Investing in Türkiye
An Untapped Goldmine in Real Estate
The allure of Türkiye as a promising investment destination cannot be overstated. With a booming economy, an ever-young and dynamic population, and a robust real estate sector, Türkiye presents a golden opportunity for investors. This comprehensive guide explores the reasons why you should consider investing in Türkiye.
1. Unveiling Türkiye: A Geographic and Demographic Overview
Türkiye, a transcontinental nation straddling Asia and Europe, is a vibrant blend of cultures, history, and economic potential. Ankara is its capital, located in the Asian part of the country, while Istanbul, is the largest city, and uniquely spans both continents.
By 2023, Türkiye had a population of approximately 85 million people, a significant portion of which are young, upwardly mobile individuals. This demographic composition serves as a powerful catalyst for a fast-developing real estate industry.
2. The Prolific Growth of the Turkish Real Estate Sector
Over the past two decades, Türkiye’s real estate sector has experienced an impressive surge. In stark contrast to the global decline in real estate, real estate sales to foreigners in Türkiye increased by 4,5% in 2023 compared to the previous year.
Istanbul, Türkiye’s most populous city, has won recognition as the most attractive city for real estate investment in Europe. The country’s potential EU membership has spurred foreign investors’ interest in its real estate sector, leading to an influx of global real estate investors and holiday homeowners.
3. Favorable Legislative Reforms
Reforms in several laws, including those regulating property title registry, mortgages, and taxes, as well as residency laws, have had a positive impact on how overseas investors can buy and develop properties in Türkiye. These amendments have significantly stimulated the competitiveness of the Turkish real estate sector
4. Türkiye’s Economic Landscape: A Beacon of Stability
Türkiye’s dynamic population and strong economy have made it a favorite destination for foreign investors. The demand for homes and office spaces has skyrocketed in recent years, fuelled by an influx of global companies and foreigners seeking commercial and residential real estate.
In 2022, Türkiye’s GDP stood at USD 906 billion. Remarkably, 60% of the population is under 40 years old, making the nation a prime target for foreign direct investment.
5. Türkiye’s Real Estate SWOT Analysis
A SWOT analysis of Türkiye’s real estate sector reveals its strengths, weaknesses, opportunities, and threats.
7. The Role of Legal and Political Structures
Türkiye is a republic founded on secular, democratic, and pluralistic principles. The country’s political system is based on power separation, with executive power vested in the Council of Ministers, legislative power in the Grand National Assembly, and an independent judiciary.
8. Why Investing in Türkiye is a Smart Move
There are numerous reasons why investing in Türkiye, particularly in real estate, is a smart move.
Booming economy: With a GDP exceeding USD 906 billion in 2022, annual real GDP growth projections of over 4%, and exports reaching USD 254 billion, Türkiye is an ideal country to invest in real estate.
Youthful and dynamic population: Over 60% of Türkiye’s population is under 40, presenting a ready market for quality accommodation and housing.
Low taxes and incentives: Türkiye offers attractive incentives and has reduced corporate tax from 33% to 20%.
Large Domestic market: The local market is vast, thanks to a growing population of educated, wealthy professionals.
Good infrastructure: A well-developed transport network, advanced energy sector, and highly developed technological infrastructure make Türkiye an attractive investment destination.
9. Turkish Citizenship by Investment
As of 2023, you can apply for Turkish citizenship with your family (your spouse and children under age of 18) by purchasing real estate worth 400,000 USD.
10. Comparing Türkiye to Other Countries
When compared to other developed and emerging countries like the UK, US, France, Russia, and Greece, Türkiye holds its own as a promising investment destination.
Banking and finance sector: Türkiye boasts one of the strongest banking regulations and skilled workforces in the finance sector.
Globalisation, Flexibility, and Adaptability: Türkiye leads in these aspects compared to the US, Russia, France, and Greece.
Ease of setting up a business: The New Turkish Commercial Code has simplified the process of registering a company and starting a business.
In conclusion, with its promising economic landscape, dynamic population, and robust real estate sector, Türkiye presents a golden opportunity for investors looking to make a mark in the real estate sector. The country’s ease of doing business, coupled with legislative reforms that favor foreign investors, makes investing in Türkiye a venture worth considering.