Jeddah-Amlak
Demand for real estate has seen a significant increase of up to 30 percent, particularly after the Turkish government passed a law allowing foreigners to own property in Turkey, according to investors and professionals in Turkey’s real estate sector, noting that recent events in Istanbul’s Taksim Square have caused concern among some Saudis who had already signed contracts with their Turkish counterparts, due to genuine fears regarding properties previously owned by Saudis.
For his part, Ahmed Al-Murbai, a member of the Industrial Committee at the Jeddah Chamber of Commerce, confirmed in a newspaper statement that forecasts indicate a rise in demand for Turkish real estate among Saudis, which has exceeded 30 percent, and that 60 percent of those who own Turkish real estate are investors who have invested in the Turkish economy, while 40 percent are residents, Al-Murbai said that allowing foreigners to own Turkish real estate has contributed significantly to pumping more investments into the Turkish real estate sector. Citizens of Gulf countries have also owned Turkish real estate since the system was enacted, with property ownership concentrated in Istanbul, Bursa, and Yalova . Al-Murbai added, «The recent events in Taksim Square in the Turkish capital have caused many Saudis and Gulf nationals to fear for their real estate holdings, as well as for the investments they have made in the Turkish economy, particularly the real estate sector.» According to recent statistics, the volume of trade between the two countries rose to 30 billion riyals in 2012, with Saudi exports accounting for 16.5 billion riyals—a 28 percent increase over the previous year—and centered on oil, plastics, and chemicals.» Meanwhile, Turkish exports to Saudi Arabia reached 13.8 billion riyals, a 33 percent increase from the previous year, and were concentrated in iron, heavy equipment, and clothing.
It is worth noting that the volume of Gulf investments in Turkish real estate exceeded $800 million following the enactment of a law allowing foreigners to own real estate in Turkey. This is a result of the remarkable development of relations with the Gulf Cooperation Council (GCC) countries in recent years, in parallel with the significant growth significant growth witnessed by the real estate investment sector in Turkey.