Istanbul a new London for Arab property buyers

Russian and Middle Eastern investors are being lured to Istanbul to buy luxury real estate now that property laws have been relaxed, the economy is strong, prices are relatively cheap in comparison and Turkey is viewed as a safe haven

A new wave of wealthy investors from the Middle East and Russia is increasingly eyeing luxury developments in bustling Istanbul, lured by a relaxation in property laws, relatively cheap prices and a thriving economy.

A revision to Turkish property laws, announced in May, abolishes a reciprocity rule that only allowed investors from countries where Turkish nationals could buy real estate to buy property in Turkey. The bill also allows the government to double the amount of land foreigners can buy in Turkey to 600,000 square meters, although for now a limit of 300,000 square meters remains.

Turkish property prices marked the third-fastest growth in the world in the year to June, behind Brazil and Austria, surging more than 10 percent and outpacing Russia and Hong Kong, according to the Knight Frank Global House Price Index.

Rising prices and the prospect of relaxed rules for foreigners are fueling lofty ambitions in Turkish property circles for Istanbul to match the rapid rise of other newly fashionable property hubs such as Moscow, where prime real estate prices now rival London and New York.

Two-year urban plan kicks off in Turkey

Most of the urban transformation projects in Turkey are to be completed in two years, despite the 20-year plan forecast, according to the City and Urban Planning Ministry. Currently. Buildings at the highest risk in the event of an earthquake are currently being identified.

“We are endeavoring to realize the transformation of hovels, illegal, unlicensed buildings and those without occupancy permits. We will let the citizens know that we are determined to do this. Then the transformation will be completed in five-year, seven-year, 10-year, 12-year, 15-year and 20-year plans,” said City and Urban Planning Minister Erdoğan Bayraktar.  Istanbul Real Estate

Owners of buildings have a 15-day period to lodge an objection with the ministry against demolition decisions.

The ministry will establish publicity offices to explain the law to the citizens in the Istanbul, İzmir and Bursa provinces. Bayraktar said more offices may be established in the other areas where urban transformation projects will take place.