Turkey Financial News

Posted by meb at November 17th, 2008

The government is taking steps to make it easier for the citizens of Gulf states and Turkic republics to buy real estate in Turkey by taking into consideration whether or not Turkish citizens are allowed to invest in real estate in those countries.

After making it possible for Turkish citizens abroad to bring money back into Turkey under the Varlık Barışı tax regulation, the government is now looking for ways to make it easier for citizens of the Gulf states and Turkic republics to buy real estate in Turkey.

The Varlık Barışı code made it easier for Turkish citizens abroad to invest in Turkish assets by lowering and under certain circumstances eliminating the heavy taxes levied on foreign holdings coming into the country. (more…)

Posted by meb at October 29th, 2008

The crisis that started in the United States and has spread globally has started to affect Turkey as well. In these difficult times, shopkeepers and tradesmen are looking to stay afloat, which may mean letting go of some of their real estate holdings.

These conditions provide opportunities for both investors and people who need real estate, commented Retürk Real Estate Board President Aşkın Çınar. “There are a lot of people who sell during a crisis. Anyone who is about to hit bottom sells,” said Çınar.

Çınar, using the expression “crisis equals opportunity,” said now is a good investment time for people looking for real estate because the biggest opportunities take place during a crisis. Real estate prices drop when there is a crisis and there is room for prices in Istanbul to drop even lower, said Çınar. You might never find opportunities like this again. (more…)

Posted by meb at October 25th, 2008

The rent and the prices of the flats in one of Istanbul’s oldest neighborhoods, Beyoglu, continues to rise despite the global financial crisis due to urban renewal plan undertaken in the region, Hurriyet daily reported.

Around 3,500 buildings have been restored and the local municipality has started a rigorous urban renewal plan called the Beautiful Beyoglu Project, the report said.

Restored buildings in Istanbul’s hip Beyoglu neighborhood have broken sales records despite the global crisis, thanks to the area’s historical importance and central location. (more…)

Posted by meb at October 24th, 2008

The Construction Cost Index for the third quarter of 2008 has declined by 7.56 percent compared to the previous quarter of this year, reported the Turkish Statistical Institute, or TUİK, on its Web site. However, the level has increased by 12.33 percent compared to the last quarter of last year and risen by 12.92 percent compared to the third quarter of that year. In addition, the Construction Cost Index has experimented with a 13.19 percent hike compared to the averages of the four quarters of the previous year, according to TUİK.

Meanwhile, the Labor Index concerning the third quarter of 2008 has experienced a 3.04 percent increase compared to the previous quarter of the same year, while the Construction Materials Price Index has decreased by 10.28 percent during the same time span. (more…)

Posted by meb at September 23rd, 2008

The Turkish real estate sector will experience a period of stagnation due to the global financial turmoil stemming from the collapse of the US subprime mortgage market, a real estate sector representative has predicted.

Association of Real Estate Investment Companies (GYODER) President Bekir Cumurcu told the Anatolia news agency that he expects a slowdown in the Turkish real estate sector to begin early next year and persist until 2010.

Pointing to the unprecedented developments in global markets, Cumurcu said he does not anticipate a recovery in the short term. He noted that the real estate sector is among the most fragile sectors and that the global financial crisis therefore is having a much greater effect on it compared to other sectors. Stating that it will take time for the sector to bounce back from the negative impact of the crisis, he said the growth in the sector will start to decelerate in 2009. (more…)

Posted by meb at August 30th, 2008

Not being a member of the European Union, or EU, has not affected Turkey’s real estate market, reported an international property website citing a property expert.

Although Turkey is still on the waiting list to become a member of the EU the real estate market of the country has been booming already, said Liam Bailey, Property Wire’s global markets expert on propertyshowrooms.com.

One of the greatest advantages the market has is that prices remain “relatively low,” despite increasing by between 30 and 40 percent in the past two years, he said. An example of this is that a two-bedroom apartment in Dalaman, a small Mediterranean farming town situated between Marmaris and Fethiye, can be bought for as little as 40,000 pounds, he added. (more…)

Posted by meb at July 10th, 2008

News in the foreign press pertaining to Turkey’s real estate sector experienced a surge in the aftermath of the approval of a bill by Parliament on July 5 that regulates property sales to foreigners. The attention paid to Turkey’s real estate sector, which is characterized by low prices, has been increasing, wrote British newspaper The Times, adding that prices in the sector are expected to skyrocket if Turkey manages to join the European Union.

“It is possible to purchase a property on Turkish shores at a relatively low price of 35,000 sterling (pounds). Does this sound attractive to you?” wrote the paper. “A clever couple can buy a property with a little amount of deposit and with two credit cards. Credit-card companies provide the opportunity of zero interest rates for 15 months period for those with high credit rankings,” The Times wrote. (more…)

Posted by meb at July 5th, 2008

Parliament passed a bill late Thursday regulating property sales to foreigners after it was re-arranged bearing in mind the Constitutional Court’s annulment of previous legislation.

Foreigners and foreign foundations will be able to own up to 10 percent of land within a building scheme, according to the new amendment. In case of liquidation of foreign companies in Turkey, the legislation will apply certain limitations which will enable foreigners to buy land in strategic and important areas only through special permission. (more…)