Premier Investment Funds are waiting for the Reciprocity Law in Turkey

The law of reciprocity will not only accelerate the housing sales but also other foreign investments in this aspect in Turkey. The Minister Bayraktar said the law would certainly pass within 2 months and also added that the foreign funds are also expecting the emergence of the law.

The unknown points of reciprocity law which will resource of annual 5-10 billion dollars input became clear.

The Environment and Planning Minister Erdogan Bayraktar answered questions on when the law will pass and what restrictions will be.

Bayraktar said that reciprocity law, firstly taken up the Council of Ministers as a draft, became now a draft bill and it will take from 1.5 to 2 months to pass (definitely).

Ratios Were Determined in Each Province

Home Sales Rise in Turkey

The consumers are again towards the most reliable source of investment ^^ Real Estate ^^ because of the rumors of crisis in World economy.

Home sales in the second quarter of 2011 increased by 17.8 percent compared to the previous quarter, sales is gaining momentum outside of the three largest provinces. While there was a limited increase at 1.2 percent in new housing prices in Turkey , the housing loan demand continued to expand.

In the second quarter the demand for housing loans increased

The use of housing loans in the second quarter of 2011 reached 66.7 billion and has continued to expand. However, as a result of decisions taken by the Central Bank, together with rising interest rates in July and August and September, it's been seen a slowdown in housing loan demand and it drew attention to the decline at 9,6 percent in the share of housing loans in total loans.


Housing loan installments lengthened to reduce maturities

While 9.38 billion dolars mortgage loans is being used in the second quarter of the year, according to the previous period, it was found that the credit users demanded for credit more than 3,000 TL  average per capita.

As the housing loan is used at average 75.000 TL per capita, it's seen the consumers prefer longer housing loan installment payments to reduce the maturity of thirty days because of increased interest rates.

While the use of 10-year-term mortgage loan is expanded,  It is noteworthy that the share of 10-15 year maturities increased in the third quarter.

Turkey will grow more than Europe and United States in 2012

Organization for Economic Cooperation and Development (OECD) announced that Turkey will grow 3 percent in 2012 at a rate higher than Europe and the United States.


The report states that while the  three major EU countries such as Germany, France and Italy might have a mild recession predicted , only 0.2 percent economic growth is estimated for Euro Zone. The OECD states in the report that the European Central Bank needs to take a more active role in eliminating the crisis and the strengthening of the euro rescue fund.
The report of economic growth forecast for the United States in 2012  has been revised from 3.1 percent to 2 percent.

Historical Pera Palas Hotel again changing hands

Historical Pera Palas Hotel in Istanbul where Mustafa Kemal Ataturk made ​​the work of the War of Independence, hosted the famous names from Agatha Christie known the world-famous author with the detective novels to Queen II Elizabeth , Pierre Loti, Jacqueline Kennedy and Ernst Hemingway has been taken by Demet Sabanci Cetindogan who is the partner of Demsa holding the sole rights of many prestigeous international brands in Turkey.

Restored and re-opened in 2010 with the participation of Prime Minister Recep Tayyip Erdogan, Pera Palace Hotel owned by Ihsan Kalkavan since 2005 shook hands with Demet Sabanci Cetindogan.

Expectation of Reciprocity Law Change For Foreigners

For more cash flow into Turkish Economy from housing sales to the foreigners regardless of the basis of reciprocity arrangement for residential and commercial ownership in real estate sector in Turkey has created hope for property developers. From Gulf and Arab countries, the minimum expectation is being sold over 10 thousand properties in Turkey.

Environment and Planning Minister Erdogan Bayraktar said earlier days, "we will open the way for the sale of real estate to foreigners, regardless of the principle of reciprocity". This positive manner of Minister of Turkey's appreciated by the most luxurious project developers with 'Turning point in History', 'Good News', 'Date of Decision' assessments.  The half potential of expected number of properties sold is to be in Istanbul to the Gulf countries, Arab world , Russia, the Turkish republics, Iran and Azerbaijan.

A lot of attention to Istanbul

The booming after the removal of reciprocity is mostly expected by real estate authorities to take place in Istanbul. In particular, Arabs, Russians, Azeris, Kazakhs attached to the barrage of reciprocity , are showing interest  to Istanbul's central locations overlooking the sea for lifestyle and the outskirts targeted more profit in investment.
In addition, foreigners, is very popular in coastal regions.

Arab Spring draws big attention to Istanbul Property Market

Arab investors are now very much interested in buying property in Istanbul due to the political unrest in the Middle East and North Africa pushing Arab’s towards Turkey.

Wealthy Arabs generally can pay between $2 million to $30 million for luxury houses in top locations in Istanbul, whereas remaining Arabs look to spend between $70.000 and $250,000 for residence projects in outskirts of Istanbul.

One of the main reasons; ‘’Cultural Similarity ‘’ between Turkey and Arab countries and other religious connections play an important role for Arab buyers when deciding which country to invest in. Especially Turkish soap operas widely watched and followed in Middle Eastern countries also attract many wealthy Arab investors looking for luxury here. The country’s economic and political stability also encourages investors to consider Turkey for new investments.

Total Arab investments in Turkey totalled $10.6 billion last year as Arab’s looked to the Turkish real estate market to invest money in with a view to make a healthy profit.