Turkey is set to become more popular amongst investors, especially as it recently opened up its property sector for foreign investment. According to a report by Jones Lang LaSalle, this new law is especially expected to affect investors from the Gulf countries who are looking to buy residential property, but isn’t expected to have any significant impact on commercial property.
Nationals from the Gulf countries will be able to own holiday homes and properties on the freehold basis, and this should encourage investment flow from the Gulf region.
In addition Moody’s recently upgraded Turkey‘s credit rating to Baa1 which is only one level below investment grade. The Turkish economy grew at a rate of 7.5% last year, second only to China, and it’s expected that large numbers of investors from GCC countries will take advantage of the Turkish property market, at least in the short term.
Turkey has already attracted $2.5 billion in foreign direct investment into property, and this is predicted to grow to $5 billion in the medium-term and to $10 billion annually in the long-term. Turkey is also anticipating seeing more institutional investors in the future. This is because the country needs huge investment into housing its population of 70 million.
The average age within the country is just 29 years old, and more than half of the population is below the age of 35. Investment from Europe is declining due to the current economic crisis, and this has prompted Turkey to look elsewhere for funding. Property prices within the country are still quite low, giving investors the possibility of good yields.