European firms eye housing in Turkey

ISTANBUL

Contractors from Spain, Germany and the United Kingdom have held talks with the Housing Settlement Administration and the Emlak Konut for joint works. DHA photo

Spanish, German and British contractors have held talks with the Housing Settlement Administration (TOKİ) and the Emlak Konut Real Estate Investment Trust (REIT), a subsidiary of TOKİ, to conduct joint projects, the Investment Support and Promotion Agency (ISPA) has said.

The reciprocity law that allows foreigners to buy houses and also the ongoing urban transformation projects have particularly drawn the attention of European real estate companies, daily Sabah has reported. 

ISPA President İlker Aycı said construction firms from Spain, Germany and the United Kingdom were having negotiations with TOKİ and Emlak Konut for joint works. The investment based on construction will reflect construction equipment, he added, noting that Asian firms were especially interested in this.

Foreign investments in real estate increase

The rate of direct foreign investments fell from $16 billion in 2011 to $12.4 billion last year, representing a 22.8 percent decrease, Aycı said. He noted that this amount decreased to $1.3 trillion, with a 18 percent shrinking in the world. In spite of this, foreign investments in housing reached $2.6 billion in Turkey last year, a 31 percent rise in the real estate sector.

However, the ISPA will continue to cooperate with the privatization administration in order to draw foreign investors, particularly in the energy sector. k HDN