Tag: property

  • Could Turkey Be the Next Eastern Europe?

    Could Turkey Be the Next Eastern Europe?

    Property booms aren’t a new thing. But between 2000 and 2008 we can honestly say that we saw the first overseas property boom, a boom in people buying foreign property. If you were to pick an epicentre for the explosion Eastern Europe would definitely make the short-list. You would have to have been living under a stone between 2000 and 2008 to have missed the massive explosion of the Eastern European emerging markets onto the overseas property scene.

    This was driven by EU accession, as in 2004 Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia, and Slovenia all acceded to the EU and onto the radars of property investors, followed by Bulgaria and Romania in 2007. But it was also fuelled by the mass-adoption of the internet, which made the meteoric emergence of these markets global news to potential property buyers. It quickly became common-knowledge that investing in emerging market property was the in-thing, as at such low prices bricks-and-mortar investments couldn’t possibly fail.

    In 2004 the Estonian housing market was booming, not the first housing market boom in the world, but for the first time casual armchair investors could watch it unfold.

    Brits had been buying overseas property for decades, but it was retirement and lifestyle choices as they bought far-from-cheap villas and luxury properties on the Mediterranean coast. Indeed, for years Brits’ idea of overseas property investment was buying a Spanish villa as a holiday home and hoping that it would also turn out to be a good investment. But as these new countries came into the EU Brits were exposed to property at incredibly low prices and with a strong potential for growth as EU accession boosted already growing economies.

    Brits and others from around the world made big bucks investing in emerging market property, especially in Czech Republic, Estonia, Poland, and to a lesser extent, Lithuania. In these countries investors often saw capital appreciation of up to and over 30% per year. The same happened when Bulgaria and Romania joined in 2007, in the former more than the latter because of its popular ski resorts.

    Turkey isn’t looking like acceding to the EU any time soon and if its property prices were growing at anywhere near 30% per annum in the current climate people would be running for the hills and I certainly wouldn’t be writing about it in an article like this. But the world has changed. For a start EU accession could be called a curse rather than a blessing in the EU’s current state, and secondly investors have a totally different outlook on what makes a good investment. During the boom investors were chasing big capital growth, but since the crash slow and steady wins the race. For that reason, along with a whole host of related reasons Turkey looks like being the next Eastern Europe.

    The next Estonia. Estonia wasn’t a dull market that was lucky to get into the EU, which caused a housing boom. Like the others Estonia got into the EU because it was a strong and vibrant emerging market full of potential, and its housing market was booming. In fact, according to the Global Property Guide the Estonian housing market was in a constant boom between 2000 and 2007.

    Before the financial crisis the Turkish economy had been growing by around 6% per annum since the AK Party took power in 2002, and its property market was doing OK with lifestyle buyers, but since the crash it has burst onto the scene as one of the hottest property markets in the world — in this respect the crisis has done Turkey a favour.

    The AK Party was elected on a wave of discontent as Turkey endured the latest in a long line of recessions in the boom-bust status qua. Military involvement in government was seen as a big part of the problem, and the AK Party promised to stop all that. As well as this they did things like increasing foreign exchange reserves and putting an office of the central bank in all major bank branches. Thanks to these steps the Turkish economy endured only a short recession during the financial crisis and the banking system not only stayed intact but emerged as one of the best in the smouldering-ash-world that remained.

    Since the recession ended in Q4 2009 it has grown in double digits year on year in several quarters, seen the second fastest growth in the world once, become the fastest growing economy in the EU in 2011, and generally one of the most vibrant and promising emerging markets in the world. This puts it on a par with any of the Eastern European markets as they headed into their property booms. However, they could boast potential 30% capital growth.

    Since emerging strongly from the financial crisis Turkish property prices have been growing at an average of 10% per year for the last 2 years according to the REIDIN/GYODER/Garanti Bank index. Another reason why the banking system not only survived but endured and prospered is because of its small mortgage market and therefore small exposure to the sub-prime whoopsie. Since the crash the Turkish mortgage market has been growing at 20-25 per cent per year according to central bank data.

    Today’s property investor doesn’t want scintillating growth, but combine the metrics above with Turkey’s strong employment and population growth, and you have a recipe investors can really sink their teeth into.

    Even holiday home investors aren’t losing out. During the Eastern Europe boom private casual foreign investors were almost all holiday home investors; buying holiday homes with the potential to make an income from renting them out to like-minded holidaymakers. Turkish tourism went from 9.75 million in 1998 to 26.3 million in 2008 and continued to grow even during the financial crisis, taking visitor numbers to 31.4 million in 2011. So there is plenty of growing demand in holiday hotspots for holiday home investors to find great opportunities as well.

    The AK Party has also given Turkey one thing surpassing any of the Eastern European markets of the past, economic stability. The party has paid down public debt from 74% of GDP in 2002 to just over 30% and IMF debt from $23.5 billion to just $5.5 billion as of 2011 according to Erdogan. Thanks to this and the party’s proven record of fiscal responsibility the Turkish economy is also one of the most stable in the world.

    Estonia and the Czech Republic were two incredibly popular markets from 2000-2005, and then you had Bulgaria and Ukraine from 2002-2008. In years to come Turkey will be called one of the hottest markets in the world between 2009 and 2018. What is it that they say about early bird and worm… It’s not too late for Turkey if you catch my drift.

     

    Written by Liam Bailey on behalf of Turkey property developer Wise Move Homes, the developer behind the nearing-completion 4-phaseAltinkum property development Apollon Holiday Village.

  • Foreign Residential Property: Turkey or Montenegro?

    Foreign Residential Property: Turkey or Montenegro?

    Business And Politics News

    Foreign Residential Property: Turkey or Montenegro?

    09 February 05:04 PM

    turkeyu_1309296707

    These days more and more investors tend to investors in foreign residential property. Wealthy people purchase apartments, villas and townhouses in Spain , Great Britain, Switzerland etc.

    At the same time, those people who cannot afford to buy expensive homes, strive to invest in the residential property of other countries. Turkey and Montenegro are especially popular with them.

    Turkey and Montenegro

    Most foreign investors know little about those countries and their housing markets. The key fact is that both the countries are tourist centers with high-quality services and relatively low prices.

    Montenegro has an outlet to the Adriatic sea, which is colder but much cleaner than the Mediterranean and Black seas. Montenegro offers tourists a wide range of leisure opportunities from sunbathing on the beach and swimming in the sea to skiing and snowboarding in the mountains. Beautiful nature, fresh air low prices and high-quality services make Montenegro a perfect place for vacation. Loyal legislation is another factor speaking in favor of investing in Montenegro .

    However, there is a certain percent of uncertified residential property left after the disintegration of Yugoslavia.

    As for Turkey, there are no such legal issues. Turkey can boast a well-developed and efficient cadastral system. The local legislation defends an individual’s right if he/she has a TAPU – the certificate of property rights. Moreover, it is impossible to purchase residential property in Turkey without the Turkish Ministry of Defense as there are special zones in Turkey where property sales contradict the country’s military doctrine.

    It should be noted that most foreign investors buy Turkish property to make profits. The local housing market grows by 10% a year on average, which means you can make decent profits as the market is still undervalued.

    On the other hand, the territory of Turkey is relatively big. So, it is necessary to examine closely the current situation in the local housing market of any region where you want to purchase residential property. The closer the area is to the borders with Syria, Iraq or Iran and the farther it is from the sea, the lower the housing prices in this area are.

    Turkey, Antalya. An apartment – €70 000, 75 square meters — (€933 /m²). 100 meters to the sea.

    Montenegro is another story. Its territory is relatively small. However, the transportation and tourist infrastructure is highly developed and is being improved.

    However, there are problems with constructing new buildings in coastal areas. So, it is better to purchase ready-made housing units or those that are under construction.

    Montenegro , Бар, Dobra Voda. A villa – €250 000. 170 square meters.

    Expenses

    When buying residential property in Montenegro , you will have to pay a 3% budget tax and an annual maintenance tax – form 0.08% to 0.8%. In turkey, you will have to pay a 4% tax plus 0.01% a year per maintenance.

    Obviously, the cost of a certain housing unit depends on several factors, including the location, living space, infrastructure and others. A square meter of residential property in Montenegro and turkey starts from €500. However, the cost of most housing units available for sale is within the range of €1.500-€3.500 per square meter.

    Experts recommend buying residential property in Montenegro if you want to lead a calm and slow-paced lifestyle. However, if you are planning to purchase foreign residential property for investment or commercial purposes, Turkey is a better option.

    You are free to discuss this article here: forum for traders and investors

    via Market Leader : News :: Foreign Residential Property: Turkey or Montenegro?.

  • Armenia Should Retaliate Against Turkish Ban on Buying Real Estate

    Armenia Should Retaliate Against Turkish Ban on Buying Real Estate

    Sassunian son resim

    Turkey’s Cabinet is in the process of finalizing a law adopted by Parliament last May which bans citizens of six countries — Armenia, Cuba, Nigeria, North Korea, Syria and Yemen — from buying real estate in Turkey, according to Sabah newspaper. No reason was given for blacklisting these countries.

    The law demonstrates the persistent hostility of Turkish officials, contradicting their sugarcoated announcements about wanting to normalize relations with Armenia. After reviewing the restriction placed on its citizens, the Armenian Parliament should consider adopting retaliatory measures against citizens of Turkey interested in purchasing Armenian properties.

    The proposed Turkish law is doubly provocative since it places a ban on citizens of Armenia, while expanding from 53 to 129 the list of countries authorized to invest in Turkey, and allows citizens of another 52 countries to invest with some limitations. The new law even permits nationals whose governments ban Turkish investments to purchase property in Turkey. Relaxing restrictions on foreign investments in the Turkish real estate market would bring an additional $300 billion of revenue over the next 10 years, Sabah wrote.

    Here are the restrictions that the new law places on certain countries: Citizens of China, Denmark, East Timor, Fiji and Israel may only purchase a single residence in Turkey. Jordanians, on the other hand, may purchase two houses and one place of business. Russians and Ukrainians may buy real estate anywhere in Turkey, except on the Black Sea coast, while Georgians cannot buy real estate in the coastal and border regions. Greek citizens are not permitted to purchase property near the Aegean Sea and the border areas, except for those who are of Turkish origin. Citizens of Afghanistan, Egypt, Latvia, Morocco and some other African countries are not allowed to buy agricultural land, vineyards or orchards. Albanians can purchase a residence or a business, but not land.

    Citizens of another 16 countries, including Iran, Palestine and India, need permission from the Ministry of Interior before acquiring real estate in Turkey. Iraqis, on the other hand, need a permit issued by the Turkish Foreign Ministry. A foreign individual or firm cannot purchase more than 10% of the land in a particular district or a total of 30 hectares in all of Turkey. The law also bans foreigners from purchasing or leasing real estate in military and security zones.

    Among the 129 countries allowed to purchase property in Turkey without conditions or restrictions are: Azerbaijan, Bangladesh, Belarus, Brunei, Kazakhstan, Kosovo, Kuwait, Kyrgyzstan, Lebanon, Libya, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Sudan, Tajikistan, Turkmenistan, United Arab Emirates, and Uzbekistan.

    What steps Armenia should take in retaliation for this new Turkish law? Article 31 of the constitution of the Republic of Armenia states: “foreign citizens and stateless persons shall not enjoy the right to land ownership except for cases prescribed by the law.” According to a report submitted by the Armenian government to the World Trade Organization (WTO): “foreigners are allowed to use land through lease contracts with an Armenian counterpart. Furthermore, foreigners have the right to own real estate properties built on Armenian land, and to exploit renewable and non-renewable natural resources on the basis of concession contracts granted by the Government.” Armenia’s report to the WTO also stated that “the legislation grants the Government the power to limit and prohibit foreign investment for national security concerns.”

    It would be important to know the number of foreign individuals and companies that lease land or own buildings and businesses in Armenia, their names, citizenship, locations, sizes, and market value. How many of these leases are held by Turkish citizens? Raising these questions is relevant because in the past Armenian officials have stated that there is no need to restrict foreigners who are interested in investing in Armenian real estate.

    While it is understandable that Armenia would encourage foreign investments, it is not known if certain sensitive border areas are exempt from leasing to foreigners such as Azeris and Turks for national security reasons. There are also lands that contain strategic reserves of certain precious metals and minerals. They too should not be leased to foreigners who are citizens of hostile nations.

    In retaliation for the new Turkish law banning citizens of Armenia from purchasing real estate in Turkey, Armenia should immediately pass a law banning Turkish citizens from all purchases or leases of real estate. No exceptions should be made!

    Armenians should not be too worried that they cannot buy land in Turkey. Hopefully, they will get their lands back someday without paying for it!

  • Turkish delight as Arab numbers soar

    Turkish delight as Arab numbers soar

    Turkish delight as Arab numbers soar

    Rory Jones

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    Popular Turkish soap operas, shopping festivals and the chance to invest in propertyare driving a huge increase in the number of Arab tourists visiting Turkey.

    Construction cranes stand among skyscrapers in Istanbul. Estate agents in Turkey are now receiving inquiries from Arab nationals keen to buy property in the country. Kerem Uzel / Bloomberg News

    ■ Turks make buying land easier, sparking Arab interest

    ■ Turkey a booming economy on course to lose its shine

    ■ Turkish leaders plan a curtain call for theatre funding

    Topic

    Turkey

    In the first four months of the year, the number of visitors to Turkey from the UAE rose 86 per cent from the same period last year, according to the Turkish culture and tourism office.

    Fifty-four per cent more Kuwaitis visited, while the number of Qataris visiting more than doubled.

    Sedat Gönüllüoglu the Turkish tourism and culture office’s attaché in the UAE, said a number of changes had sparked the influx of Arab tourists.

    “We have good relationships with those countries,” he said. “The shopping is popular and there’s been a response to the Arab Spring. Lots of people who would have gone to Egypt, Syria and Libya have gone somewhere else.”

    Turkey is launching its first shopping festival in Ankara, the capital, next month and the second Istanbul Shopping Festival also opens next month.

    The country hopes to attract more visitors from the Gulf seeking discounts, and those that regularly watch popular TV shows, such as Noor, which are broadcast in the Gulf.

    “We have the same culture and religion, so they do not feel like strangers in Turkey. Nobody has a prejudice about them. We see the Arabs as friends,” said Mr Gönüllüoglu.

    Shoppers spent 8 billion Turkish lira (Dh16bn) in 40 days last year at the Istanbul Shopping Festival, and the organisers hope to achieve sales of 7bn lira this year in just 21 days. The festival hosted 5 million visitors last year and this year will run from June 9 to 29.

    Rotana Hotels, Viceroy Hotel Group and Jumeirah Group have announced hotel projects in Turkey in recent months. Jumeirah said it would operate the historic Pera Palace Hotel in Istanbul, a property that has catered to tourists travelling on the Orient Express from Paris.

    Mr Gönüllüoglu said Turkey was aiming to position Ankara as a transit point for tourists travelling to other parts of the country. “Ankara is just like Istanbul but there is no sea,” he said. “Of course, Istanbul is the main place because most of the direct flights go to Istanbul.”

    Tourism in the country has been helped by recent changes to property laws that now allow land ownership by citizens of Gulf countries. Estate agents have reported a sharp increase in the number of Arab nationals inquiring about buying in Turkey after the changes in the law.

    via Turkish delight as Arab numbers soar – The National.

  • Torunlar Sees $20 Billion Property Sales to Foreigners by 2016

    Torunlar Sees $20 Billion Property Sales to Foreigners by 2016

    Purchases of Turkish land and homes by foreigners will probably rise by $20 billion over the next four years after the government eased restrictions, according to the country’s second-biggest real estate investment trust.

    The increase will mainly come from Persian Gulf and Central Asian countries, Torunlar Gayrimenkul Yatirim Ortakligi AS (TRGYO), said today in a statement. The company hired Sotheby’s (BID) International Realty Inc. to sell properties in its Mall of Istanbul development, it said.

    The government last week abolished a rule that barred Turkish property purchases by citizens of countries where Turks aren’t allowed to buy real estate. Foreigners bought as much as $2.5 billion worth of property annually in Turkey before the law was changed, Torunlar Chairman Aziz Torun said in the statement.

    Torun singled out Azerbaijan, Iran, Kazakhstan, Qatar and Saudi Arabia as countries that will drive the rising demand.

    The Mall of Istanbul complex, which includes 32,000 square meters (344,000 square feet) of office space, 1,114 homes, a 300-room hotel and a shopping mall will be completed in November 2013, the company said in the statement. The project was built with an investment of $370 million.

    Torunlar fell 0.7 percent to 5.4 liras in Istanbul trading as of 3:57 pm.

    via Torunlar Sees $20 Billion Property Sales to Foreigners by 2016 – Bloomberg.

  • Turkey Adopts Legislation Raising Extent Of Land Foreigners Can Buy

    Turkey Adopts Legislation Raising Extent Of Land Foreigners Can Buy

    (RTTNews) – The Turkish Parliament on Thursday passed a bill raising the limit from 2.5 to 30 hectares land that foreigners can buy in Turkey.

    turkey property

    The new law, which was discussed and approved in the Parliament, amends title deed laws and changes the current reciprocity requirement, which dictates that citizens of 89 countries currently do not have the right to own property in Turkey because Turkish nationals are not entitled to own property in those countries. Among these countries are Russia, the Gulf States and the Turkic republics of Central Asia.

    Under provisions of the new legislation, foreign buyers have to provide plans for the construction of a house on the land before they make the purchase. Foreign individuals and businesses will be required to submit their project proposals for the vacant lands to the Ministry of Environment & Urban Planning within two years. If the Ministry approves the project, it will be sent to the local land registry office, which will then monitor it.

    Opposition parties put up a fierce resistance to the bill, criticizing the ruling Justice and Development Party (AK Party) for obeying orders coming from large businesses such as the construction sector. The final decision on the articles of the law will be made by the Cabinet, which will be able to determine which of the 89 countries will be added to the list of countries whose citizens are able to purchase property. The Cabinet will also be able to increase the 30-hectare limit on property purchase to 60 hectares as it deems acceptable.

    Furthermore, the law allows for the purchase of up to ten percent of the total area of towns densely populated by foreigners. The Cabinet will be able to set limits and bans on the law depending on the country of origin and the number, type and qualifications of foreign businesses which have property in Turkey.

    Only individuals and private businesses will be allowed to make land purchases, meaning entities such as public institutions, state-owned businesses and the like belonging to foreign countries will be barred from doing so, Turkish media reports said.

    Planning Minister Erdogan Bayraktar defended the law, noting the importance of its contribution to the tourism sector and foreign investment. “The law will bring more investors, more tourists and more capital to the country,” he said.

    by RTT Staff Writer

    via Turkey Adopts Legislation Raising Extent Of Land Foreigners Can Buy.