Arabian investors in Turkey
By Peter Mindenhall

Arabian Gulf investors driving Turkish development

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Turkish property development is being driven by investors from the Arabian Gulf on the hunt for multimillion-dollar opportunities. The reciprocity law has been instrumental in bringing this about, and at least one developer is eyeing a $2 billion (£1.3 billion approximately) deal at Cityscape Global in Dubai, the National reported. Under law, residents from 183 countries can now buy property in all areas of Turkey, with the exception of military zones. This has opened up the nation to important international investment, which will serve to strengthen the real estate sector and the economy at large.

Halil Ibrahim Demirhan, vice chairman at  Agaoglu Group of Companies in Istanbul, told the news provider: "We have had inquiries of more than$1 billion only in the Istanbul International Financial Center from Dubai [investors] and around $300 million in the same project from Abu Dhabi."

Sales will certainly be boosted by the Cityscape Global show in Dubai, which will see 30 Turkish exhibitors descend on the country. Projebeyaz International, which will be at the exhibition, expects to close a deal for 60 units and explained to The National that the company can have deals worth around $20 million. It is expected that 90 per cent of potential buyers at Cityscape will be individuals, the majority of which from the United Arab Emirates.

The Turkish government is starting to acknowledge the impact overseas buyers can have on the market and is currently considering cutting red tape to attract wealthy investors. Speaking at a workshop, environment and urban planning minister Erdo?an Bayraktar and the Justice and Development Party deputy chair responsible for external affairs Mevlüt Çavu?o?lu said creating new regulations to lower bureaucratic obstacles would benefit the country. Already, 2013 is expected to bring in $5 billion in revenue from real estate sales to international buyers alone. "Foreigners pay for all expenses related to the property or properties that they have purchased from the region," Mr Çavu?o?lu stated. Nonetheless, the government is stuck between a rock and a hard place, with some saying that it is selling the country.

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