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Real estate transactions by UAE residents jump 160% in last two years as relaxation of foreign investment laws drives demand
Inaugural Turkey exhibition to showcase prime developments with exclusive invite-only hosted buyer programme for serious investors
Dubai, UAE: Turkish real estate transactions by UAE residents have increased by 160 percent in the last two years, according to Turkey's Ministry of Land Registry, with investors from the Emirates accounting for more than 300,000 square metres of space.
As the relaxation of foreign investment laws in Turkey have driven up the demand for prime real estate projects, the launch of the inaugural Cityscape Turkey is expected to attract a number of UAE investors keen to capitalise on this growing market.
Running from 24-26 March at the Istanbul Congress Center, Cityscape Turkey is the latest addition to the Cityscape portfolio of events and follows on from the success of the Turkey pavilion at Cityscape Global 2015 which saw a surge of investor interest from the UAE.
In 2015, more than 500,000 GCC residents visited Turkey with investments from the Gulf accounting for almost 30% of total transactions. According to the Turkish Land Registry, 332 UAE citizens purchased property in 2015 and the country ranked among the top nations in terms of square meterage, at more than 433 square metres per person.
"Turkey appeals to the UAE investor on multiple levels, from the comfort factor of cultural similarities such as halal food and plentiful mosques, through to the cosmopolitan positioning of a city like Istanbul," said Wouter Molman, Director of Cityscape Group at Informa Exhibitions, the organisers of Cityscape Turkey.
"The country offers a variety of upscale resort communities on the coasts, an abundance of quality retail locations and has a growing presence from renowned international hotel chains. Couple this with steady high returns and a wealth of prime developments that meet stringent international construction standards, and you have a formula for investment success."
The sixth largest European economy with a current GDP in excess of US$800 billion, Turkey is also the 17th largest economy in the world and sixth most popular tourism destination, attracting 37 million international visitors in 2014.
The country's real estate sector continues to attract significant levels of foreign direct investment, with over US$3.5 billion in Q1-Q3, 2015 according to Gyoder, the country's association of real estate investment companies.
FDI inflow to the real estate and construction sector totaled US$4.8 billion in 2015 and is expected to top US$10 billion in the medium term.
Infrastructure development is also being prioritized, with a third Istanbul airport in the pipeline, and with the introduction of the urban regeneration law, which will see US4400 billion invested into housing projects over the next 20 years, the Turkish government is putting real estate development at the top of its economic agenda.
Cityscape Turkey will bring together over 50 high profile exhibitors across 7000 square metres of exhibition floor space, with more than 5,000 regional and international visitors expected to attend. In a unique and innovative move, the organisers will also invite a select number of prospective UAE investors to attend through its exclusive hosted buyer programme.
Molman added: "We want to connect serious investors with participating developers and reputable brokers directly. Under the hosted buyer programme, we will bear the cost of potential investors' five-star hotel accommodation and airport transfers and arrange a series of pre-qualified one-on-one meetings to fast track the experience and showcase a tailored collection of quality projects and existing developments that meet clients' exacting requirements."
Current investment hotspots for UAE residents are Turkey's capital, Istanbul, as well as Trabzon on the Black Sea coastline, and Yalova and Bursa in the northwest of the country.
Ali Agaoglu, Chairman of Agaoglu said: "As of 2016, the UAE ranks in the top 10 of inward real estate investment, which confirms the attraction of Turkey as a secure investment environment and a destination that delivers on quality, backed by a stable economy and acknowledged regulatory transparency, both of which are also key to ensuring investor confidence."
The 2012 amendment to Turkey's reciprocity law, which made it easier for foreigners to invest in the market, and purchase a maximum of 60 hectares - increased from the original 2.5 hectares - has also boosted demand from UAE investors.
According to Reidin, steady growth in terms of house prices has been recorded over the last three years, with residential rental rates in key cities also rising by 20 per cent over the last 24 months. Istanbul, Antalya and Bursa have demonstrated the highest monthly return on residential investment at 0.49%.
Key exhibitors at the inaugural showcase include DAMAC Properties, Agaoglu, DKY Insaat, EGE Yapi, Evrenol Architects, Green Valley Real Estate, Kuzu Group, Metropol Istanbul, Ofton, Piyalepasa, PNR, Sinpas GYO, Suryapi.
For more information, or to be involved as an exhibitor, sponsor, or visitor, go to www.cityscapeturkey.com or call +971 4 407 2764.
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© Press Release 2016
