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New boost to Turkish property forecast

Wednesday, August 27, 2008

Source: Catherine Deshayes

Investment laws in the country have been amended, which could provide a real boost to the Turkish property market.

Back in 2003, property purchases were opened up to foreign nationals with restrictions on the provinces.

As of this year, 63,085 individual properties have been sold to over 73,103 different foreigners.

This amounts to 38,623,661 square metres of land, and more than £5 billion of foreign investment, mostly by German, British and Greek citizens.

Now, changes to the Foreign Direct Investment Law could mean more international investors are attracted to the country as it will clarify the legalities surrounding property purchases of more than two and a half acres.

Current law restricts purchases to a maximum of 10% of the land within a building scheme.

The amendment of the Foreign Direct Investment Law, which would overhaul the conditions for foreigners' real estate investments, is expected to allow foreign companies and individuals to buy bigger chunks of property, and to boost demand even further.

A Turkish property lawyer, Orhun Ozdener Vahaboglu, who is based in Istanbul, said that tourists from Germany, Russia and Britain are ‘flooding' into the country.

"Turkey is a growing country with a lot of potential, as the EU membership is a pending issue," he said.

Over the past five years, £5.44 billion has been invested in Turkish property, and 17,000 UK investors own property in the country, according to Investment company Principal International.

To browse some Turkish property delights for sale, visit www.themovechannel.com/property/Turkey/