Turkish property attracts global investors
May - 07 | 
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Overseas Property News, Turkey Property
Factors likely to draw more foreign property buyers to Turkey were outlined at The Association of Real Estate Investment Companies (GYODER) Real Estate Summit last week in Istanbul. Key industry professionals gathered to discuss real estate opportunities in Turkey’s main property markets. It was concluded that a Turkey had become more attractive to global investors thanks to a less restrictive policy on foreign investment focusing on the increased flows of global capital into Turkey’s real estate industry key market of Istanbul in particular.
Foreign investors however remain cautious about buying property in Turkey despite relatively low real estate prices, according to GYODER 63,000 foreigners bought real estate and $4.3 billion dollars was invested in the country over the last three years. As expect certain regions continue to outperform others, according to Title and Deeds data from Alanya over 13,000 foreign homeowners from over 30 different countries with the most holiday home owners being of German, Dutch and Danish nationality.
Turkish Delights
Panellists discussing factors which would attract foreign property investors to Istanbul and Turkey in general would include Turkey’s goals for showcasing Turkey as a European Cultural Capital in 2010 and should include a focus on reconstruction of 1 million square metres of Istanbul’s historic areas which have declined in part due to Turkish bureaucracy and restrictive legislation.
The Turkish property market can hold its own by Turkey strengthening its economy, resolving the current political crisis with Cyprus and tackling the recent unrest relating to potential constitutional changes which undermines Turkey’s potential as an emerging market in the eyes of foreign investors. Recent claims are that Turkey in time will compete with BRIC nations, which are predicted to account for almost half the world’s gross domestic product by 2050.
Mortgage Boost
Finally, a new mortgage law due to come into effect from September regulating the Turkish mortgage process and the recent launch of finance products from a variety of European banks which give non-nationals the option to finance their purchase of a Turkish property with a mortgage are both major factors contributing to the growing demand for real estate investments in Turkey.