Confidence is returning to Turkey’s property market after the failed political coup in July with houses sales increasing again and foreign buyers returning to the market.
The pictures of armed troops in the streets of the major cities and arrests in the aftermath of the failed coup created a halt in property sales as people waited to see what was happening.
However, house sales increased in August, particularly in popular tourist resorts. Data from the Turkish Statistical Institute show they increased across the country by 41% month on month, meaning that the effects of political uncertainty were short lived.
Sales to foreign buyers alone increased, up 44% month on month following a fall of 48.5% in July 2016 compared to July 2015.
‘A sense of stability has returned to the market. As TurkStat’s figures indicate, interest is creeping back after the inevitable crash that came in the weeks after the coup,’ said Julian Walker, director of Spot Blue International Property.
‘Looking ahead, being outside the European Union should also help Turkey at least in the UK market, as the country won’t be affected by Brexit in the way other second home destinations in Europe are already experiencing,’ he added.
The figures confirm that Istanbul is the most popular place for foreigners to buy, with Middle Eastern buyers accounting for most international sales there. Antalya is the second favourite province with non-Turkish purchasers, followed by Bursa.
In a separate survey done in August by UK property portal Rightmove Overseas, Mugla was identified as the most searched for Turkish region by overseas buyers interested in either a house or apartment, followed by Istanbul and then Antalya, Aydin and Bursa. For buyers considering apartments Istanbul was the top choice with 94%.
‘Antalya and Mugla are home to some of Turkey’s most desirable beach resorts. As international tourist hubs with large foreign populations and being many hundreds of miles from Istanbul, life in these resorts was never really affected by the civil unrest,’ Walker explained.
He also pointed out that a boost for tourism in Antalya is expected at the end of month when the resort of Belek hosts the Turkish Airlines World Golf Final. Part of The Race to Dubai’s Final Series and with a prize of $7million. ‘This event that will attract world golfers from around the world, including Tiger Woods and Rory McIlroy, and put the region back on the radar of golfers around the world,’ added Walker.
Meanwhile, Turkey’s Directorate General of Migration Management (DGMM) has introduced changes to rules governing residency rights and permits for foreigners, addressing concerns previously raised by British and other non-Turkish residents and making it easier for foreigners to live in the country.
It means that foreign residents can now apply for residence permits via a DGMM appointed private company as well as direct through the DGMM. Short term residence permits will be granted for up to two years instead of just one year and family permits will be granted for up to three years instead of two.
Foreign investors and their dependants will be granted residence permits for up to five years, depending on the nature and value of the investment they make in Turkey and the 120 day rule governing how long you stay out of Turkey to avoid cancellation of a short term permit has been removed. There is now no limitation on how long you can stay abroad.
The 180 day rule governing how long you stay out of Turkey to avoid cancellation of a family permit has been removed. Agents believe that the changes will help to attract more foreigner to purchase property in Turkey and become residents there.
