Turkey hopes to receive a huge boost in overseas property investment after Parliament adopted a draft law envisages to promote the sale of real estate and properties to foreigners. The law met with stark criticism.
Ankara / NationalTurk – The new ruling sets to increase the amount of land a foreigner can purchase from 2.5 to 30 hectares, while the Turkish Council of Ministers may be able to raise this up to 60 hectares.
The ruling which states that only people from countries which allow Turkish citizens to buy property in it will also be scrapped.
And although the draft law is awaiting approval from the Cabinet and the President, director at Turkish agency Spot Blue Julian Walker believes that the sign-off ‘ seems just a formality’.
Walker believes the changes at property laws will prove a ‘ huge boost ‘ to the Turkish overseas property industry.
‘The reciprocity aspect is huge, as before certain countries were not allowed to buy here, although I haven’t seen the finalised list yet [of countries that will now be able to buy in Turkey],’ Walker states.
Julian Walker added that a huge plus of the legislation would be to remove red tape for foreign buyers.
‘ They are shortening the process for international buyers purchasing property in Turkey,’ he said. ‘ If not it takes say two to three months, this could be drastically cut to two to three weeks. This means there’s less risk – fewer things can go wrong in the interim.’
Walker points out that buyers from Russia and the Middle East (arabs) could now be able to purchase directly.
‘Tourism is still going well here, and for people already with property here, legislation like this only adds to underwrite the value of the property,’ Walker added.
The draft law amended the Turkish title deed laws. Under the new legislation, foreign buyers must provide construction plans before a purchase is made.
Individuals and businesses will need to submit project proposals for vacant land to the Ministry of Environment and Urbanization within two years. If approved, the project will be sent to the local land registry office.
Previously, people whose countries didn’t reciprocate property rights with Turkey had to buy properties via a company. Under the current law, foreigners can only possess residence and business sites. Commercial companies established in foreign countries will only be able to obtain real estate and limited rights under the scope of a special code, the law says.
The purchase of property by foreign firms in military zones or special security areas would be subject to the permission of the General Staff and provincial governors, respectively. Foreign buyers of land would be required to present within two years the project for which the plot would be used. Once the relevant ministry approves the project, the local authorities would monitor whether it is completed in time. The main opposition Republican People’s Party (CHP) has argued that some provisions in the bill are unconstitutional and signaled it may ask the Constitutional Court to scrap the legislation.