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Foreigners have found ways of flouting the rule before the abolition of reciprocity principle.

29.02.2012

While reciprocity principle in the sphere of property sales to foreigners is expected to be abolished, foreigners themselves have already found ways to purchase properties in Turkey.

At present, the right of foreigners to purchase real estate in Turkey directly depends on whether their own countries offer the same right to Turkish citizens. This law, working on the basis of reciprocity, will be abolished. Citizens of all countries will be able to become property owners in Turkey. Today, the citizens of 42 countries can’t buy real estate in Turkey as their own countries do not offer such a right to Turkish citizens. However, some of them make it available for themselves to buy properties, though by different means. These means are listed below:

1. The citizens of those 42 countries can’t buy real estate as natural persons; however they may do it founding companies in Turkey. The foreign companies are allowed by law to buy real estate in Turkey. Many foreigners have already invested in real estate in this way.

2. Another way used by foreign citizens to buy properties in Turkey is doing it by means of acquaintances or realty offices. In this way the foreigners become property owners without getting the real estate title.

3. The next way of purchasing real estate in Turkey is, generally, resorted to by the citizens of the countries having close relations with Turkey, such as Azerbaijan. Especially Azerbaijani citizens get Turkish citizenship to be able to invest in real estate here.

4. There are special conditions applied just for some countries. For example, people having resided in Russia during 6 months are allowed to buy properties. The same law is applied for Russian citizens in Turkey. Russian citizens, having resided in Turkey for 6 months do have the right to purchase real estate.

They prefer living together

Appreciating the question of sales to foreigners which has been one of the main headlines on agenda of the last days, the general manager of Sotheby’s Realty in Turkey Arman Ozver said that many investors the majority of which are from Middle East but as well from Russia, Azerbaijan and Turkic Republics are interested in Turkey. He added that foreigners are looking forward to the adoption of a new law concerning reciprocity principle and said that besides individual ones, there will also be made corporative purchases.

“Arabs wish the Bosphorus coasts. However individual investors prefer to live in suburbs and green areas” said Ozver, mentioning Istanbul as one of the most preferred regions. He listed Sariyer, Beykoz, Rshadiye and Polenez koy as examples among those and added also Yalova and Sapanca as countrysides being on demand. Ozver claimed that individual investors, wishing to buy real estate in Turkey, want to live together in the same region. Investors are interested in office and commercial center buildings from elite regions, he said and added that those having corporate goals come in groups and are not just looking for houses, but rather for whole buildings. Thus Ozver mentions that there is a tendency for elite properties citing such central regions as Taxim and Levent.

Rise in prices will scare away foreign investors

Expressing his own foresights on the bill Arman Ozver stated that foreign investors are watching the arrangements of reciprocity principle and the developments in real estate sector very closely. He draws attention to the fact that foreign investors, in their majority from Middle East, are well aware of Turkish property market and appeals to property owners saying: “It can be dangerous to offer special prices to foreigners, especially ones higher than the real values. This may cause foreigners to refuse buying properties and lead those property owners to frustration.”



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