Figures released from the country’s Ministry of Environment and Urban Planning show that foreign investments in the Turkish real estate sector totalled 7,145 in the first half of the year, compared with 3,107 a year earlier. The buyers came from over 88 countries and the scrapping of the reciprocity law last year, which opened the country up to investment from the Middle East, Russia and Asia, along with the extension of residential permits is being explained as the main factor behind this FDI boom. While a huge rise in buyers came from the Middle East; Russians in fact accounted for the largest number of foreign buyers with sales completed on 1,388 properties, followed by 720 sales to British buyers and 635 to buyers from Germany. Turkish real estate purchases by foreigners were worth $2.6 billion in 2012, but the government has set a target of $3 billion for this year as a whole, after the first quarter of 2013 saw foreign purchases total at $720 million. Following this upsurge in FDI it is no surprise that Turkey has been named as the second most attractive property market in Europe in a study by Ernst and Young named, ‘The European Real Assets Investment Trend Indicator 2013.’ Tourism: Another Factor behind the Investment Boom Although the abolishment of the reciprocity law is most definitely the main factor behind this boom, an upsurge in tourism is also being explained by experts as another reason behind this major increase in FDI. A recent study by the United Nations World Tourism Organisation confirmed Turkey as the 6th most popular tourist destination last year, receiving over 35.7 million visitors who pumped £25.7 million into the country’s economy, with flights increasing by 10% to Turkey. 2013 is also proving to be a bumper year; let’s take the popular area of Alanya as a case study for the booming nation; this region has seen an upscale in the number of international flights arriving at the airport at Gazipasa, in fact they have risen so much that the first six months of this year has seen as many flight arrivals, as the whole of 2012, according to an airport spokesman. A host of carriers including Thomas Cook, Danish carrier Jet-Time and Lithuanian Airlines have all launched new routes to this airport since June, as an increasing number of tourists plump for the area as a holiday destination. The second quarter of 2013 has also seen a surge in tourist spending throughout the whole of Turkey, with an income of $8.6 billion being received by Turkey’s tourism industry, nearly double the amount of income from the first quarter, where the tourist industry reported an income of $4.9million, according to statistics released by the Turkish Statistical Industry. We, as an investment firm have just launched our latest investment video which guides investors through the simple purchase process in Turkey and, considering the current boom the country is experiencing, where east meets west, we see this as the perfect time to watch it>>> Article adapted from Property Wire and Tourism-Review
Surge in Foreign Investment and Tourism Results in Bumper Year for Turkey
Sales to overseas buyers in Turkey have more than doubled in the first six months of 2013 compared with the same period in 2012.