Turkey’s real estate is attracting a lot of money from investors with a lot of money
The economic crisis that has overtaken the majority of the world’s countries has had a direct impact on the value of real estate in those countries. As a result of their concerns about the situation, real estate investors in the majority of countries have pulled their money out of the market and are looking for alternative areas to invest in that are generally safe and stable.
The most notable examples of this trend may be found in European countries, which have been the most severely affected by the financial crisis. But there is one European nation that has managed to avoid the worst of the economic crisis that has hit the majority of its neighbors. That country is the United Kingdom. In this case, it is Turkey, whose economy has risen above the obstacles posed by the global financial crisis, with the result that Turkish Citizenship by Investment has seen a significant increase in value.
What impact has this crisis had on the Turkish real estate market?
Turkey’s stable economy and thriving real estate sector have turned it into a beacon of hope for real estate investors in other European countries searching for a safe haven in which to put their money to good use. When the opportunity to invest in Turkish real estate presented itself, foreign investors took advantage of it. However, according to Turkish resident permission requirements, they were not permitted to remain in Turkey for more than three months.
The Turkish government rapidly recognized this stumbling block and took swift action to simplify the conditions for residency and visas in the country. It was as a result of these developments that foreign investors were allowed to spend more time in Turkey, and they were also able to purchase real estate properties in Turkey without experiencing any difficulties.
Because of these steps by the Turkish government, a torrent of foreign investment has poured into the country in recent months, surpassing previous highs in a couple of months. This trend is projected to continue as the economic turmoil in other parts of Europe continues.
The Importance of Arabs in the Turkish Real Estate Industry
Aside from European investors who have recently expressed an interest in investing in Turkey, Arab investors have also expressed an interest in investing in Turkey real estate. The Arab uprisings have triggered a significant shift in the region’s economy, leading investors to look for safe havens for their money as a result. As a result of the upheavals that have occurred in most Arab countries, the Arab people have gained their freedom, which has prompted many to invest in real estate in other countries.
In the beginning, they found Dubai, United Arab Emirates, to be the most suitable market for them to purchase properties. With only a short amount of time, Turkey, on the other hand, has established itself as a significant player in this economic activity. Foreign investors, particularly those from the Gulf Cooperation Council (GCC), have been attracted to Turkish real estate as a result of the relaxation of residency and visa regulations. Turkey’s real estate market is seeing even more foreign investment, and the country’s economy is going through a period of upheaval that is unprecedented in recent history.
Was it a positive or negative experience for Turkish real estate developers and companies?
Turkey’s real estate entrepreneurs and developers are overjoyed that the Turkish government is providing them with the possibility to seek international investment in their businesses. For the most part, corporations have gone on the record to commend Turkey’s leadership and its ambition to transform the country’s economy into a beacon of hope for other countries around the world. It is their desire, however, that the government liberalizes the restrictions imposed on international visitors to the country. As a result, they believe that the duration of a foreigner’s stay should be increased from three months to at least five to 10 years. Because Arab investors are interested in purchasing properties in Turkey, they believe that the country has a significant opportunity to build its economy and become a major economic force given the current economic climate. Increasing the number of foreign investors who come to Turkey to buy property and bring with them new business opportunities will be made possible by the proposed modifications to the rules.
Is the investment really that prohibitively costly?
Some people believe that the Turkish developers’ points of view are incorrect, yet this is not the case. Foreign investment is proving to be a highly valuable asset for the Turkish economy, which is currently enjoying a period of unprecedented growth and prosperity. The results also corroborate their claim that many Arab investors who are interested in purchasing property in Istanbul are eager to purchase more if the laws are relaxed a little further.
In May of last year, foreign investors made a total investment of $1.1 billion in Turkish real estate, which was four times the total investment made in the entire year 2011. The vast majority of this money comes from Arab and Gulf Cooperation Council (GCC) countries, and this is only the beginning. The possibility exists that investors will begin to invest for the long term if the laws are reduced even further, resulting in even higher quantities of money being generated.
What’s in Store for You
The Turkish government is hesitant to extend the period of stay of foreigners because, in their opinion, the value of Turkish citizenship is fairly great, and they do not want to give it up anytime soon if they have the opportunity. The administration believes that by gradually easing the restrictions, they will be able to better monitor how investments are received and accounted for. The system will surely be amended if studies show that loosening of regulations encourages real estate investment.
Arab investors who purchase property in Istanbul will be granted Turkish citizenship if the results of the studies are confirmed. If the restrictions are truly stretched to the point where the investors are granted Turkish citizenship, the current situation appears to indicate that Turkey’s real estate industry will receive a significant amount of investment in the coming months. This would provide investors with a strong incentive to purchase additional properties throughout the country, resulting in even more investment in this region.