Posted on 16 February 2013
Increased competition from foreign sellers will be a feature of the 2013 Turkish property market, as owners are continually hammered by the depression of the Euro and global financial crisis, the head of a Turkish real estate group has told the Hürriyet Daily News.
“I expect a boost in real estate sales to foreigners thanks to the recent reciprocity code adjustment. But Europeans who already own properties in Turkey will try to sell-off their properties due to the European crisis,” the Vice Chaiman of Çağdaş Group Burak Çağdaş said.
At the same time recent changes to the property tax system could also be a factor in the market, he added.
The changes increased value added tax on luxury city properties, but there is confusion as to what constitutes a luxury property. Before the licensing process starts this confusion should be eliminated, Çağdaş. said, adding that foreigners set their preferences while choosing houses or hotels based on the price, size and privacy.
The winners of the changes in the sector will be the prestigious housing projects, he said. The Group has been attracting many foreigners, particularly Russians, with its recent agreement with Turkish hotel chain Swissotel. If they want, the property owners of the groups’ houses will be able to rent their houses to Swissotel, which will then be able to rent to other customers.