Fethiye was one of the many premium resort locations in Turkey that saw rapid and significant increases in property prices, starting in 2023 and continuing for several months. This prompted concerns from buyers worried about purchasing a holiday or second home during a property boom, and whether they'd be able to buy for a lower price by delaying their transactions.
The good news, as explained by the real estate specialists at Property Turkey, is that the market has now largely stabilised. Spikes in prices have started to return closer to market expectations, something foreign national buyers waiting to finalise their purchase of a beautiful coastal villa will undoubtedly be pleased to hear.
Property Turkey’s local teams, who support international buyers throughout their property acquisitions, have shared some insights into the reason for the Fethiye property boom, and what to expect in the months ahead.
Why Did Average Property Sale Prices Soar in Fethiye Last Year?
Every property market is subject to fluctuations, but there are sometimes distinct periods where pricing volatility creates a short-term window where real estate either becomes substantially cheaper or more expensive in comparison to similar periods the year before.
In Turkey’s case, a lot of this was down to regional instability, challenges affecting global economies, and worldwide market trends. This was particularly noticeable in 2023 when the recovery from the pandemic and re-opening of markets saw backlogs of transactions being completed at record speeds and in record numbers.
This flurry of activity also meant that rapid price hikes in areas like Antalya, Bodrum and Istanbul created an outward ripple where some of the smaller, more exclusive coastal resorts also saw unprecedented price rises, making a desirable market suddenly less affordable.
What Has Happened to the Fethiye Property Market Since?
As mentioned above, the market has shown positive indications of stability, which means prices that were temporarily inflated have stopped rising as sharply, and in many cases have returned to the anticipated levels we'd expect.
That doesn’t mean demand for luxury real estate in Fethiye has waned. Instead, the market is better positioned to meet that demand with a diverse mixture of properties, from generous family homes, traditional Turkish villas, and modern new builds packed with all the conveniences affluent investors expect.
Fethiye has seen sustained market appreciation owing to its growing popularity as a tourist destination, interest in short-term holiday lets and foreign investment. Still, improvements in Turkey’s economic health, lower inflation levels, and a more stable currency exchange rate have all helped towards correcting the peaks in property prices.
However, we’d always recommend prospective buyers speak with our team, especially if they’re not currently Turkish residents, aren’t familiar with the property market or want more personalised advice about when the best time might be to buy.
Aspects like improvements in local infrastructure, augmented transport connections and a beneficial exchange rate against overseas currencies can all trigger higher interest in certain property types, which can in turn influence our guidance about when to pause and when to move forward.
We can also offer advice on recently listed properties where the owner is eager to complete the sale quickly, private listings that match your criteria, and periods when tourism slowdowns put buyers in a stronger negotiating position.
What Makes the Real Estate Market in Fethiye So Buoyant?
Fethiye is a stunning place to live, and draws buyers looking for permanent residences, holiday homes, second properties and investment real estate. Based in Muğla, it offers a combination of a healthy local economy, the beauty of the mountain ranges, and the gorgeous Aegean Sea with its perfect golden beaches and crystal clear waters.
Another reason Fethiye is such a popular place to buy is the range of properties available, with everything from chic beachfront apartments with enviable sea views to rustic hillside homes, and large villas with private pools, sun terraces and proximity to the beach.
The town isn't, though, a commercialised tourist resort, and has a rich cultural history, with a long heritage in farming, numerous ancient sites and the thriving marina that make Fethiye just as great a place to live and explore as to enjoy a relaxing holiday.
An increasing number of buyers, particularly affluent foreign nationals, don’t want to live in a resort that lacks authenticity and culture, and are prioritising smaller towns that embrace the local lifestyle and heritage. This is something Fethiye does well, with its bustling fresh food markets, proud Turkish cafe culture, and good schools and healthcare services.
Where Are the Best Places in and Around Fethiye for Foreign Property Buyers?
Fethiye remains affordable compared to the larger cities, and also benefits from short winters and wonderfully long, warm Mediterranean summers, with several hotspots where real estate prices are always elevated, and others that attract a mixture of buyers with a range of budgets.
The town itself is equal parts traditional and tourist-friendly, with a town centre full of modern living amenities and high-quality restaurants, but it also retains its charm and heritage architecture. In contrast, those looking for Fethiye villas with an idyllic coastal lifestyle often pick Calis Beach, with amazing sunsets, unspoiled sea views, and a busy waterfront.
For other buyers looking for a quieter family home, or those relocating to Turkey in retirement, we might suggest some of the peaceful neighbourhoods that are close to Ölüdeniz Beach, but feel a little calmer, such as Hisarönü and Ovacık.
The best starting point is to think about what you want most from your Fethiye property purchase, how much time you intend to spend in Turkey, and what your minimum expectations and maximum budget are. This enables us to provide customised advice about the current and forthcoming listings we think will be just what you are looking for.
You’re also welcome to browse our current property listings via the Property Turkey website, where you’ll be able to get a great idea of prices, the range of Turkish real estate available to buy, and the types of homes you can see yourself living in.
Read more about Property Turkey – Buying a Coastal Apartment in Calis Beach, Turkey's Expat Hotspot
About Property Turkey:
With 20+ years experience in the Turkish real estate market, team Property Turkey are your experienced, friendly and independent overseas real estate consultants. Our head office is located in London, UK with regional operational offices in: Bodrum, Fethiye & Kalkan, Antalya and Istanbul.
