Real Estate Market In Turkey Continues Its Boom
News Posted On: 27 July 2012
Turkey is experiencing real estate market boom unparalleled in its history. Unlike other countries, Turkey has managed to avoid a crippling economy and continues to offer competitive property prices to buyers. According to sales figures, foreign investors are flocking to the country to acquire real estate assets that are worth millions.
New Law Permits Property Sale to Non-Citizens
A few months ago, a new bill was implemented, which allowed non-citizens to purchase property in Turkey. This was one of the major factors that contributed to the sales boom in the country. Most of the acquisition has taken place in one of Turkey’s most populous cities, Istanbul.
Today, the city is a thriving metropolis which is the perfect amalgamation of the modern and the ancient. For this reason alone, foreign buyers consider the area an ideal place for investment. The economy in Turkey is more stable than some of the other countries such as Spain.
Real Estate Sales Crosses $1 Billion in a Month
In an unprecedented occurrence, Turkey recorded a whopping $1 billion in real estate sales in a month. Compared to last year, the figures have quadrupled. The extraordinary fact is that in early 2012, the sales figures were standing at $114 million. The foreign investment has been touted as the largest since the Republic of Turkey was established.
Property sales are expected to shoot up in the coming months as an increasing number of foreign investors flock to the country. According to a report by the Central Bank, the key acquisitions were made by firms in Austria. In Turkey, the largest sales figure in the real estate arena was $337 million in 2008.
Turkey Draws a Flurry of European Investors
As the new law came into practice, there was no longer an obstacle that stopped foreign buyers from acquiring land in Turkey. Soon, investors became keen of purchasing property in the country. According to local real estate agents, two large European firm owners have been seriously looking into Turkish property.
While foreign investment is always welcomed, local realtors are wary of such investors as they fear they will re-sell it to other individuals. This strategy of marketing prime property abroad has not gone down well with the local real estate agents in the country as they like to avoid speculation and sell directly to the buyer.
Increase in Prices May Cause Ripple Effect
Locals are thrilled with the sudden interest in their country’s real estate. However, several fear that the rise of investment will subsequently lead to high prices. This will eventually create a ripple effect across the entire real estate market in Turkey causing more harm than good to its citizens.
According to top realtors in Istanbul, only 20% of real estate sales in Turkey are accounted for by luxury properties. The majority of sales - 80% - is local and involves non-prime real estate. The new bill, which is responsible for this boom, has come under some heat by several members of the opposition party as they feel that several provisions in it are unfavourable.
View our properties for sale in Turkey
Written by Les Calvert
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