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Monday, October 6, 2008

Foreign Ownership Market Data under the new legislation


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 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 38,623,661 square metres (415,741,630 sq ft) of lands in Turkey.[2] 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.

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