Tuesday, 31 July 2012
Turkish Property market is booming!
The Turkish property market is booming in a way that is completely unheard of in the country’s history. Despite the state of the world’s economy, Turkey is still providing buyers with competitive real estate prices. A key part of this boom appears to be due to foreign investment, where investors are headed to the country to get their hands on millions of pounds worth of property.
Non-Citizens can invest in property thanks to a new law
As of a few months ago, non-Turkish citizens are able to buy property in Turkey due to the passing of a new law. This legal change has come hand in hand with a boom in turkish property and mortgages in Turkey, the majority of which are happening in Istanbul.
Spanning Europe and Asia, Turkey is where East meets West in a blaze of glory. Influences of both cultures chart its epic journey across thousands of years to the developments shaping this sizeable country today. Ottoman mosques vie for attention next to Roman temples and eastern spice markets mix with trendy boutiques. Ancient cities resplendent with archaeological treasures now a short expedition from lively resorts and sun kissed beaches.
In the south its vast golden shoreline basks in the Mediterranean and Aegean heat while in the north the Black Sea sets the tone for its cooler climate. From its breathtaking waterfalls, historic rivers and tranquil countryside to the hustle and bustle of its vibrant cities, such as Istanbul, with their chaotic bazaars and busy ports. Turkey is crammed full of delights. As more and more people are discovering the tempting array it has to offer, its holiday home market has been flourishing. Combine these factors with the relative stability of the Turkish economy and it is clear to see why Turkey is considered ideal for investment.
Investors from Europe attracted to Turkish property
As mentioned earlier on, the new law was introduced, demolishing the barrier that previously prevented foreign investors from buying Turkish land. Predictably, investors started looking into property as well. Local real estate agents have mentioned that 2 big European firm owners are seriously considering property in Turkey.
Investment in turkish property is viewed as a positive thing, however, some local estate agents have concerns. They fear that investors hope to re sell to other individuals, which raises fears due to the speculation that may occur when they are not selling directly to the buyer.
As you can imagine, locals are generally excited by the prospect of foreign investment in turkish property and mortgages. There is a fear that the increase in interest will also cause an increase in prices, which in turn may create a ripple effect that would affect the entire property market in Turkey.
The large proportion (80%) of Turkish property sales and mortgages are due to local / non - prime real estate, leaving the other 20% for luxury property, according to Istanbul - based estate agents. The new law has been somewhat opposed by competing parties as they feel that some of its provisions are unfavourable.
Property sales reach $1 Billion in one month
In just one month, a record $1 Billion worth of property has been sold in Turkey. This is in stark contrast when compared to figures from last year, since then there has been a fourfold increase. What make this all the more spectacular is that only $114 million worth of Turkish property had been sold in early 2012. This amount of foreign investment has been heralded as the largest since the republic of Turkey was forged in 1922.
Turkish mortgages and property sales are expected to shoot up in the coming months as an increasing number of foreign investors flock to the country. In the following months the quantity of mortgages in Turkey and property sales are being predicted to rise even further as more foreign investors flood in.
If you have an interest in the turkish property market, buying a home in Turkey or Turkish mortgages, please do get in contact with Conti - Overseas Mortgages by exploring our website (www.mortgagesoverseas.com)