Tolga Ertukel, Managing Director of Turkey Homes, issues the following statement regarding the current ruling by the Government of Turkey for all property sales in Turkey following the statement issued by Turkish President Tayyip Erdogan.
All Turkey property transactions, by law, are and always have been concluded in Turkish Lira in the Turkish Government official title deed registration offices ( Tapu ve Kadastro Mudurlugu ). However, the reason for the recent confusion arises (normally for luxury developments in major cities like Istanbul) when some of these developments are funded by international organisations e.g. Damak Properties Dubai, Jumeirah Hotelier Group etc, and have their official list prices in USD and on title deed registration documents the assessed value is registered in TL. With the new law, these type of developments, whether international or local, will now have to display their list prices in Turkish Lira.
Confusion arises with owner direct resale properties in luxury resorts like Bodrum, Antalya, Fethiye etc where foreign owners previously purchased properties in Euro, UK Sterling or USD, and automatically seeking the same currency when selling a property, however, on the day of title deed exchange transactions will be concluded in TL for the assessed value of the property, then the remaining figure of the selling price can be paid in the owners selected currency.
Furthermore, due to the decline in Turkish Lira, what we are seeing is that the majority of developers building new developments in Istanbul and Antalya especially, are regularly updating their Turkish Lira list prices so they don't lose out too much on local currency. The reason for this need is that the construction industry in Turkey heavily relies on importing quality construction materials from abroad which are steel, branded marbles, granite or any branded international appliances. Since these products are purchased in a foreign currency we will regularly see Turkish Lira property prices modified to match the exchange volatility within the fluctuating markets.
We hope the above information clears up any confusion, however, should you have any further queries on the subject you can contact our Director Tolga Ertukel directly at info@turkeyhomes.com
