Mersin: the new star of the Turkish Riviera for home investment
Mersin is to the East of the Turkish Mediterranean. In the 102 years of the republic, Turkey’s tourism developed Antalya and Mugla the most. The Aegean coast has also taken its share from the investment. On this site we have been writing Mersin is the next star for home investment in Turkey. This fact is becoming more and more apparent after the government expedited the construction of the Mersin-Antalya Motorway’s first phase.
Important parameters of Home Investment in Turkey
When it comes to residential investment Turkey has always been a good option for European and Asian investors. The main reason was price about 10 years ago. Between 2014 and 2017, you could still buy decent homes under $100.000 in Istanbul, and under $35.000 in Mersin.
With the investment in infrastructure and the Covid 19 pandemic which was followed by the Maras Earthquake in 2023, Mersin’s population grew and the number of visitors increased significantly. This is one of the most important parameters of Home Investment in Mersin, as prices go up healthily with the demand from domestic buyers.
Another important parameter for residential investment is ROI. Mersin’s rental returns are from 6 to 10% depending on area and the type of unit. This is significantly higher than the likes of Istanbul and Bursa.
Types of home investment possible for foreign investors in Mersin
Mersin’s centre is on the Mediterranean coast. For this reason most of the sea front neighbourhoods consist of 30-50 year old buildings. Based on this information we will group home investment in Mersin to 2 groups, in terms of budget and the age of the building.
Group A – 0-15 year old new generation buildings $75.000 to $200.000
This group is usually seen in the newer neighbourhoods of Mersin, mainly to the North of the GMK Boulevard. 1 bedroom and 2 bedroom apartments were not very common back in the 80’s and 90’s. From early 2000’s, with the expansion of the Mersin University, necessity of 1-2 bedroom units occurred and nowadays more of the new buildings have 1-2 bedroom units than 3-4 bedroom units.
For better rental return 1-2 bedroom units are ideal. They get more demand and this keeps rental rates at safer levels for you to maximise your returns.
Decent 1 bedroom units start from $50-60.000. 2 bedrooms start from $60-70.000. If you need larger units 3-4 bedroom units start from $100.000 in 5-15 year old buildings and $150.000 in brand new or relatively new buildings.
Group B – 30 year or older buildings for home investment in Mersin $55.000 to $90.000
This group mainly consists of large 3 bedroom or 4 bedroom units. Most 5 storey buildings over 40 years do not have elevators, however they are right in the centre, a stone throw to the sea and all amenities.
The best is to buy an old apartment ideally in its old form and refurbish it to a modern standard. Let us say we bought an old 3 bedroom apartment for 2.200.000 TL in Pozcu. To refurbish a 3 bedroom apartment to a good standard will cost minimum 700.000 TL. This will bring your total to 2.900.000 TL (about $70.000). We can rent this refurbished unit for 240.000 TL p.a. which gives us a return of 8.27%.
Of course there are many other buildings than the new and old. If you tell us what is on your mind, we can design your home investment model and at desired price levels you can make your investment in Turkey with MARE.