Turkey continues to prove an attractive prospect to foreign investors. Latest figures released by the Turkish Ministry of Economy on foreign direct investment (FDI) show 892 million USD (approx £563 million) of FDI came into Turkey in the first month of 2012 – a 72% increase on the same period in 2011.
In 2011, property purchases by foreigners contributed 150 million USD (approx £95 million) to Turkey’s foreign capital revenues. According to the Turkish Land Registry Directorate, 111,000 foreigners invested in Turkish property in 2011, with approx. one in three of those investors from the UK.
Turkey is revising its laws governing property purchase rights. This includes a provision to increase the amount of land a foreign buyer can purchase and a review of reciprocity arrangements.
Currently citizens of countries which do not share full reciprocity with Turkey, such as Russia and countries in the Middle East like Saudi Arabia, Iran and other Gulf nations, are restricted from freely purchasing unless they establish a private company, as Turks are unable to buy in those countries.
There are currently 84 countries, including the United Kingdom and Germany, who have full reciprocity with Turkey.
The reforms are anticipated to further boost foreign interest in buying in Turkey.
In February 2012, Goldman Sachs forecast the Turkish economy would outbid those of Germany, France and Japan by 2050.[Sources: Invest in Turkey, Turkish Land Registry, Goldman Sachs]