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Why Turkey is attractive place to invest: reasons to invest in the Turkish real estate market

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Why Turkey is attractive place to invest: reasons to invest in the Turkish real estate market

Real estate has long been considered a stable and profitable investment option. In particular, Turkey is one of the markets that is increasingly attracting interest from global investors. Learn more about 10 reasons to invest in Turkey and where to invest in the Turkish real estate market

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Every year, Turkey is becoming more and more popular as a destination for foreign direct investment. From 2021, the republic is a leader among developing countries in the volume of international investments. In total, between 2003 and 2021, the Republic of Turkey received USD 239 billion in foreign direct investment. In addition, in 2022, foreign direct investment in Turkey amounted to 290 million US dollars. Investors from Iran, Iraq, Russia, Germany and Great Britain invested the most money in the country's economy.

Why is Turkey an attractive place to invest? 10 convincing reasons further.


A strong and reliable economy


Turkey's economy has shown remarkable growth since 1980. In recent years, it stands out for its stability and often outperforms other emerging markets. Turkey aims to become one of the ten largest economies in the world in the coming years. Such strength is further strengthened through diversification, in particular, agriculture, the service sector, and manufacturing have acquired a developing country.

The main indicators of Turkey's economic growth:

- real GDP increased by an average of 5.1% from 2002 to 2020;

- 819 billion dollars of GDP in 2021 against 236 billion in 2002;

- the 11th largest economy (GDP by PCS) in the world;

- 3rd largest economy compared to EU countries in 2020 (GDP, Eurostat).


Access to markets


Turkey is located between Europe and Asia, this geographical position allows local businesses and investors to access the markets of both regions. The location is also an advantage for the real estate sector, attracting investors and tenants who see Turkey as a gateway to new markets.

The population of Turkey is 85 million, and thanks to the concluded agreements, the country has free access to more than 1 billion consumers in the EU.


Advantageous geographical position


Turkey's geographical position is an advantage not only for access to markets, but due to its position, the country is a logistics center that connects the main geographical routes. International companies increasingly choose Turkey as a center of production, export and management.


Highly qualified workforce


More than half of the population of Turkey is younger than 33.5 years. The number of people of working age significantly exceeds the volume in Europe. There are many universities in the country, which graduate more than 900,000 specialists every year. Also, the country has a high level of engineering education, and therefore many qualified personnel.


Favorable government reforms


The business environment in Turkey is constantly improving thanks to numerous government reforms, which are carried out on average every 18-24 months in various areas.

In particular, in the real estate sector, transactions with property are simplified, laws on zoning and obtaining building permits are changed, which facilitates the procedure of entering the market.

New government laws increase the transparency of doing business and reduce the risks associated with investments.


Tax benefits


Turkey has signed agreements on prevention of double taxation with 86 countries. This allows tax paid in one of the two countries to be offset against tax paid in the other.

The state also approved several tax incentives for companies investing in the country's economy: reduced corporate tax rates, exemption from value added tax (VAT) on equipment and machinery imported for investment projects, and exemption from customs duties on raw materials imported for production.


Investor attraction programs


Turkey's leadership has implemented a comprehensive investment promotion program that helps accelerate returns and minimize risks. The state also provides businesses with additional services: funding for employee and staff training, business consulting, and assistance in setting up operations in the country.


Moderate cost of doing business


The cost of doing business in Turkey is much lower than in most European countries. To a large extent, this is related to the devaluation of the Turkish currency - the Turkish lira (TRY).


The right to obtain Turkish citizenship


In Turkey, a special program "Citizenship in exchange for investment" has been developed, which allows the investor and his family members to obtain a Turkish passport. The amount of investments is from $400,000. 5 investment options are available: buying real estate, government bonds or shares in investment funds, placing a deposit in Turkish banks or opening a business. The duration of registration is 6-8 months. More details about the advantages and the procedure for obtaining Turkish citizenship can be found at the link.


Highly developed transport infrastructure


Turkey's transport infrastructure is currently one of the best in the world. The country has a modern highway system, an extensive railway network, and a highly developed air transport network.

Turkish Airlines is among the ten largest airlines in the world in terms of fleet size, ahead of such well-known airlines as British Airways, Air Canada, Air France and Emirates. In addition, Turkish Airlines flies to most countries of the world. Turkey is connected by direct flights with Japan, Singapore, China, South Korea, Mexico, USA, Canada and Brazil.

Istanbul is a key transit point between Europe and Asia.


Useful expert advice



Anton Taranenko is the founder and CEO of Visit Ukraine and Visit World online platforms and the owner of the international development company AntaGroup:


Turkey is one of the most popular tourist destinations in the world. The annual influx of tourists ensures a stable demand for real estate and hotel services, which creates prospects for successful business. There is good seasonality, a constant flow of tourists and an attractive investment climate. 


About 40 million tourists visit Turkey every year. It is a beautiful country that has everything: sea, sun, beaches, mountains, delicious fruits, historical monuments and unique flavor. Another important indicator for successful investments is that Turkey has topped the ranking of countries with the highest annual growth rate of housing prices. The demand for real estate in Turkey is growing every year. Over the past 12 years, the cost of housing in Turkey has increased by 641.15%.


According to experts, the most significant price growth is observed in Istanbul and on the Mediterranean coast (Alanya, Antalya). After all, these regions have the highest demand for real estate (33% of the total number of housing). Such high growth rates in real estate values make this country a profitable investment destination.


A special advantage for investing in Turkish real estate is the favorable tax conditions provided to foreign investors. In this country, the real estate tax is much lower than in European countries - it is 4% of the cadastral value. Also, when buying real estate, a foreigner gets the opportunity to obtain Turkish citizenship. 


The minimum investment amount under the program is $400,000. Along with the investor, his or her family members also receive Turkish citizenship. About 13,000 families use the program every year. 


Turkish citizenship has many advantages: simplification of visa requirements, the opportunity to live in a highly developed country with a stable economy, and to make profitable investments, as real estate prices in Turkey are growing by 15-25% per year.


Most foreigners buy real estate in Turkey for themselves and for rent, because Turkey is a tourist country, so you can make money not only by reselling real estate. The owner can rent out the property to tourists. Due to the climate, the tourist season in the country is quite long - from April to November.


Consequently, buying real estate in Turkey has a number of advantages. Therefore, future investors should not hesitate, it is better to buy housing now.

Where to invest in Turkey?


More than 40% of foreign direct investment in Turkey is directed to real estate, because the country has one of the most promising real estate markets in Europe. The country has excellent opportunities for developers and investors.

The total number of houses sold in the Turkish real estate market per year is 1.4 million. Istanbul ranks first in sales volume, followed by Antalya, Ankara and Mersin.

Buying real estate is also the most popular investment option under the Turkish citizenship program. Applicants are attracted by moderate prices and good rental yields. The minimum amount to invest under the program is $400,000.

Examples of profitable turnkey investment offers in Turkey:

- Premium class apartments in a modern 5-star hotel complex with unique infrastructure - ANTA Residence Canggu, Canggu, Bali Island, Indonesia. The price starts from $135,000 for a studio apartment with an area of 38 m². There are also deluxe-class housing (from $227,000 and an area of 68 m²) and suites (from $265,000 and an area of 80 m²). It is possible to return the investment when renting real estate in 5-6 years.

- HASAN BEY RESIDENCE business class complex, Antalya, Turkey. The price of apartments with an area of 53 m² or more (1 bedroom, 1 living room with kitchen, 1 bathroom) is €160,000. Duplex layout 4+1 (4 bedrooms, 1 living room with kitchen, 2 bathrooms) - area from 126 m², price from €307,000. The estimated return on daily rental is 9.8% per annum.

- HMG GOLD RESIDENCE, comfort-class complex, Antalya, Turkey. A complex of 20 apartments with high-quality business class decoration, in the historical center of Antalya and 3 minutes from the Mediterranean Sea. Planning 2+1 (2 bedrooms, 1 living room with kitchen, 1 bathroom, 2 balconies) - area 70 m², price from €169,000. The estimated return on daily rental is 9.8% per annum.

More offers from the reliable international developer AntaGroup at the link.


Therefore, the above factors make Turkey an attractive place for investment, including real estate. In particular, a stable economy and a favorable demographic situation stimulate demand for residential real estate, while the strategic location and accessibility of markets make commercial and industrial real estate attractive.





Daria Rogova, Head of Insurance at Visit World


To move, travel or work safely in a new country, you will need health insurance. You can apply for an extended policy on our website here.




Products from Visit World for a comfortable trip:


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More articles on the topic: 


Tourist real estate: prospects and opportunities for investors.

How investing in share of the premises?

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