Is this 2012's biggest property money-spinner?
If you had to name the biggest themes that could shape the industry this year, most of us would probably name the Eurozone crisis, the upcoming elections in France or Greece or the emergence of the US housing market from its record slump.
All of these issues will impact overseas property sales. However, another less talked about development is about to have a huge impact on transaction volumes.
The Turkish government is on the verge of abolishing the recipricrocity law which will lift restrictions on buyers in the Arab world purchasing in the country.
Turkey and particularly its capital Istanbul, is already top of the list for investment prospects with international investors (see table below).
A growing population, high economic growth, low mortgage penetration, non Euro currency and its strategic position on the European-Asian frontier make it a fertile hunting ground for the more adventurous overseas investor.
The lifting of restrictions on Arab buyers is significant to three reasons. Proximity, price and culture. These are the key drivers of overseas property sales and buyers in the UAE, Saudi Arabia, Qatar, Oman and Kuwait fit the bill perfectly.
Prices in Turkey are affordable for oil-rich buyers, it’s a short plane ride and similarities in language and culture make the proposition of owning in Turkey attractive.
It may be a difficult opportunity to grasp for many but for those in a position to exploit it, this trend could be the biggest money spinner of 2012.
Source: Global Edge