Turkey: Property law changes

The Constitutional Court of Turkey has recently announced they are cancelling a law that allows sales of real estate to companies established by foreign firms. The ruling will come as a blow to some foreign property investors who setup companies in Turkey to enable them to buy in restricted areas of the country.

Areas such as military zones and rural lands have restrictions on who can buy them, as does land which is over 30 hectares in area. For foreign property investors who wanted to buy this sort of real estate, many formed a company in Turkey and purchased the real estate through their new company. However, this loophole has now been closed.

It is important to note that the new rules will not affect the majority of people buying in Turkey who can still purchase standard Turkish properties and real estate through the normal channels. However, the change in the law does make it doubly important to make sure an independent lawyer checks the title deeds to the prospective property before the purchaser goes ahead with the sale – this is to make sure that the property is zoned in the correct area. Should you buy in an incorrect zone, you may not be able to secure the ownership of the property.

It is not expected that the new law will have a significant impact on the Turkish property market – Turkey is pushing to attract more tourists to the country therefore rental yields and property prices are expected to rise and the impact of the new rules is likely to have little or no effect on the overall Turkish property market.

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  1. Sahereh Adib | May 17, 2008 | Reply

    hi
    we are iranian. we have ticket for 23 May to Antalya for open LTD Co and buying an apartment. please inform me, according to this new law, can we do this job?
    thank you so much

  2. babak | Nov 12, 2011 | Reply

    salaam.
    I am iranian.
    everybody can buy a apartment in turkey prefrably in Istanbul ?
    every feedback is appretiated.

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