New Turkish property law takes effect allowing all foreigners the right to own property in Turkey.
New legislation often referred to as the reciprocity law to allow foreigners to purchase property in Turkey, even if Turks do not enjoy the same right in those countries, has taken effect.
The new law: Law No 6302: The Law amending the Law on Land Survey rewrites Article 35 of the Land Registry Law that had previously stated which nationals of which nations could buy property in Turkey.
A related Article has also removed the requirement for foreigners to apply for Military Clearance to purchase property in Turkey and the army has a period of time in which to provide the maps to facilitate this.
“Now the citizens of 183 nations can own property in Turkey,” Environment and Urban Planning Minister Erdoğan Bayraktar said at a press conference on Wednesday, announcing the implementation of the law.
In early May, Parliament passed the bill concerning the sale of land to foreigners that eliminated the reciprocity requirement and increased the limit on the area of land able to be bought by foreigners to 30 hectares. President Abdullah Gül swiftly signed the bill into law, and it was then published in the Official Gazette on Monday.
The new law amends title deed laws and changes the previous reciprocity requirement, which stipulated that the citizens of 89 countries did not have the right to own property in Turkey as Turkish nationals are not entitled to own property in those countries. Among these countries were Russia, the Gulf States and the Turkic republics of Central Asia.
With the introduction of the new law, Turkish real estate prices are expected to increase substantially, but particularly for property in Istanbul and the country's highly touristic southern belt where Cumberland Properties have three prestigious developments of property for sale in Bodrum, comprising of apartments and villas in Bodrum, Konacik, Gökçebel and Gündogan on the popular Bodrum peninsula.
In a statement released from his office in late May, TAB Real Estate Investment Chairman Ahmet Temeltaş said, it will help raise Turkish real estate prices on property in Istanbul by as much as 200 per cent. “The price of a square meter of real estate is likely to increase to as much as $6,000 - $7,000 from the current $2,000 levels in a short period of time,” he said. He believes particular parts of the province will experience the biggest hikes in prices.
According to the Central Bank of Turkey's latest figures, housing prices increased at an annualised rate of 11.68 per cent in July while consumer inflation averaged at 9.07 per cent compared to the same month last year.
According to the Real Estate Investing Partners Association (GYODER), 96,000 housing units were sold in the first quarter of 2012, 5.5 per cent more than a year ago.
Turkey attracted $3 billion in foreign Turkish real estate investment between 2003 and 2008. This number was $2 billion last year. Market observers expect the anticipated foreign investor influx for property in Turkey could create as much as $5 billion in sales per annum following the new law.
Source: Today’s Zaman
For further information:
Turkey Mobile: 0554 497 60 97
Turkey Ofis: 0252 363 98 84