Nationals of Middle East, Iran, GCC, Azerbaijan, Belarus, Kazakhstan, Kyrgzstan, Russia and other Ex-Soviet Republics, South America, Australia and several other countries are now able to purchase real estate in Turkey following the approval of the long awaited reciprocity law by the Turkish President.
The current law in existance only allowed nationals of countries, where there was a reciprocity agreement in place with Turkey for real estate acquisitions. Such countries included EU countries, Canada, USA. However, nationals of countries without reciprocity with Turkey could not register title deeds (TAPU) in Turkey. Property acquisitions by nationals of countries without reciprocity had to be via Turkish registered limited companies, which was a costly exercise with some potential tax implications that deterred many would be buyers.
The new law, which allows non-reciprocal country citizens to acquire freehold title deeds to their names, will soon be published in the official gazette.
It is expected that foreign direct investment in Turkey will now reach record levels with a large number of Middle East, GCC and Ex-Soviet investors eying up the lucrative Turkish real estate market, which has been steadily delivering strong capital growth year after year. Coupled with the strength of Turkish economy and healthy projections for the next 5-10 years, it is inevitable that the new law will cause yet another flood of foreign funds in to Turkey. Interest from Middle East and GCC countries are at an all time high. With trouble still looming in most of the Middle East and slow economic recovery of the Euro zone and US, a healthy Turkish market is prime source of investment now.
The timing of this law could not have been any better for the Turkish economy, yet another boost, yet another move to divert funds into Turkey. One should review this development in line with last week"s change of law in the size of land that foreign nationals can purchase in Turkey. Foreign nationals can now purchase up to 30 hectares of land in Turkey and it is expected that this figure will soon go up to 60 hectares.