Real estate in Turkey nets 167 percent profit as Arab interest increases

Day by day the desire to live in one of Turkey's secure, high quality and modern buildings is climbing sharply. After a 2012 real estate law was passed, allowing the sale of land and housing to foreigners, prices began rising substantially.

In the past two years, a 30 percent increase saw a premium of rates reaching 167 percent in areas where cities have been developing with rapidity. Throughout Turkey, this was seen noticeably in provinces ranging from Istanbul to Yalova and Trabzon to Bursa, where real estate growth has been in the forefront.

Last year, 123 thousand residences were built in comparison to the need of 100 thousand residences. Again in the past year, 37 thousand apartments were sold to investors ranging from England, Germany, Saudi Arabia and Kuwait.

Arabic investors had an especially big impact on cities with the most sale increases. Arabs increased their real estate purchases in the provinces of Istanbul, Yalova, Sakarya, Bursa, Kocaeli and Trabzon. Real estate experts relayed that Saudis preferred Sapanca, whereas Kuwaitis purchased secure property from Bursa and Yalova in Turkey's northwest.

Halil İbrahim Helvaci, the general manager of one of the most anticipated real estate consulting companies in Turkey, Istanbul Royal Estate, said that they are developing and marketing real estate projects mainly to Arabic customers and that there is a great interest towards Turkey in the Middle East.

Pointing out that the web site "istanbulroyalestate.com" offers many projects to its Arab clients, in particular, Helvaci highlighted that their investors who made significant profits chose to continue their investments.

Emphasizing that the Turkish construction industry has attracted many real estate projects by integrating high technology and livable quality, Helvaci added that customers derive big profits in short periods of time thanks to the increasing value of apartments.

Real estate investors are not complaining about the rising value of the U.S. dollar versus the Turkish lira. In fact the rise of the dollar has opened new doors for investors looking to make a splash in the Turkish real estate market.

"The increase of the dollar has turned into a surprise discount. There is an evident increase in sales," Istanbul Royal Estate's General Manager Halil İbrahim Helvaci said.

Real estate sales to foreigners in Turkey are expected to pick up speed when a new government is formed and political stability is ensured after the upcoming November 1 general election.