Foreign buyers are flooding back to Turkey this year, according to statistics from the country’s Ministry of Environment and Urban Planning which showed that property purchases by foreigners more than doubled in the first six months of 2013 compared with the same period in 2012.
Foreign investments in the Turkish real estate sector totalled 7,145 in the first half of the year, compared with 3,107 a year earlier. Also encouraging is that the relaxing of Turkey’s reciprocal ownership laws last year seems to be taking effect – nationals from 88 different countries bought property in Turkey in the first half of 2013, while in 2012 this figure was 55.
Closer inspection of the statistics reveals that between January and June this year, 7,761 foreign nationals bought 7,145 properties, made up of 916 parcels of land and 6,229 houses. The Ministry’s figures also show that Russians account for the largest number of these acquisitions, namely 1,388. The second largest group of foreign buyers are Britons with 720, followed by Germans with 653. Citizens of Gulf countries, who were barred from acquiring property in Turkey because of the no defunct reciprocity law, acquired 1,040 properties.
The easing of the law governing property purchases in Turkey by foreign nationals has opened up Turkey’s booming real estate market to investors from Russia, the Arab world, and Southeast Asia. The country also grants residency permits to foreigners who acquire property.
Turkish real estate purchases by foreigners were worth $2.6 billion in 2012, a hike of 31 per cent on the previous year. During the first quarter of 2013, foreign purchases reached $720 million, and Turkey’s government has a target of $3 billion for the year as a whole.
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