The Property Investment Market in Turkey

Past, Present & Future

Turkey has a relatively new investment property market accessible to foreign buyers, beginning to establish its presence in 2002. The market has started to emerge over the past decade, becoming one of the most sought after emerging markets available. The creation of Turkey as an ideal investment location has not been an entirely smooth journey, yet the issues that have arisen have been dealt with in respectable and timely fashions. The experience gained from the results of any issues that have previously arisen, has provided increased confidence to foreign investors keen to enter into the Turkish property market.

The establishment of Turkey as an investment market stemmed from the government’s decision to increase tourism and develop a real estate market attractive to foreign buyers. This was designed as a means of generating additional revenue to the country’s economy. The resulting success can be seen in the continuous demand for properties, along with the decision to make Istanbul the European Cultural Capital for the year 2010.

The development of necessary infrastructure has been seriously taken into account, assisting with the increased interest and demand. The expansion of airports in areas designated for touristic regions, along with new roads and other requirements have all been undertaken. The democratic development and political stability appear to be assured for continued future growth within the country, assisting Turkey to remain as a low risk emerging market investment hot spot.

Despite the issues associated with the well documented 2008 Tapu, Turkey remains one of the most popular locations for overseas property investments. The Tapu ban was aimed at preventing new purchases from foreign buyers, with many investors new to the market fearing that they may not be able to complete on their property purchase. It also presented fears to those who had already completed on their purchases that the re-sale market could potentially disappear.

Fears were soon placed to rest when the ban was lifted after only a short period, as the reality of the potential repercussions of the situation were observed. The ban was initiated as a method of restricting the number of foreign ownership in any town to 10%. At present, after the initial boom of interest in the Turkish property market, foreign ownership does not yet exceed 0.1% of the country’s approximate 77 million inhabitants. Coupled with the potential loss of economy resulting from overseas property purchasers, and the resulting drop of touristic revenue, the Tapu ban was removed.

While the country is positioned at a cross-road between Europe and Asia, Turkey strives towards a very Western outlook. These days Turkish property is easier than ever for foreign investors to purchase. The country has benefitted greatly from the government initiatives to promote tourism and foreign land ownership, creating a very positive outlook for the future of the market. Despite the issues of the Tapu ban, 2008 was one of the most successful years for Turkey with the highest numbers of foreign buyers investing in the market. The Turkish property markets is expected to continue growing strongly over the next 10 years before it begins to stabilise, making the present day one of the most ideal moments to invest in Turkey.

More about investing in Turkey:
Features & Benefits
Past, Present & Future
Reasons to Invest in Turkey
Visitors Guide to Turkey
Investors Guide to Turkey
Investing Information
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