Foreign investment is welcome in real estate
Posted by meb at April 27th, 2007
Speaking at the real estate summit in Istanbul, heads of economical institutions agreed that foreign capital should be encouraged
Istanbul Chamber of Commerce (İTO) Chairman Murat Yalçıntaş voiced his criticism of certain circles that view real estate sales to foreigners unfavorably. Speaking during the Real Estate Summit 7, organized by the Association of Turkish Real Estate Investment Companies (GYODER) in Istanbul’s Swissotel, Yalçıntaş said Turkey should open its doors to foreign investors. Yalçıntaş warned that unless Turkey is able to bring in foreign capital with real estate sales, it would have to borrow the amount. He gave Spain as an example of how to make it convenient for foreigners to invest in real estate in their country. Yalçıntaş added, “This country has made it easier for foreigners to acquire real estate. We, too, can make progress in this way or by making it even more convenient. Real estate sales to foreigners should not be prevented because Turkey needs the foreign capital.”
Real estate prices will rise:
Saying that Istanbul has become Turkey’s center in many aspects, Yalçıntaş said the city has been experiencing many problems due to domestic emigration to this city, adding, “When Istanbul becomes more crowded, real estate prices are affected. Prices have been increasing steadily in the past three years.”
Turkey has become an international real estate market:
GYODER Chairman Bekir Cumurcu said Turkey’s real estate sector has developed into an international market in the past five years. Emphasizing that 2007 will prove to be a good year, Cumurcu said they expected foreign investment to increase to $30 billion this year from $20 billion in 2006. Cumurcu said the government was responsible for a more just distribution of income, adding, “The housing needs of lower-income groups should be met by making a building development scheme for public land.” He said lower-income groups could become homeowners with support from the state or with tax incentives.
Foreigners now come for real estate:
Istanbul Stock Exchange (İMKB) President Osman Birsen said foreigners hold roughly $42 billion worth of assets in the Turkish stock exchange. Saying that this is a forerunner of foreign investment in real estate and other fields, Birsen added, “Foreign investors first go for liquid sectors, where they can earn quick returns. Then they enter sectors such as real estate. These developments are very important for the economy.” Birsen said the sector could make even more of an advance with new models for financing.
source: Turkish Daily News
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