GCC confirmed as top investor for Turkish real estate
Following the 2012 liberalization of foreign investment law in Turkey, there has been a 500% increase in investment from the GCC, which accounts for nearly a quarter of the foreign buyers, at 24%.
According to figures released by REIDIN, the leading real estate information company focusing on emerging markets, investment from the Gulf region has increased five-fold since the successful change in law.
The news comes as dignitaries from Turkey and Australia gathered to mark the announcement of Nurol Reit’s appointment of one of Australia’s largest and longest established real estate agents, Raine & Horne in Dubai, as the lead agency in the GCC for a AED3 billion property portfolio in Istanbul.
Turkey has a religious and cultural bond with the GCC but is also developing as an increasingly important economic partner. Trade volume between Turkey and the GCC was close to $16 billion in 2014 and as Turkey is classed as the 17th biggest economy in the world, it presents a healthy investment destination that straddles both Europe and Asia.
At Cityscape Global 2015 in Dubai, 52 stands out of 369 in total were from Turkey, which accounts for 15% of all exhibitors, showcasing the increased interest from regional investors. Classed as the world’s most popular tourism destination in 2014, Istanbul has a strong appeal for visitors from the region, with a 450% increase in tourists from the Gulf in the last two years.
“High capital growth, great investment propositions, important infrastructure projects on the horizon and secure legislation and regulation means Turkey is a key market for today’s property investor and our buyers in the Gulf are demonstrating their confidence in Istanbul’s healthy property market. The developments presented by Nurol REIT offer exciting opportunities with a range of different properties to suit different buyers. We are proud to be in partnership with Nurol REIT and thrilled to be the lead agency in the GCC for this project,” said Sanjay Chimnani, joint managing director of Raine & Horne Dubai. “Nurol Life, Nurol Park and Nurol Tower will be Raine & Horne’s first foray into Europe, so this is a historic partnership for us,” he added.
Nurol Life are luxury residences in the heart of the city in the Seyrantepe area with four metre high ceilings which allow for exceptional vistas of the Bosphorus and the forest; mixed use community Nurol Park, which is in close proximity to Ataturk Airport is built on former industrial land, which is now prime real estate, and comprises of eleven buildings, two commercial, eight residential and one hotel, with affordable prices for the first time investor; and Nurol Tower homes and offices, which are located next to Istanbul Court in the Maslak area and nearby Taksim and Ni?anta?ı, by a cross street which sees 2 million people cross it every day.
“As an investment destination for the Gulf countries, Turkey is a strong option, particularly for real estate purchases,” said Ceyda Carmikli, Executive Board Member of Nurol REIT, the $25bn business conglomerate, which boasts a proven track record in the UAE and wider GCC as well, with involvement in Jumeirah Park, Jumeirah Village Triangle, Saadiyat Island. “Istanbul’s attractive capital returns and strong capital appreciation are drawing substantial interest from this region. The security offered by Turkey’s government-protected title deeds, combined with a young population of 49% under 30 who have housing needs, are all appealing to both the home owner and buy-to-let investor,” Carmikli continued.
“In addition to this, the Reciprocity Law, which facilitates real estate sales to foreigners, has increased the investment attractiveness of Turkey. The Turkish real estate market is expecting revenue of US$ 5 billion from the sales of approximately 20 thousand houses to the foreigners in 2015. The target for the year 2016 is 40 thousand houses and a revenue of $10 billion.”