Turkey Property Surge On Starter’s Orders

Turkey is kicking off the starting blocks on new foreign ownership laws approved this May, with a much awaited cabinet decree now outlining final details on who will be able to freely buy property in Turkey.

The government is planning to permit citizens from 129 countries to foray unrestricted into Turkey’s emergently lucrative property market.

A further 52 formerly prohibited countries are also having the buying process eased, although with some clearance processes applicable and/or a limit on the number of purchasable properties.

The news comes shortly after the Turkish Central Bank revealed an immediate buying boom in the first month proceeding enactment of the new property law this May. Approximately £706 million (1.1 billion US Dollars) worth of real estate was snapped up by foreign investors – four times the total purchased by non-Turkish nationals in 2011.

As expected, citizens from the Arabian Gulf are among the new nations to join the UK, Germany, Sweden, Norway and Holland, who already held reciprocal purchase rights under the old law, in being able to freely buy in Turkey.

Citizens of countries bordering the Black Sea including Russia and Ukraine may buy property in Turkey except on the Black Sea coastline. Likewise, Greek nationals are restricted in bordering coastal areas but are permitted throughout the rest of Turkey.

Turkey is making quite a name for itself on the property scene in lieu of Europe’s troubles and the ongoing investments it is making to advance its economy. Properties available in prime business and coastal spots in Turkey are highly competitive compared to many ‘distressed’ and heavily reduced property sales currently being seen in Spain. For example, a greatly reduced apartment in prime resort areas in Spain may still cost in the region of £100,000 whereas in Turkey you can secure a similar property for around £46-£50,000.

But Turkey’s upper hand is that its values and rental yields are increasing year-on-year where other markets are contracting. Affordable, good connections, lots of new homes, a burgeoning population and now an increasing market presence – Turkey certainly has a beacon to shine.

The Turkish government in May enacted a Bill abolishing a reciprocity ruling that banned Turkish property purchases by citizens of countries where Turkish nationals couldn’t buy real estate. The Bill also increased the amount of land foreign nationals are able to buy in Turkey from 2.5 to 60 hectares.

The cabinet decree defining who can buy is now to be approved by the Turkish government.

Details of who will be able to purchase according to the draft decree: