Frequent real estate scams alienate foreigners from Turkey

• published: 01 Feb 2015
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Frequent problems and fraudulent activity relating to real estate across Turkey, in coastal tourist regions in particular, have alienated foreigners wanting to purchase real estate in the country, leading to a significant decrease in real estate sales in the last three years. There have recently been increasing problems with real estate sales to foreigners, which has critical significance in terms of foreign investment and contributes to the Turkish economy via foreign currency inflows. Turkey aims to acquire $5 billion in income annually from real estate sales. However, the frequent incidences of fraud taking place, particularly in the coastal Aegean and Mediterranean regions, frighten foreigners wanting to buy real estate in Turkey. People from European countries such as England and Ireland in particular have given up buying real estate in Turkey. Despite the efforts of realtors to prevent fraud in sales of land to foreigners in Turkey, the sale of real estate to foreigners been at a near standstill since 2012. The sale of real estate to foreigners in the tourist towns of Marmaris and Didim has stood at 10 percent in recent years. Over 500 foreigners in Didim have filed complaints that after paying for real estate, they did not receive title to the land. Over 10,000 Britons currently own real estate in Didem, but hundreds of them have recently preferred to sell their properties and leave Turkey. Speaking with Today's Zaman, Didim Real Estate Consultation Association President Osman Coşkun said that fraud in real estate sales has hurt the prestige of the country, saying: “Previously, about 30,000 foreigners were applying annually to purchase properties. Now, English people have left Didim. Since 2012, total house sales to foreigners in Didim has decreased from 80 percent to 10 percent. Many foreign owners have sold their properties and left. There is serious financial loss.” Pointing to real estate fraud, Çoşkun said house sales were very high before 2012, but have since decreased because of manipulations on the part of ill-intentioned contractors and real estate brokers. “Some contractors and real estate brokers received money from foreigners and signed contracts with them, but did not deliver certificates of ownership to them. … Although we are attending fairs held in foreign countries to repair the damaged prestige of Didim, it will be very difficult to repair our tarnished reputation.” News coverage in European media outlets about problems that foreigners encounter while purchasing real estate in Turkey has also pushed foreigners to avoid Turkey and buy real estate elsewhere. Incidences of fraud generally take place over the sales of houses before the finalization of construction. Houses are often constructed differently from the way they are shown on the construction models. Foreigners experience difficulties while acquiring certificates of ownership. Some real estate agencies and contractors sell the same property to two different people. Speaking with Today's Zaman, Marmaris Real Estate Brokers Association Deputy Chairman Fahri Özyoran pointed to the decrease in the number of house sales to foreigners in Marmaris in the last few years, saying: “In previous years, the sale of houses to foreigners increased drastically in Marmaris. Chefs, market owners, waiters and grocery shop owners preferred to become real estate agents to earn money. Many houses were sold in that period. However, occurrences of fraud increased when chefs, market owners, waiters and grocery shop owners became real estate agents.” Sharing some statistics, Özyoran said that about 2,000 houses used to be sold annually before 2012, but this number is currently 100 houses annually in Marmaris. Ziya Ercan, the deputy president of the Federation of All Real Property Consultants and the president of the Muğla Real Property Consultants Association, said that some of fraudulent realtors sell land without building permits to foreigners by fabricating fake permits adding that his federation has filed complaints against about 150 fake real state agents so far. A foreigner who wants to purchase real estate near military bases or sensitive areas in Turkey has to secure permission from the General Staff. It used to take over one year to acquire this permission -- now it has been reduced to five weeks. However, there are still serious problems. According to industry representatives, the sale of real estate to foreigners should be finalized within just one day in order to prevent fraud from taking place. Speaking about this issue, Ercan also said that the bureaucratic procedures faced by foreigners who want to purchase property in Turkey should be eased and the General Directorate of Land Registry and Cadastre should be the sole authority responsible for the sale of houses to foreigners in Turkey.