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President Erdogan’s Big Win and What It Means for Real Estate in Turkey 28-Apr-2017

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 President Tayyep Erdogan of Turkey recently won a major referendum in his country, which means he will stay in power for the next 12 years, until 2029! Erdogan became the President of Turkey in 2002, and has been in the position ever since.

So, his victory in the referendum guarantees that he will be the longest serving head of state in history, as he will be in power for 27 years by the time his term runs out.

Should this influence your decision to buy or sell property in Turkey online? How should you approach the Turkish housing market, which looks attractive even today? Should you buy property in Turkey online?

 It’s hard to tell for certain, as there are conflicting views on Turkey. The business community in Turkey is enthusiastic about what this means for the future. They say that Erdogan’s strengthened position could lead to a wave of economic reforms in Turkey.

Turkish Industry and Business Association, which is the nation’s largest business group put out the following statement: "It is now time to make progress by preserving freedoms, pluralism and solidarity. We urge the government and the parliament to prioritize the reform agenda that is before our country."  

Turkish business community is of the opinion that the country will do economically in the forthcoming future because of its large, mostly youthful workforce, which provides the nation with excellent opportunity for growth.

 Omer Cihad Vardan of the Foreign Economic Relations Board (DEIK) said that it was time for the business community to come together and support President Erdogan. He said, "As of now, our country has become free from these problems and is ready to build the infrastructure to reach Turkey's goal of 2023, 2053 and 2071 under the leadership of our president.”

“Now that uncertainty has been removed, the economy will be at the top of our agenda and reforms will be accelerated. As part of the business world, we will try to contribute to our country's mission and continue to serve our country," Mr. Vardan added.

However, there are many risks to Turkey’s property market. The nation finds itself at the crossroads, with the ruling dispensation under President Erdogan having being accused of a series of human rights violations by the international media. The European Commission has virtually ruled out Turkey’s chances of getting a coveted membership of the European Union.

Many foreign investors, especially from Britain, United States, Germany and France, as well as from other Western countries are wary about investing in Turkey under the current political climate. 

Even Russians have been keeping away, because of the recent military conflagration between the two countries where a Russian fighter pilot was killed in action by the Turkish forces.

However, with the recent meeting between Presidents Erdogan and Putin, there has been a thaw in the relationship and one expects the Russian buyers to be back soon.

The biggest buyers of Turkish properties remain wealthy Arab investors. For Arabs, Turkey still remains a top overseas property destination. That is unlikely to change in a hurry.