Turkey makes strong case for property market
Red-hot investment flow chasing safe haven property assets was one consequence of the Arab Spring and Dubai realty still remains a beneficiary from it. But Turkey – and its developers – do not want the fund flow to be headed exclusively in one direction.
Last year, Turkey spread out the red carpet for investors from the Gulf by making changes to the property law. This allowed, for the first time, certain nationalities – the UAE, Kuwait, Saudi Arabia and Kuwait among them – to acquire real estate in the country for the first time. Last week, Turkey also announced that residence permits for foreign buyers will be raised from three months to one-year.
“Since May last, when the bill removing the condition of reciprocity in land sales came into effect, foreigners have purchased around 19,000 properties in Turkey,” said Vedat Asci, chairman of Astas Holding, a Turkish developer who is now intent on acquainting prospective UAE investors with its new projects. “In May alone, foreign real estate acquisitions in Turkey reached $1.1 billion (Dh4.04 billion), four times the total amount in 2011.“There is an increase in investments, especially from the Middle East with the Arab Spring. The ‘hot’ funds are of short-, middle- and long-range investments.
“Of course, the crisis in Europe has attracted more investments to Turkey, increasingly seen as a safe haven. The government aims to boost foreign investments further in 201314.