A reduction of the value-added tax (KDV) in the real estate sector, part of government’s efforts to fend off the ongoing global financial crisis, has led to an increase in the sale of residences in Turkey’s prominent tourism destinations.
After experiencing a 70 percent contraction in sales amid global financial turmoil, real estate agents in Alanya and Bodrum said sales had increased by 40 percent in just the last few weeks compared to the period prior to the KDV cut. Upon hearing of the tax break, parties interested in buying property here came from Norway, Denmark, Germany, the Netherlands and Ireland.
Alanya Real Estate Agents Association (ALEKOD) President Kerim Balıktay said the KDV reduction was the perfect “medicine” for the ailing sector. Underlining that they expect to sell some 10,000 residences in the coming months, he said they hope to earn 1 billion euros from the sales.
Bodrum Real Estate Agents Union (BEMDER) President Ömer Yetgin said sales in Bodrum increased by 45 percent following the KDV reduction. “Our sales contracted by around 90 percent, but now there is great interest — especially among foreigners — in the purchase of residences. Some of our colleagues had no chance but to close their real estate agencies amid a terrible financial bottleneck; however, there is a serious recovery in the market, at least for the time being,” he said.
Noting that the lowered KDV had reinvigorated the sector, Fethiye Real Estate Agents Union President Nevzat Tilkici said the price of residences fell by 40 percent compared to previous years. He said they had seen a 50 percent increase in sales, particularly in Side, Datça and Çeşme.
Nevzat Ersoy, the head of contractor Ersoy İnşaat, said their customers predominantly come from Norway, Denmark and the Netherlands. Tourists mainly choose residences by the seaside or with a view of the forest, he said.
Prices of residences in tourism hotspots
In Alanya, Antalya province’s famous tourist center, prices vary between 35,000 euros and 200,000 euros. In some of the most attractive parts of this famous district, a triplex villa with a view of the sea sells for 150,000-400,000 euros.
In Fethiye, know as the “pearl of the Aegean,” residences go for 30,000-100,000 euros, while prices in Bodrum, famous for its natural beauty, hover around 50,000-240,000 euros.
