Should I go for investing in Turkey 2021? Turkey is continuing to gain strength as a renowned ideal overseas investment market. The varied reasons why ever-increasing numbers of buyers are looking into the Turkish market can be summarized into the main points mentioned below.
Turkey is experiencing an unparalleled level of international exposure, thanks to steady growth in annual tourism. As a result, there is an increase in tourist interest and demand for Real estate investments in Turkey. The value of Turkish property is expected to appreciate in beachfront areas by as much as 50% initially, with forecasts for the next two to three years reaching 100%. So, what are the main reasons for Investing in Turkey 2021?
Here are the main reasons for investing in Turkey 2021:
1. Sought After Emerging Market:
Emerging markets often present several optimum High Tech investments in Turkey opportunities for both capital growth and rental yield potential. Prior to an established mass-market attraction, prices are often at their lowest. Several other factors normally cause rapid price growth, bringing costs of land and construction up as the infrastructure and ease of access increase. The higher demand for properties usually results in lesser availability, also causing prices to rise dramatically. This market provides superb Foreign investment opportunities in Turkey.
2. Economic Stability:
Having undergone large amounts of reforms in recent years, the country is now in an economic position compatible with EU requirements. Thus, people like to have Turkish citizenship. Positioned strategically between Europe and Asia, the country enables important business and trade links between the east and the west. It is possible due to the Logistics in Turkey.
Successful in attracting Foreign Direct Investments (FDI) in Turkey, annual economic growth of around 8% has been achieved since the country’s major political reforms. The tourism industry, together with Medical tourism in Turkey, is currently boosting the economy at an incredible rate. It is assisting with the growth of the real estate investment market. Because of it, the Foreign investments in Turkey are enhancing.
3. Ideal buy-to-let market:
Whether searching in a City Centre or looking along with the resort towns of the coast, rental properties are in strong demand. The fast growth in recent years of tourism and Medical tourism in Turkey has placed demands for hotels at an all-time high. Unable to construct at a fast enough rate to meet the peak season demands, the self-catering market is taking off.
The relocation of Europeans to meet resort town employment and Business opportunities in Turkey from the growth of the real estate sector places demands on mid to long-term rental properties. Both long and short-term rental properties feature high yield returns to the early investor to invest in Turkey properties. Guaranteed rental returns written into the contracts of new developments feature a beneficial opportunity to buyers, who also benefit from the fast-growing capital growth rates. This enhances the Foreign investments in Turkey.
4. Strong Capital Growth
As an emerging market chasing entry to the EU in the near future, the benefits of investing in the real estate market and Doing business in Turkey are impressive due to the country’s reforms. Also beneficial to this feature is the property market still enabling pre-EU entry prices. Set to rise considerably in the coming year with or without entry to the EU, capital growth on property purchased early is assured. It induces the demand for Turkish citizenship.
Having displayed impressive growth levels in recent years of up to 30% per annum in key locations, the impending boom of the sector is set to create further steadily increasing growth levels. Coastal resort towns along the Aegean and Mediterranean are experiencing the highest demand and growth rates, with some areas currently in their earliest stages of development. This growth enhances the Business opportunities in Turkey.
5. 7th Largest Agriculture Producer
Since the 1980s, Turkey has promoted economic and reforms for Agriculture in Turkey. Researchers, policymakers, governments, and non-governmental organizations have discussed their effects. So, it is ideal for you to do Agribusiness in Turkey.
According to certain scholars and organizations, the Turkish economy took a huge leap after 1980, thanks to the benefits of liberalization. And it was on the verge of entering a new era. So, you can consider this sector for investing in Turkey. Agriculture still accounts for about two-thirds of the economy in developing countries. There is a huge potential for the people who like to do Agribusiness in Turkey.
Agriculture employs the majority of Turks and contributes significantly to the country’s GDP, exports, and industrial growth. Agriculture employs about 30% of the working population. Turkey has a diverse agricultural production capacity with significant potential for increasing output, especially through higher crop yields. Agriculture in Turkey is a good sector for Foreign Direct Investments (FDI) in Turkey.
6. Establishment of Buildings:
This country has developed plenty of buildings. Turkey’s projected population growth rate between 2000 and 2050 is 43%, against the European rate of 10.3%. By the year 2050, Turkey will have the largest population in Europe. It already has one of the youngest populations with an average age of 27 years compared with the EU’s 43 years. It is served by the Logistics in Turkey.
Foreign real estate investors are enhancing Foreign investments in Turkey. They have joined with local companies, have developed a big appetite to meet Turkey’s growing economic needs for commercial investment shops, office buildings, and apartments with modern amenities. The construction is improving the standard of living in Turkey.
7. Higher Consumption Rate:
Young woman choosing shirt or blouse during garments clothing shopping at store
The Istanbul market exhibits an enormous demand across all types of consumption, giving a generally very positive consumer climate. According to official figures from the retail trade, the relevant purchasing power of Istanbul is approximately EUR1,600 for each inhabitant. However, the shadow economy is estimated to be at least 40% of the overall economic achievement, considering that actual purchasing power would be clearly higher than this figure. This induces Foreign investment opportunities in Turkey.
8. Great FDI Growth:
According to the FDI inflow, Turkey was 5th amongst the highest FDI attracting emerging markets in 2006 after China, Hong Kong, Singapore, and Russia. The Foreign Direct Investments (FDI) in Turkey inflow from European countries made up 74% of the total FDI inflow to Turkey. The direct investment of European investors jumped to $14.7bn in 2006, up from $6.6bn in 2005. In December 2020, the FDI was $1032 USD Million. It boosts great Business opportunities in Turkey.
This growth has driven most investors to pay higher prices for Turkish mega projects. The acquisition of Istanbul’s Cevahir Mall – Europe’s largest shopping center – in 2005 was perhaps the most significant indication of the growing institutional acceptability of Real estate investments in Turkey.
London-based international property investment, development, and asset management companies financed this acquisition with EUR384m, the biggest loan ever put in place for Turkish real estate. The fund was arranged by the syndication of several banks specifically for this acquisition. It is showing a considerable amount of faith in the country’s investment value.
9. Real-Estate Investment Opportunities:
So, what is the best investment sector in Turkey? As the economy recovers and achieves stability, there is a growing demand for Turkish property among overseas property buyers. As the demand continues to rise, Turkey has signed a deal with Russia to allow visa-free travel for potential property buyers.
The realization that Turkey offers dramatically lower-priced property built to high standards and with excellent capital growth potential has assisted with the expansion of the region’s attractions. Tax incentives have been created for long-term investors looking for investing in Turkey. Reforms in the financial sector allowing mortgages to non-resident buyers have also benefitted investors to enter the market to invest in Turkey properties.
At a press conference, the Russian President Mr. Dmitry Medvedev, along with the Turkish President Mr. Abdullah Gul, called this deal a “historical agreement” between the two countries. He assured that millions of people should get benefitted from this deal which will come into effect very shortly. This will grow new opportunities for Doing business in Turkey.
For Turkey, this is one of the significant agreements of all the other similar agreements it has reached with many countries. It includes Jordan, Syria, Lebanon, and Albania. All these have a significant role to play in the country’s mission to increase its visitors every year. If you wish to know what is the best investment sector in Turkey? You should consider real estate. Turkey manages to win smart deals like these; the country is sure to turn the tables. For it, the government is also growing the Automotive industry in Turkey.
10. Launching of Marinas:
The launch of new marinas opens up the gate to higher-end Tourism in Turkey. The largest marina in the Aegean was open in Turkey’s Altinkum last year, and this year the launch of two new marinas has been announced, among which one would be in the capital of Istanbul. This potential growth in Tourism in Turkey is the aftermath of the fall of the Sterling against the Euro and Dollar and since then makes Turkish property the hot property among overseas buyers. The standard of living in Turkey is boosted with it.
An extensive range of factors stand out individually and combine to create an investment location for the Real estate investments in Turkey. This range has understandably become one of the most sought-after emerging markets in recent years. The government has been striving to improve the economic and political situation with the steps taken so far making a clear difference in the improvement of the nation. Ideal for both pure investment and lifestyle purchases, Turkey is set to be a sought-after market for many years to come.ย For it, you should see the Best investment sectors for foreigners in turkey.
2023 Vision in Turkey:
The year 2023 will be significant for this country, according to several people. It is true that in 2023, there is the 100th anniversary of the Turkish Republic’s founding. In this year, the ruling AKP party has set itself an ambitious list of goals to meet by that date. The government also planned to enhance the implementation of Artificial intelligence in Turkey.
The data is organized into categories such as economy, power, foreign relations, health, Medical tourism in Turkey, transportation, and tourism. In total, they make up the 2023 vision in Turkey planning. Also, because of ending the Treaty of Lausanne, Turkey will become stronger, politically and economically. You will find more execution of Artificial intelligence in Turkey.
The government of Turkey has set a target of generating over USD250 billion in GDP by 2023 through investments in energy, transportation, and Information and Communications Technology. Such Turkish mega projects are intended to attract big players to invest in Turkey properties. The main points of the 2023 vision in Turkey are shown below.
Become of the top 10 economies in the world
GDP around 2 trillion USD
The export will be $500 billion
Reinforce the private sector’s pioneering role and act decisively, continuing to privatize
Reduce the government’s role in power generation, telecommunications, and other areas.
Ports, Transportation in Turkey, and bridges are all under administration.
Where to Invest in Turkey:
The irresistible temptation of the Turkish property market is driving increasing numbers of potential investors to look at the ideal regions of the country to purchase. For strong growth and yield potential, the preferred coastal tourism areas offer excellent choices. It is ideal for you to know where to invest in Turkey.
Turkey has actually surpassed Spain as the most sought-after destination for British holidaymakers, with Bodrum, Istanbul, and Kusadasi at the top of their lists. As a year-round tourist destination, the coastal areas feature a conservative estimate of 8 months rental potential per year.
Istanbul
This Turkish city is one of the top 10 cities in the world in terms of the number of high-rise structures. Within the next three years, Istanbul will be transformed into a high-rise plaza paradise. It offers great Foreign investment opportunities in Turkey.
This increase in commercial real estate in Istanbul is manifesting itself in more shopping malls and the Automotive industry in Turkey. It appears not to be too affected by the financial market shakes. Turkey as a market is characterized by a constantly growing population.
Bodrum
Bodrum is located on the southern coast, where the Mediterranean meets the Aegean Sea. Emerging from a sleepy fishing village, the town developed over the past 50 years into an artistic community. Attracting the initial wave of mass tourism in the 80s, the community had already established itself as a cultural center for Turkish arts. If you want to know where to invest in Turkey, you can check Bodrum.
The preferential Mediterranean climate of Bodrum, combined with its stunning picturesque surroundings, assisted with the growth of Tourism in Turkey. The inviting sea surrounding the town’s sheltered bay features stunning deep dark blue to crystal and inviting turquoise waters.
Bodrum has developed into one of the most sought-after Turkish resort towns, with a cosmopolitan international marina filled with modern and traditional Turkish yachts. The picturesque village is growing at a rapid pace, with capital appreciation in recent years reaching 25%. The demand for rental properties has enabled yields of around 7% net per annum. Some of the Best investment sectors for foreigners in turkey are real estate, ICT, and Textile.
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The most popular resort town of Turkey is Kusadasi, located on the western coast bordering the Aegean Sea. Acting as the main port of entry for cruise ships, the town enjoys full services of modern infrastructure and a steadily growing foreign residential population. Considered to be one of the most preferential and charming towns along the Aegean, Kusadasi has developed all of the required services for mass tourism and high demand. It is an ideal place for Doing business in Turkey.
The Final Thought :
Along with the multitude of private and commercial yachts dotting the harbor, several ferry services actively visit the port. Daily Transportation in Turkey to the nearby Greek islands offers visitors to Kusadasi enjoyable day trips and island-hopping holiday options. The high demand for property in the town has started to drive up property prices due to the protection of surrounding land. It is creating a limited supply for future construction. It is helpful for the High Tech investments in Turkey.
The Mediterranean climate with year-round sunshine in both Bodrum and Kusadasi creates continuous attraction. The demand for properties is steadily rising in line with the capital appreciation gains amidst each town’s peaceful atmosphere. Future growth is assured with the preferential tourism and re-location benefits of these first-class resorts. Thus, go for investing in Turkey 2021 now.
