Foreign residential sales in Turkey have brought a breath of fresh air to the real estate sector, which has been going through a tough period.

While Chinese investors have recently raised interest in Turkey along with sales predominantly to Gulf countries, a Chinese investor group has recently acquired a 90-apartment block from a completed real estate project in Istanbul. Faruk Akbal, the chairman of Nevita International that sells real estate to foreigners, stated that they sold a 90-apartment block to a Chinese citizenship company for TL 95 million. "Making collective purchases on behalf of their own citizens, the Chinese citizenship company aims to make a TL 500 million worth of purchases by the end of 2020," Faruk Akbal said. "We are also in talks for other sales. Chinese interest in Portugal, Greece, and Europe was intense, but now they have turned their route to Turkey."

Akbal recalled that Turkey generated $5-6 billion in annual revenue from foreign residential sales.

"The market needs to diversify, and Turkey must leap into the top league in foreign residential sales. The way to do this is through new markets," he continued. "After the reciprocity law launched in 2013, the number of foreign residential sales was approaching 20,000 until the previous year reached 39,000 units in 2018."

Pointing to the increase of 65% in the first seven months of this year, Akbal recalled that 14,600 houses were sold to foreigners in the first seven months of last year, while this figure rose to 24,100 units in the same period this year. "In total, nearly 50,000 houses are expected to be sold to foreigners by the end of the year," he added. Akbal noted that they constituted a serious export item in Turkey.

"At the recent meeting we held with the Treasury and Finance Deputy Minister Nurettin Nebati, the need to form an association emerged to create infrastructure for issues such as stronger publicity of Turkey, contribution to the regulation of the sector, and being considered as an exporter," he further stressed. "Therefore, we are working with professionals who sell houses to foreigners and our business partners to form an association with brands that provide international investment and consultancy. Negotiations were held with the Ministry of Treasury and Finance. We will also initiate talks with the Ministry of Environment and Urbanization and then with the associations of the sector."