Foreign real estate sales up 7.6 pct in first 8 months

ANKARA - Anatolia News Agency

Antalya is one of the most attractive provinces for foreign real estate buyers. Hürriyet photo

Real estate sales recorded a significant increase thanks to a new law enacted this year easing foreign purchases, while direct foreign capital inflow declined.

Real estate sales between January and July this year increased by 7.6 percent when compared to the same period last year, Ministry of Economy data showed. Direct foreign capital inflow declined in Turkey by 8.2 percent year-on-year in the same compared period.

The Economy Ministry said that out of a total of $8.8 billion of international direct investments between January and July 2012, $7.4 billion was direct foreign capital inflow while $1.4 billion came from the sales of real estate. Direct foreign capital inflow in Turkey between January and July 2011 was $8.1 billion.

Citizens of 183 countries are allowed to acquire fixed property, buildings and land in Turkey, with the exclusion of some countries such as Armenia, according to a decree released on Aug. 6.

Separately, the Turkish private sector’s outstanding long-term loans received from abroad had reached $125.9 billion as of July. The loans had decreased by $1.3 billion compared with the end of 2011 and $1.6 billion in comparison to the previous month.

While banks’ loan liabilities decreased by $1.7 billion, bond liabilities increased by $993.3 million compared to the end of 2011. During the same period, non-bank financial institutions’ loans increased by $711.9 million, while non-financial institutions’ loans decreased by $1.8 billion.

From the creditor’s side, liabilities to private creditors and to official creditors decreased by $2.1 billion and $195.3 million respectively compared to the end of the previous year. Meanwhile, the private sector’s outstanding short-term loans received from abroad reached $31 billion, increasing $3.9 billion compared to the end of 2011.