Business & Industry

Aug 1, 2015

Real Estate Investments in Turkey

Turkey is the best link between Europe Asia and Africa, meaning 1,5 billion people and a GDP of USD25 trillion are within reach. 

<

With new government investments and the construction of modern infrastructures, the country prepares itself to become one of the world's industrial and economical powertrains. This is the time to buy properties in Turkey. Take it!

Turkey has undergone a profound economic transformation over the past decade and its economic fundamentals are quite solid. It is the 17th largest economy in the world and the 6th largest economy in Europe, with a GDP of approximately USD 820 billion in 2013.

The demand drivers of the Turkish real estate sector are advantageous geographical location, population growth and demographic advantage, increase in income per capita, extensive urban renewal and development, large capacity and power in the construction sector and ease of doing business. The real estate sector in Turkey represents 19.5 percent of total GDP, which brings great investment potential to the sector. The GDP share of the real estate sector increased by 2.3 percent in 2000 and 3.8 percent in 2012. The average share of construction, real estate, rental and business activities and new house sales in total GDP increased by 16.7 percent from 2000 to 2005. However, the sharpest increase, of 20.5 percent, was between 2006 and 2009.

On the investment side, FDI inflow rose to USD 12.5 billion, while real estate and construction garnered USD 1.6 billion of total FDI in 2012. Sales of real estate to foreigners began to increase following enactment of the reciprocity law and reached USD 2.64 billion in 2012. The Ministry of Environment and Urbanization announced that real estate sales to foreigners increased from 2 percent to 5-6 percent in the last ten months of 2013.

The current situation, along with strategic plans and future projects in the pipeline, bears huge potential for investors in Turkey's real estate sector as the number of real estate properties sold reached 290,000 in 2012.

Retail area availability

In terms of available leasable area, there are about 300 operational shopping centers in Turkey with a total of 8.2 million square meters. The shopping centers in Istanbul – around 30 of them – represent 46 percent of the total leasable shopping center area in Turkey. Office construction licenses obtained throughout Turkey have increased 27 percent, reaching 6.84 million square meters.

There is still room for investment in the retail market since only 54 Turkish cities out of 81 have shopping centers. 

In order to cope with industry and commerce demands, the Turkish State Railways' (TCDD) has started a investment program that will spend over USD240 million on building logistics centers.

Residences renewed

Urban renewal and transformation projects, officially started in Turkey after the enactment of Law No. 6306, the Renewal of Regions that Are Prone to Disaster Risks in 2012. Under the scope of this law, 6.5 million residences will be included in the Urban Renewal and Development initiative. A budget of USD 400 billion was allocated for this initiative with the private sector playing the largest role. 

Currently, there are a total of 19 million residences in Turkey, and according to the Ministry of the Environment and Urbanization, 14 million residences are prone to natural disasters. The Urban Renewal and Development Plan will take action on these residences. 

The Ministry of the Environment and Urbanization decided that urban transformation projects will start in the areas of the highest risk. The cities most at risk are located on the seismic fault, such as Istanbul, Koceli, Sakarya, Bursa and Izmir where major projects are underway.

These ambitious targets for urban renewal and development projects offer many opportunities for investors, especially in the construction and real estate sector. 

Invest now!

In conclusion, the properties market – either housing, retail, office or industry – in Turkey is booming, and will continue growing for the next years, fueled by large construction and development projects. 

The opportunity is around the corner, you just have to take it. Some of the bigest and most important real estate agencies are represented in Turkey, via local partnerships or brand offices, willing to help investors find what they desire most.


More Articles

FeaturedArticles

  • 310

    Technology

    Aug 1, 2017

    THE KING OF HOME SECURITY

    The world is not, in any way, a safe place. Whether you live in a 12th floor apartment or a big villa in the countryside, you will feel much more secure after installing one of these.

  • 91mRraW8AAL._SL1500_

    Helthcare & Wellness

    Apr 1, 2017

    PURE ENRICHMENT HUMIDIFIER - RELIEF FROM ALLERGIES

    April means Springtime, good weather, nice walks by the beach or by the countryside, flowers and allergies. For those who suffer from this every year, Spring means nose congestion, sneezing, red eyes and even fever.

  • 14279036_127247534397015_777594915_n

    Helthcare & Wellness

    Apr 1, 2017

    A GLOVE THAT RETURNS THE FORCE TO HAND

    After arriving at the final of the "Microsoft Imagine Cup", with the prototype of a glove that returns the force to hand and that allows to lift objects up to 40 kilos, NUADA, is one of the startups of the moment.


  • enko-running-shoes-7

    Sport

    Aug 1, 2017

    FIT WITHOUT INJURIES

    Practicing many kinds of sports, in order to keep fit and healthy, is a 'must', these days. People seem to be very careful and concerned about their daily life quality and also towards the future days.

  • A3JUNIOR-BE05-A

    Mechanics & Locomotion

    Apr 1, 2017

    INVACARE ACTION 3 JUNIOR - A WHEELCHAIR THAT GROWS WITH THE CHILD

    When we think of children and young people, we immediately have an image of freedom, fun and energy. Removing this from a child is sad, especially when various reasons lead to using a wheelchair. Thinking about it, Invacare has modernized...

  • Borrego14

    Business & Industry

    Apr 1, 2017

    LAMB FROM NEW ZEALAND - 135 YEARS EXPORTING LAMB

    Lamb is not only the meat of choice for most new-Zealanders when they have guests or go out for dinner. According to the annual poll carried by Beef + Lamb New Zealand, it's also their main export. 


  • Lifestyle & Travel

    Sep 1, 2015

    The American Hospitality

    Carlson is one of the largest privately held companies in the world, encompassing more than 1,370 hotels in operation and under development in over 110 countries and territories and Carlson Wagonlit Travel, a global leader...

  • Lifestyle & Travel

    Jan 1, 2015

    Colorful and Traditional

    Moroccan Berber Carpets is a selection of wonderful hand woven carpets, rugs and interiors from the Berber tribes around Morocco.

  • 1

    Science & Nature

    Jul 1, 2015

    In the heart of Medicine

    After producing the first electrocardiograph in Japan's history, Fukuda Denshi established itself as a medical equipment pioneer, not only in its original market, but expanding successfully throughout the world.