Afghan Investors See Turkish Properties As Safe Havens
News Posted On: 12 May 2014
Turkey based real estate agents report that there has been a considerable increase in enquiries made by Afghan investors. The current conflict and instability in Afghanistan is driving local investors to invest in secure destinations like Turkey to make property purchases. Julian Walker, Director of Spot Blue, a real estate agency, says that the number of enquiries from Afghan citizens shot up by 300 percent in the February-April period this year, when compared to last year.
Political instability drives Afghan investors to Turkey
The instability in Afghanistan is forcing home buyers to look at safer locations like Turkey. A few wealthy Afghans predict a positive outlook for Afghanistan in the future, following the elections in April, despite which the number of enquiries by Afghans remains unchanged. This can be attributed to Afghan investors placing their bets on safer markets in case political conflicts make their way back into Afghanistan. Real estate analysts say that the investment pattern is similar to other markets where investors look for secure locations while purchasing properties.
Many factors such as Turkey being a Muslim country, the affordability of properties that are away from the heart of the city, and the cosmopolitan nature of Istanbul have sparked the interest of Afghan investors. Furthermore, investors can easily travel in and out of the country without obtaining a visa, which makes Turkey an attractive investment destination.
Typically, investors from Afghanistan do not make large scale investments as they function with small budgets and are on the lookout for small properties like apartments. Some Afghan investors look for holiday home assets as well. The investment value of the Afghan buyer is typically in the range of £50,000-£90,000 for apartments in Istanbul's suburbs.
Gulf investors eye luxury residential property market in Istanbul
The Turkish Statistical Institute says that foreigners accounted for 478 property purchases in Istanbul of the 1,362 purchases made nationwide, during March 2014. 20 percent of the total transactions made in the Turkish property market during March 2014 involved properties in Istanbul. Entrepreneurs and officials in government bodies, who have earlier benefited from the foreign cash inflow to Kabul, are returning to Antalya and Istanbul ever since the foreign ownership regulations have been relaxed in Turkey.
Middle Eastern buyers have also showed an appetite for Istanbul's luxury residential property market. The developments in the region and the attractive investment opportunities offered in the market are fueling these interests.
Wealthy Gulf investors have shown an interest in properties in Basdat Street along the Asian front, and Nisantasi and Bebek along the European front. Buy-to-let residential properties in suburban districts like Sariyer, Beylikduzu, Arnavutkoy, Esenyurt and Bahcesehir have also garnered the attention of the Middle Eastern buyer.
Gulf investors see Istanbul as a location that bridges the gap between the West and the East. Gulf-Turkish ties have gained momentum after Istanbul's investment summit where Abdullah Gul, the President of Turkey, invited property investors from the UAE, Qatar, Kuwait and Saudi Arabia to participate in the Turkish real-estate market.
Written by Les Calvert of www.property-abroad.com
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