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Property News
August 27, 2010
Turkey is a shore bet: The holiday home
market is thriving on the Turquoise Coast
Dailymail.co.uk
This has always been a magnet for
holidaymakers lured by a shimmering sea that hugs the shore for 1,000
miles. But with the country's bid for EU membership coming under
ever-closer scrutiny, will Turkey's famed Turquoise Coast continue to
attract those investing in holiday homes?
'The Turquoise Coast has been
increasingly popular with British buyers over the past ten years,' says
Angela Campbell, of overseas agents Properties Away.
'The natural beauty is always a draw, but
recently we've seen buyers' attention shift from places such as Spain in
search of better value for money.
They also like the fact that you can buy
in sterling because in eurozone countries, the strength of the currency
has been putting off many potential buyers.'
Buyers looking for second homes are after
properties for private use, to generate rental income or as investments
- sometimes all three.
'There is a real buzz about Turkey,' says
Julian Walker, director of Spot Blue, a property company specialising in
the country.
'It's emerged from recession and powered
into 2010 as one of the world's fastest-growing economies, attracting
international investment on an unprecedented scale.'
The Turquoise Coast has the advantage of
easy access. The old harbour town of Fethiye, a popular spot for British
buyers, is about an hour from Dalaman airport.
It's a favourite of the yachting crowd,
who can set sail for the 12 islands around Kekova Island. There is also
the blue lagoon at Olu Deniz, a natural park of stunning beauty. 'The
atmosphere here is chilled,' says Angela Campbell.
Select Resorts, a property partner of
agents Savills, is selling a four-bedroom detached villa which is a
15-minute drive from the beach and the Olu Deniz lagoon, for £235,000.
There is a decent choice of properties
for less than £250,000 throughout the area. A four-bedroom,
three-bathroom villa with garden terrace, whirlpool spa and private pool
overlooking the sea on Fethiye's Calis beach is £245,000 through Spot
Blue. The villa is part of a complex of 40 houses with three communal
pools within walking distance of the shops, bars and the beachfront.
Further down the coast, two hours from
the airport, is Kalkan. With its narrow, winding streets, sun-bleached
houses and balconies overflowing with bougainvillea, the town is popular
with British buyers. 'Kalkan has a classy, but relaxed feel,' says
Campbell.
Properties Away is selling a four bedroom
villa in Kalkan with a roof terrace, private swimming pool and sea views
just 200 yards from the seafront. It comes fully furnished and is on the
market for £219,000.
The company is also selling a
three-bedroom, two-bathroom duplex with two sitting rooms and roof
terrace. With a communal swimming pool and sea views, it is priced at £89,000
and has the potential to be divided into two apartments.
Just 20 minutes from Kalkan, there's an
enclave of four-bedroom (all en-suite) villas, each priced at £425,000
with Spot Blue.
Designed by an award-winning architect,
the villas come in two or three storeys with marble flooring and an
infinity swimming pool facing the sea.
'Fethiye and Kalkan have adopted strict
building codes that limit developments and the number of storeys. This
should prevent them from becoming like the high-rise resorts you get
along the Costas,' says Campbell.
You can buy only within designated areas,
but the process is straightforward. Costs are around 6-7 per cent of the
purchase price, which compares with other countries favoured by the
British.'
'There is a sense that British buyers are
becoming more familiar with Turkey,' says Julian Walker of Spot Blue.
'What's more, the low-cost airlines
easyJet and Jet2 have increased the frequency of flights, while Ryanair
has signalled a desire to make Turkey the focus of its next round of
expansion.
'Taking it all into account, that is why
Turkey is attracting today's savvy and risk-averse overseas property
buyers.'
June 11, 2010
Global Property Guide:
Mid 2010 Property Markets Forecast
by
GLOBAL PROPERTY GUIDE
The world's property
markets are on the road to recovery, but investors will
have to be careful about which markets they select. In a
new report, the Global Property Guide makes
recommendations for residential property investment
during 2010 (download the full
Global Property Guide Mid-2010
Property Recommendations report).
The world is no longer
moving in one direction, as it did during the crash and
the bull market of 2006-2007. Some countries' real
estate markets are moving down (most notably Bulgaria,
Ireland, Iceland, Slovakia, Spain, the Philippines,
Greece, the Netherlands and, for political reasons,
Thailand). Others are moving up (Hong Kong, Singapore,
Taiwan, Australia, Israel, Finland, Norway, Sweden, and
the UK) (see
The World's Housing Markets at Q1
2010).
However, the general
trend is up, due to lower interest rates and higher
government spending.
Things are back to
normal.
Well, not quite. The
world's housing markets will surely be affected by a
major long-term trend, the adjustment - deep and
powerful - of economic forces which is now impacting
everything we do.
- The leading
developing countries are growing rapidly and are
assuming much greater importance.
- Relatively speaking,
the developed world is losing ground.
For 15 years the loss of
momentum of the developed world was disguised by the
housing pseudo-boom, but now the issues have become very
apparent.
Inevitably property markets will in future reflect these
facts. Some ripples on the surface of the waters:
In Latin America:
- Interest rates are
in long-term decline, due to better Central Bank
policies
- Economies are
booming
- Tourism is rising
- The residential
property boom that began 3 years ago continues
- Rental yields -
critical indicators of the health of property
markets - are still high
- Latin currencies are
rising
Our selections for
investors: Peru, Panama, Brazil, and Chile
Possible: Colombia
In the US:
- The economy is
recovering
- The dollar is rising
- Residential property
valuations are attractive in some states, and are
already attracting investors
Our selections for
investors: states whose property markets fell
dramatically during the crisis, beginning with Florida
In Europe:
- Property markets
have not sufficiently adjusted from their 15-year
rise. Residential property yields are poor
throughout Europe.
- The panic over the
Greek and other deficits shows no side of abating
- The Euro is falling.
Currency depreciation should somewhat offset
increased fiscal stringency - a positive.
- There are buying
opportunities for opportunities for non-Euro buyers,
but of themselves residential properties are not an
appetizing investment in most of Europe.
Our selections for
investors: Turkey, Hungary
Turkey, because of its young population, the opening to
the East, and its competent government.
Possible: Hungary, because its incompetent government
may provoke a crisis which would make its low prices and
excellent yields even more attractive.
In the Middle East and
North Africa:
The Middle East is in a
cycle, led by the Gulf. Recovery may take a while, but
the underlying dynamic of petro-dollars, pegged
currencies, and high domestic inflation, which tends to
push property values up. As yield-oriented investors, we
are more interested in the marginal markets, but we
expect investors to begin to be interested again in the
Gulf soon.
Our selections for
investors: Egypt, Jordan
Possible: Morocco
Egypt and Jordan's property markets have been hard-hit
by the crisis. But in both countries' capitals, there
are generous yields.
Morocco has less attractive yields, but a long term
tourism trend.
In Asia:
Property is over-valued
in most countries in Asia, with two exceptions
Our selection for
investors: Malaysia
Possible: Thailand
Malaysia is very stable, and has reasonable returns
Thailand has excellent yields. Prices have been falling,
because of the political uncertainty. Developers want to
reduce risk by unloading stock. Opportunity knocks.
In the Pacific:
Avoid. Australian
residential property is quite overvalued, and interest
rates are rising. In New Zealand there is less
overvaluation, but we do not see a strong investment
case.
Sept. 28, 2009
Future bright for Turkey - Goldman Sachs
report just published
Turkey offers strong
long-term growth potential, equal to that of many other N-11 and BRIC
economies - Goldman Sachs'
Turkey, if it keeps up with the proper policies, will become the ninth
biggest economy in the world in 2050, according to a report by Goldman
Sachs, a leading global investment banking, securities and investment
management firm.
Turkey, which ranks 18th with its nominal gross domestic product, or
GDP, as of 2007, will increase its national income to $5.9 trillion,
surpassing the Group of Seven, or G7, countries like Japan, Germany,
Italy, France and Canada by 2050. Turkey's current national income
stands at $660 billion.
Meanwhile according to the data compiled by Goldman Sachs, including its
world economic projection report, China is expected to become the
world's largest economy with a nominal GDP of $70 trillion in 2050. It
is predicted that the United States, India, Brazil, Russia, Indonesia,
Mexico, United Kingdom, and Turkey will follow China in that order.
Income per capita
By 2024, Turkey's per capita income will climb to $20,000-25,000, claims
the report. Turkey's per capita national income is expected to surpass
$30,000 in 2033, and $40,000 in 2040, reaching the $60-65,000 level by
2050, adds Goldman Sachs.
The growth rates of the E7 bloc of emerging economies, which includes
Turkey, China, India, Brazil, Russia, Indonesia and Mexico, will surpass
those of the United States, European Union, G7 and the Organization for
Economic Co-operation and Development, or OECD by 2050, the data
revealed.
The countries including Turkey will catch up with the industrialized
countries in 2025 and start to surpass them in 2030. The national
currencies of the emerging markets, including Turkey, are also expected
to gain 2 to 2.5 percent in value annually.
Economic balance
The emerging markets will become the driving force and will balance the
world economy, according to the report. Besides their increasing foreign
trade volumes, the seven emerging markets will also loom large with the
investment they draw.
In terms of rapid economic growth, Turkey will rank just after the BRIC
countries, which are Brazil, Russia, India and China, according to the
estimates in the report.
Turkey has developed a more competitive economy due to structural
reforms and new laws, which provide a prominent infrastructure in terms
of high growth. Turkey, in regards to rapid growth, ranks right after
China, according to the Goldman Sachs report, which also reveals that
Brazil has the lowest growth rate in this group.
The countries that have younger populations, such as Turkey, Mexico and
Brazil, have higher growth potential compared to China, India and
Indonesia. Following Turkey, countries, such as South Korea, Egypt,
Iran, Pakistan, Vietnam, Philippines and Nigeria will also loom large
with their growth rates. Turkey and South Korea have higher potential in
terms of surpassing the industrialized countries, according to the
report.
Mortgage
applications at Conti up by 143%
The global financial crisis is clearly not dampening the appeal of
property in Turkey, which has become one of the top investment
destinations in 2009, according to Conti, the UK’s leading overseas
mortgage specialist. The company has seen an increase of 65 per cent in
mortgage applications for Turkish properties, when comparing the first
five months of this year with the last five in 2008. And over the last
two months alone, applications are up by a massive 143 per cent compared
with the same period last year.
Often referred to as the ‘new Spain’, Turkey offers some great property
prices and all the benefits of its Mediterranean location, minus the
effects of the strong euro, which have led to decreased levels of demand
in other more traditional locations over recent months. Tourism in
Turkey has risen dramatically over the last few years, with predictions
that it will reach just under 30 million visitors in 2009. This will
ensure that demand for quality rental properties in the popular tourist
areas will continue to outstrip supply, making rental yields very
lucrative.
Clare Nessling, Conti’s Operations Director, says:
“We’re receiving a lot of enquiries about Turkey and it’s not hard to
see why. A healthy tourism industry, cheaper house prices and rising
demand for rental properties have all contributed to its popularity of
late. These factors, combined with low interest rates and the fact that
it’s out of the eurozone has made it increasingly attractive, as well as
more affordable, for UK buyers.”
According to Conti, Bodrum is a particular hotspot, with many British
investors snapping up small coastal apartments which they can use for
their own holidays, but also rent out easily to others. Many developers
are offering guaranteed rentals, which is working as a real incentive to
those considering a purchase. But there has also been an increase in
the number of people buying more expensive villas, especially in areas
such as Fethiye, and those investing in multiple properties in the prime
coastal areas. Turkey truly has mass appeal.
With accessibility being a key factor too, Turkey has a wide choice of
airports and is extremely well served by flights from the UK, with
easyJet recently announcing the launch of three new flights from London
Gatwick to the country’s most popular regions of Bodrum and Dalaman.
The country is also growing in popularity as a retirement destination,
with many being lured by the warmer climate, lower costs of living, and
excellent property value. And because it has avoided the effects of the
strong euro, which has eaten into the pensions and savings of retirees
in countries such as Spain, France and Portugal in recent months, it’s
simply a more cost effective location at the moment.
Overseas Mortgages
Conti provides finance
for purchasing holiday homes, investment and retirement properties in
more than 45 countries, and re-financing for any purpose in 15 of those
countries. Rates for mortgages in Turkey start from as little 4.80%.
All mortgage applications are processed and underwritten by Conti’s
teams of specialists, who know the exact mortgage application
requirements for each overseas lender. It can also ensure that clients
are put in touch with specialists in the country in question, to enable
then to comply fully with planning and legal conditions and assist with
currency exchange.
Is Property in Turkey Still
Popular?
Has the global financial crisis put
paid to the success of Turkey’s emerging property market? No says the
majority of professional opinion!
Published on Wednesday, January 14th, 2009 - from shelteroffshore.com
It’s hard to know when one nation’s property market has fallen out of
favour these days as the global financial crisis envelopes country after
country and apparently leaves no nation’s economy untarnished. So is
property in Turkey still popular or has the market boomed and gone bust?
This question is being asked by Brits, Russians, Germans and other
Europeans who were well aware that Turkey’s appeal was rising fast, but
who are now confused about where the future prospects for the country’s
economic forecasts lie.
Well, if you listen to the economic experts then Turkey is still a sound
bet, if you listen to the real estate analysts then Turkish property is
still a viable investment, and if you follow the path of the high end
real estate developers and designers, you can see that actually yes,
Turkey’s is still an incredibly exciting market to consider. In this
article we look at why property in Turkey is still popular, and where
some of the best pockets of property are for sale.
According to real estate researchers Liam Bailey and Nicolas Barnes from
Knight Frank, writing in the Financial Times, Turkey’s established and
higher end markets are both worthy of serious buyer and investor
consideration in 2009. They point out in an article all about where to
invest in property in 2009 that whilst prices have surged ahead and are
now falling back in most property markets around the world, if you look
carefully at fundamentals such as a property market’s infrastructure,
accessibility, amenities and prospects for economic growth and find that
everything is in a particular country’s favour – 2009 could be the best
time to chance your arm and buy in as prices fall fast and vendors
display signs of desperation!
The logic behind their thinking is spot on – after all, despite what
some countries’ economies are doing, the fundamental facts of supply and
demand remain. In Turkey this is true, there is increasing demand for
accommodation in the likes of Istanbul for example, and because Turkey
is outside the eurozone, it is forecast to benefit from an increase in
tourism traffic this year which puts pressure on the amount of
accommodation stock available to let. So, a market like Istanbul’s is in
favour – and then when you look at the prospects for other pockets of
the country, you again find places where an investment today could reap
significant dividends for the future.
Take a place like Bodrum or Belek where there is massive investment
being ploughed into accessibility, core infrastructure, tourism
amenities and the general appeal of the resort. This sort of investment
forces the value of real estate up – even in a falling market! The
resorts become more desirable as places to live or holiday, this
increases demand for residential and rental property, this increase in
demand may be slow now thanks to the state of the global economy, but it
will come – and investors can bank on this. Added to all this you have
the undeniable fact that in many of Turkey’s hottest resorts such as
those already mentioned, there is strong local demand for second homes –
so this makes the established and second hand market very valuable too.
Resident buyers often go for well-maintained homes that are completed,
have a traceable history and are in an established area. This places
additional value on these types of homes for investors.
And finally, Turkey is also a country with an emerging market and a
high-end market. One company has sought to embrace both camps and
produced some exceptionally beautiful, well-designed and well-located
stock – namely Limra by Jade Jagger for yoo in the idyllic Turquoise
Coast town of Finike. This town is stunningly beautiful, has exceptional
beaches, it is lesser known and therefore lesser developed, yet it
provides for the perfect backdrop for this brand new and iconic
development. Every single luxurious apartment within the development has
its own outdoor space in the form of a private garden, balcony or
terrace, these effectively extend the internal areas to create a light,
spacious and naturally cool living environment that makes the most of
the Turquoise Coast’s favourable climate. Jade Jagger’s signature style
is evident in the properties’ interiors – her use of geometric tiles,
coloured mosaics, decorative latticework screens and fully fitted
glacier white kitchens with marble worktops seals the deal on these
contemporary homes. An on-site show apartment has been created to
demonstrate the high quality of the finished properties for sale, and it
also displays a furniture package designed by Jade Jagger for yoo that
buyers can opt for if they so choose, the company marketing these homes
is Ready2Invest.
Clearly therefore, the global financial crisis is not dampening the
appeal of property in Turkey, it is just forcing people to consider
which properties they purchase that much more carefully.
Turkey’s Property
Market a Hotspot
Hürriyet Daily News
20.02.2009
ISTANBUL - Despite the global economic downturn, Turkey's economy is
proving to be extremely robust and in turn its property market is
growing from strength to strength, according to Dubai-based realty and
lifestyle website gowealthy.com.
As a result Turkey is re-emerging as an established investment hotspot
like UAE, especially Dubai, for both experienced as well as first time
emerging real estate market investors who are looking for good returns,
according to the article by Jaimie Kanwar.
"The economic advancements and developments in Turkey are hugely
positive at the moment and buying into Turkey during this period of
growth is an ideal investment opportunity," said Eric Kaya, director of
Cumberland Properties.
"Would-be investors can now be assured they are investing in a nation
with a healthy economy and one where the property market holds long-term
potential for strong capital appreciation."
Turkey represents the best investment opportunity in the overseas market
that anyone is likely to find over the next year and a half, the Web
site said. The country has rebounded incredibly since its economic crash
seven years ago and is now in a position of strength compared to the
United Kingdome, as it is on the verge of recovery having already
experienced the repercussions of the downturn in their economy.
Meanwhile, consumer confidence in Turkey increased 2.37 percent in
January to 71.56 points over the previous month on the official index,
the Turkish Board of Statistics, or TURKSTAT, announced last week.
The
unravelling of international
financial systems and subsequent
contagion into the broader world
economy has clearly inflicted
multiple wounds on residential
property markets. Even the
luxury end has been hit as
high-net-worth individuals watch
their investments in shares and,
most recently oil, nosedive. The
cost of existing debt has risen
and new credit lines have become
rarer and tighter. And we have
seen huge and rapid currency
fluctuations, which have a big
effect on cross-border
purchases.
Admittedly, it is an odd time to
be recommending places to buy a
house. But, as we move into
2009, with prices falling and
more distressed sales coming to
the market, it could just about
make sense. Those with money are
starting to scavenge for
bargains.
Why anyone should listen to real
estate industry analysts is a
fairly important question. None
of the agencies or organisations
that regularly comment on the
housing market predicted the
2008 crash so why should we
think we know any more now?
But we are in a very different
situation than we were a year
ago. In 2007 we were at the top
of a boom and the question was
when it would turn to crash. Now
we are in the crash and, whether
prices fall 30 per cent or 50
per cent, at some point in 2009
the market is likely to hit
bottom or be close to it. This
is the time to prepare to buy
before the herd moves in.
That’s not to say a random
selection of investments through
auction house repossession
catalogues will do. Wise
househunters will concentrate on
areas poised to perform well
over the medium- to long-term.
Prices will take a long time to
recover fully so think carefully
about the outlook for a
particular location, its
infrastructure, accessibility,
amenities and prospects for
economic growth. Build-quality
in an older home or new
development is important, as is
an established secondary sales
market and a transparent legal
framework. Only after examining
these factors should you look at
price.
We have selected 10 locations –
a mix of city centre and resort
areas – where we think people
can safely buy primary or
holiday homes next year.
1
London
2 Paris
3 New York
4 Montenegro
5 Majorca
6 Austrian Alps
7 Southern Cyprus
8 Costa Rica
9 Turkey
With its substantial and
beautiful coastline, Turkey is
rapidly emerging as second-home
market and while most
development has so far been
aimed at the mass- and
mid-markets, higher-quality
projects are beginning to
appear. There are limits on
foreign buyers – they can’t buy
land of strategic, religious or
cultural importance – but the
country is mainly open (so long
as Turks can buy in the
foreigner’s country too). Prices
in prime coastal areas typically
range from €1,200-€2,600 per sq
metre. Locations worthy of
investigation include Belek,
Altinkum and the less developed
areas aound Bodrum.
10
Cambridge, UK
December 5, 2008
Expat
Finance: Trend for moving abroad increases as up to 500,000 prepare for
exodus.
As many as 500,000 Brits could be leaving our shores to
become expats by the end of the year, reports Axa, one of the
world's biggest insurers.
It is difficult to
use forecast figures as a barometer of intent to be fair, but there
is no doubt that the trend for moving abroad is increasing.
In 2006, official figures from the
Office of National Statistics showed that 400,000 people
emigrated from the UK, and by the end of last year, Axa had seen an 11.7
per cent rise in the number of inquiries for international private
medical insurance, and a 28.6 per cent increase in inquiries from those
looking to relocate elsewhere in
Europe.
It is on the basis of the continued rise
in inquiries in the first half of this year - up 15 per cent again on
the same period last year - that Axa has calculated its figures.
It points out that 500,000 people is
equivalent to the entire population of Leeds, and there is good reason
to think that the number of people moving overseas is accelerating.
YouGov figures, for example, suggest that
one in three of us is considering a move abroad to improve his or her
financial position.
Retirees can live an equivalent lifestyle
in France for about
a third of the cost of the UK, thanks to lower taxes and cheaper food
and energy bills.
Now that there is also a relaxation of
rules on access to healthcare for non-French residents in France, the
appeal is growing even more.
Axa said inquiries for the other side of
the Channel more than doubled for the first half of this year - an
indication of its rising appeal.
October 7, 2008
Deutsche Bank Research:
Real Estate Investment: Look Beyond Istanbul
(PDF)
Turkey's Accession to the EU: a Matter of
Conviction?
(PDF)
July 5, 2008
Property sales
to foreigners back on track
Parliament yesterday
passed a bill on property sales to foreigners, drafted taking into
consideration a Constitutional Court decision revoking a previous law on
the matter.
Foreign
citizens and companies will now be able to buy real estate in Turkey.
However, sales of land in areas under protection, designated as
irrigation, energy, agricultural, mining, religious or cultural sites or
due to their flora or fauna as well as strategic areas with security
considerations are not allowed. Areas will be designated as such by the
Cabinet. Real foreign persons will be entitled to purchase property
within the limits of areas allocated for development as long as the
total land purchased by foreign persons in the city does not exceed 10
percent of the total land in a given province's city center. The
companies established by foreign citizens or those with foreign
shareholdings will be able to acquire real estate in order to conduct
the activities stated in their articles of incorporation. This principle
will also be applicable to transfers of property so acquired.
June 14, 2008
Update on foreigners property purchases in
Turkey
The temporary suspension of property
purchases by foreigners in Turkey ends. The updated law will again allow
foreigners to buy property and land within officially zoned and planed
areas.
The draft law was voted and approved by
the Turkish Grand National Assembly on 11.06.2008. After the President
ratifies, it will be published in the Official Gazette. Then it will be
circulated to all related state organs to be implemented.
We do expect that the new law will be
fully in force by the beginning of July.
May 4, 2008
Foreigners in Turkey permitted to purchase
real estate
Parliamentary's Justice Committee
approved the government bill regarding the sale of Turkish property to
foreigners on Thursday. According to approved bill, foreigners and
foreign companies will be able to purchase real estate up to 10 percent
of areas in the zoning plan.
The bill authorizes the Council of
Ministers to change the percentage --not more than 10 percent-- taking
into consideration the significance of towns in terms of
infrastructure, economy, energy, environment, culture, agriculture and
the like.
The Ministry of Public Works and
Settlement temporarily halted Turkish property sales to foreigners at
the beginning of April inline with a Constitutional Court ruling three
months prior.
The Turkish
Constitutional Court had decided to cancel the provision of a law that
allows the sale of real estate to foreign companies and joint ventures
involving foreign firms on March 12.
Following to amendment, a new regulation
regarding the sale of Turkish property to foreigners was delivered to
the Board of Ministers for approval.
April 16, 2008
Turkish property sales to foreigners
temporarily halted
Turkish property sales to foreigners
is to be temporarily halted from Wednesday, declared a Ministry of
Public Works and Settlement inline with a Constitutional Court ruling
three months ago. A new regulation was delivered to the Board of
Ministers for approval. The main issue in the real estate law halted is
about the size of the land that a foreigner real person and/or company
can puchase within the province and whether the land is already zoned
out and planned ofr building.
A new regulation regarding
the sale of Turkish property to foreigners (real persons as well as
companies) was delivered to the Board of Ministers for approval on
Wednesday.
According to information obtained
from ministry's officials, a circular letter on Tuesday was sent to
all land registry offices indicating the end of the sale of real
estate to foreigners. The related verdict of the Constitutional
Court will come into effect from Wednesday. The law does not restrict
foreigners who already own property in Turkey from selling it to
Turkish Citizens.
Further information in Turkish Daily News.
However:
(Note from Mavi Property)
In the meantime, foreigners can currently purchase a property by forming
a limited company, which costs approximately £1250. The whole
procedure, including the title deed transfer, can be completed within a
week at the latest.
March 3, 2008
January 5, 2008
Cheap summer flights now
on sale from EasyJet. Fares from £44.99 to Dalaman
from London Gatwick.
October 7, 2007
A Mail on Sunday article about our clients'
purchase
(PDF)
September 16, 2007
Is Turkey The New Spain?
From the sundaymirror.co.uk
SEARCHING for that dream home in the sun but can’t afford Spain?
Then why not take a look at Turkey?
The country at the eastern end of the Med is becoming increasingly
popular with Brits buying abroad, with 17,000 homes now under UK
ownership.
And with apartments costing as little as £20,000 and the sun shining for
more than 300 days of the year, it’s easy to see why.
The trend shows no signs of letting up, with bargain hunters searching
the Mediterranean and Aegean coasts for affordable places in golf and
beach resorts.
And with massive investment in airports, hotels, marinas and tourist
hotspots, some property experts are predicting Turkey could soon
overtake Spain as Brits’ favourite spot for a holiday home.
The most popular area is the coastline between Kusadasi in the north and
Alanya in the south-east, which includes the resorts of Bodrum, Marmaris
and Izmir.
Bodrum, one of Turkey’s largest and most cosmopolitan destinations, has
long been popular with buyers. The bustling harbour town of Kusadasi and
Altinkum, with its stunning beaches, are both rapidly-growing resorts
where prices are still competitive.
Michael Johns, of agents the Right Move Abroad, says: “Altinkum has the
nicest beaches in Turkey and demand will only increase with two new golf
courses planned in the area and a marina to be completed by 2009.”
There are also ambitious plans for Dalaman, including new golf and
leisure resorts close to the airport.
One of the downsides of this popularity is that flights have been hard
to find recently – although one of the major no-frills airlines is
planning more routes to Turkey and a new international airport opens in
Alanya next year.
Not everyone is talking up Turkey, however, and a few agents believe
some resorts have the same problems as parts of Spain. There is already
talk of oversupply in some areas, cheap-looking apartments and arrests
of town officials for approving illegal planning permissions.
And when it comes to paying for your home, British buyers will find it
far easier in Spain. Most who buy in Turkey either pay in cash or borrow
from the equity on their UK home rather than take out a Turkish
mortgage.
A spokesman for NatWest International says it has no plans to lend on
Turkish homes as yet.
“Spain continues to be No1 and we’re 20 per cent up on mortgage
inquiries there since last year,” he adds. “Turkey is maybe Spain 20
years ago, where cheap deals were available. But I wonder if buyers know
how safe they are when putting down deposits.”
Things are set to get better, with a new mortgage law in Turkey opening
the doors for British buyers to borrow money locally. Spot Blue, an
agent in the resort of Fethiye, says come January there should be no
problems. “In fact,” says spokesman Julian Walker, “British buyers can
already borrow from two Turkish banks right now.”
Popular hotspots
-Kusadasi: Up-and-coming harbour town, near Izmir airport.
-Bodrum: Great nightlife, close to smaller resorts.
-Altinkum: Beautiful beaches, close to Bodrum airport.
-Alanya: Big expat community, good beaches.
-Kalkan: Attractive friendly resort, growing rapidly.
-Dalaman: near airport, plans for golf and leisure resorts.
‘We were priced out of Costas’
HIGH prices on the Spanish Costas left Steve and Ann Jackson wondering
where to buy a holiday villa… until friends told them to try Turkey.
“We’d never even thought of Turkey but when we got to Kusadasi we found
the people really friendly and we loved the lifestyle,” says Ann. “It’s
got a harbour, markets and one of the best sunsets I’ve seen.”
The couple, who work on the construction team at Heathrow’s new Terminal
5, say when they took their daughters, Kelly, 11, and Lauren, 10, to
their new three-bedroom villa they absolutely loved it.
The Jacksons have bought next door to friends at The Green Village, a
mile from the beach and a short drive to Kusadasi town. Facilities
include pools, a fitness centre and restaurant. Steve says: “Being in
the building trade I was expecting to trash their workmanship but I was
amazed at the high quality.”
Steve and Ann bought from developer Jappa and paid £87,000 (www.jappa-realestate.com).
June 29, 2007
Turkey Mortgage Boon to Market
New Skys Property News
February 22, 2007
Mortgages Finally Take Centre
Stage
From Turkish Daily News, February 20, 2007
The mortgage system, which
has been expected for the past 1.5 years but has been put on hold and
postponed each time, is finally on the government’s agenda in the run-up
to elections. Seen as 'investment for the elections' the mortgage system
is expected to enliven the currently stable real estate market and help
pull bank loan interest rates down
ESRA SAHİCİ
ISTANBUL - Turkish Daily News
In a highly anticipated real estate
environment – also seen as the government's "investment"
plan leading up to the election – buyers will finally be able to
take advantage of the mortgage system. Waiting for its day on
Parliament's agenda for the past 15 months, the mortgage bill is
expected to finally pass this week. It is expected that many buyers,
currently in limbo, will be mobilized once the bill passes. Real estate prices will likely
increase once the mortgage bill passes.
Experts
anticipate the currently stable real estate market to pick up and
start improving in spring. While banks give out loans only with
fixed interest rates today, the mortgage system will offer buyers
interest rates that can be adapted to market conditions. Tax
advantages under the bill will only come into play after the system
has taken effect, in 2008.
Good news for
the buyer:
The mortgage
system, that has been expected for the past year and a half but has
been put on hold and postponed each time it was due to be discussed
in Parliament, has once again made its way onto the government's
agenda in the pre-election period. Widely seen as a “pre-elections
investment,” the bill caused enthusiasm among buyers. People who
dream of becoming homeowners by “paying for a property as if paying
rent,” have been lying dormant and anticipating the system for a
long while. They are expected to take action with the passing of the
bill.
Experts say
there has been great apprehension in both buyers and the real estate
world since the mortgage discussions first came to Turkey's agenda.
“The real estate sector has been at a standstill since the
fluctuation in the market in May 2006. However, the official
statements that mortgages will pass and become effective came as
good news for buyers. The real estate sector will rise with the
expectation and the prices are anticipated to rise,” experts say.
Tax advantage
will come in 2008:
Saying that
no changes were made to the mortgage bill and that the draft was
brought to Parliament as it was, banking officials point out that no tax advantages were provided to
the buyer. According to the bill, deducting the loan interest from
the total tax will be left for after 2008. For buyers, this will not
make much of a difference from the current bank loans.
It is stated that the tax advantage may be postponed after 2008
also, but that tax advantage is necessary for lower-income groups.
However, the
taxes will work differently for loan-providing companies. Banks,
insurance firms, retirement funds, and mortgage funding
organizations can exempt the revenue they obtain by increasing their
capital from bank and insurance taxes. Consequently, when it comes
to tax advantages, the mortgage system will be more advantageous for
companies than for individuals.
The interest
rate will be determined by secondary market:
While there
has been an expectation that interest rates will fall as low as 1
percent once mortgage becomes effective, financiers say that there
will not be a substantial decrease in interest rates in the
after-mortgage era. Pointing out that mortgage interest rates
will be determined by costs in secondary markets, financiers add,
“With the mortgage system, interest value dates can be bought and
sold in secondary markets. This way, loan-providing companies will
create a new source for their long-term financing needs. However, we
do not expect the mortgage system to affect interest rates in the
short-term. On the other hand, those that acquire the positive
expectation in advance will reflect this expectation in the prices.”
How will the
mortgage system work?:
The buyer
will determine the residence he would like to buy. He will apply to
loan-providing organizations for a loan.
The buyer will need at least a down payment in the amount of 25
percent of the total value of the residence. While it is believed
that the repayment period will be 30 years, the value and the
interest rate will depend on market conditions. Securities will be
issued after the credit
and these will be traded on the stock exchange. This, in return,
will help the loan-giving establishment to find a higher financing.
Esra Sahici -
Hurriyet
January 30, 2007
10 Reasons to Visit Turkey
This Summer from the telegraph.co.uk
http://www.telegraph.co.uk/travel/main.jhtml?xml=/travel/2007/01/27/etturkey27.xml
January 24, 2007
New Top 20 for “A Place in the Sun”
A
survey of readers taken by A Place in the Sun Live shows the Top 20
most popular destinations. These include a mix of old favourites
and new markets which include (in order of popularity):
1-
Spain
2-
France
3-
Bulgaria
4-
Turkey (Kalkan)
5-
Cyprus
6-
Greece
7-
Portugal
8-
Italy
9-
Cape Verde
10-
USA
11-
Croatia
12-
Morocco
13-
Caribbean
14-
Egypt
15-
Dubai
16-
Canada
17-
Thailand
18-
Montenegro
19-
South Africa
20-
Australia
From Homes Overseas:
|
Two million Brits 'will own property
abroad' |
|
A massive two million Britons will own a home overseas by
2025, a new report predicts. |
|
|
Respected accountants Grant Thornton estimates that one in
10 UK homeowners will also have a second home abroad. The
highest demand will be either from pensioners wanting winter
sun or property investors. |
|
|
|
|
If you're fed up of the cold and want to escape to some winter sun,
from just £74,300 you could own a superb studio, one or two
apartment at Bonalba, on Spain's Costa Blanca. The properties at
Rosaleada (pictured) have fitted kitchens and terraces. On site are
three swimming pools; tennis and basketball courts. For more
details, phone the New Skys sales hotline free on 0800 310 1970. |
|
The report claims that 300,000 Britons currently have property
overseas – up from 100,000 since 1995 – and almost a third less than
the figures released this week from market report firm Mintel. This
shows how difficult it is to come up with accurate figures. |
|
Britain's booming property market is helping people to buy a home
overseas. Since 1996, the average home value has jumped from £60,000
to £180,000. This means that many homeowners can borrow money for
cheaper overseas property against the value of their UK home. |
|
New Skys Mortgage Helpdesk, on 0845 094 1240, offers advice and news
of the latest rates for anyone buying property abroad, whether they
are remortgaging their UK home or taking out a foreign loan. It
operates Mon-Fri, from 9am-5.30pm. |
|
Jonathan Burridge, managing director of Quantum Mortgage Brokers,
which helps operate the New Skys Mortgage Helpdesk, says: “We have
seen a sharp rise in UK property values and a prolonged period of
advantageous domestic and global interest rates which have allowed
people to remortgage and release funds for overseas property that,
generally, costs much lower than in the UK. |
|
“But extra care needs to be taken by prospective overseas buyers so
that they fully understand the costs, processes and risks that they
face before they commit to purchase.” |
|
The boom in the overseas property market has been helped by low-cost
airlines, which have made it cheap and easy to visit property
abroad, especially in Europe. |
|
The report also warns of the dangers of buying abroad without
understanding the tax implications. |
Five years ago, Turkey allowed
foreigners to buy property. As business booms, Graham Norwood looks at
the options for city slickers and sun-worshippers
From the Independent 29 September 2006
MORE BRITS ABROAD THAN EVER BEFORE
From New Skys News
Majority of Turkish property bought by Brits
From Overseas Property Professional website
Data from the Land Registry General
Directorate shows that a total of 1,206 properties were sold to
foreigners in the first quarter of this year - and 588 were sold to
Brits.
Sales were halted last July following a
Constitutional Court decision to annul a bill on property sales to
foreigners. However, with a new Land Registry law - which came into
effect from January - sales have picked up considerably. Based on data
compiled from the first week of January 2006 through to mid April, 1,565
foreign nationals bought 412,000 square meters of real estate - with the
majority bought by foreign buyers.
The number of foreign nationalities
buying in Turkey has also increased (to 24). During the survey period,
588 UK buyers purchased 420 properties, with most preferring the south
of Turkey; Germans bought 258 (second out of the 24), followed by the
Irish, Dutch, Norwegians, Belgians and Greeks. These foreign buyers also
bought in 30 cities over the last three months, with the majority of
sales made in Antalya (where 875 foreigners bought 637 pieces of
property), and many in places like Aydın, Muğla, Istanbul, Mersin and
Izmir.
Table: Foreign sales since January
Country........No..........Pieces.......Size (sqm)
Germany......258.........267...........171.844
USA.............3.............4..............503
Australia.......1............1...............16
Austria.........36...........24.............30.468
Belgium........51..........69..............3.861
Denmark......18..........24..............1.687
Finland.........15..........19..............1.575
France..........8............10..............1.285
South Africa..1............2................36
Georgia........1............1................21
Holland.........116.........163............19.951
England........420.........588............86.122
Ireland.........128.........188............37.300
Spain............2............4...............495
Israel............2............3...............93
Sweden.........11..........12..............811
Italy..............3...........3................3.813
KKTC.............6...........6................41.406
Macedonia......2...........2................140
Norway..........82..........122............6.247
Russia............8...........7................1.049
Serbia-Mon.....2...........2................36
Ukraine..........4...........4.................850
Greece...........28.........40...............2.392
Total.............1,206....1,565.........412.001
From
http://money.independent.co.uk/property/homes/article354174.ece
Overseas: Turkey - is the coast
clear now?
A place by the sea for £20,000? It's still possible in this emerging
market, discovers Graham Norwood
Published: 29 March 2006
It's now five years since
foreigners were first allowed to buy homes in Turkey, and the market has
exploded with interest.
Almost 1.4 million UK
tourists visited the country on holiday in 2004 (the latest year for
which statistics are available), a 50 per cent increase on the numbers
five years earlier. The records show that, of the 48,051 homes owned by
foreigners in Turkey in 2005, no fewer than 7,084 are in British hands,
up from 2,420 in 2003.
The most sought-after area of Turkey is its so-called Turquoise Coast,
where the Mediterranean and Aegean seas meet.
The Turkish Property
Centre, based in Newcastle, says the most popular locations for British
buyers at the mid to lower end of the market tend to be Bodrum and
Fethiye, although smaller, less well-known areas on the outskirts of
these resorts, such as Antinkum and Kushadasi, are also popular. "In
some places you can buy coastal flats for £20,000, although some
higher-quality developers are now moving in as well, especially to
Fethiye," a TPC spokesman says.
Michael Doig of Colliers
CRE, a British property consultancy that monitors Turkey's housing
market, says: "As in many countries that are becoming the focus of
British residential investors, price growth is being estimated at
anywhere from 10 per cent to 40 per cent a year."
But prospective buyers
should beware: the annual Global Real Estate Transparency Index,
produced by consultants Jones Lang la Salle, describes the Turkish
housing market as "opaque", with poor information on property
availability, weak processes to establish exact ownership, and corrupt
practices among selling agents. It is also almost impossible for
foreigners to get mortgages in Turkey, so drawing down equity from a
principal home in the UK is the easiest way to buy a property.
But the same criticisms
would have been made of Spain 40 years ago, and Turkey will no doubt
improve over time, just as Spain has.
Certainly, in a bid to
boost its campaign for admission into the EU, the country has brought
inflation down to its lowest level since the mid-Seventies, the economy
is growing at 9 per cent, and there are promises to set up formal land
registry and property ownership systems.
Estate agents say there
are five main areas where it is becoming popular to buy, and where
prices are expected to rise by 2010, especially if new budget air routes
open up and if Turkey is finally accepted into the EU.
As Michael Doig of
Colliers puts it: "Reforms are taking place that will only improve the
purchasing process and the transparency of the market. Turkey is one of
the best emerging markets to invest in."
Belek
Close to the Ottoman city
of Antalya, Belek is Turkey's main golfing area. The resort itself, set
up in 1984, now has five 18-hole courses and is being given special
marketing treatment by Turkey's tourism ministry. There are more than 30
four-star hotels in the area, and a new scheme for 102 two-bedroom
golf-course apartments is being launched by Kemer Mediterra, a leading
developer in Turkish second-home resorts. The area is a 30-minute drive
from Antalya airport.
Bodrum
This is the Costa del Sol of Turkey. The area came into its own after
its airport was opened in 1998, and now it is the best-known tourist
resort in the country, spilling over into nearby areas such as Gumusluk,
Yalikavak, Gumbet and Turgutreis.
About an hour from here is Altinkum, another rapidly developing coastal
resort. High-density developments prevail, with a two-bed flat on the
outskirts of Bodrum costing from £40,000 and three-bedroom villas with
sea views available from just £55,000.
Dalaman
On Turkey's south-western coast, this former agricultural area is now
dominated by tourists thanks to Dalaman airport, and new road and rail
improvements are promised in the next two years. Plans for the area
include a new golf course and marina as well as environmental
improvements to its extensive beach coastline.
Gocek
Known as the St-Tropez of Turkey, Gocek is a resort on the Gulf of
Fethiye. It has four marinas, including Turkey's largest, the 500-berth
Port Gocek. Dalaman airport is just 30 minutes to the north, while the
more downmarket resort of Fethiye lies to the south.
Development is strictly limited in Gocek: some new schemes, such as the
25-villa Gocek Hills estate, reflect this with high starting prices of
£225,000 and high summer rental prices of up to £800 per week for a
two-bedroom property.
Kalkan
This is a small fishing village on the Teke peninsula, just over 90
minutes' drive from Dalaman airport and close to Kas and Fethiye. Famed
for its Greek architecture, the protected old town has become a tourist
draw. New developments are kept away in the hills, and are relatively
limited in number. Prices for new homes start at £175,000 for two-bed
apartments.
Thursday,
March 2, 2006
LONDON -
TDN with AFP
In a move to expand service beyond traditional European destinations,
low-cost British airline
easyJet said on Wednesday the
firm is planning to launch daily service between Istanbul and London's
Luton Airport on June 29 and four-times-a-week flights between Luton and
Rijeka on the northeast Croatian coast the following day.
Andrew Harrison, chief executive of easyJet, said, "This is probably our
most significant expansion since the start of our new routes to central
and eastern Europe in May 2004."
The no-frills airline will also be offering flights from London to
Marrakesh starting this spring.
He said Morocco, Turkey and Croatia were building closer ties with
Britain and Europe.
"As a consequence, the demand for low fares to these countries is
growing quickly, and easyJet will be in a unique position to benefit
from this development," said Harrison.
One-way fares will start at 25.99 pounds ($45.55) to Rijeka and 30.99
pounds to Marrakesh and Istanbul.
The airline will also begin four weekly flights between Basel and
Istanbul on May 24, reported Agence France-Presse.
The bright orange carrier, founded by entrepreneur Stelios Haji-Ioannou,
flew 29.6 million passengers last year.
A note from us:
Here is a list of domestic
airlines in Turkey to connect you to the rest of the country at low
fares from GBP 25 per person (Istanbul to Antalya or Dalaman):
Turkish Airlines
Atlasjet
Onur Air
Fly Air
Pegasus Airlines
PRESS STATEMENT ON THE ACQUISITION OF
IMMOVABLE PROPERTY IN TURKEY
With reference to the recent reports
claiming that there is a correlation between the cartoons crisis and
Turkey’s application of the new law on real estate acquisition in Turkey
by foreigners, published in some Danish newspapers, this Embassy would
like to make it
clear to Danish public opinion that there is and can be no connection
between the
application of the new law to the Danish citizens and the cartoons
crisis. Such claims are wholly untrue and baseless. Moreover the rumours
that Danes will not be able to buy real property in Turkey are also
completely wrong. Thus, please find below the latest situation about
real estate acquisition in Turkey.
As is known, the new law regulating real
estate acquisition in Turkey by foreigners was adopted on 29 December
2005, by the Turkish Parliament and has entered into force.
You will find brief information about the said law below in Section 1
and you will also find in Section 2 information about the implementation
of the new law for Danish citizens.
1- The new law (Law No:
5444) amending Article 35 of the Land Registry Law,
which together with Articles 16 and 35 of the Turkish Constitution draws
the legal
framework for real estate acquisition by foreigners in Turkey, was
adopted by the Turkish Parliament on 29 December 2005 and entered into
force after being promulgated by the President. The new law will be
applied retroactively, beginning from 26 July 2005. Thus, this new law
has taken the place of the old legislation (Law No: 4916), which was
annulled on March 14, 2005, (annulment decision entered into force on 26
July 2005) by the Turkish Constitutional Court. According to the new
law, Article 35 of the Land Registry Law is, in summary, regulated as
follows:
On the basis of reciprocity rule, citizens
of the countries that allow Turkish citizens
to acquire immovable property or limited real rights on immovable
property both legally and in practice, may acquire immovable property in
Turkey, to use as residence or working place
in compliance with the legal restrictions (for example foreigners can
not buy real estate in
the military zones according to Law No: 2565). The overall area of real
estate on which a foreigner is allowed to acquire property or limited
real rights cannot exceed 2.5 hectares. However, this amount can be
increased up to 30 hectares with the permission of the
Council of Ministers. Commercial companies established according to the
laws of their countries, can acquire immovable property or limited real
rights on immovable property only in the context of special laws like
the Law on the Promotion of Tourism, Oil Law and Law on Industrial
Zones. Companies with legal personality established or participated in
by foreign investors in Turkey, under the terms of the Foreign Direct
Investment Law, can acquire immovable property or limited real rights in
Turkey as well. Foreign legal persons other than the commercial
companies established according to the laws of their own countries,
cannot acquire immovable property in Turkey.
The Council of Ministers is competent to
determine the areas where foreign natural persons and commercial
companies cannot acquire real estate on grounds of public interest and
security reasons (such as the areas which should be protected because of
their flora and fauna, areas that have a special importance and should
be protected because of their qualifications regarding irrigation,
energy, agriculture, mineral deposits, cultural importance) upon the
proposal of the related public institutions. The Council of Ministers is
also
competent to determine the percentage of area in each province which
could be sold to foreigners. This figure cannot exceed %0.5 of the total
area of the province in question.
The Ministry of Defence should inform the Ministry which oversees the
activities of the Directorate General of Land Registry, about the
forbidden military zones and military and special security zones in 3
months time after the publication of the new law in the Official
Gazette. During the intervening 3 months, the Directorate General of
Land Registry should ascertain the status of an area by asking the
related military institutions, before completing the land registry
procedures.
2- As is stated above, the
new law regulating the acquisition of immovable property
in Turkey by foreigners foresees the principle of reciprocity; which
means Danish citizens
will be able to buy real property in Turkey under the same conditions
applied to the Turkish citizens who would like to buy real property in
Denmark. The Directorate General of Land Registry in Turkey issued a
circular to the Land Registry offices about the implementation
of the said law and attached to that document a list of the countries
with which
Turkey has reciprocity, and of the countries with which Turkey has no
reciprocity.
Demands by the citizens of the remaining countries, including Denmark,
will be subject to reciprocal procedures according to the Law and for
that purpose will be referred to the Directorate General. Therefore, as
Turkish citizens who do not have permanent residence permit or have not
resided in Denmark for a period of at least 5 years can acquire real
property only with the permission of the Danish Ministry of Justice, a
corresponding
procedure will be applied to the Danish citizens who wish to buy real
property in Turkey, as a result of the above mentioned principle of
reciprocity. In line with this explanation, it has
been suggested that Danish citizens should be required to have a valid 6
months residence permit or a work permit for the first immovable
property they acquire. For additional acquisitions, holding a 6 months
residence or work permit and the permission of the competent authorities
may be required.
Details of the modalities of
implementation are expected to be determined in due course.
Embassy of the Republic of Turkey
Copenhagen
Property law listed in official gazette
(Turkish)
Parliament passes law
on foreign ownership of property
Friday, December
30, 2005
CHP
opposition fails to prevent the passgae of the much-anticipated law
ANKARA - TDN Parliament Bureau
Parliament's General Assembly late on Wednesday passed a law that
establishes the rules by which foreigners can own property in Turkey.
According to the law, some of whose articles were previously annulled by
the Constitutional Court, foreigners will be able to own property in
Turkey within the bounds set. The purchase of land by foreigners will be
limited by the principle of reciprocity and various legal limitations in
accordance with building regulations. The land purchased cannot exceed
2.5 hectares but can be increased to 30 hectares by Cabinet decree.
Foreign
foundations, associations, cooperatives, communities and groups are not
allowed to purchase property in Turkey.
Property inherited by citizens of countries that do not have an
agreement of reciprocity will be sold and the proceeds given to them.
The
Cabinet will be responsible for deciding on the purchase of land by
foreigners and foreign companies in areas that are strategically
important vis-à-vis agriculture, energy, irrigation, protected habitats
and that possess religious or cultural significance. Properties sold to
foreigners will not exceed 5 percent of provincial land, with the
Cabinet in charge of assessing this proportion.
The
Defense Ministry will be required to submit a list of military zones,
special security areas and other prohibited zones to the Land Registry
Office.
Owners
of illegally purchased land will be required to sell it within a
specific time frame and if they fail to do so, it will be sold and the
proceeds given to the owners.
Serious clashes during parliamentary debate:
Serious
clashes occurred during discussion on the law between Justice and
Development Party (AKP) and Republican People's Party (CHP) deputies.
CHP
deputy from Istanbul Birgen Keleş claimed the law would allow not only
foreign nationals and foreign companies but also foreign state agencies
to purchase property in Turkey.
He said
the articles of the previsions version of the bill that were annulled by
the Constitutional Court were changed only slightly. “Some European
countries see the land as the defining feature of the state, and that's
why they impose strict restrictions on foreigners purchasing land. By
opposing this bill, we are trying to prevent you [the AKP] from being
tried by the Supreme State Council in the future.”
AKP
deputy from Erzurum Mustafa Nuri Akbulut said most of the properties
purchased by foreigners were holiday houses. He said German and British
citizens and Greek citizens of Turkish extraction were the majority of
foreigners buying real estate in Turkey.
Akbulut
also said Syrians have been allowed to purchase property in Turkey since
1939.
CHP
deputy warned:
When
CHP deputy from Tekirdağ Mehmet Nuri Saygun started his parliamentary
address by saying, “The prime minister pointed to certain deputies
yesterday and called them ill mannered and claimed some didn't deserve
to be here,” acting Parliament Speaker İsmail Alptekin warned the deputy
to limit his speech to the bill in question.
Saygun
said foreigners had already been sold 25,000 hectares of land, claiming
that this law would also be annulled by the Constitutional Court.
He said
the law was vague concerning the sale of agricultural land, adding, “You
say foreigners will purchase shops and homes, but then give the Cabinet
the right to allow them to buy pieces of property as large as 30
hectares.”
Minister dismisses claims:
Public
Works Minister Faruk Özak said in his address that as of April 15, 2005,
foreigners had been sold 25,307 hectares of land, of which 21,160
hectares was purchased by Syrians prior to 1939. He said between 2003
and 2005, around 1,000 hectares was sold.
He said
in a law passed in 1934, foreigners were allowed to purchase properties
as large as 27 hectares, adding: “We decreased this to 2.7 hectares and
gave the Cabinet the right to increase the limit to 30. Do you have any
objections to that?”
He said
the principle of reciprocity between countries was not based on the
amount of land sold but rather on legal limitations, asking: “If a
citizen of Turkey bought 100,000 homes in Germany, will we be bound to
sell 100,000 to a German national? This is not the principle of
reciprocity.”
AKP
deputy from Antalya Fikret Badazlı dismissed the CHP claims that
“nation's lands are being sold to foreigners,” adding, “If anything like
what the CHP fears happens, I will be the first to put on a uniform.”
The law
will be retroactive to July 26, 2005.
Additional info:
http://www.turkisheconomy.org.uk/buying_property.html#
December 21, 2005
Bill on real estate sale to foreigners
accepted at the Turkish Parliament.
The Turkish
parliamentary justice commission on Tuesday adopted the draft bill to
pave the way for the sale of lands in Turkey to foreigners.
Despite opposition from the military,
the bill was accepted with one change which nullified the articles
allowing sale of military, security zones and rural areas without
zoning schemes to foreigners.
Nationalist circles and the military
strongly oppose the selling of property to foreigners, citing
security concerns.
In March, the Turkish Constitutional
Court cancelled a previous bill that authorized property sales to
foreigners under some circumstances.
The bill permits foreigners to buy
up to 25,000 square meters of real estate and the figure may be
increased to 300,000 square meters by cabinet approval.
More details to follow
Foreign land ownership bill in
Parliament
Tuesday, November 15, 2005
ANKARA - TDN Parliament Bureau
Foreigners will now be able to purchase
property for business purposes, within specific legal limitations,
not exceeding 2.5 hectares in total size.
A bill to this effect was amended in
accordance with a Constitutional Court decision to annul an article
of the Property Law.
According to the bill, land
purchased by foreigners can be increased by up to 30 hectares with
government permission.
Foreign companies will also be able
to utilize the same rights, unlike foreign associations, groups,
communities and foundations.
The sale of property to foreigners
will be based on the principle of reciprocity, depending on
bilateral agreements. The lands owned by citizens of countries that
do not have such an agreement with Turkey will be sold, and the
proceeds will be given to their legal beneficiaries upon their
death.
The sale of land considered to
be of strategic value, land within military zones and protected
areas will be conducted by the government upon the application of
the relevant department.
The Finance Ministry will be
responsible for deciding whether the land sold to foreigners is used
in accordance with the law and if not, the ministry will sell the
land and give the proceeds to the previous owners.
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