Government Issues Decree on Foreign Property Purchases, Bypassing Parliament

The law enacted nine months ago explicitly stated that construction companies with even 1% foreign ownership could not engage in property sales. However, with a decree issued late Saturday night, this threshold has been increased to 49% for “Turkish investors,” paving the way for property sales.

The opposition criticized the government’s move during yesterday’s parliamentary session. CTP leader Tufan Erhürman questioned whether government MPs were even aware of the decree. He accused the administration of creating chaos without consulting sector representatives or the opposition. “You are pushing local industrialists and now local construction investors to the brink,” said Erhürman.

Independent MP Ayşegül Baybars accused the government of ignoring the Constitution and undermining parliamentary processes. She criticized the administration for acting as if it were above the law.

CTP MP Ongun Talat claimed the changes favored individuals holding numerous contracts rather than benefiting the construction sector. Talat said Parliament’s authority had been usurped and questioned the urgency behind issuing the decree on a Saturday.

What Changed with the Decree?
The March legislation had restricted construction companies with any foreign ownership from selling properties. The decree now allows companies with up to 49% Turkish ownership to engage in such sales.

Additionally, the rule limiting foreigners to purchasing one property — requiring excess holdings to be sold within two years — has been amended. The deadline to sell has been extended to seven years, and usage and benefit rights have been granted during this period.

Source: Yenidüzen