According to Turkey property specialist Spot Blue International Property, the country’s most recent law change favouring foreign buyers have made the process of getting title deeds known as TAPU faster.
It is just one in a series of changes designed to attract more foreign buyers. Previously waiting for approval for title deeds could have added up to 10 weeks to the time it takes to complete a purchase as buyers needed military approval.
‘Now a slicker system means this time will be greatly reduced and buyers won't need to go through the process of getting military approval,’ said Spot Blue director Julian Walker.
It means that if the property they are buying was granted approval after 05 May 2011 or if they're buying on a new development where an existing buyer has already gained it, the title deed process will be faster.‘It's encouraging to see Turkey rolling out changes like this, showing commitment to attracting foreign buyers,’ added Walker.
Visa applications for temporary visitors, such as second home owners, and residency laws have also been changed this year. A revision in the law introduced in the spring means that foreign nationals are now granted a year long short term residency permit when they buy property in Turkey, regardless of the value of the transaction.
This visa could be extended indefinitely if the buyer keeps hold of their property. Previously, home owners there without a residency permit were allowed to stay up to a total of 90 days out of a period of 180 consecutive days.
It is to get even better in 2014. ‘Expats seeking to renew or get residence permits will find the process changes for the better again in spring 2014. There are plans to use dedicated government agencies to take over the process rather than the current system that goes through the police,’ explained Walker.
Another significant change is in regards to work permits. Foreigners who obtain a work permit in Turkey are now automatically granted a residence permit. And more buyers have been encouraged by changes to Turkey’s reciprocity law which has opened the property market to buyers outside of Europe, including the Middle East and Russia.
Proof that Turkey's property market is benefiting from changes to its laws are the consistently rising property values. The average price of units on new developments in Istanbul increased by 1.06% between September and October, and 14.18% year on year, according to an index produced by GYODER, a real estate trade body.
Turkey’s economy and property market has outperformed the rest of Europe since 2010 when the country recovered quickly from what turned out to be a prolonged slump in most of the rest of Europe. Currency changes also currently favour some foreign buyers.
‘The good news for investors considering purchasing a property in Turkey is the combination of rising prices and the fact that buyers can now get more for their money,’ said Monica Anca, director of property firm Universal 21.
Most analysts are predicting that the Turkish currency is more likely to rise in value in the next 12 months than fall further with Bloomberg economists suggesting that Turkey offers some of the best growth prospects in emerging markets.
‘Turkey’s economic growth set to outpace the rest of Europe again next year, which means now is a very good time to consider investing in cities like Istanbul where property prices are still relatively affordable by western European standards and rising fast,’ said Adil Yaman managing director of Universal 21.
