Foreign purchases of real estate in Turkey
Encyclopedia
Purchasing property in Turkey
has become more popular with holiday home owners and investors around the globe. Several factors have contributed to the popularity and the trend displayed by foreign purchases and have had important repercussions within Turkey. The issue is especially notable given Turkey's potential EU membership and the related economic integration processes. In 2003, property purchases were opened up to foreign nationals with restrictions on the provinces. When these restrictions were violated in 2005, the law was annulled by Turkish courts; despite this, property purchases continue. As of 2008, 63,085 individual properties have been sold to over 73,103 different foreigners. This amounts to 38623661 square metres (415,741,627 sq ft) of land, and US$10.4 billion of foreign investment, mostly by German, British and Greek citizens.
foundations (vakıf), under the authority of the General Directorate for Foundations. Vakıf (Foundation) lands is the real estate
legated by their original proprietors, often centuries ago, for the purpose of the upkeep of a public building, a community service, a particular person or a group of persons. Foundations also constitute part of the assets held by Vakıfbank
, a bank originally founded with the purpose of putting the foundations in value for the economy of Turkey
and named in reference to them. Hazine (Treasury) lands are those, often covering vast areas in rural Turkey, for which no private ownership is recorded at any time, imperial legacies that did not fall within the scope of foundations, or land that passed over to state ownership through many possible reasons.
Therefore, unlike many other European countries where most of the land area is privately owned, much of the land in Turkey
is still held by the state. One aspect of this situation is the simplification of procedures in the case of public works or investments that are envisaged where, instead of costly expropriations, correspondence between ministries is often sufficient to make suitable land easily available for projected works. Another is the constantly re-surging plans by various governments to make one or other particular part or type of state land available for private sector use and development. These issues of land-grant become particularly sensitive when the land in question is important for fauna or flora in environmental terms, for irrigation, for any other public use, or when conflicts of interest arise or private interests influencing government plans are detected by the opposition groups. Notwithstanding occasionally heated debates on the matter, by complying with basic public relations
principles, vast parcels of land do become available to investors in Turkey through the consent of governments pursuing encouraging policies to the effect.
in the 19th century and the global dominance of western colonialism
, purchases without constraint and effective surveillance of real estate by the nationals and companies of western powers was one of the issues on which the Ottoman state had been subjected to the direst foreign pressures. As a consequence of these pressures, the The Ottoman Land Code of 1858 was passed. A 1858 firman on "Reform
" had announced a grant of permission in this respect, but the necessary legal arrangements had been delayed till 1868. With the enactment of the 1868 regulation, according to one estimate, British capitalist-farmers (see Levantine mansions of İzmir
) had almost immediately emerged as having acquired one third of all arable lands in the entire vilayet of İzmir (Aydın
in name), possibly held in an indirect manner till then, and by 1878, the majority of the arable land in the same province. This trend coincided with the influx of refugees from lands lost for the Ottoman Empire, and the migrants often saw themselves having to buy property from foreigners in their own country. A further law in 1913 also allowed foreign legal entities (companies, foundations etc.) to purchase property in Ottoman lands, with decisive effects for the early foundations of the state of Israel
. A partial face-about by the Committee of Union and Progress
, simultaneous to the outbreak of the World War I
in Europe
, was one of the causes for the deterioration of relations between Turkey and the Allied powers Britain, France
and Italy
. The Treaty of Lausanne
which established modern Turkey laid a ground based on a strict understanding of reciprocity in the matter, on a bilateral and contractual bases as concluded with individual countries at first, and full legal reciprocity after 1934.
The principles governing purchase of property by foreign (i.e. non-Turkish) nationals in Turkey
is governed by the 1934 Property Act (Law Nr. 2644 dated 22 November 1934). The legal framework set up in 1934 was modified for a first time by a by-law (Law Nr. 4916) dated 3 July 2003. This law was predicated on a reciprocity clause; that is to say, citizens of countries whose governments allow Turkish nationals to purchase real estate in their country, were to be allowed to purchase real estate in Turkey.
However, following steps taken by Turkey's main opposition party CHP
, the modifications brought by the 2003 by-law were declared as void by the Turkish Constitutional Court
on 26 April 2005, in a decision to enter into effect as of 27 July 2005 and the purchase of real estate by foreign nationals was suspended until a modified law dated 7 January 2006 was brought into effect. This law, Law Nr. 5444, now enacted, instead of being a by-law modifying various paragraphs of the 1934 Property Act, is a fully stated legal text (still on the basis of a modification of the 1934 Act). (the full text in Turkish). This current law is retrospective in its application to 26 July 2005 and is largely the same as the law of 3 July 2003, with the following notable amendments, especially with regards to size limitations:
As for the handling of the transactions suspended since July 2005, the new law is also applicable for applications of Title Deeds in the period between the former law becoming void and the current law coming into effect.
For the moment, all overseas nationals are subject to a clearance by the Turkish military authorities before being allowed to proceed with any purchase. This is to establish that the land/property is not in a militarily sensitive area, and that the individual is considered as suitable to own real estate in Turkey. Designation of land suitable for overseas purchasers is expected to be determined at a later stage by Land Registry Offices, based on information supplied by the military.
The Council of Ministers is also expected to determine, in the three months following the promulgation of the law, those areas where reserves on purchase due to considerations stemming from irrigation, energy, agriculture, mining, history, religion and culture issues and for preservation of natural flora and fauna are put in effect. Property acquired through inheritance is not subject to the limitations and reserves stated above.
From January 2008, foreign investors will be able to apply for a mortgage within Turkey. The revision in existing laws, aims to encourage foreign investment, replacing the previous barrier whereby investors had to finance their Turkish real estate through cash purchases or mortgages arranged within their native country.
nationals, who themselves had remained as such but whose properties had become part of the territory of Turkey with the adhesion of the Republic of Hatay
to Turkey in 1939, the whole transitional proceedings that took place having been counted, for the purposes of statistics, as re-acquisitions by these Syrians.
The 2-year duration of the validity of the old law (July 2003-July 2005) gave some interesting insights on foreign national property buying trends in Turkey both for property market players and for official bodies.
During the two years for which the July 2003 modification had remained valid, 15842 parcels of property (2931 among these being unbuilt land lots) have been acquired by non-Turkish legal or private persons in Turkey. The purchasers constituted a total of 18959 legal or private owners or co-owners from a total of 58 different countries. In the forefront came British
nationals (8625 persons acquiring 6333 parcels), who were followed by Germans
(3482 persons for 3210 parcels), with Dutch
nationals, Danes
, Norwegians
, Greeks
, Irish
nationals, Swedes
and Belgians
respectively occupying the next places. (Reuters İstanbul - in Turkish)
It was also observed that, during this 2-year period, the districts most favoured by foreign buyers were Alanya
, Fethiye
, Didim
, Bodrum
, Kuşadası
along the coastline, as well as Ürgüp
in Cappadocia
. Alanya is a particularly preferred location for Germans and Scandinavians
, while the British purchases are at their highest level of concentration in Fethiye and Didim Reuters İstanbul - in Turkish. Some of these towns have come to include sizable proportions of seasonal or full-time inhabitants made up of foreign homeowners. These homeowners already display a marked tendency to set up associations among themselves to promote their specific areas of interests such as the translation of key texts into their respective languages, contacts with officials, cultural and religious activities such as church-building and to provide guidance to newer purchasers.
One of the fundamental keys to Turkey's successful transition to full EU membership is its ability to attract and retain Foreign Direct Investment (FDI). It has set itself a target of attracting 1.2 trillion dollars from Gulf States initially and therefore the Crown Prince of Dubai's immediate financial commitment to the country's real estate sector not only gave property investors faith in Turkey it gave other nations faith in the country as a whole and should lead to the further promotion of Turkey and an increasing flow of FDI.
and Israel
.
Another issue which will inevitably arise is the concern over the specific case of Greek
nationals. Despite EU pressures, a national land registry system in full legal clarity is yet to be fully established in Greece
(except in the Dodecanese
, where the system was set up during the Italian
rule between 1912–1945). Thus, a legal move questioning whether there could be reciprocity with a country without a land registry system was indeed launched under the auspices of opposition CHP party, before the application covering the new law in general was made to the Constitutional Court and set the agenda. The issue will almost certainly not be dismissed easily by proponents of a liberal property market. In addition, there are also occasional reports of a more sensational nature, usually specific to some sections of the media. These relate to Israel
i or Arab
investors buying land en masse in the prospering Southeastern Anatolia Project
region, politically-minded purchases in the Black Sea region or in Eastern Anatolia
.
The challenge for the Turkish government will be to negotiate a path which satisfies the sceptical elements within Turkish politics and among the public, while at the same time appeasing liberals and satisfying the open-market criteria which the E.U. expects from Turkey as it moves towards accession.
On a more specific and strictly professional focus, the ongoing efforts by Turkey's real estate agents to demarcate the definition and the boundaries of their profession and to discourage occasional and non-professional intermediaries away should also be mentioned. The compulsory norms to be respected in order to exercise the profession are still rather recent (since 2004). Real estate agents are required to be members to and exhibit their membership of the association set up for their region (such as Kusemder for Kuşadası
, or Maremder for Marmaris
). These local associations are gathered within the framework of the national federation, Temfed, which provides a full list of the regional associations.
Information on overseas buyers provided by the First Economic Counsellor of the Turkish Embassy in London for 2006 was as follows:
Britons were the first in buying property in Turkey among foreign nationals in the first quarter of the year according to the latest data released by the Land Registry Office. From 7 January 2006 when the new law was put into effect, to mid-April 2006, 588 British Citizens purchased 420 properties in Turkey. Secondly 265 Germans bought 258 properties in Turkey. In the same period, total property sale to foreigners and total foreigners bought property in Turkey reached 1,206 and 1,565 respectively. (25 April 2006)"
The newspaper Cumhuriyet
reported on 11 June 2006 that, since the 5/1000 limit was exceeded in Hatay Province
, sales to foreign nationals of real estate located in that province was suspended until further notice. The congestion is a consequence of 1300 parcels of property that have been bought in recent times by foreign nationals adding up on the 2400 land lots owned by Syrians
, some of them quite large. The particular case of Hatay
put apart, as of 1 June 2006, Antalya Province
was in the lead in the number of foreign purchases of real estate in Turkey
with 5566 lots sold, provinces of Aydın
(3998), Muğla
(3035), İstanbul
(1463) and İzmir
(722) occupying the following places.
The most recent data provided by the Ministry, covering the period from 2002 (when the incumbent government came into office) to 2008 indicates a total of 63,085 land lots sold to 73,103 foreign private persons, extending to a total area of 25,350,361 square meters. As such, a total of seventy four seventy five thousand foreign nationals own an area of 38623661 square metres (415,741,627 sq ft) of lands in Turkey. As of 2007, on area basis the provinces of Muğla
(4,445,259 meter squares), Antalya (3,810,118 meter squares), Aydın (3,001,075 meter squares) came in the lead. On the basis of the number of foreign nationals acquiring property, the situation was as follows: Antalya
(26,031 foreign nationals), Muğla
(12,865 foreign nationals), İstanbul
(8,830 foreign nationals), Aydın
(7,415 foreign nationals), Bursa (5,241 foreign nationals), İzmir
(4,145 foreign nationals). German nationals came the first in Antalya Province and British citizens in Muğla and Aydın Provinces. Purchases by Greek nationals displayed a striking preeminence in İstanbul and, in a more recent trend, in Bursa.
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
has become more popular with holiday home owners and investors around the globe. Several factors have contributed to the popularity and the trend displayed by foreign purchases and have had important repercussions within Turkey. The issue is especially notable given Turkey's potential EU membership and the related economic integration processes. In 2003, property purchases were opened up to foreign nationals with restrictions on the provinces. When these restrictions were violated in 2005, the law was annulled by Turkish courts; despite this, property purchases continue. As of 2008, 63,085 individual properties have been sold to over 73,103 different foreigners. This amounts to 38623661 square metres (415,741,627 sq ft) of land, and US$10.4 billion of foreign investment, mostly by German, British and Greek citizens.
Land ownership in Turkey
One particularity of overall landownership profile in Turkey is the high proportion of land owned by the state, either directly, under the authority of the Undersecretariat of Treasury (Hazine in daily language), or indirectly through the inheritance and management of OttomanOttoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
foundations (vakıf), under the authority of the General Directorate for Foundations. Vakıf (Foundation) lands is the real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
legated by their original proprietors, often centuries ago, for the purpose of the upkeep of a public building, a community service, a particular person or a group of persons. Foundations also constitute part of the assets held by Vakıfbank
VakifBank
VakıfBank is the fifth largest bank in Turkey with its $46 billion in assets as of December 31, 2009. The company offers some of the largest services in Turkey, and operates 610 branches domestically...
, a bank originally founded with the purpose of putting the foundations in value for the economy of Turkey
Economy of Turkey
The economy of Turkey is defined as an emerging market economy by the IMF and is largely developed, making Turkey one of the world's newly industrialized countries. The country is among the world's leading producers of agricultural products; textiles; motor vehicles, ships and other transportation...
and named in reference to them. Hazine (Treasury) lands are those, often covering vast areas in rural Turkey, for which no private ownership is recorded at any time, imperial legacies that did not fall within the scope of foundations, or land that passed over to state ownership through many possible reasons.
Therefore, unlike many other European countries where most of the land area is privately owned, much of the land in Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
is still held by the state. One aspect of this situation is the simplification of procedures in the case of public works or investments that are envisaged where, instead of costly expropriations, correspondence between ministries is often sufficient to make suitable land easily available for projected works. Another is the constantly re-surging plans by various governments to make one or other particular part or type of state land available for private sector use and development. These issues of land-grant become particularly sensitive when the land in question is important for fauna or flora in environmental terms, for irrigation, for any other public use, or when conflicts of interest arise or private interests influencing government plans are detected by the opposition groups. Notwithstanding occasionally heated debates on the matter, by complying with basic public relations
Public relations
Public relations is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc....
principles, vast parcels of land do become available to investors in Turkey through the consent of governments pursuing encouraging policies to the effect.
Historical background
The issue of foreign purchases of real estate is associated with very bitter reminiscences in Turkey. During the weakening phase of the Ottoman EmpireOttoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
in the 19th century and the global dominance of western colonialism
Colonialism
Colonialism is the establishment, maintenance, acquisition and expansion of colonies in one territory by people from another territory. It is a process whereby the metropole claims sovereignty over the colony and the social structure, government, and economics of the colony are changed by...
, purchases without constraint and effective surveillance of real estate by the nationals and companies of western powers was one of the issues on which the Ottoman state had been subjected to the direst foreign pressures. As a consequence of these pressures, the The Ottoman Land Code of 1858 was passed. A 1858 firman on "Reform
Reform
Reform means to put or change into an improved form or condition; to amend or improve by change of color or removal of faults or abuses, beneficial change, more specifically, reversion to a pure original state, to repair, restore or to correct....
" had announced a grant of permission in this respect, but the necessary legal arrangements had been delayed till 1868. With the enactment of the 1868 regulation, according to one estimate, British capitalist-farmers (see Levantine mansions of İzmir
Levantine mansions of Izmir
Levantine mansions of Izmir refer to about thirty stately residences, dating principally from the 19th century and of which a significant number remain intact to this day, by being restored and continuing to be used and visited, in İzmir, Turkey. These residences differ from the traditional...
) had almost immediately emerged as having acquired one third of all arable lands in the entire vilayet of İzmir (Aydın
Aydin
Aydın is a city in and the seat of Aydın Province in Turkey's Aegean Region. The city is located at the heart of the lower valley of Büyük Menderes River at a commanding position for the region extending from the uplands of the valley down to the seacoast...
in name), possibly held in an indirect manner till then, and by 1878, the majority of the arable land in the same province. This trend coincided with the influx of refugees from lands lost for the Ottoman Empire, and the migrants often saw themselves having to buy property from foreigners in their own country. A further law in 1913 also allowed foreign legal entities (companies, foundations etc.) to purchase property in Ottoman lands, with decisive effects for the early foundations of the state of Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
. A partial face-about by the Committee of Union and Progress
Committee of Union and Progress
The Committee of Union and Progress began as a secret society established as the "Committee of Ottoman Union" in 1889 by the medical students İbrahim Temo, Abdullah Cevdet, İshak Sükuti and Ali Hüseyinzade...
, simultaneous to the outbreak of the World War I
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, was one of the causes for the deterioration of relations between Turkey and the Allied powers Britain, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
and Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
. The Treaty of Lausanne
Treaty of Lausanne
The Treaty of Lausanne was a peace treaty signed in Lausanne, Switzerland on 24 July 1923, that settled the Anatolian and East Thracian parts of the partitioning of the Ottoman Empire. The treaty of Lausanne was ratified by the Greek government on 11 February 1924, by the Turkish government on 31...
which established modern Turkey laid a ground based on a strict understanding of reciprocity in the matter, on a bilateral and contractual bases as concluded with individual countries at first, and full legal reciprocity after 1934.
Legal Framework and the Recent Changes
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
is governed by the 1934 Property Act (Law Nr. 2644 dated 22 November 1934). The legal framework set up in 1934 was modified for a first time by a by-law (Law Nr. 4916) dated 3 July 2003. This law was predicated on a reciprocity clause; that is to say, citizens of countries whose governments allow Turkish nationals to purchase real estate in their country, were to be allowed to purchase real estate in Turkey.
However, following steps taken by Turkey's main opposition party CHP
CHP
-Healthcare:* Oporto Hospital Centre* Children's Hospital of Pittsburgh* Community Health Partnerships* Certified Health Physicist-Politics:* Christian Heritage Party * Christian Historical Party...
, the modifications brought by the 2003 by-law were declared as void by the Turkish Constitutional Court
Turkish Constitutional Court
The Constitutional Court of Turkey is the highest legal body for constitutional review in Turkey. It "examines the constitutionality, in respect of both form and substance, of laws, decrees having the force of law, and the Rules of Procedure of the Turkish Grand National Assembly"...
on 26 April 2005, in a decision to enter into effect as of 27 July 2005 and the purchase of real estate by foreign nationals was suspended until a modified law dated 7 January 2006 was brought into effect. This law, Law Nr. 5444, now enacted, instead of being a by-law modifying various paragraphs of the 1934 Property Act, is a fully stated legal text (still on the basis of a modification of the 1934 Act). (the full text in Turkish). This current law is retrospective in its application to 26 July 2005 and is largely the same as the law of 3 July 2003, with the following notable amendments, especially with regards to size limitations:
- A foreign national cannot purchase more than 25,000m² (6 acres) of land (constructed or not) in Turkey without special consent from the Turkish Council of Ministers. The council of Ministers is authorised to increase this limit up to 300,000m2 per person.
- Foreign national ownership of real estate cannot exceed 10% of land in any designated town.
- The property also has to be within a designated or zoned area in a municipality. Foreigners can not buy in villages.
As for the handling of the transactions suspended since July 2005, the new law is also applicable for applications of Title Deeds in the period between the former law becoming void and the current law coming into effect.
For the moment, all overseas nationals are subject to a clearance by the Turkish military authorities before being allowed to proceed with any purchase. This is to establish that the land/property is not in a militarily sensitive area, and that the individual is considered as suitable to own real estate in Turkey. Designation of land suitable for overseas purchasers is expected to be determined at a later stage by Land Registry Offices, based on information supplied by the military.
The Council of Ministers is also expected to determine, in the three months following the promulgation of the law, those areas where reserves on purchase due to considerations stemming from irrigation, energy, agriculture, mining, history, religion and culture issues and for preservation of natural flora and fauna are put in effect. Property acquired through inheritance is not subject to the limitations and reserves stated above.
From January 2008, foreign investors will be able to apply for a mortgage within Turkey. The revision in existing laws, aims to encourage foreign investment, replacing the previous barrier whereby investors had to finance their Turkish real estate through cash purchases or mortgages arranged within their native country.
Foreign Ownership Market Trends to 2005
Taken as a whole, during the 69-year period starting in 1934 with the enactment of the Property Law until the first modifications of July 2003, 37342 parcels of property had been acquired by non-Turkish legal entities (companies) or private individuals in Turkey. It is to be noted that 2400 of these were SyrianDemographics of Syria
Syrians today are an overall indigenous Levantine people. While modern-day Syrians are commonly described as Arabs by virtue of their modern-day language and bonds to Arab culture and history...
nationals, who themselves had remained as such but whose properties had become part of the territory of Turkey with the adhesion of the Republic of Hatay
Republic of Hatay
Hatay State , also known informally as the Republic of Hatay, was a transitional political entity that formally existed from September 7, 1938 to June 29, 1939 in the territory of the Sanjak of Alexandretta of the French Mandate of Syria. The State was transformed de jure into the Hatay Province on...
to Turkey in 1939, the whole transitional proceedings that took place having been counted, for the purposes of statistics, as re-acquisitions by these Syrians.
The 2-year duration of the validity of the old law (July 2003-July 2005) gave some interesting insights on foreign national property buying trends in Turkey both for property market players and for official bodies.
During the two years for which the July 2003 modification had remained valid, 15842 parcels of property (2931 among these being unbuilt land lots) have been acquired by non-Turkish legal or private persons in Turkey. The purchasers constituted a total of 18959 legal or private owners or co-owners from a total of 58 different countries. In the forefront came British
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
nationals (8625 persons acquiring 6333 parcels), who were followed by Germans
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
(3482 persons for 3210 parcels), with Dutch
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
nationals, Danes
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
, Norwegians
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, Greeks
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
, Irish
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
nationals, Swedes
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....
and Belgians
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...
respectively occupying the next places. (Reuters İstanbul - in Turkish)
It was also observed that, during this 2-year period, the districts most favoured by foreign buyers were Alanya
Alanya
Alanya , formerly Alaiye, is a beach resort city and a component district of Antalya Province in the Mediterranean Region of Turkey, from the city of Antalya. On the southern coast of Turkey, the district has an area of 1,598.51 km2 and 248,286 inhabitants...
, Fethiye
Fethiye
Fethiye is a city and district of Muğla Province in the Aegean region of Turkey with about 68,000 inhabitants .-History:...
, Didim
Didim
Didim, home of the antique city of Didyma with its ruined Temple of Apollo, is a small town, popular seaside holiday resort and district of Aydın Province on the Aegean coast of western Turkey, from the city of Aydın.-Geography:...
, Bodrum
Bodrum
Bodrum is a port city in Muğla Province, in the southwestern Aegean Region of Turkey. It is located on the southern coast of Bodrum Peninsula, at a point that checks the entry into the Gulf of Gökova. The site was called Halicarnassus of Caria in ancient times and was famous for housing the...
, Kuşadası
Kusadasi
Kuşadası is a resort town on Turkey's Aegean coast and the center of the seaside district of the same name in Aydın Province. Kuşadası lies at a distance of to the south from the region's largest metropolitan center of İzmir, and from the provincial seat of Aydın situated inland. Its primary...
along the coastline, as well as Ürgüp
Ürgüp
Ürgüp is a town and district of Nevşehir Province in the Central Anatolia region of Turkey. Located in the historical region of Cappadocia, and near the cave Churches of Göreme, it is renowned for its nightlife and for its good adjustment to tourism, making it a popular night stop for Cappadocia...
in Cappadocia
Cappadocia
Cappadocia is a historical region in Central Anatolia, largely in Nevşehir Province.In the time of Herodotus, the Cappadocians were reported as occupying the whole region from Mount Taurus to the vicinity of the Euxine...
. Alanya is a particularly preferred location for Germans and Scandinavians
Scandinavians
Scandinavians are a group of Germanic peoples, inhabiting Scandinavia and to a lesser extent countries associated with Scandinavia, and speaking Scandinavian languages. The group includes Danes, Norwegians and Swedes, and additionally the descendants of Scandinavian settlers such as the Icelandic...
, while the British purchases are at their highest level of concentration in Fethiye and Didim Reuters İstanbul - in Turkish. Some of these towns have come to include sizable proportions of seasonal or full-time inhabitants made up of foreign homeowners. These homeowners already display a marked tendency to set up associations among themselves to promote their specific areas of interests such as the translation of key texts into their respective languages, contacts with officials, cultural and religious activities such as church-building and to provide guidance to newer purchasers.
One of the fundamental keys to Turkey's successful transition to full EU membership is its ability to attract and retain Foreign Direct Investment (FDI). It has set itself a target of attracting 1.2 trillion dollars from Gulf States initially and therefore the Crown Prince of Dubai's immediate financial commitment to the country's real estate sector not only gave property investors faith in Turkey it gave other nations faith in the country as a whole and should lead to the further promotion of Turkey and an increasing flow of FDI.
Points of Controversy in Turkey on Foreign Home Ownership
The foreign purchase of real estate is a widely discussed subject in the Turkish media and among the public. Some of the opinions put forth in this context may not be based on sound facts, while others are results of in-depth studies. Opponents of liberalisation and internationalisation of the real estate market in Turkey also made allusions based on interpretations of evolutions in SpainSpain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
and Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
.
Another issue which will inevitably arise is the concern over the specific case of Greek
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
nationals. Despite EU pressures, a national land registry system in full legal clarity is yet to be fully established in Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....
(except in the Dodecanese
Dodecanese
The Dodecanese are a group of 12 larger plus 150 smaller Greek islands in the Aegean Sea, of which 26 are inhabited. Τhis island group generally defines the eastern limit of the Sea of Crete. They belong to the Southern Sporades island group...
, where the system was set up during the Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
rule between 1912–1945). Thus, a legal move questioning whether there could be reciprocity with a country without a land registry system was indeed launched under the auspices of opposition CHP party, before the application covering the new law in general was made to the Constitutional Court and set the agenda. The issue will almost certainly not be dismissed easily by proponents of a liberal property market. In addition, there are also occasional reports of a more sensational nature, usually specific to some sections of the media. These relate to Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...
i or Arab
Arab
Arab people, also known as Arabs , are a panethnicity primarily living in the Arab world, which is located in Western Asia and North Africa. They are identified as such on one or more of genealogical, linguistic, or cultural grounds, with tribal affiliations, and intra-tribal relationships playing...
investors buying land en masse in the prospering Southeastern Anatolia Project
Southeastern Anatolia Project
The Southeastern Anatolia Project is a multi-sector integrated regional development project based on the concept of sustainable development for the 9 million people living in the Southeastern Anatolia region of Turkey...
region, politically-minded purchases in the Black Sea region or in Eastern Anatolia
Anatolia
Anatolia is a geographic and historical term denoting the westernmost protrusion of Asia, comprising the majority of the Republic of Turkey...
.
The challenge for the Turkish government will be to negotiate a path which satisfies the sceptical elements within Turkish politics and among the public, while at the same time appeasing liberals and satisfying the open-market criteria which the E.U. expects from Turkey as it moves towards accession.
On a more specific and strictly professional focus, the ongoing efforts by Turkey's real estate agents to demarcate the definition and the boundaries of their profession and to discourage occasional and non-professional intermediaries away should also be mentioned. The compulsory norms to be respected in order to exercise the profession are still rather recent (since 2004). Real estate agents are required to be members to and exhibit their membership of the association set up for their region (such as Kusemder for Kuşadası
Kusadasi
Kuşadası is a resort town on Turkey's Aegean coast and the center of the seaside district of the same name in Aydın Province. Kuşadası lies at a distance of to the south from the region's largest metropolitan center of İzmir, and from the provincial seat of Aydın situated inland. Its primary...
, or Maremder for Marmaris
Marmaris
Marmaris is a port city and a tourist resort on the Mediterranean coast, located in southwest Turkey, in Muğla Province.Marmaris' main source of income is tourism. Little is left of the sleepy fishing village that Marmaris was just a few decades ago after a construction boom in the 1980s...
). These local associations are gathered within the framework of the national federation, Temfed, which provides a full list of the regional associations.
Foreign Ownership Market Data under the new legislation (after 7 January 2006)
After the annulment of the 2003 Law in July 2005, during the 6-month period of legal uncertainty, the market (focused on foreign buyers) understandably came to a standstill. However, local Land Registry Offices continued to process applications in anticipation of the new law. 2006 and 2007 data indicates that the market took off to a clear and vivid boost.Information on overseas buyers provided by the First Economic Counsellor of the Turkish Embassy in London for 2006 was as follows:
Britons were the first in buying property in Turkey among foreign nationals in the first quarter of the year according to the latest data released by the Land Registry Office. From 7 January 2006 when the new law was put into effect, to mid-April 2006, 588 British Citizens purchased 420 properties in Turkey. Secondly 265 Germans bought 258 properties in Turkey. In the same period, total property sale to foreigners and total foreigners bought property in Turkey reached 1,206 and 1,565 respectively. (25 April 2006)"
The newspaper Cumhuriyet
Cumhuriyet
Cumhuriyet is a centre-left Turkish daily newspaper, founded on May 7, 1924 by journalist Yunus Nadi Abalıoğlu. Based in Istanbul, it has been situated since October 17, 2005 in Mecidiyeköy. Cumhuriyet was the last newspaper to leave the old press district Cağaloğlu...
reported on 11 June 2006 that, since the 5/1000 limit was exceeded in Hatay Province
Hatay Province
Hatay Province is a province in southern Turkey, on the Mediterranean coast. It is bordered by Syria to the south and east and the Turkish provinces of Adana and Osmaniye to the north. The province is part of Çukurova, a geographical, economical and cultural region that covers the provinces of...
, sales to foreign nationals of real estate located in that province was suspended until further notice. The congestion is a consequence of 1300 parcels of property that have been bought in recent times by foreign nationals adding up on the 2400 land lots owned by Syrians
Demographics of Syria
Syrians today are an overall indigenous Levantine people. While modern-day Syrians are commonly described as Arabs by virtue of their modern-day language and bonds to Arab culture and history...
, some of them quite large. The particular case of Hatay
Hatay Province
Hatay Province is a province in southern Turkey, on the Mediterranean coast. It is bordered by Syria to the south and east and the Turkish provinces of Adana and Osmaniye to the north. The province is part of Çukurova, a geographical, economical and cultural region that covers the provinces of...
put apart, as of 1 June 2006, Antalya Province
Antalya Province
Antalya Province is located on the Mediterranean coast of south-west Turkey, between the Taurus Mountains and the Mediterranean sea.Antalya Province is the centre of Turkey's tourism industry, attracting 30% of foreign tourists visiting Turkey. The province of Antalya corresponds to the lands of...
was in the lead in the number of foreign purchases of real estate in Turkey
Turkey
Turkey , known officially as the Republic of Turkey , is a Eurasian country located in Western Asia and in East Thrace in Southeastern Europe...
with 5566 lots sold, provinces of Aydın
Aydin Province
Aydın Province is a province of southwestern Turkey, located in the Aegean Region. The provincial capital is the city of Aydın which has a population of approx. 150,000 . Other towns in the province include the summer seaside resorts of Didim and Kuşadası.-History:Aydın was founded by the ancient...
(3998), Muğla
Mugla Province
Muğla Province is a province of Turkey, at the country's south-western corner, on the Aegean Sea. Its seat is Muğla, about inland, while some of Turkey's largest holiday resorts, such as Bodrum, Ölüdeniz, Marmaris and Fethiye, are on the coast in Muğla....
(3035), İstanbul
Istanbul Province
Istanbul Province is a province located in north-west Turkey. It has an area of 5,196 km² and a population of 13,255,685. The population was 10,018,735 in 2000. It is surrounded by the provinces of Tekirdağ to the west, Kocaeli to the east, the Black Sea to the northern part and the Sea of...
(1463) and İzmir
Izmir Province
İzmir Province is a province of Turkey in western Anatolia on the Aegean coast, whose capital is the city of İzmir. On the west it is surrounded by the Aegean sea, and it encloses the Gulf of İzmir. Its area is 11,973 km.2, population 3.948.848 . The population was 3,370,866 in 2000...
(722) occupying the following places.
The most recent data provided by the Ministry, covering the period from 2002 (when the incumbent government came into office) to 2008 indicates a total of 63,085 land lots sold to 73,103 foreign private persons, extending to a total area of 25,350,361 square meters. As such, a total of seventy four seventy five thousand foreign nationals own an area of 38623661 square metres (415,741,627 sq ft) of lands in Turkey. As of 2007, on area basis the provinces of Muğla
Mugla
Muğla is a city in south-western Turkey. It is the center of the district the same name, as well as of Muğla Province, which stretches along Turkey´s Aegean coast. Muğla center is situated inland at an altitude of 660 m and lies at a distance of about from the nearest seacoast in the Gulf of...
(4,445,259 meter squares), Antalya (3,810,118 meter squares), Aydın (3,001,075 meter squares) came in the lead. On the basis of the number of foreign nationals acquiring property, the situation was as follows: Antalya
Antalya
Antalya is a city on the Mediterranean coast of southwestern Turkey. With a population 1,001,318 as of 2010. It is the eighth most populous city in Turkey and country's biggest international sea resort.- History :...
(26,031 foreign nationals), Muğla
Mugla
Muğla is a city in south-western Turkey. It is the center of the district the same name, as well as of Muğla Province, which stretches along Turkey´s Aegean coast. Muğla center is situated inland at an altitude of 660 m and lies at a distance of about from the nearest seacoast in the Gulf of...
(12,865 foreign nationals), İstanbul
Istanbul
Istanbul , historically known as Byzantium and Constantinople , is the largest city of Turkey. Istanbul metropolitan province had 13.26 million people living in it as of December, 2010, which is 18% of Turkey's population and the 3rd largest metropolitan area in Europe after London and...
(8,830 foreign nationals), Aydın
Aydin
Aydın is a city in and the seat of Aydın Province in Turkey's Aegean Region. The city is located at the heart of the lower valley of Büyük Menderes River at a commanding position for the region extending from the uplands of the valley down to the seacoast...
(7,415 foreign nationals), Bursa (5,241 foreign nationals), İzmir
Izmir
Izmir is a large metropolis in the western extremity of Anatolia. The metropolitan area in the entire Izmir Province had a population of 3.35 million as of 2010, making the city third most populous in Turkey...
(4,145 foreign nationals). German nationals came the first in Antalya Province and British citizens in Muğla and Aydın Provinces. Purchases by Greek nationals displayed a striking preeminence in İstanbul and, in a more recent trend, in Bursa.
See also
- Economy of TurkeyEconomy of TurkeyThe economy of Turkey is defined as an emerging market economy by the IMF and is largely developed, making Turkey one of the world's newly industrialized countries. The country is among the world's leading producers of agricultural products; textiles; motor vehicles, ships and other transportation...
- Tourism in TurkeyTourism in TurkeyTourism in Turkey is focused largely on a variety of historical sites, and on seaside resorts along its Aegean and Mediterranean Sea coasts. In the recent years, Turkey has also become a popular destination for culture, spa, and health care tourism...
- Marinas in TurkeyMarinas in TurkeyMarinas in Turkey refer to Turkey's ports of call for international and local yachtsmen equipped with modern services routinely expected in recreational boating industry, and they are presently found either in or near Istanbul or İzmir, the two largest port cities of the country, or in or near...
- Shopping malls in Turkey