China among top 10 investors in Turkey’s real estate
Chinese interest in the residential real estate sector in Turkey and Europe increased recently after the start of China’s Belt and Road Initiative (BRI).
By IAR Desk
Chinese nationals have made it among the top 10 foreign homebuyers in Turkey in the first half of the current year.
Chinese nationals have apparently made a surprise entry to the list of the largest foreign homebuyers in Turkey. They were also placed eighth in the first half of 2020 after a three-year absence from the top 20 list, reported the Turkish daily Daily Sabah.
Citing statistics from the Turkish Statistical Institute (Turk Stat), Daily Sabah reported that Chinese nationals purchased a total number of 415 units in the time span of January-June period. By June 2020 they were in third place with 78 units purchased in total. In terms of geographical boundaries speculations, the data showed thattChinese buyers were concentrated in the major cities namely – Istanbul, Ankara and Izmir. The last time Chinese buyers had entered the top 20 largest foreign buyers in Turkey’s real estate sector was back in 2016 when they purchased 281 units at large.
Commenting on the same data on Tuesday, July 28, the Turkish-Chinese Cultural Association President Irfan Karsli said that, there had been a large wave of Chinese investment in overseas housing, particularly in the U.S., for many years. However, their interest in the residential real estate sector in Turkey and Europe increased recently after the start of China’s Belt and Road Initiative (BRI), also referred to as, the New Silk Road. Launched in 2013 by the Chinese President Xi Jinping, the BRI has now enabled access to the Chinese investors and gave a boost to Chinese investments in Turkey said the reports. Karslı also noted that Turkey’s popularity among Chinese nationals as a tourist destination has been increasing in recent years, which has positively impacted Chinese investment in the country. “The number of yearly arrivals of Chinese tourists to the country reached almost 500,000. Turkey is now a country that is recognized among other European countries in China,’’ he said.
Competitive house prices in Turkey were also an important factor in the rising Chinese interest, Karslı said , noting that prices for houses with similar conditions are three times more expensive in China. Faruk Akbal , Chairman of the real estate investment company Nevita International, said that diversification of the foreign homebuyers was important for Turkey to increase its share in the global real estate investment market.
Akbal added that the size of the foreign investments in the global real estate market is approximately $400 billion annually, and the U.S. and Europe are the leading destinations for investments with a share of $75 billion and $100 billion, respectively. “Turkey should not content itself with only $6 billion. We have to expand this market and the rising Chinese interest could be an important opportunity,” Akhal said.
Meanwhile, Atalay Demirbaş, CEO of the Demand Group Construction, said that China’s surprise entry to the top 10 list is an important development for the real estate sector. Stating that China could be a gateway for foreign real estate investments, Demirbaş claimed , “We should promote our real estate market more and advantages of investing here.”
Foreign residential sales in Turkey significantly increased their following reciprocity law that was launched in the year 2013, contributing to the country’s real estate sector, which came to the force as one of the leading markets along the Mediterranean coastline. These laws and regulations have made the country more competitive and also put it in a good position in global research, as in the latest example. Foreign sales-born income has also surpassed $6 billion in Turkey since the implementation of the same reciprocity law, breathing new life into the sector. The sale of residential properties to foreigners reached 45,483 units last year alone, with demand increasingly diversifying each passing year.
