The removal of the barriers in the way of selling real estate in Turkey to foreigners has had a doping impact on the selling of properties to foreigners. In 8 months, real estate worth 600 million USD in total were bought preponderantly by investors from the Gulf Area. A sales volume of 10 billion USD is targeted at along with the permission for residence permits.
Since May, 18 when the new law became effective, nearly 2 thousand real estate in Turkey were sold to foreigners. It is estimated that this figure will go up to 4 thousand along with the sales based on scale models for which the deed transfers have not been made. It is envisaged that the sales volume will easily go up to 30 thousand if the problem of residence permits, which obstructs the sale of properties to foreigners, is solved.
10 Billion USD Purchase Targeted for Real Estate in Turkey
The representatives of the sector state that the real impact of the reciprocity law will become visible after the second quarter of the year 2013. It is envisaged that the sales in the mid-term will rise to 5 billion USD and to 10 billion USD in the long run along with the amendments to be made in this field.
Iran Ranks the First
According to the information received from the General Directorate for Title Deeds and Cadastral Records, immovable assets of 848 thousand 584 sqm in total were sold in 8 months. Accordingly, 171 persons from Iran, 170 from Azerbaijan, 166 from Kuwait, 116 from Iraq, 110 from Saudi Arabia, 53 from Syria, 20 from Turkmenistan, 15 from Libya and 13 from Qatar bought real estate in Turkey.
The company sold property worth 350 million USD following the enforcement of the law. Hasan Rahvalı, CEO of Ağaoğlu Group of Companies, stated that they aimed at reaching a sales volume of 1 billion USD this year.
The company sold property that was worth 25 million TRY to foreigners. Süleyman Çetinsaya, Chairman of the Board of Artaş Holding, said “We will see the actual impact of the law following the second quarter.”
The company sold 15 percent of the Corridor project to investors from the Gulf Area. Altan Elmas, Chairman of the Board of Sur Yapı, said they received demand from different countries.
The company reached a sales volume of 65 million USD at Maçka Residences. Vedat Aşçı, Chairman of the Board of Astaş Holding, aims to reach a sales volume of 100 million USD in the forthcoming period.
Having sold 92 flats to foreigners, İnanç Kabadayı, Chairman of the Board of Ege Yapı, said: “We receive demands even from Japan.”
The company achieved a sales volume of 10 million TRY following the enactment of the law. According to Tamer Özyurt, Chairman of the Board of Özyurtlar İnşaat, the permission for the issuance of residence permits will increase the sales 10 times.
The company sold 32 real estate to foreigners. Mehmet Babacan, Member of the Board of Babacan Yapı, stated that they received a turnover of 9.5 million TRY from the sales.
Stating that they achieved a turnover of 18 million USD, Helim Kurt, Chairman of the Board of Er-Sa İnşaat, remarked that they sold 350 real estate in Turkey to foreigners in total.
At Via Port Venezia, 10 percent of the sales consisted of sales to foreigners. Tayfun Döşkaya, CEO of Via Properties, stated that they generated revenue of 70 million TRY by selling 150 flats.
Sinpaş GYO sold 76 real estate to generate revenue of 40 million TRY. Ömer Faruk Çelik, Chairman of the Executive Board at Sinpaş GYO, said that 60 percent of the properties sold were bought for residential purposes.