Chinese are among the top ten in the list of real estate sales in Turkey
A lot of foreigners from different nationalities rush to buy properties in Turkey, especially after the package of legalizations that were issued by the Turkish government in the past few years, most importantly the cancellation of reciprocity in 2012, and the decision to reduce the value of buying a property to obtain Turkish citizenship to 250 thousand USD.
The issue of buying a property in Turkey is not limited to citizens of certain countries, as the Turkish real estate market has witnessed in the last three years, the emergence of investors from countries that were not expected, like China, which imposed itself on the list of ten countries most interested in buying properties in Turkey.
Chinese are in eighth place in the list of real estate sales in Turkey in the first half of 2020
Investors and citizens of China entered the list of most foreign nationalities buying properties in Turkey, where the Chinese ranked eighth during the first half of the year 2020
According to a statement issued by the Turkish Statistical Institute known as "Turksat", the Chinese bought 415 houses between January and June to come in the eighth position in the list of the top ten, which is a surprise, especially with the difficult circumstance the entire world is living because of Corona pandemic, which led to the suspension of aviation and the decline of various commercial and investment activities in various countries.
Despite the absence of the Chinese from the Turkish real estate market for the past three years, they managed to return strongly during 2020 with great investments, as they recorded the strongest demand for buying properties in Turkey during June, ranking third by buying 78 real estate units.
The Chinese purchase of real estate is concentrated in Turkey in Istanbul, Ankara, and İzmir, where the Chinese find in these cities their goal, especially as they are always looking for the most promising real estate cities that are more qualified for higher real estate prices to achieve high-profit returns from their real estate investments.
Why do the Chinese rush to buy properties in Turkey?
To answer this question Irfan Karsli, President of the Turkish-Chinese Cultural Association, stated that in the past years, Chinese citizens have shown great interest in real estate investment and housing abroad, and primarily in the United States of America, but their interests have changed unprecedentedly toward Europe and the Middle East, Turkey came to the fore after the launch of the Chinese Belt and Road Initiative known as the "New Silk Road".
The name "Belt and Road" points to the initiative that was started by Chinese President Xi Jinping in 2013 to facilitate the Chinese businessmen’s investments in Turkey and encourage them to own real estate and give them a greater impetus to expand their various investments in Turkey.
According to the head of the Turkish-Chinese Cultural Association, the following factors contributed to doubling the demands of Chinese investors for real estate in Turkey:
- The popularity that Turkey enjoys among Chinese tourists and its role in positively influencing Chinese real estate investment in Turkey, where Istanbul and the rest of the cities have become a favorite destination for Chinese tourists in recent years, as in this regard the number of Chinese tourists in Turkey reached about 500 thousand people annually, the majority of whom turned towards investment and real estate.
- Turkish real estate companies that play the mediating role between the Chinese customer and the Turkish seller have multiplied, which has made the task easier for Chinese investors, such as Alhuda Real Estate company, a pioneer in the field in recent years as it owns a section for Chinese customers who want to buy apartments in Turkey or apartments in Istanbul, as Chinese investors are contacted in the Chinese language, which simplifies the process of buying a property in Turkey and eliminates the language barrier
- Low prices for apartments in Turkey compared to China, which is three times more expensive. Where real estate prices in Istanbul or Turkey are generally lower compared to the rest of the world’s capitals, which are in a lower level in terms of infrastructure and economic strength compared to Turkey, and at the same time the fact that Turkey’s real estate is promising in terms of prices, where they rise annually, which is a profitable project for the Chinese people who are looking for a safe and secure investment.
- The diversity of nationalities of foreigners coming to real estate investment in Turkey stimulated the Chinese to buy properties in Turkey, and in this regard, Turkey has a share of 6 billion dollars in the global real estate market.
Turkey is the best real estate investment environment in the world for these reasons
Among the few countries in the world that have managed in recent years to provide a safe investment environment for foreign investors, we find Turkey that has:
- The legislative facilities which have paved the way for foreigners to obtain Turkish citizenship in the easiest and fastest way, especially the law that was issued in the Turkish Official Gazette on September 19, 2018, made a big change on the level of foreigners legislations, in addition to amending it on December 7 of the same year, as the first allowed to obtain Turkish citizenship for only 250 thousand US dollars while the second allowed owning properties under construction instead of ready properties only, as the value of real estate ownership to obtain Turkish citizenship was estimated at one million US dollars previously.
- And for depositing money in Turkish banks, it has become 500 thousand dollars, instead of 3 million US dollars
- The same is true concerning the issue of establishing a company in Turkey with fixed capital, where it has become 500 thousand dollars instead of two million dollars.
- The legal amendments also decreased the number of Turkish employees in a foreign company in Turkey to 50 people instead of 100 Turkish citizens in the past.
- The previous conditions allow foreign investors as well to apply for Turkish citizenship with ease, accompanied by their relatives "wife and children under 18.
- The impact of these amendments in attracting foreign investment, especially among investors from the Middle Eastern nationalities, "Iran, Pakistan, Afghanistan and the Gulf states", as demand for buying a property in Istanbul, and in Turkey, in general, has doubled.
- The possibility of obtaining Turkish citizenship in exchange for buying a property in Turkey, that is under construction after the title deed was a necessary condition, i.e. the Turkish government allowed foreign investors to submit applications for obtaining Turkish citizenship by purchasing an under-construction property according to a long-term contract after the matter was previously limited to ready buildings only, as foreigners can submit a file for obtaining Turkish citizenship by purchasing a property within the projects that are still under construction, after completing the price of the property and fixing the purchase contract by a notary.
- The Turkish state has adopted the principle of "not distinguishing between the Turkish investor and the foreigner", which is evident in the facilities that were provided for foreign investors, such as allocating lands in some sectors, granting tax reductions and not collecting fees on machines imported from outside Turkey and other equipment.
- The Turkish state also allowed the foreign property owner to grant family residence to his family, which is a feature that has won approval by many, whether through real estate residence or through work permission in the event of establishing a company in Turkey.
- The foreign investor in Turkey does not find any kind of bureaucratic obstacles, thanks to the good treatment in the various government departments that facilitate all procedures for ownership or setting up companies in the shortest possible time with directing the foreign investor to the best options.