Gulf nationals spent $4.3 billion in Turkey’s real-estate sector last year, according to a report released ahead of Cityscape Global
Turkey’s real-estate sector is seeing increased interest from GCC investors as foreign buyers continue to pump money in the country, according to a statement released ahead of next month’s Cityscape Global.
The number of house sales to international investors in Turkey increased 22% in the first half of this year, compared to the same period last year, data released by the Turkish Statistical Institute shows. In 2014, Gulf investors spent $4.3 billion on Turkish real estate, according to Wouter Molman, director of Cityscape Group.
“With Istanbul and Mediterranean coastal cities proving popular with GCC investors due to their close links with the region both geographically and culturally, Cityscape Global is the perfect platform for foreign investors to learn about the market and see what new projects are currently available,” Molman added.
This year’s Cityscape Global exhibition will see 50 Turkish exhibitors showcasing their latest developments. The Turkey stand will be the largest international pavilion at the three-day show, covering 4,200sqm of exhibition space.
Turkey’s residential sector has seen a marked increase in private investors from the Middle East, said Diana Dogan, head of research at CBRE Turkey. Activity has been focused on the country’s northwest, particularly in the Marmara Sea and Black Sea regions, as well as Istanbul, Bursa and Yalova, she added.
“At the corporate investment level, this demand has in turn created a yet untapped potential opportunity to develop homes specifically tailored to the Arab market. The Turkish banking sector has seen the most active interest with Arab financial institutions looking to gain a foothold or expand their presence within Turkey’s lucrative banking industry.”
Several major developers from Turkey will be at the Cityscape Global show, including Dumankaya, Is Gyo, NEF, and Garanti Koza.
Dumankaya will be showcasing its Horizon and Miks projects located in Istanbul, which the firm hopes will find favour with Arab investors.
“Istanbul is an attractive real estate market for foreign investors. With its economic stability, social welfare, geographical position and return on investment all pointing in the right direction, buyers from around the world are flocking to take ownership of prime developments in the city and surrounding areas,” said Ugur Dumankaya, chairman of the board of directors at Dumankaya. Thirty percent of the developer’s total sales are to foreign investors, the majority of whom are from the GCC and wider Middle East.
This year’s Cityscape Global will run September 8-10 at the Dubai World Trade Centre. Due to the significant growth of Turkish participation in events across the Middle East, as well as requests from Turkish developers, Cityscape Turkey will launch next year, taking place from March 24-26 2016 at the Istanbul Congress Centre, near Taksim Square.