Turkish property market set for huge overseas boost

The Turkish property market currently stands on the edge of the biggest Change since the Turkish government allowed foreign buyers, with some restrictions, to enter the market in 2002.

In 2005, many of these restrictions were lifted, allowing foreign homebuyers the freedom to purchase property almost anywhere in Turkey, the exception including municipalities with fewer than 2,000 inhabitants (Article 87 of the Villages Act) and military zones.

However, the 2002 Change in the law allowed foreign buying only on a reciprocity basis, which meant they could buy property in Turkey only if their country of residence allowed a Turkish buyer to purchase property in that country.

This Change will have a big impact on purchasers from the Arab world. Because of the reciprocity law, citizens of most Arab countries, including the UAE, Qatar, Saudi Arabia, Oman, Iraq and Kuwait, are not allowed to buy in Turkey, and this has been a big hindrance to foreign investment - at a time when Turkey is becoming a more popular destination for Arab visitors.

Buyers from the UAE, Saudi Arabia and Qatar are expected to spend up to US$10 billion (Dh367.31bn) when the restrictions are removed, according to some estimates. Sales are expected to increase by 20 per cent.

Source: The National