Turkey still attracting investors, in spite of Moody’s rating

Foreign investors continued to buy property in Turkey, ignoring credit ratings agency Moody’s Investor Service’s downgrade of the country to non-investment grade.

Nazmi Dorpqaam, the head of the association of construction companies in Istanbul, said that although it has been one month since Moody’s reduced Turkey’s grading, foreign investors continue to buy real estate in the country.

He explained that the foreigners who are closely familiar with the Turkish economy give more importance to the advantages of the country’s internal dynamics than to institutions that monitor Turkey’s economic situation from an external point of view.

He pointed to “investors’ interest in obtaining the Turkish citizenship [or] work permit and residence, in addition to the great interest in the real estate sector, which they regard as a profitable and lasting investment.”

Aziz Toron, the chairman of the Real Estate Investment Funds Association, agrees with Dorpqaam that the real estate sector has not been affected by Moody’s new rating.

He explained that Moody’s rating has not affected individual purchases notwithstanding the events that the country has recently seen, such as July’s failed coup.

He spoke about the association’s intention to provide products that attract foreign investors in the housing sector through organising exhibitions abroad.

He urged the Turkish government to grant citizenship to foreign nationals whose investments in the country exceed a limit set by the government.

On 23 September, the international credit rating agency Moody’s changed Turkey’s credit rating from investment grade to non-investment, but it kept its outlook as “stable”.