transportation are all relatively low compared to other cities in Turkey.

Here are some examples to better understand the cost of living in Bodrum, Turkey:

• A glass of traditional Turkish tea at a local teahouse: $0.50-$1.00.
• Rent for a one-bedroom apartment in the popular Bodrum Marina area: $800-$1,200 per month.
• A bottle of Efes Pilsen, a popular Turkish beer, at a bar: $2-$4.
• Freshly caught fish at a seafood restaurant in Bodrum's Yalıkavak district: $15-$25 per person.
• Monthly membership at a local beach club with amenities: $50-$100.
• A kilogram of locally grown olives at a market: $3-$5.
• A ferry ride to explore nearby islands like Kos, Greece: $25-$35 round trip.
• Entrance fee to the ancient Bodrum Castle: $5-$10.

Neighbourhoods and spots

Since our aim is to provide information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Bodrum. For yields, prices and rents, check our property pack.

Life in Bodrum

Bodrum is a popular tourist destination and the economy is mainly driven by tourism, as well as fishing and agriculture. The city has a vibrant nightlife and a wide range of restaurants, bars, and cafes.

What expats usually like the most about Bodrum is its stunning natural beauty, with white sand beaches, crystal-clear waters, and picturesque hillsides, as well as its laid-back atmosphere and vibrant nightlife.

Access to healthcare in Bodrum is generally good, with a variety of medical facilities and services available.

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Renting out in Bodrum

This section is for those who are looking to purchase a property not to live in themselves, but to rent it out and make an income from the rental.

Long-term

Tenant Profiles in Bodrum

According to the data reported by Wikipedia, the home ownership rate in Turkey is 58%, which is not much.

It means that, if you decide to buy and rent out in Bodrum, there will be a lot of people who can become your potential tenants.

If you decide to buy and rent out to long-term tenants, you should target professionals, expats, and retirees who are looking for a peaceful and comfortable lifestyle in Bodrum. For short-term rentals, you can attract tourists and holidaymakers who are looking for a beachfront or seaside getaway.

Here is a little summary table we've made for you.

Rental yields

Nowadays, rental yields in Bodrum are usually below 5%. It's not much. A good rental yield is usually around 7% or higher. Maybe, you knew it already.

The best rental yields in Bodrum are typically properties located in popular tourist areas, such as Gumbet and Bitez, as they tend to attract high demand from holidaymakers. Additionally, luxury villas with private pools and stunning sea views tend to have the highest rental yields, as they offer a unique and luxurious experience that customers are willing to pay a premium for.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Bodrum are taxed at 27%, which is average.

Short-term

You could also decide to rent short-term to tourists visiting Bodrum for its beaches, nightlife, and historical sites. Alternatively, you could rent to business travelers attending conferences in the area.

If you decide to go with that option, look for properties in Yalikavak, Bitez, Gumbet, and Gündoğan, as these areas are popular among tourists and have the most rental potential.

Currently, there are approximately 6,000 active Airbnb listings in Bodrum, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $115.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Bodrum can make around $900 per month. Also, the average occupancy rate is estimated at 32%.

Is it worth buying real estate in Bodrum then?

Buying a property in Bodrum can be a fantastic decision for many, but it's not a one-size-fits-all scenario.

If you're dreaming of owning a piece of this picturesque coastal town for your holidays or retirement, it's a great idea. The stunning sea views, warm climate, and vibrant culture make Bodrum a delightful place to call home. Plus, the cost of living is reasonable, making it attractive for retirees on a budget. You get to enjoy a luxurious lifestyle without breaking the bank.

Investors looking for long-term capital growth should also consider Bodrum. The stability of Turkey, coupled with positive economic indicators, suggests that property prices here are likely to rise in the coming years. Whether you're eyeing a lavish beachfront villa or a modern apartment, Bodrum offers a variety of property types to suit different budgets.

On the other hand, if flexibility is your priority or you're uncertain about your long-term plans, renting might be a better fit. But do keep in mind that Bodrum's property market, while appealing, does come with some potential challenges like foreign ownership restrictions, legal complexities, and environmental regulations.

So, it's crucial to weigh your options, do thorough research, and consider your specific goals before taking the plunge into Bodrum's real estate market.

Make sure you understand the real estate market in Bodrum

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The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.