Chinese buyers eating up turkey property
Chinese buyers are starting to eat up a bigger share of Turkey's property market, according to estate agents. Turkey has seen a rise in unrest in recent weeks, but confidence remains high among both the tourism and real estate industry.
Earlier this month, six members of the Turkish security forces were killed, while Istanbul's US consulate also came under attack. Turkey has been no stranger to unrest in recent years, though, and experts are upbeat about any potential impact.
"No one in the Turkish property business is expecting a Tunisia-style meltdown in foreign investment and an exodus of tourists,” Togrul Gonden, managing partner of Cushman & Wakefield’s Turkey office, told Property Week.
"It is worrying that the German foreign ministry issued a warning to travellers to Turkey this week, which is not going to help weaker tourism demand from Western Europe this year, but far more important than security issues is the fall off of Russian and Ukrainian tourism, owing to the ongoing conflict."
Indeed, demand for Turkish property is now increasing among a new audience: Chinese investors.
Istanbul is already known to be popular with Arab buyers, both those looking to capitalise on the city's investment potential and those looking to purchase their own holiday home, but figures released by leading Istanbul agent Universal21 reveal a 250 per cent increase in enquiries from Chinese buyers this year.
The release of these figures comes at a time when tourism to Turkey, and predominantly Istanbul, is on the rise, with the number of Chinese visitors in particular increasing substantially over recent years. Gazi Murat Åžen of the Turkish Hotels Federation (TÜROFED), explains that in the last three years this has been particularly noteworthym with a 50 per cent increase in the number of Chinese tourists between 2014 and 2012.
Gazi Murat Åžen predicts that numbers of Chinese tourists arriving in Turkey will top the 300,000 figure this year.
Chinese investors are already increasingly active in overseas markets, from the UK and USA to Australia. As the country's economy appears to be slowing down, a growing number of buyers are looking at properties overseas for security.
Adil Yaman, Director of Universal21, comments on the evolving profile of typical Turkish property investors: "Whilst it is easy to assume that Middle Eastern interest will remain at the fore, it is very interesting to see the impact that buyers from China are now having on our enquiry levels. Such potential buyers are showing particular interest in our most recently launched projects, situated around the upmarket district of Beylikdüzü, an area on the European side of the city known for its high level of green space and excellent transport links."
One project seeing interest from potential Chinese buyers is Universal21's Diamond Residence, he adds. Located in a quiet, relaxed area of Old Beylikdüzü, Diamond Residence is comprised of over 140 luxury apartments.