Investors from the Gulf Cooperation Council are among the biggest international investors in Turkey’s real estate market, according to official estimates.
GCC nationals accounted for 24 per cent of the total house sales made to foreign buyers in Turkey during the first nine months of 2015, according to a report by REIDEN, which is based on official Land Department figures.
Within the Gulf region, investors from Saudi Arabia accounted for the lion’s share of investment at 48.1 per cent, followed by Kuwait at 40.3 per cent.
Investors from the United Arab Emirates accounted for 6.2 per cent while Qatari buyers followed at 5.4 per cent.
Following the 2012 liberalisation of the foreign investment law in Turkey, there has been a 500 per cent increase in investment from the GCC, the report found.
"As an investment destination for the Gulf countries, Turkey is a strong option, particularly for real estate purchases," said executive board member of Turkish property developer Nurol REIT Ceyda Carmikli.
"Istanbul's attractive capital returns and strong capital appreciation are drawing substantial interest from this region. The security offered by Turkey's government-protected title deeds, combined with a young population of 49 per cent under 30 who have housing needs, are all appealing to both the home owner and buy-to-let investor," he added.
In total, house sales to foreigners in Turkey increased 19 per cent year-on-year in the first nine months of 2015.
According to Carmikli, the Turkish real estate market is expecting revenues of $5bn from the sales of approximately 20,000 houses to foreigners in 2015. The target for 2016 is 40,000 houses with revenues of $10bn.
Turkey’s property market has seen strong growth this year. During the first six month of 2015, the nationwide house price index surged 18.96 per cent, according to the country’s central bank.
During the second quarter alone, house prices increased by 5.08 per cent. Cities such as Istanbul, Ankara and Izmir have specifically seen double-digit growth in property prices this year.
