Güvenc Ketenci, CEO of Ketenci & Ketenci Law, discusses some of the most important factors to keep in mind when considering the Turkish CIP.
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How to avoid overpaying for Turkish property when applying to the CIP?
Ketenci explains that, by law, applicants to the Turkish CIP must prove that their property is actually worth US$250,000. The practical way to prove that is to obtain an independent valuation from a professional. Ketenci urges investors to get this evaluation before purchasing the property (i.e., not waiting until the Interior Ministry asks for it) and to make sure the valuer is licensed.
Which are the most promising regions for property investment in Turkey?
Ketenci highlights five specific areas:
“Traditionally, Istanbul is the largest and most favorable property market in Turkey. Other than that, there are areas like Izmir,” which, he points out, has seen significant increases in property values over the last two-three years.
“Also, the capital, Ankara, as well as Antalya in the southern part of Turkey, home to a large Russian community.”
One area slated for particularly favorable prospects, Ketenci indicates, is the area surrounding Istanbul’s newest airport, the largest in Europe, which will handle some 200 million passengers annually once all phases are complete in 2025.
“This is a rural area of Istanbul and there are many potentially large opportunities there in terms of investments into assets like hotels,” notes Ketenci.
How interesting is the bank deposit option compared to real estate?
Ketenci comments that, somewhat surprisingly, investor interest in the US$500,000 bank deposit option is now beginning to rival that of real estate. That, he says, is because it’s so simple and straightforward. “The investor must simply deposit US$500,000, or the equivalent in other currencies, in a designated bank and keep it there for three years,” he comments. “Chinese investors have been showing great interest in this route”.
Why do Chinese investors have such an appetite for the Turkey CIP?
The country’s E2 Treaty membership, its future potential for Schengen access (“very likely,” he says), the fact that its economy is the 17th largest in the world, as well as the right Turkish citizens have to open businesses in the EU thanks to the Ankara Agreement all make Turkey a highly attractive prospect for the Chinese, concludes Ketenci.
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