Turkey is a great place to buy real estate. The country has a strong economy and its government is focused on making the country an attractive place to do business. Find out more about why Turkey is the best destination for foreign investors
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Turkey has been an attractive destination for foreign investors for many years. In 2021, the state took first place among European countries in terms of the number of direct foreign investments. In December 2022, 33.2% of Turkey's nominal GDP was accounted for by investments from abroad. In total, between 2003 and 2023, international investors have invested more than 250 billion dollars in the Turkish economy.
Why is Turkey the best destination for foreign investors? Let's talk further.
● Advantageous geographical position
Turkey has a strategic location at the crossroads of Europe and Asia, which makes it the center of world trade routes. A business based in Turkey gains access to the common market of Europe, Central Asia, the Middle East and North Africa. The total volume of these markets is 26 trillion dollars of GDP.
Thanks to Turkey's advantageous geographical position, international companies are increasingly choosing the country as an export center and moving their production here.
● A stable economy that is actively developing
The Turkish economy has been developing steadily for over 20 years. The state has tripled its GDP to reach US$819 billion in 2021, up from US$231 billion in 2002.
Turkey's real GDP shows annual growth of 5.6%.
The Turkish economy is one of the fastest growing economies in the world. By its size, it is recognized as the third largest economy in Europe and the 11th largest in the world.
The main sectors of the economy are production, construction and the sphere of services.
Turkey is a member of the G20, so the country has a significant influence on global economic processes. The state is also a member of the World Trade Organization (WTO), which means that it has access to a large network of trade agreements with other countries. The country has also signed free trade agreements with more than 20 countries, including the European Union, the United States and Japan.
In addition, Turkey has a strong domestic market supported by a rapidly growing tourism industry, which is the sixth largest in the world and attracts more than 40 million visitors each year. This factor creates new opportunities for investors in such sectors as hospitality, real estate and retail.
● Qualified workforce
The population of Turkey is 85 million people, of which 33.3 million people are young, well-educated and motivated professionals. The literacy rate in Turkey is over 95%.
Compared to other EU countries, Turkey has the largest population of young people. Almost half of the population of Turkey is under the age of 31. Turkish youth are highly educated, 800,000 specialists are graduated annually from more than 183 universities in the country. Currently, about 8 million students study at Turkish universities.
●Government support
The Turkish government has introduced a number of economic measures to attract foreign investors - tax breaks, investment subsidies and free trade zones. The management also offers a simplified process for opening a business in Turkey. In the 2020 Doing Business report of the World Bank, Turkey ranked 33rd among 190 countries in terms of ease of doing business.
The management of Turkey provides a number of support services for businesses: funding for employee and staff training, business consulting and assistance in setting up operations in the country.
Investors receive tax benefits: reduced corporate tax rates, exemption from value added tax (VAT) on equipment and machinery imported for investment projects, exemption from customs duties on raw materials imported for production.
● Highly developed transport system
Turkey has a well-developed transportation network with a modern highway system, an extensive railway network, and well-developed sea and air transportation. Turkish Airlines is one of the ten largest airlines in the world and operates flights to most countries of the world.
● Possibility of obtaining Turkish citizenship in exchange for investment
Turkey's "Golden Passport" program offers an investor to obtain citizenship of the country in exchange for a contribution to the country's economy in the amount of $400,000 or more.
Usually, the process of obtaining a document takes 6 to 8 months.
Five types of investments are available in Turkey: buying real estate, government bonds or shares in investment funds, placing a deposit in Turkish banks or starting a business.
Three years after obtaining citizenship, a foreigner can return the investment.
Read more about the Turkish citizenship by investment program
here.
Where to invest in Turkey in 2023?
Real estate
Experts and economic analysts expect the Turkish real estate market to continue to grow and prosper in 2023.
Turkey leads the ranking of countries with the highest rate of annual housing cost growth. The nominal growth of the value of real estate in Turkey is 160%, the second place is occupied by Slovakia with an indicator of 25.5%. The rate of real growth in the cost of housing in Turkey (adjusted for inflation) is also high - 45.9%. The most significant increase in prices is observed in Istanbul and on the coast of the Mediterranean Sea (Alania, Antalya).
Most investors prefer to buy
business-class apartments, because such an investment is a good option, both for living and for investment in Turkey.
The total number of homes sold in the Turkish market in 2021 was 1.4 million. Income from real estate rental is up to 8% per annum.
The second step is occupied by commercial real estate. Also, one of the very profitable investment options is investing in student housing.
Tourism industry
Turkey's tourism industry has set a target of 60 million visitors and $56 billion in revenue by 2023. Data from the Ministry of Culture and Tourism for the first six months of 2023 give optimistic signs that the country will achieve this goal. Such prospects for the development of the industry encourage foreign investors to consider the tourism sector when investing in the Turkish economy.
Foreign trade
Foreign trade is one of the best investment options in Turkey in 2023. Recent events in the world have made Turkey an important trade intermediary. Due to Russia's full-scale invasion of Ukraine, many American and international trading companies are considering moving their headquarters from Russia to Turkey.
According to preliminary data from the Turkish Statistical Institute and the Ministry of Trade, Turkish exports grew by 2.5% in 2023, while imports grew by 11.1%. The main exporting partners of Turkey are Germany, the USA and Italy.
Investors prefer Turkey because of its favorable geographical location, skilled workforce, tax benefits and developed economy. Most foreigners invest in real estate, tourism and foreign trade.
Read here how to make an appointment at a public clinic in Turkey.
Immigration to Turkey: what to consider before moving to Turkey from the UK -
read here.
Read more about obtaining Turkish citizenship through investment
here.
Read more about all the nuances of inheritance in Turkey
here.
Read here what to do if your application for a temporary residence permit in Turkey was rejected.
