Turkey property is currently among the most popular overseas property destinations in the world. Here are some of the big events potential property buyers should be watching out for this year.
Most potential property buyers will have heard about the new law. For those that haven't; the Turkish parliament is currently considering a new Bill, which would drop the reciprocity from the law governing foreign property purchases. Currently only people from countries that allow Turks to buy can buy in Turkey, but if the new law is passed foreigners from all countries will be allowed to buy.
This could obviously have a big impact on property sales in Turkey, which could push up prices, especially if buyers from Arab countries currently disallowed come in the numbers anticipated.
The new law will also allow foreigners to buy more; currently foreigners can only buy up to 2.5 hectares before they need special permissions, the new law would extend this to 30 hectares.
The Turkish economy was the fastest growing economy in Europe and the OECD last year, and has been growing exceptionally fast for the last 2 years. With the global economy continuing to suffer lagging effects of the crisis, such as the US housing crisis and sluggish growth and the European sovereign debt crisis and sluggish growth, the Turkish economy is expected to slow this year. Not least because the government wants it to slow, while it focuses on shoring it up at its current progress.
As the Turkish economy slows it is likely that the Lira will weaken. Thus, potential buyers could potentially save themselves a packet by watching currencies and making their transfer at the right time.
However, as is always the case with these things, it is equally possible that an increase in FDI this year will lead to a stronger lira.
Turkey currently has a strong tourism sector, which grew strongly during the crisis and has since accelerated. This makes it very attractive to international airlines, which still have a comparatively low presence in the country (compared to say Spain for example). We have seen many new flights in the last few years, and this will continue in 2012.
On top of that the Gazipasa airport officially opened last year, and is currently widening its coverage of international flights. This will bring new flights as well, possibly even some new British routes.
The government will also continue to press on its visa-free neighbourhood program, as well as trying to convince the EU to allow it into the Shengen visa free program. So expect more visa-free deals this year.