You may have heard many of your relatives or friends intend to visit Turkey and then find them after a while that they have bought a house in Istanbul or Trabzon. Why Istanbul? And why Trabzon? Are these two cities the best places to live and invest out of all the other 166 cities?
The fact may be that there is no better – or because they are the most famous cities in Turkey for the Arabs. In this article, however, we would like to provide you with more accurate details and comprehensive information provided by professional’s in the real estate sector in Turkey explaining why Arabs want to buy properties in these two cities more than others.
1. Overview of the real estate sector in Turkey
The Turkish real estate market is a vibrant and interactive market especially with the flexible laws and regulations which were issued specifically to develop the market into another investment level, and this is what already happened.
Turkey has moved into a new rank within the real estate investment ranks when the Turkish government allowed the foreign investors to own real estates in 2001 and developed it in 2012 by issuing a law abolishing the principle of reciprocity and allowing the citizens of 182 foreign countries to have their own properties and purchase real estates, which made the foreign investor’s money flow in Turkey through the purchase of real estates and lands.
After only ten months of implementing The law abolishing the principle of reciprocity and allowing the citizens of a number of countries around the world to own properties in Turkey. However, foreigners could purchase about 21691 real estates, Arabs were in the top of the foreign investors’ list by about 2697 properties, equivalent to 10% of the total investment value for that period. And in 2013, the minister of Environment and Urban planning ministry Erdogan Bayraktar announced the total revenues of selling the property to foreigners amounted to about 5 billion dollars.
The Turkish real estate market continued to rise presenting attracting offers at affordable prices. Which was interesting for foreigners willing to immigrate to Turkey and for those looking for the high investment opportunities. Among all the nationalities that were interested to buy real estate in Turkey, Arabs have bought about 4.3 billion dollars in 2014 only, and they have been more interested in the following years since the real estate marketplace continued to get stronger while the sales rate increased by 24%.
Based on the statistics and figures published by “Reidin” the average of properties in Turkey that has been owned by the citizens of Arab countries has increased five times between 2012 and 2016.
And still the real estate market in Turkey is developing and growing due to the investment diversity and the political & economic stability of the Republic of Turkey, the number of houses that have been sold to foreigners in 2017 was about 22234, which is an annual increase of 22.2%, The Turkish government’s efforts continue in supporting investments in Turkey through a package of measures and offers, where it presents discounts up to 20 %.
2. What kind of properties do Arab investors prefer?
let us have a look at the kind of real estates in Turkey that Arabs do prefer, regarding the real estates, Arabs top priorities come with the purpose of tourism and entertainment, this is why we find that Arabs real estate’s investments first priority is to buy apartments and houses where mixed uses and integrated functions are available, with entertainment use purpose through the nature views and overlooks to beautiful natural scenes or buying nearby the Turkish seaside, or in the city center of the capital of Turkey. The second priority for Arabs is buying properties with the purpose of residence and studying. Turkish cities such as Istanbul, Trabzon, and Bursa have the infrastructure that easily fulfills those priorities for Turkish and foreign citizens alike.
3. Which Arab nationalities are on the top list for buying real estates in Turkey?
Iraqi citizens were in the first rank of who purchased real estates in Turkey during the first half of 2018 with more than 1990 properties followed by Saudis with more than 1087 properties, followed by Kuwaitis with 606 properties, Jordanians with 373 and Egyptians with 268 properties.
4. Ranking of Turkish cities in terms of the number of properties owned by foreigners, mainly Arabs in the first half of 2018
As we mentioned above at the beginning of this article that the foreign investment in the Turkish real estate market comes for tourism and entertainment purposes in general. This is why the tourist destination cities are on the top list of foreign investment destinations in the Turkish real estate market.
For the last few years, Istanbul used to be at the first rank, followed by Antalya, then Bursa city which is located in the north west of the countries, followed by Yalova, also in the north-west of Turkey, followed by Trabzon, located in northern Turkey.
5. A comparison shows why the Arabs prefer the Turkish cities to other global ones.
The success of an investment or its failure depends, in fact, on many factors. The top of these factors is the expected investment return rate, which means “the percentages of invested funds that are recovered after deducting the associated costs of this investment”, and the top three cities in the Turkish real estate market, have the attraction factors that qualify them to their ranks. There is no secret that all the attractions of history, civilization, and the current growth meet together in Istanbul. While Antalya is a tourist city located on the Mediterranean coast which gives this city a moderate climate and makes it encouraging for accommodation. Bursa, on the other side, is an industrial city with a significant economic and cultural weight. Having those cities on the top of the real estate investors list is not only a result of the abundant attractions they have, it is also the competitive prices comparing to other global cities, for example, we will find a big difference in favor of Istanbul when we compare the real estate prices in Istanbul to Dubai’s ones. And for a city like Trabzon, we will find it a promising tourist city. As one Turkish real estate expert put it, “Trabzon may become Dubai Turkey”, given its high investment growth, which comes as a result of government interest that seems to be determined to pass it to an unprecedented success experience.
6. What are the reasons that encourage Arabs to own property in Turkey?
There are many reasons why the Arabs are buying the real estates in Turkey, Prices come first, as they are affordable and somehow low comparing to the real estate prices in Europe and western countries. It is noted that the prices in Turkey are increasing from one year to another but this still in the competitive area. In addition to the price, there is political stability and the economic growth which considered the most important encouraging and attracting factors for real estate investment. Also, the quality of public services and facilities provided by the government in Turkey to both the citizens and residents along with the ambitious and promising projects that are being implemented and others expected to be implemented, all this, is another reason that push Arabs to the real estate investment in Turkey. What makes Turkey the best option in addition to what we mentioned above is the Tourist attractions, the geopolitical location, and the beautiful climate. Turkish culture and traditions which are close to Arabic traditions also serve as an additional factor that makes Turkey a more suitable option for Arabs.
7. What nationalities are entitled to own property in Turkey? What about the Turkish inheritance law?
As we have already pointed out, property laws in Turkey have been changed radically since 2012, which allowed to the citizens of 182 countries to own property in Turkey, but some countries are required that their citizens should meet certain conditions to own in Turkey. Inheritance laws in Turkey have many facilities and they are not complicated as they are in some European counties, it refers to the fact that the real estate property contents with its related movables are subject to the inheritance laws of the origin country of the foreign owner. While the residential property itself is subject to the inheritance laws of Turkey. The family of the deceased like children, daughters, wife, husband, father, mother or others shall receive the property owned by the deceased, according to the particular cases arrangements with a deduction of inheritance tax for the Government of Turkey starting at 1 per cent and up to 30 per cent depending on the location of The property and its value, for example a property of € 926,667, the inheritance tax is about 10%, and these ratios are very low compared to the corresponding European laws.
8. Successful experiences with many Arabs clients
For over more than one year, Extra Property has been able to successfully manage a number of properties to Arabs in Turkey. Our long experience will save you time and money while purchasing your real estate and apartment in Turkey, ensuring that you get what you wish through a wide range of options and opportunities.