Construction firms plan large projects in resort towns

Gülistan Alagöz- ISTANBUL

Construction firms are planning large investments in resort towns on the Aegean coast as demand has shifted during the pandemic from homes in large cities to smaller cities.

The COVID-19 pandemic changed how business is done in many industries and the construction sector is no exception. Consumers are now demanding low-rise, spacious homes with a garden and a balcony. Some people also brought forward their retirement.

All those factors boosted demand for houses in resort towns and construction firms that want to take benefit from the rising interest are planning to undertake large housing projects worth billions of Turkish Liras to build thousands of units in those destinations, particularly in the districts of Bodrum, Çeşme and Urla.

Strong demand, which emerged after the pandemic and rising construction costs, on the other hand, is pushing up property prices in those regions.

Prices of newly built houses start from 60,000 liras/square meter in the district of Bodrum in the province of Muğla, said people from the industry, adding that a luxurious villa comes with a price tag of at least 3.5 million euros.

Prices start from 60,000 liras to 100,000 liras/square meter in the Urla district in İzmir. Second-hand home prices are also on the rise. In İzmir, house prices increased by 141 percent over the past year, exceeding 10,000 liras/square meter, according to a study by Endeksa.

The average house price in the region is hovering at 1.38 million liras.
The price increase in Muğla was 143 percent, with the average house price at 2.84 million.

Turkey’s large companies, including Dap Yapı, Nef, Teknik Yapı, Ant Yapı and Invest Inşaat, will develop housing projects in the Aegean region.