Last Updated on 14/11/2023
In recent years, vacation rental properties emerged as a lucrative and popular investment option for individuals seeking attractive returns and diversification in their portfolios. With the rise of online platforms like Airbnb and VRBO, the vacation rental market experienced exponential growth. Thus they present investors with a unique opportunity to capitalize on the booming tourism industry. In this article, we will explore the reasons why vacation rental properties have become a proven and profitable investment scheme.
What are vacation rental properties?
As an alternative to hotels, vacation rentals are furnished residences, houses, or professionally managed complexes. These short-term rental homes are furnished with the essentials, and stays are generally limited to 30 days. Over the past few years, short-term vacation rentals have skyrocketed in popularity. Vacation rental properties can be a significant source of income for investors. It makes up 24% of the typical owner’s annual income.
Are vacation rental properties a good investment choice?
The travel and tourism industry continues to thrive, with more individuals seeking unique travel experiences. This growing trend has fueled the demand for vacation rental properties, as travelers increasingly favor the comfort, privacy, and authenticity they provide over traditional hotels. With a good location and impressive design, investors can capitalize on the vacation rental property evolving market. Buying vacation rental property can be a terrific investment if you know what to pursue. Peak season durations are lengthening and peak demand is spreading out over more months due to the rise in flexible and remote work. But keep in mind that purchasing a vacation rental property is not the same as purchasing a piece of conventional real estate. You must have a solid understanding of your market and be able to predict and respond to changes in demand if you want to get the most out of your investment.
Yet, the global market for vacation rentals is worth many billions of dollars. The desire for new vacation properties and locations is constantly driven by people’s need to take vacations and the expansion of the tourism industry. As a result, buying vacation homes has become a tempting possibility. Due to benefits like generating passive income, owning valuable real estate, and the ability to take their own vacations in these regions, investors are tempted to invest in vacation rentals and destinations.
Advantages of vacation rental properties investment
High passive income
One of the primary advantages of vacation rental properties is their potential for high rental yields. Unlike traditional long-term rentals, vacation rentals often command a premium rate per night, allowing investors to generate substantial income. In popular tourist destinations, demand for short-term accommodation remains consistently high, ensuring a steady stream of bookings and increased rental income throughout the year.
Valuable real estate investment
When investing in a vacation rental, holiday destinations are frequently real estate assets that appreciate over time. The need for tourism is one of the factors that drive up the value of vacation homes. Investments in vacation spots, therefore, have the potential to increase in value throughout the course of both short- and long-term rentals of real estate.
Easy marketing opportunities
Finding consumers may be a challenge for many small company owners, but finding renters for your rental property has never been simpler, especially with the enormous growth of platforms like VRBO, Airbnb, and HomeAway. You will have access to thousands of visitors thanks to these sites and your social media accounts, and managing your listing will be simple. You get to decide when you want to rent out your home, and then you may choose the kind of travelers you want to appeal to. Not to add, you’ll get even more assistance luring visitors when you work with a property management firm. The more you market your place, the simpler it will be to get visitors, and as we already mentioned, there are a lot of individuals looking.
Flexibility and Personal Use
Investing in a vacation rental property provides the added benefit of flexibility. Owners can enjoy personal use of the property during periods when it is not rented out, enabling them to have a vacation home while still generating income. This unique blend of personal enjoyment and financial gain is an appealing aspect for many investors, as they can benefit from the property’s appreciation and income potential while creating lasting memories with family and friends.
Best areas to invest in vacation rental properties in Turkey
Alanya
Over the past ten years, Alanya has grown to become an important tourism destination in Turkey. Due to the region’s enormous property portfolio, the area, which was earlier overshadowed by Antalya’s main town center, can now proudly stand as a prominent center of importance.
Even more alluring is the price of apartments and villas. Alanya boasts some of Turkey’s highest real estate values due to the abundance of houses and land that is appropriate for the building, as well as the inexpensive prices per square meter. This may serve as a significant incentive for investors looking for inexpensive real estate in Alanya, Turkey.
And therefore it constitutes a profitable place for vacation rental properties, especially with the increasing Russian demand.
Bodrum
Surrounded on three sides by the ocean. A popular location noted for real estate investment is Bodrum, Turkey. Bodrum’s geographical location, natural beauty, breathtaking vistas, and stunning beaches make it advantageous to purchase real estate there.
Bodrum has attracted both local and international tourists. As a result, it continues to be a popular spot for wealthy, high-society, and famous people. It draws expats from all over the world looking for properties for sale in Bodrum, whether for second homes or vacation rental properties. As a result, Bodrum’s strong demand for luxury residences dramatically grew. We should point out that sea-view villas and opulent flats in vacation resorts with swimming pools are the most sought-after properties in Bodrum.
Fethiye
With its bright climate and sandy beaches, Fethiye is a desirable tourist destination appropriate for summer vacations. This fact significantly enhanced the demand for vacation rental properties. Investors were drawn to Fethiye by this evidence and they began to view the city as a desirable real estate market with excellent investment potential.
There are numerous alternatives for properties in Fethiye. The market offers a wide range of options that fit different budgets. In addition, there are numerous options for luxurious villas with gardens and private poos.
Istanbul
One of the safest investment categories in Turkey is the real estate market in Istanbul. Even in challenging circumstances, such as pandemics or currency crises, it managed to turn a profit. In order to make up for the price disparity and maintain the value of the houses, prices actually increased. And this is what gives it its stability and security.
In fact, there is a growing demand for Turkish real estate every day. And contrarily to the above-mentioned areas, Istanbul’s tourism season last all year long, and demand for vocational rental properties is not seasonal.
Additionally, purchasers can find possibilities in the Istanbul real estate market that fit every budget. In fact, the cost of some properties was determined by characteristics including the number of bedrooms, the view, and the location’s closeness to transportation. And as a result, it establishes the ROI you will receive.
When considering vacation rental property investments in Turkey, it’s crucial to research local regulations, and market demand, and work with experienced local real estate agents or property management companies. By carefully selecting a desirable location and providing excellent guest experiences, investors can maximize their returns and enjoy the benefits of owning a vacation rental property in Turkey.
If you consider investing in vocational rental properties, you can get support from our experts through a free consultation with our experts.
