Summary: This article explores the main types of investment in Turkey, their incentives, along with a brief glance on the features of each type, and then at the end, there is a focus on the advantages of real estate investment in Turkey.
In 2007, the Turkish government established an agency to support and permit investment in Turkey and launched its website here in 12 languages to be a bridge linking Turkey to foreign investors.
What are the main domains of investment in Turkey?
Real estate, industry, automotive industry, food and agriculture, general business, health care and medications, financial services, information and communications, and many other domains.
What are the main investment incentives in Turkey?
The qualitative leap of the Turkish economy; the gross national product in 2013 reached 820 billion US dollars while it was only 230 billion US dollars in 2002.
Promising economy; Turkish economy is expected to become one of the fastest economies in terms of growing among the members of the Organization for Economic Co-operation and Development (OECD) during the period from 2014 to 2016. Turkish economy, annually, attracts up to 15 billion dollars in foreign investments.
Turkish economy is considered the sixth economy in the world, the sixth economy in Europe, with a stable growth in average of 5% between 2012 and 2013.
What are the main points of industrial investment in Turkey (Automotive Industry)?
- According to the global manufacturing competitiveness index (GMCI) of Deloitte, in the next five years, Turkey will be ranked 16 after it was ranked 20 in 2013.
- Having Germany the first, Turkey will become the second largest competitive station of manufacturing in its region, which covers (Europe, Middle East and Africa).
- Products of the automotive manufacturers in Turkey cover a wide range of vehicles; from the sedans to the heavy trucks.
- Turkey has been able to increase the automotive production capacity from 374000 cars in 2002 to more than 1125000 cars in 2013. For that, Turkey has been ranked 16 among the largest automotive manufacturers in the world.
What about the investment of food and agriculture in Turkey?
Turkey is considered as a global leader in the production of dried figs, nuts, raisins / sultanas and dried apricots. Turkey also has the largest rates of production of milk and dairy products in its region. Moreover, Turkey has plant species of vegetables and fruits estimated to number about 11,000 species, where the total number of plant species in Europe is 11,500.
What are the options of real estate investment in Turkey?
- To buy a strategic land in terms of location that may later enter within the organizational charts of cities, or that has the possibility of building housing complexes later on. At that time, the land shall be sold with the price of doubles risen.
- To buy a property in a project under construction, and to sell it later after the completion of the project at a higher price knowing that what attracts investors now is apartments for sale in Istanbul under construction.
- To buy a ready-made apartment in a project, and then to rent it, a thing that would ensure steady monthly returns.
- To develop a property: To buy an old property and then get it renovated and refurbished. That property afterwards shall be sold at a higher price.
Why experts classify real estate investing as the best type of investments in Turkey?
- Investment in real estate achieves guaranteed results that are far from adventures.
- Real estate is considered as the largest sector, in the world, in terms of growing and profits.
- Since that real estate investment is significantly influenced by the economy and the political stability of the country, Turkey is considered as the first and the best candidate for real estate investments in the region.
What are the features of real estate investment in Turkey according to the global indicators?
- Rising of apartments prices in Turkey permanently because of the foreign demand on a continuous basis.
- According to Knight Frank International Index, Turkey is one of the world's largest markets in terms of the growth of real estate prices.
- According to "Ernst & Young" Foundation, Turkey is ranked the second among the most attractive markets.
- Many other indicators nominate Turkey’s Real Estate markets to provide the best achievements in the upcoming years.
- Scarcity of real estate of all types, comparing with the demand in the markets.
What are the main projects of investment in Turkey now?
- Turkey is planning for a reconstruction project that shall last for 20 years in the most beautiful cities of Turkey, such as Istanbul, to renew the old real estates converting them into luxurious apartments and villas for sale in Turkey. This is a luxurious investment project which includes about 6.5 million real estate unit.
- Turkish investor will not be alone in this investment as the investment law has opened the door wide to the citizens of 183 countries to invest in Turkey. Thereby foreigners are given a successful investment opportunity to contribute to this architectural activity. Many of Arab countries, especially the Gulf countries, are included in the countries whose citizens are permitted to buy real estates in Turkey.
What are the main points that encouraged the investors to invest in Turkey?
- The political and social stability that distinguishes Turkey in the Middle East.
- The facilitating laws that guarantee the rights of foreigners who want to own a property in Turkey; once they own a property in Turkey, foreigners would get a lifelong residence permit (renewed annually).
The statistics of the Ministry of Environment and Urban Planning of Turkey indicate that there are 22830 foreign investors of real estate in Turkey who bought 13500 Turkish real estate in 2015.
Sources: Investment Support and Promotion Agency in Turkey (ISPAT) website - World Economic Outlook report - the International Monetary Fund- Turkish Statistical Institute reports ‘’TurkStat’’.