Posted on 26 January 2012
The Turkish government has just finished drafting a new bill to further open up the property market to foreign buyers, as well as making purchases easier for foreigners.
The most important thing in the bill is that it is set to end the reciprocity requirement on foreign purchases, thereby allowing nationals from any country in the world to buy in Turkey. Currently nationals from 89 countries which do not allow Turks to buy, cannot buy in Turkey. If the bill is passed experts expect buyers from wealthy Arab states to flood into Turkey. They believe that this will result in foreigners being responsible for 20% of all property purchases.
The bill, which is being discussed this week in Parliament would also allow foreigners to buy anywhere in Turkey and to buy up to 30 hectares, up from the previous 2.5 hectare limit. While foreigners will be able to buy more, anyone wanting to buy over 30 hectares will need to have a planned development for the land.
This is potentially another legislative master stroke by Turkey. The Arab Spring has massively increased the popularity of Turkey as a destination for Arab tourists. Of course the uprisings also came at an opportune time for Turkey, as it had just signed visa free agreements with many of the countries involved. So now, as Arabs pour in to take Turkish holidays, allowing them to buy property will undoubtedly lead to a surge in sales in the coming years.