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  • Anna Koval

Top reasons to invest in Turkey in 2023


Anna Property Hunter | Real Estate Investments in Turkey

1. ROBUST ECONOMY


One of the fastest-growing economies in the world with an average annual GDP growth rate of 5.4% during 2003-2021. Turkey's economy has performed with steady growth from 2002 to 2023. Prudent fiscal policies and significant reforms have made Turkey one of its region's primary recipients of foreign direct investment, FDI.


The potential economic effects of the earthquake in Turkey could result in a loss of up to 1% of the country's gross domestic product in 2023, the European Bank for Reconstruction and Development reported. An accident occurred largely in agricultural areas, the impact on other areas is therefore limited.


2. LARGE DOMESTIC AND REGIONAL MARKETS


The sizeable domestic market, plus regional markets with FTAs allows access to 1.3 billion consumers


3. STRATEGIC LOCATION


​​​​​​​​​​​​​​​​​​​Turkiye is one of the most promising real estate markets in Europe, and the mantra “location, location, location” rings especially true for this country. Strategically situated at the crossroads of Europe, the Middle East, and Central Asia, and home to 85 million people, Turkiye offers great opportunities for real estate developers and investors by combining a large construction sector with growing commercial and industrial output.

The market's worth is 26 trillion dollars in GDP. Multinational companies increasingly choose Turkey as a manufacturing, export and management hub.


4. FAVORABLE DEMOGRAPHICS


Young and dynamic population with half under 33.1 years old


5. SKILLED AND COMPETITIVE LABOR FORCE


Turkey's overall labor force is around 33.3 million people, which makes the country the 3rd largest labor force in Europe, well-educated and competitive.

Turkey has posted the most significant labor force growth among the EU count and the essential contributor to this is the country's young population. A rapid growth in the number of universities has made it possible for Turkey to have more graduates and a skilled workforce.

Key facts on Turkey's education potential:

• today, over eight million students are enrolled in higher education.;

• over 900,000 university graduates annually;

• world-class engineering education.

6. LIBERAL INVESTMENT CLIMATE


No barriers to FDI, strong protection for investors. FDI inflows in Türkiye increased to USD 13.3 billion, while real estate FDI was USD 5.6 billion, 42.2 percent of total FDI in 2021.


The total number of homes sold in the Turkish property market was 1.4 million units in 2021. Sales of real estate to foreigners began to increase following the abolishment of the reciprocity law in 2012. In 2021, a new record was set with the sales of 58,576 homes to foreigners in Türkiye. Regarding home sales to foreigners, Istanbul was the top-performing province with 26,469 sales in 2021, followed by Antalya with 12,384 sales, Ankara with 3,672 sales, and Mersin with 2,513 sales.


*In the photos above, our international team explores investment opportunities in Turkey


7. LUCRATIVE INCENTIVES AND TAX RELIEF


Turkey offers a comprehensive investment incentives program, which helps to accelerate the returns on investments and minimize the upfront cost burden.

The Turkish government also provides generous support programs for research and development (R&D), innovation projects, and employee training initiatives through various grants, incentives, and loans.

Turkey has signed Double Taxation Prevention Treaties with 86 countries. This enables tax paid in one of two countries to be offset against tax payable in the other.

8. ADVANTAGEOUS R&D ECOSYSTEM and SECTORAL OPPORTUNITIES


Diversified economy with lucrative opportunities in many sectors, the perfect spot for technology development with generous supports.


9. OPPORTUNITY TO GET A SECOND PASSPORT


The Turkish citizenship by investment program offers various investment options starting from $400,000. The obtaining process usually takes 6-8 months. Over 13,000 foreigners have become Turkish citizens by investing since 2018.

Foreigners are free to choose between several investment areas:

1. Property - $400,000;

2. Business - $500,000;

3. Bonds- $500,000;

4. Public shares- $500,000;

5. Funds- $500,000;

6. Bank deposit - $500,000.

Three years after receiving the passport, you can refund your investment.


So, Turkey is a great place to invest. The country is rich in natural resources, it has a young and growing population, and its economy is booming. It's also a safe place to do business.


Investors prefer Turkey because of its advantageous geographical location, skilled workforce, tax incentives, and developed economy. Among the top-safest investment options are real estate, tourism, startups, and others.

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