Turkey makes strong case for prop­erty mar­ket

The Pak Banker - - 6BUSINESS -

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.

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