The economic crisis that has gripped most of the countries of the world has had a direct impact on the prices of real estate. In most of the countries, investors in the real estate sector have become so worried about the situation that they have pulled out their investments and are looking for other markets to invest their money into, which are relatively safe and are not unstable.
The most notable cases of this trend can be found in European countries that have by far been the hardest hit by the economical turmoil. However, there is one country in all of Europe that has remained relatively safe from the brunt of the economic crisis that has befallen on most of its neighbors. This country is Turkey, whose economy has withstood the challenges posed by this economical meltdown and the real estate in Turkey has even benefitted from it.
How has the Turkish Real Estate benefitted from this Situation?
With the real estate investors in other countries of Europe looking for a safe haven for investing their money, Turkey’s stable economy and its thriving real estate sector became a beacon for hope. The foreign investors took this opportunity to invest their money in buying Turkey property. However, the residence permit rules of Turkey prohibited them from remaining in the country for more than three months. This hurdle was soon identified by the Turkish government and they acted promptly by easing the residence and the visa rules. This allowed the foreign investors to spend more time in the country, thus providing them the opportunity to buy real estate properties in Turkey without any problems.
These steps of the Turkish government have paved the way for a barrage of foreign investment which has taken over the previous records in a matter of months and this trend is likely to go up in the near future as the economic turmoil continues in other parts of Europe.
The Role of Arabs in the Turkish Real Estate Business
Besides the European investors becoming interested in investing money in Turkey, the Arab investors too have found a liking for Turkey real estate of late. The Arab uprising has created a dynamic shift in the economy of the region and investors have started looking for countries where they can safely invest their money in. With most of the Arab countries having had uprisings, the Arab people have become liberated and their new found rights have prompted them to buy properties in foreign countries. In the beginning, the best market for them to buy properties was Dubai in the UAE. However, in a very short period of time, Turkey too has emerged as a major player in this economic activity. The relaxation of the residence permit and visa laws have encouraged companies in GCC Arab investors to buy real estate in Turkey. This has ensured even more foreign investment in the real estate sector of Turkey and the country is experiencing a real shift in its economy.
What the Turkish Real Estate Companies and Developers Think about this
The real estate companies and developers of Turkey are very excited to see the Turkish government providing them an opportunity to get investment from foreign investors. Most of the companies have gone on record and have praised the Turkish regime and their commitment to make the country’s economy a beacon of hope for all the people in the world. However, they want the government to further lower the restrictions that are applied on foreigners coming to the country. It is their suggestion that the stay period for the foreigners needs to the increased from only 3 months to at least 5 to 10 years. According to them, Turkey has a massive chance in the existing conditions to boost its economy and become an economical force as the Arab investors are taking keen interest in buying properties here. The proposed change in laws is going to help Turkey in alluring more investors to come here and buy properties bringing with them new opportunities of business as well.
Is the Investment Really Worth This Much?
The views of the Turkish developers are not that misguided as some people might think. The foreign investment is really proving to be a very valuable thing for the Turkish economy which is going through its golden periods these days. The numbers also back up their claim that many Arab investors buying property in Istanbul are willing to buy more if the rules are relaxed a bit further. According to reports, only in the month of May last year, the investment made in the Turkish real estate by foreign investors amounted to $1.1 billion which is four times the investment that was made in the whole year of 2011. The bulk of this investment came from the Arab and GCC countries and this is only the beginning of it. If the rules are eased up a bit further, there is every chance that the investors are going to start investing in the long term as well which would mean even greater investments.
What Lies Ahead
The reason why the Turkish government is a bit hesitant about increasing the period of stay of the foreigners is that in their eyes, the value of the Turkish citizenship is very high and they do not want to give it up any time soon. It is the view of the government that they are going to ease up the rules bit and bit only and are going to monitor how the investments come in. If the studies show that the investments in the real estate business are really increasing with the easing of the laws then there definitely will be changes made in the system and the Arab investors buying property in Istanbul are going to be provided Turkish citizenship. The current scenario looks set for Turkey’s real estate business to receive a lot of investment in the coming days if the laws are in fact bent that much that the investors are provided Turkish citizenship. This would provide the investors a lot of incentive and they would look to buy more properties in the country which would mean even more investment for this sector.