Turkey sees sharp rise in house sales to foreign buyers

Turkey has experienced sixty percent increase in house sales to foreigners in 2014 as compared with the previous year, according to the Turkish Statistical Authority on Friday.

The data revealed that up to 19,000 houses have been sold to the foreigners in over all the country in 2014. The total houses purchased by both local and foreigners is 1,165,000.

Housing Developers and Investors Association Chairman Omer Faruk Celik in a recent statement said that the total amount of foreign corporate and individual real estate sales is expected to 5 billion dollars in 2014.

Foreigners mostly prefer to buy houses from the provinces in the Mediterranean and Aegean coast of Turkey as the regions offer sun, beaches and natural beauties. Istanbul takes the lead as a metropolitan city.

The province of Antalya located along the Mediterranean caost was the last year's most popular city. More than 6,500 houses sold to the foreigners. Istanbul ranked the second with up to 5,580 houses sold.

Third province was Aydin, which has become very popular with its touristic holiday resort district Kusadasi. Foreigners bought 1,191 houses in Aydin.

Emre Erol, Regional Operating Partner of multinational real-estate company Keller Williams, said behind the sharp increase lies the growth of Turkey's economy and real-estate as its main industry when compared with other European countries.

"Turkey's economy is still growing, when you consider the other European countries where their economies and their real estate markets have been slowing down in the recent years," he said.

As another reason why foreigners prefer to buy houses from Turkey is the better returns of the real estate investment, Erol stated.

Germans, British and Dutch are the ones who purchase houses from Turkey the most among other European nationalities.

The country also attracts buyers from Russia, Azerbaijan and Kazakhstan as well as from Far East like Japan, China and India.

Erol is also optimistic about the 2015 figures. He expects another 50 to 60 percent increase in the house sales to the foreigners.

Foreigners in Turkey were not permitted to buy houses until 2003. With the ruling Justice and Development Party AKP's policies, the limitations have been lifted in pieces.

In 2013 Turkey has adopted a new law of reciprocity which eased the restriction even more on real estate sales to foreign buyers. The law has contributed to the increase in the flow of foreign capital to the Turkish real estate sector, Erol said. Endit