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Are you buying or selling overseas property in Turkey? There are a plenty of political risks in Turkey right now, which you should be aware about.
There has been a failed military coup, for a start, which set into motion a series of autocratic measures by the President Tayyeb Erdogan administration.
President Erdogan’s regime has been accused of massive human rights violation. They have also been accused of persecuting dissidents, and incarcerating their opponents.
Turkey has brought back the death sentence in order to get rid of those who were behind the failed military coup. This goes against the directives of the European Union. The European Commission has condemned this move and has virtually ruled out Turkey’s membership of the European Union in the future.
There have been a number of terrorist attacks on Turkish soil by Islamic extremists that have killed hundreds of people over the last 18 to 24 months. A recent terror strike on December 31, 2016 in a nightclub Istanbul killed over a dozen foreign tourists. There have been attacks like this in Turkey almost every other month since 2015. People are genuinely worried about this.
Another major concern is the recent conflagration between Turkey and Russia. The Turkish military downed a Russian fighter plane, killing the pilot. This led Russia to impose sanctions on Turkey. This has had a direct impact on the property market in Turkey as Russians are among the leading buyers of property here.
However, recently there has been a thaw in Russian – Turkey relations because of a meeting between President Putin and President Erdogan. The sanctions have been lifted and it is hoped that the Russians will get actively involved in the Turkish property market again.
Now, Turkey is the fastest growing overseas property market in the world. Property prices here have risen by over 10 percent every year since 2004. However, many European investors, especially those from Germany, UK and Scandinavian countries are rethinking their plans of buying property in Turkey this year.
There is still a lot of interest in Turkey coming from non-EU investors, from Arabs and Chinese in particular. The Arabs are the biggest buyers of residential property in Turkey right now. The Arab interest in Turkey’s real estate has grown by 8 to 9 percent every year for the last ten years.
A lot of people in the Middle East are fascinated by Turkey and its vibrant culture. For them, Turkey represents a unique combination of modernity, technological advancement and Islamic conservatism. Turkey is the world’s most modern Muslim nation, and that is a part of the attraction.
The Turkish government has been working hard to attract foreign investment in property. One of the measures is granting of an automatic residency to anyone who buys property worth $500,000 in Turkey. This has attracted a lot of interest from non-European Union investors.
Hundreds of thousands of Chinese visit Turkey every year as tourists. Many wealthy Chinese have sought to buy properties here. They have also been attracted by the Golden Visa program provided by the Turkish government.