Swedish investors have grown accustomed to modest rental yields at home, tight rent controls in major cities, and a vacation-home market where prices per square meter in the archipelago or the mountains can rival central Stockholm. Against that backdrop, coastal Türkiye offers a different equation: lower acquisition cost per square meter, a long tourism season, and short-term rental income that, when priced correctly, can outperform both Swedish buy-to-let returns and many Southern European alternatives. The opportunity is real, but it depends on treating this as a yield arbitrage decision, not a lifestyle purchase with a rental afterthought.
Why the Yield Gap Exists
Türkiye's Mediterranean and Aegean coasts, particularly Antalya, Bodrum, and Fethiye, combine construction costs and land values that remain well below comparable Western European resort markets, with tourist arrival numbers that have consistently recovered and grown since 2021. A two-bedroom apartment near the coast in these regions can often be acquired for a fraction of what a comparable Swedish fritidshus costs, while nightly rates during peak season (June through September) can reach levels that, annualized, produce gross yields in the 6 to 10 percent range for well-managed properties. Swedish vacation-home yields, by contrast, are frequently compressed by high entry prices relative to achievable rents, even in strong tourist zones like Åre or the Bohuslän coast.
The arbitrage : the spread between what a property costs to buy and what it can earn from short-term guests is currently wider in Türkiye's established resort markets than in most of Northern Europe, and that spread is the basis for the investment case, not the exchange rate or currency speculation.
Regulatory Groundwork Before You Buy
Türkiye tightened its short-term rental framework in 2024, requiring formal permits from local authorities for daily or weekly lettings in residential buildings, with building-wide consent thresholds in multi-unit developments. This matters directly for arbitrage strategy: a unit in a building where the building management or the majority of owners object to short-term letting cannot legally be operated as a vacation rental, regardless of its location or price. Before committing capital, Swedish buyers should confirm, in writing, that the specific building and unit already holds or can obtain a short-term rental permit, and that the development's management plan does not restrict daily rentals. This single due diligence step separates viable arbitrage plays from properties that look attractive on paper but cannot legally deliver the income assumed in the pro forma.
Seasonality and Realistic Underwriting
Coastal Türkiye's rental demand is heavily concentrated between May and October, with a secondary but smaller window around winter holidays in ski-adjacent areas. Investors should underwrite on realistic occupancy, typically 45 to 65 percent annualized for well-located coastal units, rather than peak-season rates extrapolated across twelve months. Off-season vacancy, local management fees (commonly 15 to 25 percent of gross rental income for full-service operators), utility costs, and Türkiye's tourism accommodation tax should all be built into the model before comparing net yield against a Swedish alternative.
Currency and Repatriation Planning
Rental income earned in Turkish lira is subject to currency movement against the Swedish krona, and investors should plan for both local reinvestment and periodic repatriation as part of the same strategy, rather than treating currency exposure as an afterthought. Working with an accountant familiar with both Turkish rental income taxation and Swedish foreign income reporting requirements from the outset avoids costly corrections later.
A Structured Way to Evaluate the Trade
The arbitrage case is strongest when three conditions align: a coastal location with proven, multi-year tourist demand, a building with confirmed short-term rental permissions, and a realistic occupancy model rather than a peak-season projection. Properties that meet all three tend to deliver the yield advantage Swedish investors are seeking. Properties that meet only one or two often underperform expectations once management fees, taxes, and off-season vacancy are properly accounted for. A pre-purchase yield audit, comparing the specific unit's permit status, comparable rental performance, and total cost of ownership against a Swedish benchmark property, is the most reliable way to confirm the arbitrage before capital is committed.