The real estate property has become a booming business in Turkey. The people buy and sell property in the season of tourists. In holidays people hire houses on rent to spend time with families. The investors spend on real estate just to earn rent and hotel charges. Not only houses and building are constructed for business rather it is done for housing purposes. Foreign investment in Turkey is also aimed at the construction of hotels and malls for earning profits. Household buildings are constructed for sale and are also a big business.
Because of Turkey’s participation in European Union, the demand for real estate has increased. The tourism is second factor contributing to increase worth of property in Turkey. Currently the trend of selling private properties to foreigners has given rise to the foreign ownership of Turkish property. Unlimited foreign ownership was banned in the country few years back, but now the law has changed which has reduced local individual property ownership. Most of the foreigners who have invested in Turkish property are British, Greeks and Germans.
Another implication of Turkish property is that a lot of and most of the property is owned by the government. An insignificant total of property was held with individuals who have now sold that to the foreign investors. The name of vakif foundation is worth mentioning here as it is the most important state organization which is controlling and managing the state property since many years. It is also an autonomous body that is contributing to Turkish economy as it is also responsible for running the bank named Vakif bank in the country.
The land owned by the government of Turkey is mostly the rural land that is reserved for agriculture production. The rural land has never been sold to any private firm or investor. This is what which makes Turkey distinctive from other European states which believe in private property. For not considering Turkey as a European Union member, this was also a major reason held previously.
The laws were amended regarding property rights in Turkey to allow and attract foreign investment in the country. Due to lower cost of life in Turkey people of other European countries are buying residential property in Turkey. Climate of the country is also a reason for foreign investment. Tourists spending on the stay in Turkey are a source of encouragement for the foreign as well as the local investors in this regard.