Citizenship increases housing sales to Chinese
Chinese were included in the Turkish real estate market, in which Middle Easterners have been making purchases in return for Turkish citizenship. According to TurkStat data, the Chinese were among the top 10 countries engaged in real estate purchases in Turkey until three years ago but their purchases fell in subsequent years. With the release of the new law reducing the real estate purchase limit to $250,000 for Turkish citizenship in September 2018, Chinese purchases increased again.
In terms of total purchases, their ranking increased to 23 in 2019 from 34 in 2018. In terms of the number of independent units in all real estate types, 155 units totaling 10,772 square meters were bought in 2019 compared to 83 at 4,881 square meters in 2018. It seems Chinese prefer units with small square meters.
The most favorable citizenship
The fact that Turkey offers the most favorable citizenship terms among the EU neighboring countries and that it sells its real estate stock at an affordable price influenced the return of Chinese buyers. The Istanbul Builders Association (INDER) President and Teknik Yapi CEO Nazmi Durbakayim said that they also started talks with Chinese citizenship agencies, which is said to be approaching 400 for Turkish citizenship. “Soon they will start organizing tours to our projects. Their purchases are expected to snowball,” he added.
Not limited to Istanbul
In addition, the Association of Real Estate and Real Estate Investment Companies (GYODER) President Feyzullah Yetgin said that their residential and commercial real estate purchases for citizenship take place not only in Istanbul but also in other cities. “The interest seems to be increasing,” he said and added that there is also an increasing interest among Iranians.
Invest Insaat CEO Bahattin Ucar stated that Chinese citizens bought 30 apartments from their project, Vadi Istanbul, with prices ranging from TRY 2.8 to 5.7 million. A significant portion of these purchases were for citizenship, he said. “When they came to us, they already knew about the project. These sales will continue to bring other customers from China to us. If all goes well in Turkey, the purchases from the Far Easterners will increase further in the coming years.”
TRY 95 million bullet sale to Chinese
Nevita International Chairman Faruk Akbal said they made a block sale to a Chinese citizenship company totaling TRY 95 million. They made the biggest sale to Chinese so far in cooperation with Reagroups. “The Chinese citizenship company which makes bullet purchases in the name of Chinese citizens is aiming to make TRY 500 million purchases by the end of 2020. We are also negotiating for other sales,” he said.
“There is no other country that grants citizenship in 6 months for $250,000,” said Akbal adding this trend will continue. He also emphasized that the interest of Pakistan and India has increased alongside China. “We employ people from 12 countries. We assign experts to every country with high potential. Now we have decided to appoint experts to Pakistan and India together with China.”