DOHA: Qatari investors will have a unique opportunity to discover Turkey’s diverse real estate landscape and meet with leading local and international developers and market experts at next month’s inaugural Cityscape Turkey exhibition, which will be held from March 24 to 26 at the Istanbul Congress Center.
The latest addition to the Cityscape portfolio of global events, the new destination showcase follows on the back of the success of the Turkey pavilion at Cityscape Global 2015, with a surge in investor interest prompting the launch of a dedicated in-country exhibition.
In 2015, over 500,000 GCC residents visited Turkey with investments from the Gulf accounting for almost 30 percent of total transactions. According to Turkey’s Ministry of Land Registry, 277 Qatari citizens purchased property in 2015 amounting to 484,000 square metres. Investment from the GCC state has more than doubled in the last 24 months, and doubled again in terms of total square meterage. Most interestingly, the total square meterage purchased per capita is the highest among all countries at over 1,700 square metres per person.
“Turkey appeals to the Qatari 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, or the upscale resort communities found on the various coasts, an abundance of quality retail locations and 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,” said Wouter Molman, Director, Cityscape Global.
The sixth largest European economy with current GDP in excess of $800bn, 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, reaching almost US$5 billion in the first nine months of 2015, according to Gyoder, the country’s association of real estate investment companies.
FDI inflow to the real estate and construction sector totalled $4.8bn in 2015 and is expected to top $10bn in the medium term. Infrastructure development is also being prioritised, with a third Istanbul airport in the pipeline, and with the Turkish government is putting real estate development at the top of its economic agenda.
The Turkey event will bring together over 50 high profile exhibitors across 7,000 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 Cityscape Turkey team will also invite a select number of prospective Qatari investors to attend through its exclusive invitation-only hosted buyer programme.
“We want to connect serious investors with participating developers and reputable brokers directly and, under this programme, we will bear the cost of their 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,” remarked Molman.
Current investment hotspots for Qatari nationals are Turkey’s capital, Istanbul, as well as Trabzon on the Black Sea coastline, and Yalova and Bursa in the northwest of the country.
“As of 2016, Qatar now ranks in the top 10 of inward real estate investment, and is the 17th largest foreign purchaser of real estate in the country, 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,” said Ali Agaoglu, Chairman of Agaoglu.
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 Qatari investors.
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, as per Gyoder. According to Reidin, the online real estate information service, Istanbul, Antalya and Bursa have demonstrated the highest monthly return on residential investment at 0.49 percent. Key exhibitors at the inaugural showcase include Agaoglu, DAMAC Properties, DKY Insaat, EGE Yapi, Green Valley Real Estate, Kuzu Group, Metropol Istanbul, Ofton, Piyalepasa, Polatyol, Quasar Istanbul, Sinpas and Suryapi.The Peninsula
