Turkish property has recently attracted more interest from Gulf investors, but now it’s attracting investors from Iran, and both these groups of buyers are looking to make large purchases in anticipation of changes to regulations which will facilitate property sales to foreigners.
During the last decade, property in Turkey has become increasingly attractive, and hundreds of new residential projects have sprung up right across the country, attracting the attention of foreign investors who see the high demand for homes. However Turkey still hasn’t attracted as much foreign investment as it would like, and one reason for this is the lack of reciprocity agreements with several countries which include most Arab nations and Iran.
In contrast Turkey has reciprocity agreements in place with a number of European Union countries and the US. Now it is hoped that new regulations will attract more investment from Arab countries and Iran, and experts think sales could increase by as much as $5 billion annually.
According to the Real Estate Investing Partners Association (GYODER), a large real estate group from Iran is looking at buying a considerable number of houses in separate housing projects throughout Turkey, and is particularly interested in homes in Istanbul and Bursa. It’s thought they are looking at buying between 500 and 1,000 homes in projects currently being evaluated.
At the moment existing regulations don’t make it clear as to whether a company should be classified as foreign or local, and this can make it difficult to follow the correct legal procedures when acquiring land. The anticipated changes are expected to ease restrictions imposed on foreign companies. It’s not just the Iranians and Arabs who are interested in Turkish property, as there are also a number of investors from Singapore and Malaysia who are currently assessing the market.