Turkeys Property Market Expected To Gallop Forward
News Posted On: 11 April 2014
Sources say that Turkey's property market is expected to continue its upward trend due to the recent re-election of the AK Party, with Recep Tayyip Erdogan as Prime Minister. A leading real-estate firm says that the results should favour Turkey's property market and has been greeted with a positive response from international investors.
The results from the local elections are expected to improve the inflow of overseas investors, especially those that pour in from Middle Eastern regions. The cultural connection is fueling these Middle Eastern interests as well as the geographical proximity.
Government sets infrastructural projects rolling
A real estate agency, Spot Blue International Property, says that a continued period of growth in the property market can help Turkey in transcending from being one of the world's mature emerging markets to a higher level. Agency Director Julian Walker, says that Erdogan and the AK party can resume working on schemes that were planned earlier, which aims at bringing in foreign investors into the country to move Turkey up the economic ladder internationally.
Mr. Walker says that initiatives taken by the government to drive crucial infrastructure projects that are set in Istanbul and the surrounding area, are bound to improve the quality of lifestyle while attracting foreign investors as well. The bridge over the Bosphorous, that is expected to be unveiled in 2016, is a key project that may soon become the world's widest bridge.
The Marmaray railway tunnel that connects the Asian and European region of Istanbul is another example of key infrastructural developments in the country. There are other extensions and developments expected in Istanbul's underground, and its third airport which may become the largest airport in the world.
Foreign investors eye Turkish properties
The Ministry of Finance in Turkey reports that the country showed a total foreign direct investment (FDI) of $12.686 billion during 2013. The Statistical Institute in Turkey reports that foreign investors bought $3 billion worth of assets in Turkey in 2013, across 12,000 properties, showing a year-on-year increase of 15 percent.
Amongst all regions, the southern provinces of Istanbul and Antalya showed the highest house purchase numbers from overseas investors. Rural landscapes in Turkey are growing popular amongst foreign investors. Buyers who want an authentic Turkish feel are gravitating towards regions like the foothills around Fethiye amongst other rural areas.
Mr. Walker says that Erdogan plays a key role in moulding Turkey's property market in the future. The amendments that were made in the reciprocal law during May 2012, increased the inflow of Russian and Middle Eastern investors. He pointed out that Turkey is finally free of foreign debts, after over a century, after paying its final installment of $412 million last May, to the IMF(International Monetary Fund).
The move is in line with the efforts made by Mr. Erdogan to limit the government's spending and to remove dependency on external entities for fiscal help. Mr. Walker claims that Mr.Erdogan can maintain investment opportunities in a healthy condition while playing a pivotal role in expanding Turkey's presence to an international audience.
Written by Les Calvert of www.property-abroad.com
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