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

  • gal_01

    Lifestyle & Travel

    Jul 1, 2017

    PACIFIC VIEW

    San José del Cabo, on the tip of Baja California South, Mexico, is the host for the recent work of Mexican architect Miguel Angel Aragonés. The region is separated from the mainland by the Cortez Sea, the strip of water which is home...

  • the-cicret-bracelet-a-bracelet-t

    Technology

    May 1, 2017

    A SMARTPHONE UNDER THE SKIN

    Seeing emails or watching a movie are increasingly easy gestures to perform. That such could depend on a simple touch on the skin is more hard to believe. This is possible with the "Cicret", a smart bracelet that transmits the display...

  • 1

    Technology

    Nov 27, 2018

    LG SUITBOT

    "LG has created a robotic exoskeleton designed to support and enhance its wearer's legs to improve lower limb strength. The suit, named LG CLOi SuitBot, features "naturally-rotating joints" and sandal-like shoes, which LG claimed...


  • 295bda17-c5e4-458f-995f-62c4ac1da40e

    Food & Beverage

    Jul 1, 2017

    EAT INTELIGENTLY

    Foodpairing is a modern scientific method that has been used to figure out which flavours combine better with one another. This method is based on the principle that food combines better when they have certain common key components.

    ...

  • nokia-3310-comparaison

    Technology

    Jun 1, 2017

    FOR THE NOSTALGIC

    If any phone can sell itself on nostalgia alone, that phone is the Nokia 3310. It's one of the most popular mobiles of all time, remembered for its near-indestructible build, long-lasting battery and legendary Snake (well, Snake II...

  • Easy-Quorn-Stir-Fry-4-with-text

    Food & Beverage

    May 1, 2017

    MEAT WITHOUT MEAT

    Ever wondered how will the world face the expected growth of population, which is likely to lead to global food shortages and widespread famine? Well, have you ever wondered how vegetarians get their daily portion of animal protein?

    ...


  • AllPhotos-RobinsonLesBains (2)

    Luxury & Fashion

    Jul 1, 2016

    A GENTLEMAN'S CHOICE

    Summer has finally arrived, and with it the hot days, always begging for a cold swim. But also, the desire to watch the sunset to the taste of a cold drink, while waiting for the warm night to come. Robinson les Bains has thought...

  • 06

    Food & Beverage

    Feb 1, 2017

    FROM INDIA WITH SPICY

    Indian cuisine is well known for the spices used. In this month's edition, Your Vip Partner presents some of the spicy benefits, and particularly from chilli.

  • 1

    Technology

    Jun 1, 2015

    Future tech

    Remotely operated control towers

    It's a fact that small airports don't have many flights, because they don't have a adequate control tower system, and they don't have a adequate tower because these facilities don't have many flights.

    Well,...