Turkey features a unique blend of geographical and socio-political elements that make it an ideal investment destination. Its strategic location, robust economy, and supportive governmental policies combine to create a compelling option for investors seeking profitable ventures.
Turkey is strategically placed at the crossroads of Europe and Asia, making it an ideal location for trade and business. The country has a population of about 83 million people and a 5% annual growth rate in the economy.
Turkey is also a G20 member, indicating that it plays an influential role in the global economy. The country has a long history of secularism, and its government is dedicated to defending all people's rights. These traits make Turkey attractive for investors looking for a safe and stable place to put their money.
15th most attractive country for foreign investments, and in 2022, the World Bank recognized Turkey as the 12th best country for starting a business. Additionally, it holds the 10th spot globally for property investment
Turkey's attractiveness as an international investment destination is undeniable; In 2022, foreign investors poured over $20 billion into Turkey. The Turkish government is dedicated to protecting foreign investors' rights and implementing rules and regulations to ensure their proper treatment. It also offers facilitation initiatives to streamline business operations, such as simplifying regulations, providing tax breaks, and offering financial support.
The Condition of the Economy in Turkey
Turkey has a geodemographic profile that attracts foreign investments. Turkey is also a youthful country, with a median age of 32. This indicates that there is a vast pool of potential workers and customers.
International demands for residential, commercial, and office real estate purchases in Turkey have increased significantly in recent years. This is due to the escalating credibility and high quality of these investment ventures in Turkey. The number of foreign investors purchasing real estate in Turkey increased by 51.5% in 2022. This was the greatest annual gain since 2010.
Turkey's most recent GDP registered $871.5 billion, and young individuals account for 32% of the overall population. This young and expanding population is a big draw for foreign investors, implying a vast potential market for products and services.
The Turkish banking industry is likewise quite welcoming to international investments. Turkey includes a host of mortgage companies that provide competitive interest rates and flexible terms. Foreign investors received $10 billion in home loans from those banks in 2022.
Turkey is a famous tourist destination as well. Over 52 million visitors came to Turkey in 2022. Turkey is currently the sixth most visited country in the world. The tourist sector is a crucial engine of the Turkish economy, contributing around $27 billion to GDP each year.
Shopping centers are also a significant economic driver in Turkey. There are over 3,000 shopping complexes in Turkey, and they serve over 100 million people each year. Those commercial hubs provide a variety of goods and services and are a crucial source of employment.
Real Estate Economy
The Turkish real estate market has been flourishing in recent years, with foreign investors snapping up houses at an unprecedented rate. Over 50,000 houses were sold to foreigners in 2022, which is a 50% increase from the previous year.
Apartments, villas, and commercial units are the most popular types of assets for international investors. During that year, the total value of real estate sales to foreigners in Turkey was $4.5 billion, whereas the most popular cities for foreign real estate investment are Istanbul, Antalya, and Ankara.
Turkey's real estate market is poised for significant growth in 2023. The government has introduced several programs to incentivize foreign investment, and the thriving tourist industry is set to drive a substantial increase in the number of houses sold to foreigners.
Medical Tourism Economy
Turkey's medical tourism sectors are quickly expanding, with the country attracting patients from all over the world for a range of medical operations. The reasons behind this are the high-quality healthcare system, affordable prices, and Turkey’s strategic location. The average cost of a medical procedure in Turkey is 50%-70% lower than the cost in the United States, for example.
In 2022, there were over 1 million medical tourists who visited Turkey for different procedures. During that year, the Turkish medical tourism industry generated $20 billion in revenue, which is expected to grow to $30 billion by 2025.
Cosmetic/dental surgery and organ transplantation are the most common procedures offered to foreign patients in Turkey. Weight loss surgery, IVF therapy, and knee/hip replacement surgeries are among the most in-demand procedures as well.
Medical tourism has a considerable positive impact on the Turkish economy. The industry generates billions of dollars in revenue each year and employs thousands of people. Medical tourism also contributes to promoting Turkey as a tourist destination, which benefits the economy in general.
Vacation Tourism Economy
Vacation tourism serves as a substantial catalyst for Turkey's economy, making the country an attractive destination for tourists worldwide. In 2022, an estimated influx of nearly 52 million visitors entered the country, generating an income of approximately $27 billion. Turkey has ascended to become the sixth most sought-after nation by global travelers.
The Turkish government has also made considerable investments in tourism infrastructure, including airports, hotels, and tourist attractions.
The positive effects of tourism on the Turkish economy are remarkable and act as a driving force. The industry generates billions of dollars in revenue each year, fueling economic growth and creating thousands of jobs. Furthermore, tourism plays a pivotal role in promoting Turkey as a popular tourist destination, thereby contributing to the country's overall economic well-being.
Is it reasonable to invest in Turkey in 2023?
Turkey offers several investment opportunities, notably in the real estate industry. The country boasts a robust economy, a stable political system, and an advantageous geographical position. Furthermore, housing prices in Turkey remain modest in comparison to other European nations.
Real estate investments in Turkey are highly appealing due to the diverse range of unique characteristics offered by this location, including
- A Vigorous Economy: Turkey's economy is in constant expansion, and the unemployment rate is low. This indicates that there is a high demand for homes, which may cause property values to appreciate.
- A stable political climate: Turkey's political environment is tough, which is vital for investors who wish to preserve their interests.
- A Strategic Location: Turkey acts as a bridge between Europe and Asia, making it a gateway to both markets. This might be a useful asset for investors looking to expand into other areas.
- Low Property Prices: The pricing of Turkish real estate is still very affordable when compared to other European countries. This means that investors can get a fantastic deal at a competitive price.
Istanbul, Antalya, and Ankara are the top cities in Turkey for real estate investment. Residential, commercial, and tourism properties are available for investment in these cities.
Why is Turkey appealing to investors?
Thanks to its booming economy, Turkey fosters a secure investment environment. This privilege is backed by a variety of industries, including tourism, manufacturing, and banking. Further adding to the attraction of the Turkish real estate market are the government's dedicated efforts to adopt investor-friendly regulations, simplified bureaucracy, and continuous infrastructural development.
A sizable number of international investors have been drawn to Turkey by its liberalized regulations governing property ownership. Recent data shows that, with a rise of 15.2% over the previous year, international purchasers made up a large share of real estate transactions in Turkey. This illustrates how foreign investors are becoming more confident and interested in the Turkish economy.
Turkey provides competitive yearly values and returns for real estate investments. Market advancements have been steady, offering investors the chance to benefit from capital growth and rental income.
The most current statistics available place the Turkish real estate sector's yearly return on investment at 10%. These encouraging numbers show the potential for financial gain in Turkey's real estate industry.
Citizenship by investment program in Turkey
Turkey's Citizenship by Investment Program offers a unique opportunity for anyone looking to invest to become a Turkish citizen. Investors have the chance to use this program's accelerated citizenship process to exchange their monetary contributions for a sought-after Turkish passport. Over 20,000 investors have obtained Turkish citizenship as a result of the scheme, which was introduced in 2017 and has been quite successful since then.
There are several investment possibilities available under the Turkish Citizenship by Investment Program that allow people to become citizens. Among these choices are:
- Real estate investment: A common method for qualifying for Turkish Citizenship applications is to buy one or more properties with a minimum value of $400,000. Investment real estate could be residential or commercial and can be appreciated over time.
- Capital Investment: Another way to become a citizen of Turkey is to make a substantial fixed capital investment of $500,000 for starting a business, investing in a Turkish corporation, or donating to a venture capital fund.
- Creating Job Opportunities: By producing jobs through their investment initiatives, investors may also open up employment prospects for Turkish residents. This might involve starting new enterprises, growing current ones, or funding projects that boost the regional economy.
Applying for Turkish citizenship is valid for investors who create at least 100 new job offers in Turkey.
Depending on the investment type decided upon, certain criteria must be met to apply for Turkish Citizenship by Investment Program. However, all candidates must fulfill the following requirements:
- The applicant must be at least 18 years old.
- Must not have any criminal history.
- Should be able to pass a language exam in Turkish.
- Able to provide evidence of financial viability.