The easing of property buying laws in Turkey is to open the floodgates to some £13 billion ($20 billion) of real estate investment by overseas buyers.
The figure, released by Turkey`s second biggest real estate investment trust, follows the Turkish Parliament`s adoption of a Bill that has dropped a reciprocity restriction on foreign ownership of property, which prevented citizens from 89 countries from buying property in Turkey as Turks couldn`t buy there.
The new law has also increased the amount of land a foreigner can purchase without having to seek additional special permissions, from 2.5 hectares to 30 hectares.
The peak in demand is expected to come primarily from Gulf states, aided by visa free deals introduced in the run up to the Bill and by the lingering effects of the Arab spring which has tarred confidence in traditional Arab holiday and second home destinations. Turkey`s coastal resorts and business capital, Istanbul, are likely to see the biggest surge of interest.
Prior to the Bill, overseas buyers counted for £1.6 billion ($2.5 billion) worth of annual real estate purchases in Turkey, according to the trust. Over 111,000 foreigners invested in Turkish property in 2011, 30 per cent of which came from the UK.
Source: Hurriyet Daily News
