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Buying citizenship: A boon to district-level house prices in Istanbul

Author

Listed:
  • Lokman Gunduz
  • Ismail H Genc

    (American University of Sharjah)

  • Ahmet Faruk Aysan

    (HBKU - Hamad Bin Khalifa University)

Abstract

Citizenship by investment (CBI) programs have recently garnered significant academic and media attention. Turkey introduced such a program in 2017 that offers citizenship in exchange for investment in residential property. Eventually, thousands of foreigners, mainly from the Middle East and Asia have purchased houses, particularly in Istanbul. Foreigners' share in total houses sold in Istanbul almost sextupled and exceeded 10 percent of total sales. This study estimates the short-run impact of relatively wealthy foreigners on the residential property prices in Istanbul to buy a Turkish passport. It finds that the Turkish CBI program positively impacts house prices by two percent in the districts, which are likely to be favored most by immigrant investors.

Suggested Citation

  • Lokman Gunduz & Ismail H Genc & Ahmet Faruk Aysan, 2021. "Buying citizenship: A boon to district-level house prices in Istanbul," Working Papers hal-03365115, HAL.
    • Handle: RePEc:hal:wpaper:hal-03365115
    Note: View the original document on HAL open archive server: https://hal.science/hal-03365115
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    More about this item

    Keywords

    Citizenship by investment program; house prices; immigration; Istanbul JEL codes: C21; J15; R38; R21;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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