Legal, economic, economic, geographical and demographic analysis of the acquisition of Real Estate by foreign nationals in Turkey

Abstract

Real estate acquisition by foreign nationals in Turkey has been an issue of intense debate for a long time and has been subject to frequent legislative changes. The rights of foreign nationals with respect to real estate in Turkey were initially addressed in Land Registry Law No. 2644, which was passed in 1934, with additional amendments made to the law in subsequent decades. The aim of this study is to analyse the legal, economic, geographical and demographic impacts of real estate acquisition by foreign nationals to determine how a policy on this type of real estate acquisition should be implemented in Turkey. For the purposes of analysis, statistical data obtained from the General Directorate of Land Registry and Cadastre (GDLRC) and the Turkish Statistical Institute (TURKSTAT) are used. The author will also make reference to the most recently issued legal regulations. Regulations introduced at various points in time have facilitated the acquisition of real estate by foreign nationals and brought in some $41 billion in revenue to the national economy since 2003. When the geographical distribution of the real estate acquired by foreign nationals is considered, one can observe that the most popular cities are coastal (Istanbul, Antalya, Bursa, Aydin, etc.). Additionally, foreign nationals originating from almost every country in the world have so far acquired real estate in Turkey. The majority of those who have done so are Arabs (from Iraq, Kuwait and Saudi Arabia), Europeans (from Germany, the United Kingdom and Sweden) and Asians (from Afghanistan, Azerbaijan and Kazakhstan). Based on this analysis, suggestions are put forward regarding the policies that could be followed in Turkey when considering the acquisition of real estate by foreign nationals.