24 June 2012
Turkish house prices have risen and are set to keep rising
Written by Beth Hepple
New laws make it easier for foreign investors to purchase property in Turkey.
The value of Turkish property increased in May when compared to the previous month.
The 1.1 percent rise means that the cost of purchasing a home in Turkey has risen by more than 10 percent in the past year according to REIDIN.
Turkey recently passed a draft bill which meaning that the restrictions applied to foreign property investors will be eased which, according to colordarcy.com, is set to boost the real estate market by around £20billion in additional revenue over the next two years.
The passing of the bill is already said to have had a positive effect on the property market which is said to have been refreshed by foreign investors, in particular those from the gulf.
Managing Director or colordarcy.com, Loxley McKenzie said: “In the past only countries that allowed Turkish citizens to invest in property in their country were allowed to invest in Turkey.
In general terms this meant that large parts of the Middle East were restricted and they could only invest in Turkish property if they bought a Turkish company, however this typically added in the region of £12k per annum to the running costs and in most cases proved to be price prohibitive.”
The passing of this law is set to see property prices take a dramatic increase with as much as 20 percent being bought by foreign nationals. McKenzie added: “Our experience in the last week alone is testament to the effect that this bill will potentially have on the financial resurgence of the Turkish property market.
“We have already contacted numerous clients who are based in previously restricted countries to inform them of the changing of the law and we now have 115 investors actively looking to invest and we have already secured 4 reservations. In my opinion demand for Turkish property will effectively double as those previously unable to buy are now free to do so and such a surge in demand will inevitably produce price growth.”