Government of Turkey tunes laws to attract more FDI.
Repeals the ‘Law of Reciprocity’ act.
Foreign owners of Turkish property can now get their resident permits extended.
UAE buyers snap up Luxury residential projects in Turkey.
Luxury residential project ‘The Residences at Mandarin Oriental, Bodrum’ draws the attention of UAE buyers.
Astas Holding, the luxury Turkish real estate and hotel development pioneer, released its latest property investment figures for The Residences at Mandarin Oriental, Bodrum. The team reported a 50 percent overall sales increase since May 2012, when the Turkish Government passed the reciprocity law in parliament enabling foreigners to buy property in Turkey.
A total of 183 countries, including the UAE and all Gulf states can now acquire real estate and take advantage of the speculated 20 to 30 percent annual luxury property value increases in Turkey, due to the shortage of high-end developments in the country.
Astas Holding, which creates exclusive lifestyles for an elite clientele with sophisticated tastes and expectations, launched the sales of The Residences at Mandarin Oriental, Bodrum located in Göltürkbükü on the northern part of the Peninsula, in 2012.
The expectations of discerning investors from the Gulf region are being met by the quality, comfort and luxurious lifestyle at The Residences at the Mandarin Oriental, Bodrum, which will open early next year. Nearly 10 percent of sales have come from the UAE, highlighting the potential for the Gulf states to replace Paris and London in terms of total property investment in Turkey.
Government of Turkey tunes laws to attract FDI
In addition to the ending of the law of reciprocity, the development has benefited from further action taken by the Turkish government to attract Foreign Direct Investment. In April 2013, the Turkish government announced their plans for extension of the resident permits for foreign owners of property in Turkey, from three months to one year, with an extension guarantee.
Figures from the Environment and Urban Planning Ministry demonstrate the success of such initiatives to improve foreigners’ confidence in the Turkish market; in the last 12 months 14,599 foreign buyers have bought properties. In a similar pattern, Astas notes a 50 percent sales increase in the project since May 2012, the majority of which are attributed to overseas investment.
As well as beautiful scenery, a warm climate and a wealth of cultural, sporting and culinary attractions and the aforementioned government initiatives, the developers note that rising prices in ‘competitor’ Dubai have also contributed to increased Arab investment in second homes in Turkey. The overall appetite is also leading to the growing status of some areas as fashionable summer haunts, including Bodrum, where Gulf visitors are drawn by the pleasant year-round climate, the 60-km stretch of coastline with three private bays, and the backdrop of a landscaped hillside, surrounded by ancient olive groves and pine trees. Bodrum also offers a vibrant nightlife, award winning restaurants, prestigious marinas and PGA-rated golf courses, all within easy access of the new international terminal at Milas-Bodrum Airport.
Verdat Asci; “Turkish cities are soon expected to replace Paris and London in terms of property investments from the Gulf states as I expect the price of luxury property in Turkey to increase by 20 percent to 30 percent annually, due to a shortage of high-end developments in the country. Therefore, I believe that the Residences at the Mandarin Oriental, Bodrum will soon become one of the leading resort destinations in the Mediterranean for Arab nationals.” — Verdat Asci, Chairman of Astas Holding, commenting on the success of The Residences at Mandarin Oriental, Bodrum
As well as residential property investment, tourism to Turkey originating from the Middle East is experiencing phenomenal growth. According to official statistics of Turkish Ministry and Culture of Tourism, in February 2013 the numbers of tourists for the UAE increased by 65.7 percent, from Bahrain by 134.24 percent, from Kuwait by 89.82 percent and from Qatar by 110.34 percent year-on-year. In a similar vein, the Turkish Cultural and Information Attaché in Dubai anticipates a 65 percent increase in 2013, from the overall GCC region.