subject: The Much Anticipated New Law On Property Purchase In Turkey For Foreigners Is Here. [print this page] Environment and Urban Affairs Minister Erdoan Bayraktar has stated that the worlds strongest economies are those which do not have the reciprocity in place but allow all foreigners to buy property in Turkey. Previously before the introduction of the new law this it restricted purchasing of property in Turkey to only those foreigners whose countries also allowed Turkish nationals to purchase in their respective countries.
Under this new law which has now received presidential approval it means that all Foreigners (with a few exceptions) and companies which are 50 per cent owned by international entities will legally have the right to own property and land up to a maximum of 300,000 square meters, although this can be increased to double this by submitting to the government for consideration and approval so in effect it increases the land amount to 600,000 square meters. Of course this will have little impact on those looking to buy holiday homes but could do indirectly. There are still some restriction as this amount applies to the ownership of all cumulative land in the whole of Turkey but restricts the amount to a maximum of 10% of all privately owned Turkish Property in any district.
Prospective buyers from countries that the Turkish Government now considers able to buy property in Turkey means the need for approval from the Turkish Foreign Ministry is no longer required. The Cabinet still retains the right to limit and exclude certain countries and individuals to not buy dependent on the locations and within certain geographical areas, but this is thought to be included in the new law to retain some control and prevent areas and locations ownership ratios becoming too high, and also protect some of the Historical and Heritage sites.
This Law does not exclude the existing law in relation to the approval by the General Staff and Provincial Governors for Military clearance in military zones and security areas of Turkey. It also includes the requirement for overseas property buyers to have in place for approval any development project on any land that has been purchased; this must be in place within two years of the purchase. It is thought this is to prevent the practice of mass land buying and holding which restricts the progression for developing areas of Turkey.
Who are the main benefactors of this new law? The Middle Eastern and GCC member states of The Kingdom of Bahrain, Kuwait, Sultanate of Oman, Qatar, Kingdom of Saudi Arabia (KSA), UAE - United Arab Emirates and the many former Soviet Union states. It is without question going to have a major impact on the Turkeys property Market and demand will be at an all-time high. The level of investment expected in 2012 is calculated to be over 10 billion USD and as high as 25 billion USD. The other main benefactors are those who have already purchased property in Turkey as it is inevitable that the increase in demand and supply will increase the prices of these properties those who have considered and procrastinated over whether to buy or not could find themselves regretting not doing so earlier.
There is no question that Turkey is fast becoming the place to not just visit for a holiday but one of the most attractive places to buy a holiday home. Although Prices will inevitably rise after this change for anyone considering buying a Villa or apartment in Turkey it is still relatively cheap, when compared to other Mediterranean overseas property destinations, despite the fact that many have fallen in value.
