Turkey Property Transactions Record High Gulf Investment In 2014
News Posted On: 20 July 2014
According to a latest report by Turkish Finance Ministry, the country’s property market continues to attract foreign investors. The report has been backed by the visible increase of 42 percent of purchases made by the investors during the first half of 2014. An investment of nearly $1.26 billion was made by foreign investors between January and April of 2014 in Turkey’s real estate market.
In other words, almost a quarter of the foreign investment, which has been growing year on year since 2012, has been concentrated on real estate markets in both urban and suburban locations. This amount has largely been contributed by investors from Gulf regions who generate nearly five percent of Turkey’s annual tourism revenue.
Gulf investors lead way for Turkey's property market upswing
Investors from GCC region comprising of Qatar, Saudi Arabia, Oman, Bahrain and Kuwait have contributed to local tourism growth and also purchased property in large cities as well as peripheral regions, which have potential for growth.
With slowdown in property markets in Dubai and growing political unrest in the Middle East these investors are looking for stable markets to invest, which will yield good returns. So Turkey like the rest of Europe, remains an attractive option for them. Turkey’s government has also encouraged tourists and investors through the introduction of multiple flights and by providing an ambient investment policy to promote growth of real estate across its borders.
Turkey’s finance ministry recently shared reports about a breakup of investments made by foreign institutional investors. As per the said report, the contribution of GCC nations was at $893 million in 2013, but grew by a whopping $1.26 billion within the first quarter of 2014 due to change in governmental policy. Besides encouraging air-traffic between Middle East and Turkey, its local government modified property ownership laws to make it easy for foreign nationals and specifically, residents of Gulf nations to buy property in Turkey.
Visitors from the region contributed nearly $32.3 billion to Turkey’s tourism industry during 2013. Property prices in Turkey remained buoyant for the fifteenth consecutive year, which have been growing at a constant rate of 4 percent every year.
Bodrum, Antalya, Bursa garner investor interest
Though historical Istanbul is the preferred destination of tourists in Turkey, investors in real estate are moving to fast-growing suburbs in locations like Bodrum, Antalya and Bursa. Foreign buyers of properties in Turkey purchased nearly $3 billion worth of property in 2013, representing growth of 15 percent since 2012. The biggest contribution was made by Antalya with overseas buyers purchasing most property in this region, followed by Istanbul. This is because these locations are not on the itinerary of regular tourists to Turkey, so are less crowded and have been developed into luxury resorts for the wealthy.
Regular visitors to Turkey from the Gulf region have discovered the potential of these regions, which can be developed into ideal holiday destinations. Ever since Turkey’s government changed ownership policies to encourage foreign investment in 2012, there has been a spurt in proposals to develop properties in Antalya, Aydin, Bursa, Mersin, and Sakarya from 8 percent to nearly 70 percent between 2013 and 2014. This growth of business has also increased air-traffic between GCC nations and Turkey. Now nearly seven to eight flights operate on a daily basis between both the locations.
Written by Les Calvert
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