Feb 5, 2023

Turkey Real Estate: Qatari Investments in Turkey

Economic and trade relations between Turkey and Qatar have witnessed significant development in recent years and increased following the blockade imposed on Doha in June 2017. Turkey has become one of the countries most attracting Qatari capital in many sectors, the most important of which are tourism and Turkey real estate.

According to the Qatari press, trade exchange between Qatar and Turkey reached $2.3 billion in 2022. According to a statement by Turkish Trade Minister Omar Bolat in 2023, Ankara and Doha aim to raise bilateral trade to $5 billion in the medium term. He, in turn, indicated that 727 Turkish companies invested in Qatar, and in return, Qatari companies invested more than $10 billion in Turkey. Which indicates the strength of relations between the State of Qatar and Turkey and the increase in mutual investments, including investment in Turkey real estate and joint commercial and industrial opportunities.

After Qatari businessmen found in Turkey the appropriate environment and the great facilities provided by the government that they enjoyed, they developed their investments in Turkey, which contributed to increasing economic activity between the two countries and achieved important investment successes at all levels, including Turkey real estate.

Qatari investments in Turkey:

According to what economists said, Turkey was able to be affected by Qatari investments, especially Turkey real estate, due to its many advantages related to political stability and security, in addition to its picturesque nature and moderate climate.

A strategic partnership agreement was signed between Qatar's Tanmiyat Holding Company and Sarvas International Real Estate Investment Company in Turkey, and this partnership is the beginning of the project to establish the largest cultural, tourist and entertainment city in the world, which will be located in a privileged location in one of the coastal cities in Turkey.

The projected total area of the project is estimated at about six million square meters, so that this project can attract thirty million tourists annually, and the project will be the largest of its kind for investment.

The project will also invest $1.2 billion in power stations operating on natural gas in the northwestern Turkish province of Kırıkkale and the central Karaman region. It is expected that the project will soon be supplied with Qatari natural gas to secure energy supplies.

As for agricultural land investments, Qatar is expanding its investments in the field of food, as Hassad Food Company, which operates in the agricultural and livestock sectors in Qatar, will invest in the agriculture and livestock sector in Turkey with an amount of $650 million.

In addition, Qatar will be one of the most prominent investors in the New Istanbul Canal Project, and the most important turning point in the Qatari-Turkish partnership is the agreement between the two countries on joint investment in the defense industries sector, which will allow specialized Qatari military teams to participate directly in the defense industries sector inside Turkey.

The Qatari-Turkish partnership will also work on localizing technology industries in Qatar, by establishing joint industrial zones in Qatar, and transforming them into an exporting country for many products to regional and global markets.

As for Turkey real estate investments, they included real estate purchased by Qatari citizens in Turkey for the purpose of housing, real estate investment, commercial or tourism.

It includes all types of Turkey real estate in such as:

Residential apartments
Villas and palaces
Lands
Commercial real estate "restaurants"

The percentage of real estate in Turkey owned by Qataris during this period increased by about 175%.

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Reasons Qataris own palaces in Turkey:

Qataris owning Turkey real estate, especially palaces and luxury villas there, can be the result of several factors, including interest in real estate investments abroad, searching for a place for temporary or permanent residence, and enjoying the natural landscape and climate in Turkey, in addition to economic and cultural factors. We mention among the most important reasons for Qataris’ interest in Turkey real estate:

The importance of these historical palaces
It is distinguished by its geographical location
Distinguishing engineering designs in it
The ideal housing conditions enjoyed by the residents of these palaces
Benefiting from the fact that Turkey real estate prices are priced in Turkish lira after these palaces were priced in dollars, which led to a decrease in their value by about 20 to 30%.
The great competition among the wealthy of the Gulf countries in owning palaces in Istanbul.
The desire of many wealthy Qataris to help support the Turkish lira, given the good relationship between both countries.
The legal facilities that Turkey provides for real estate ownership, especially for owning palaces in Istanbul.

Reasons that push Qataris to invest in Turkey real estate:

Foreign investors in general and Qatari investors in particular are turning to Turkey to a large extent, especially in the Turkey real estate sector, which has been able to attract attention and become one of the most important types of investment in Turkey. There are many reasons that push Qataris to invest in Turkish real estate, the most important of which are:

The good relationship between the two countries, officially and popularly, which was positively reflected in the increase in the demand for Qatari investments in Turkey.
The large activity of Qatari tourists in Turkey and their need for housing, including those who visit Turkey to learn about investment opportunities.
Increasing investment opportunities in Turkey due to the government's urban transformation plans, of which Istanbul is witnessing the largest and most important part.
The pricing of real estate in Turkey in Turkish lira attracted Qatari investors to buy palaces in Istanbul, which were priced in dollars and euros.
The beautiful nature and stunning scenery that Turkey enjoys, which encourage Qataris to tourism there on the one hand and to make it a headquarters for their real estate investments on the other hand, especially the city of Trabzon, which is called the Switzerland of Turkey. Turkey's pleasant climate and charming nature are not available in the Gulf countries, including Qatar.
Common customs and traditions between the Turkish people and the Qatari people.
The Turkish government has great interest in the Turkey real estate sector and is working to continuously issue laws to facilitate real estate ownership for foreigners, preserve their rights in Turkey, and reduce the taxes imposed on them.
The Turkey real estate market is considered very rich and includes various options that suit all tastes, and this is what attracts Qatari investors, as luxury real estate such as penthouses, villas, palaces, high-end residential complexes, and smart apartments are widespread in Turkey, which receive great interest from them.
Security, peace and political stability in Turkey, as it is considered far from the political conflicts that are widespread in the Middle East region, which makes Turkey a safe, profitable and desirable investment environment.
The great development that Turkey was able to achieve at all levels, especially infrastructure projects in addition to the Turkey real estate sector, where unique and distinguished investment projects were established that attracted attention.

At the end of this article, we have clarified the percentage of real estate investments for Qataris in Turkey, the most important real estate and its types that they prefer to invest, as well as commercial exchanges and good relations between the two countries, which is the main factor in increasing the proportion of real estate investments for Qataris in Turkey.

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