Conexio consulting

‘REAL ESTATE CAMPAIGNS’ IN TURKEY

When we are talkin about Turkey we always mention the word ‘location’, because it is strategically and geographically well-defined. Having this information in our minds, we can understand the importance of real estate and construction sector in Turkey. Also there is a large population which creates a huge need for real estate sector.

In 2016 1.341.453 houses were sold. According to the campaigns that governement maintain in the second half of the year to activate the sector and purchase motivation has increased.

The İstanbul offices market shows a strong performance with new projects and high renting operation volume in 2016. The A class Office supply increases %9 yearly and exceed 5 million mt. square. There is also 2,8 million mt. square under construction and this numbers give an estimation about an increase to 7,5 million mt. square until 2020. Also for your business center requests in Istanbul is a growing market with a great potential of A class offices.

The real estate sector had a golden age in previous ages in Turkey. But after the crisis and tough times Turkey found a good solution and release good opportunities for its citizens and also for foreign investors etc. Let’s look at them in detail.

For Turkish citizens, the ‘Unity Campaign’ offers a huge discounts in housing loan interests, the VAT discount in houses bigger than 150 m²  from %18 to %10.

For foreigners, the VAT has been removed. With the new regulation when a foreigner wants to buy a house in Turkey, there will be no VAT charging. To benefit from this opportunity the house shouldn’be sold in a year. In case of selling,  the VAT will be charged. This change in the regulation also let someone who makes an investment of 2 million dollars and buys a million dollar real estate have Turkish citizenship. In 2016 house sales to foreigners decrease and needed an impact. This campaign aims to increase sales to %8-10 level and close the current deficit.

According to the regulation people who can benefit from VAT exclusion are:

  1. Turkish citizens living abroad for more than six months with a work or residence permit,
  2. Real persons of foreign nationality who are not resident in Turkey
  3. Institutions where legally not located and business center is not located in Turkey and does not earn in Turkey through a permanent establishment or permanent representative

Conexio Consulting is a Professional consultancy firm n Turkey that can asist you during your purchasing process. We are working in collaboration with our legal advisors who are very well known experts in Turkish laws and administrational works.

 

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