Some 53,000 overseas property investors, mostly European, have bought houses in Turkey this year while some £1.15bn has been invested in real estate projects by overseas property investors.
The figures came from Haluk Sur, chairman of Turkey’s Association
of Real Estate Investment Companies, GYODER, when on a trade mission to the Middle East.
Expectations of EU membership, and local demand fuelled in part by more readily available mortgage finance, have contributed to a booming construction industry that has seen 20 per cent growth in the last year, said Sur. Housing loans from banks and financial institutions had totalled £4.4bn.
Turkey, which hopes to join the EU within five to 10 years, expects similar overseas property investment as in Spain where 1.7m residential units have been bought by EU citizens from other countries.
One possible hiccup is a review of the law permitting overseas property investment in Turkey.
Last March the country’s Constitutional Court ruled that a 2003 amendment to the law had not includes a sufficient level of restrictions and guarantees.
The amendment eased the requirement that only foreign buyers from countries that allowed Turkish nationals reciprocal rights should be permitted to acquire property in Turkey. It also allowed such foreign nationals to buy properties in villages for the first time. The move led to an immediate flood of foreign property investment.
Challenge to the change of law came from one of Turkey’s many opposition parties, the Republican People’s Party which argued that it breached a constitutional requirement to impose the same limits on foreigners that other nations impose on Turks. The Constitutional Court was unanimous in its agreement and said the Government should draft new regulations