Posted on 08 August 2012
What a historic day; in years to come they’ll ask, where were you when the law came into effect. Nah, that is a bit of an exaggeration, but this is still huge news for the Turkish property market.
The Bill to end reciprocity was pushed through parliament and approved earlier this year. However, the bill was not a blanket end to reciprocity’s hindrance on the market, and since the bill was passed we have been waiting for the government to release an amended list of countries that would be allowed to buy in Turkey. That amended list came into effect August 6 and there is already talk of the first sales going ahead.
Before the bill was passed Turkish property law allowed only nationals from countries where Turks could buy to buy property in Turkey. Unfortunately this meant that nationals from the Arab states were shut out, with all their wealth, all their love for Turkey and ultimately their demand to buy Turkish property by the bucket load.
As far as I am aware the amended list has not yet been made public but it is widely expected to contain the gulf Arab states. Alone, it is expected that incoming Arab buyers will add 2 billion USD in revenue to an already bustling trade. The bill has already had a positive effect on the market, because foreign buyers purchased a record-breaking amount of property in Turkey in May, as European investors bought up properties to resell to the newly-allowed nationalities.