Foreign Investment in Turkish Property Soars into 2012

Residential property in Turkey grew in value by an average of 10% last year according to new data from GYODER. The Turkish real estate investing partners association issued its index for December showing that growth on the month was 0.78%, continuing the slow and steady growth recorded by the index month-in-month out for well on 18 months. However, the 10% year on year growth represents a steady acceleration in growth over the year, since growth was average 6% year-on-year in the early months of 2011.

We would have been laughed at for being so positive about this level of growth during the boom. At the time a market had to be growing by at least 20% per year before it could even be called worthy of investment. But now, as most of the markets seeing such growth still lay in smouldering embers we can look upon such steady growth as one of the many reasons why Turkey is being regarded as one of the top places to buy property in the world, along with its strong stable and rapidly growing economy, strong stable banking system, and stable political system.

In 2010 GYODER reported that foreign purchases of Turkish property had grown 40% compared to 2009. All the indicators point to similar growth last year. For a start Turkey became the fastest growing economy in the world, and also stood out from the ashes of Europe and the Middle East. Speaking of the Middle East, you had the Arab Spring uprisings, which highlighted Turkey not only as a beacon of growth and stability within Europe, but within the Arab World as well. Visitor numbers from Arab countries to Turkey began to surge.
But of course, citizens of most Arab countries can't buy in Turkey because of the reciprocity law - only people from countries Turks can buy in, can buy property in Turkey. But that could all change very soon. A bill has been drafted and is currently being discussed that would end the reciprocity law allowing buyers from an additional 89 countries to buy in Turkey.

The bill would also increase the amount of property foreigners can buy from 2.5 hectares to 30 hectares or more if they have plans for a specific development. It would also open up more of Turkey to foreign buyers as well as making it easier for them to buy. It is entirely possible that foreign purchases in Turkey grew by a further 20-30% in 2011, and experts predict a further 20% growth this year.
Article written by Liam Bailey on behalf of Turkey property developer Wise Move Homes, famous for the Altinkum property gem the Apollon Holiday Village.

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