Real Estate & Legal News in Turkey from Propertyshowrooms.com

Turkish rents and property prices up

Tue, 22 May 2012 00:00:00 GMT

The cost of buying a home in Turkey and rental charges have both increased in April.

According to the latest figures from REIDIN, the value of Turkish residential properties climbed by 0.86 per cent in April, compared to a month earlier, while rents jumped by 1.02 per cent.

The biggest rise in sales prices was recorded in Istanbul and Ankara, with both destinations experiencing appreciation of 0.96 per cent.

Istanbul was also the most robust rental market, with the cost of leasing a home in the city increasing by 1.18 per cent. Meanwhile, Izmir posted strong growth of 1.12 per cent last month.

Year-on-year, the value of Turkish real estate is up by 11.93 per cent, this new data revealed.

There are also hopes the country's property sector could be boosted further by the introduction of new legislation that will open up the market to a greater range of overseas buyers.

If approved, the draft law will allow foreigners to buy larger plots, as well as remove the clause relating to reciprocity. This currently stops citizens from countries where Turkish nationals cannot own property from entering the real estate market.

New Turkish property law 'will boost the market'

Mon, 14 May 2012 00:00:00 GMT

New legislation that will make the process of buying real estate in Turkey easier for overseas purchasers will be a "huge boost" for the sector.

Julian Walker, director of Turkish estate agency Blue Spot, explained the proposed changes to the system will make transactions much quicker and open the market up to more international buyers.

The law is still at the draft stage and is awaiting sign off from the country's cabinet and president. Among the key features of the legislation is that it will be possible for foreigners to purchase 30 hectares of land, up from the 2.5 hectares currently allowed.

In addition, the aspect of reciprocity will be removed, which has previously prevented people from buying real estate in the nation if Turkish citizens are unable to own such assets in the buyer's home country.

Mr Walker commented: "Tourism is going well here and for people already with a property here, legislation like this only adds to underwrite the value of the property."

There is some evidence the new rules are already having an impact, with Hurriyet Daily News reporting high-profile managers from the Middle East and Asia are attending a summit organised by Turkey's Real Estate Investment Trust Association this week.

According to the news provider, the passage of the draft bill through parliament has attracted investors who were previously unable to own Turkish real estate.

Know about Tapu, Turkey investors advised

Wed, 18 Apr 2012 00:00:00 GMT

Those investing in property in Turkey should know about the Tapu - essentially the title deed.

Unlike in the UK, this is not automatically passed from one owner to another when a property is bought and sold, so an investor or a legal representative will need to visit the deed office to complete the transaction, Colordarcy.com has explained.

A representative who speaks Turkish is best as an interpreter is required for transactions involving foreigners as the document is, as one would expect, written in Turkish.

Managing director of Colordarcy.com Loxley McKenzie noted there are places in Turkey where a Tapu is not available due to foreign ownership restrictions, such as Istanbul, so buyers may look to the parts of the country where they can be obtained.

The effort taken to secure a property in Turkey may be justified by the current trend for prices and rents to rise.

According to the REIDIN.com Turkey residential property price indices for March, the cost of buying a home in the country rose 8.66 per cent year-on-year, while rents were up 7.86 per cent.

FCO in Turkey producing list of reputable property professionals

Tue, 20 Jan 2009 00:00:00 GMT

The Foreign and Commonwealth Office (FCO) in Izmir, Turkey, is compiling a list of reputable property professionals for British buyers to consult. Following an increasing number of problematic deals, the FCO advises that investors only consider purchasing with those listed.

Consul Anthony Buttigeig told Overseas Property Professional (OPP) that his office regularly receives complaints from British investors who have bought holiday homes on the Aegean Coast. In particular, the FCO is often made aware of developers who have not handed over the title deeds and sold the same property to someone else, or agents who have disappeared after taking deposits.

Buttigeig explained that the FCO was now acting to minimise problems: "Unfortunately this is happening all the time and we are approached after the fact, and there is very little we can do about it. Not all agents are scam artists, there are several reasons why a project may be delayed and this list will not be foolproof, but will hopefully provide some guidance for potential buyers in the area."

In order to compile the list, the FCO has met with several authorities in the region. These include the Real Estate Dealers Association (REDA), Didim Chamber of Commerce (DCC) and a local police chief. The final method for inclusion in the list is as yet undecided, Buttigeig said.

The FCO's actions have been welcomed by property professionals in the region. Izzet Donmez, managing director of Oracle Properties, which is building near the new marina in Didim, said he was aware of the problems: "I approached the embassy in Izmir about something similar five years ago. We could see that this was going to happen and before it gets out of hand we wanted the FCO to inform Brits buying here and tell them not to just believe anyone who says they are selling property... Some people are investing their life savings and if it goes wrong it attracts a lot of negative attention."

Donmez went on to explain the problems afflicting the industry": "Criminality aside, a lot of developers just don't do their due diligence so they go ahead and build a project, but can't get the title deeds. Some blame the army or government for the delay, but in reality they haven't done their work, leaving buyers hanging for years in some cases...Hopefully this will force the rogue operators to clean up or get out."

This story was brought to you by holidaylettings.co.uk, the UK's No.1 for holiday homes worldwide.

Investment law change expected to boost Turkish property market

Wed, 27 Aug 2008 00:00:00 GMT

Changes to property investment laws in Turkey could boost an already thriving property market, it has been suggested.

According to Hot News Turkey, investment in Turkish property has reached USD10 billion (GBP5.44 billion) in the past half a decade and could continue to rise.

Amendments to the Foreign Direct Investment Law are likely to improve conditions for foreign investors, the news source stated, as it will clarify the position of people from abroad who want to purchase more than two and half acres of land.

Real estate attorney and consultant in Istanbul Orhun Ozdener Vahaboglu told PropertyWire that Russian, British and German tourists are "flooding" into the country.

"Turkey is a growing country with a lot of potential, as the European [Union] membership is a pending issue," he added.

Principal International reports that 17,000 UK investors own property in Turkey as an increasing number of tourists head to the nation.

Turkish Finance Ministry to investigate international agents and buyers

Thu, 14 Aug 2008 00:00:00 GMT

Govt department has contacted banks and title deeds office for information on transactions...

Warnings over unregistered agents in Turkey (31 July 2008)

Tue, 5 Aug 2008 00:00:00 GMT

Didim-based trade body says more than half of brokers in the area are not licensed...

UK buyers enter Turkish market

Tue, 25 Mar 2008 00:00:00 GMT

Turkey's natural beauty is proving to be a constant attraction for property buyers from the UK, an expert has stated.

John Howell, a partner at the International Law Partnership, described Turkey as a "beautiful and interesting" country that can be easily reached.

As a result, it has become a hotspot of activity for foreign property buyers in Britain, including those who want a holiday home for personal use and people who are buying for investment purposes.

The country's appeal was said to be wider still when Mr Howell highlighted its popularity among British expatriates, including older people who want to live abroad full-time.

He commented: "You can live very well in Turkey on your state retirement pension, which many people find difficult in the UK."

Mr Howell added that people are choosing to live there permanently because "they love the place" and it is relatively cheap.

This comes after Foreign Property Buyer predicted that demand for temporary lodgings in Turkey will go up significantly as a result of government efforts to attract more visitors.

Turkey offers "huge" market for investors

Thu, 19 Jul 2007 00:00:00 GMT

Turkey's location, economy and mortgage laws make it a lucrative opportunity for property investors, according to a market expert.

Julie Anthony, Sunseekers Altinkum UK representative and partner of Fisks International, said that Turkey's positioning between the east and the west was attractive to property buyers.

She told Easier that its growing economy, which boomed by more than seven per cent in 2005, had placed in in the top 20 largest in the world.

"With new mortgage laws recently passed and a population of over 70 million, Turkey offers a huge and dynamic domestic market to foreign investors, with prices rising by as much as 25 per cent a year in some places," she told the website.

She went on to add that Brits could get a good deal on the exchange rate now and Turkish developers were putting a lot of money into tourist attractions, such as a marina and two golf courses in Altinkim.

Overseas property investment company Principal International recently commented that serious investors were casting their net of interest wider than traditional favourites like France and Spain.

Spokesperson Simon Ryeland said that development of facilities and the low cost of beachfront properties were prime factors.

New Turkish mortgage law 'to boost property market'

Mon, 25 Jun 2007 00:00:00 GMT

The introduction of a new mortgage law in Turkey will help to boost country's property market, it has been claimed.

Writing for website Mortgage Introducer, Jane Griffiths said that investors will now be able to take out a mortgage over a term of up to 30 years from January 2008 - currently, buyers can only apply for short-term mortgages.

She added that a recent improvement in economic conditions in the country has allowed the government to loosen mortgage regulations and open up the market to more property buyers, providing opportunities for buy-to-let investors looking to capitalise on the business created by the 25 million people who visit the country every year.

"The current economic climate in Turkey is strong and actively favours foreign investment in the property market, while most experts predict it is now sitting on the brink of a property boom," Ms Griffiths commented.

Property investment firm Principal International recently claimed that Turkey is becoming more popular with investors looking to break away from the traditional hotspots of Spain and France.

New finance law 'will open up Turkish market'

Thu, 19 Apr 2007 00:00:00 GMT

Investing in Turkey is set to become more popular following changes in the country's laws, an online estate agent has said.

According to RightmoveOverseas, the introduction of mortgages for non-residents will result in an influx of foreigners buying homes on the Turkish coast.

Until now, overseas property buyers have been unable to purchase a Turkish property unless they paid cash. However, with inflation pushing up house prices, the government changed the law to keep the housing market buoyant.

"Turkey is now set to become one of the next big things in overseas property thanks to a change in Turkish law," said Justin Figgins, head of RightmoveOverseas.

"This change means that foreigners can now obtain Turkish mortgages, which will inevitably lead to an influx of investors to the Turkish coastal resorts where the real bargains are."

However, he said that because the mortgage market in Turkey is very new, potential investors must do their homework before making a commitment.

There are around 63,500 properties in Turkey owned by foreign investors, mostly along the coast or in the big cities.

Turkey Follows Spain's Example

Wed, 4 Oct 2006 00:00:00 GMT

Following a visit to Spain in late July, Turkey's Finance Minister, Kemal Unakıtan, together with Culture and Tourism Minister, Atilla Koç, have decided to take the example of the Spanish model for implementing better procedures aimed at enticing a growth in property sales to foreigners.

During their visit they conducted careful studies on just how Spain attracts foreign second home buyers to its real estate business. The Spanish have sold one million dwellings to the foreigners to date and have received 178 billion euros from the sale of second homes to the foreigners, most of which were off-plan purchases.

Finance Minister Unakıtan has stated he wants Turkish bureaucrats to work on the implementation of the Spanish model in Turkey, whereby the contracting firms carry out the infrastructural investments such as the construction of roads and bridges and environmental arrangements in the regions where the development takes place, while the administration of the developments is provided by the same or another firm.

Meanwhile, Unakıtan has recently defended a lawsuit at the Constitutional Court against the Law for the Amendment to the Land Registry Law No. 5444 which limits the property sales to the foreigners. This law has been previously brought to the Constitutional Court for its injunction and eventual annulment.

It is clear there are big plans ahead for Turkish real estate and many investors consider it wise to invest in Turkey sooner rather than later, while property prices remain very low, and before the Spanish role model kicks in.