1. Economic success
- A thriving economy; the country’s GDP has more than tripled, reaching us $ 784 billion in 2018 compared to us $ 231 billion in 2002 (TurkStat).
- Stable economic growth with an average annual increase in real GDP of 5.5 percent between 2002 and 2018 (TurkStat).
- Most promising economic future: Turkey is expected to have the strongest economic growth of all OECD member countries for the period 2019-2024, with an average annual real GDP growth rate of 5.5% (OECD).
- The 13th largest economy in the world and the 5th largest economy in 2018 (GDP at purchasing power parity).
- An institutionalized economy that has attracted us $209 billion in foreign direct investment over the past 16 years (CBRT).
- Dynamic and Mature private sector with $168 billion in exports and 366% growth between 2002 and 2018 (TurkStat).
Turkey is one of the most promising real estate markets in Europe. The mantra “location, location, location” sounds especially true in this country. With its strategic location at the crossroads of Europe, the Middle East and Central Asia, and with an estimated population of 81 million people, Turkey offers excellent opportunities for developers and investors, combining a vast construction sector with increased commercial and industrial production.
Some information and key indicators related to the Turkish real estate sector:
- The real estate sector has accounted for about 8.4 per cent of GDP over the past decade. In terms of investment, the inflow of foreign direct investment amounted to $ 10.8 billion. Of which, $ 4.6 billion has been allocated. Of total FDI in real estate and construction in 2017.
- Urban renewal and megaprojects dominate the agenda for the foreseeable future, especially in Istanbul. Among the projects to be implemented in the city are: Marmaray, Istanbul canal, Yavuz Sultan Selim Bridge, Eurasian tunnel, three-storey Istanbul tunnel and 3rd Istanbul airport.
- The urban renewal and development initiative will include 7.5 million housing units. The initiative has a budget of $ 400 billion. The private sector makes a significant contribution.
- According to the Knight Franck house price index, Turkey ranked sixth in the 56 index in Q3 2017 in terms of annual price growth index. Turkey’s annual growth rate increased by 11.1 per cent, making it one of the world’s top property markets, ahead of Australia, Latvia and India.
- The total number of homes sold in the Turkish real estate market reached 1.4 million in 2017. In addition, real estate sales to foreigners began to increase after the abolition of the reciprocity law in 2012, in 2017, 22,234 houses were sold to foreigners in the country, which is 22.2% more per year. In terms of home sales to foreigners in 2017, Istanbul was the most successful with 8,182 sales, followed by Antalya with 4,707 sales, Bursa with 1,474 sales and Yalova with 1,079 sales.
- At the end of 2017, existing class a office space in Istanbul exceeded 5.3 million m2 of 249 office buildings. The annual increase in gross rental space in the office market averaged about 12% between 2010 and 2017. More than 1.2 million square meters of office supplies are under construction, and it is expected that by the end of 2020, class a offices will amount to about 7.1 million m2 of total leased space.
- In Turkey there are 401 shopping centers with a total leased area of 12.2 million m2 on 114 shopping centers in Istanbul with a total leased area of 4.2 million m2, which is 34% of the total leased area in Turkey.
- According to the JLL attractiveness Index 2016, Istanbul is the 6th most attractive market in Europe after London, Paris, Moscow, Milan and Madrid.
- Despite growth in recent years, Turkey remains below the average total rental area per person, compared to the European average. This heralds further growth of retail trade in Turkey.
- According to the Department of the Ministry of culture and tourism, at the end of 2016 there were 3,641 classified hotels in Turkey with a total of 426,981 rooms. 5-star hotels make up 42.7% of hotels. 4-star hotels with 24.8% market share and 3-star categories with 12.6% market share.
With the addition (b) to the first paragraph of article 12 of Law No. 5901 promulgated on 28 July 2016.
- Those who obtain a residence permit in accordance with (j) the first paragraph of article 31 of Law No. 6458, by investing within the limits and amounts established by the President.
- Foreigners who have a turquoise card can obtain Turkish citizenship on the basis of the decision of the President of the Republic of Turkey.
The amounts established in accordance with the new rules published in the “Official journal” of 18 September 2018 are defined below. Foreigners who meet one of the following criteria are entitled to Turkish citizenship, depending on the decision of the President of the Republic of Turkey.
- Minimum fixed capital investment of US $500,000 or equivalent in foreign currency or Turkish Lira, as confirmed by the Ministry of industry and technology.
- Acquisition of property in the amount of not less than 250 000 USD or equivalent in foreign currency or Turkish Lira with restriction of ownership upon resale for at least three years, confirmed by the Ministry of Environment and Urbanization.
- Creation of jobs for at least 50 people, certified by the Ministry of family, labour and social protection.
- A Deposit of at least us $500,000 or Turkish Lira or equivalent foreign currency in banks operating in Turkey, provided that they are not withdrawn for at least three years as witnessed by the Regulatory Agency and banking sector supervision.
- Purchase of government bonds worth at least us $500,000 or Turkish Lira or equivalent value in foreign currency, provided that they cannot be sold for at least three years, as evidenced by the Ministry of economy and Finance.
- Purchase of at least us $500,000 or equivalent in foreign currency or Turkish Lira of real estate investment Fund units or venture capital units provided that they cannot be sold for at least three years as witnessed by the capital markets Council of Turkey.
As the 10th most popular tourist destination in the world, attracting more than 38.6 million tourists in 2017, Turkey continues to offer extensive investment opportunities in both established and newly developed subsectors of the tourism industry.
Thanks to its favorable geographical location, existing potential, megaprojects and ambitious targets set for 2023, the tourism sector continues to grow at a pace that exceeds its capacity. Although investment has increased over the past few years, there are still countless opportunities for new businesses. The regions of Eastern and South-Eastern Anatolia have untapped tourism potential. The same applies to the increasingly popular concept of a boutique hotel, which blends perfectly with the characteristic nature, history and culture of these regions.
Here are some key facts and figures about Turkey’s tourism sector:
- According to the world tourism organization, in 2016 Turkey was the 10th most popular tourist destination in the world.
- According to the Ministry of culture and tourism, the number of foreign tourists arriving in Turkey in 2017 amounted to 38.6 million, while the total turnover of the tourism industry in the same year amounted to 26 million dollars USA.
- The growth of the Turkish tourism industry in recent years has been higher than the global average, and the direct contribution of the industry to the current account deficit in 2017 was 36 %.
- At the end of 2017, 12,856 hotels were registered. 9,186 of these institutions were licensed by the respective municipalities, while the remaining 3,670 had tourism management licenses. The total aggregate capacity of these facilities exceeds 1 482 492 units.
- 281 promising projects are currently under way, which will add 74,130 places needed to overcome the shortage facing Turkey.
- With regard to religious tourism, Turkey is one of the few countries in the world where shrines of major religions are located. A total of 316 relics, 167 relate to Islam, 129 to Christianity and 20 to Judaism.
- Antalya is the most popular city in Turkey by the number of foreign visitors arriving. In 2017, 25% of foreign tourists visited Antalya. There are more than 500 4-star and 5-star hotels in the centre and more nearby towns such as Kemer, Belek and Kas.
- Since 2001, the number of hotel chains and hotel groups in Turkey has doubled to 165. The number of hotels in these 165 chains in Turkey reaches 824. In addition, 82% of these hotel chains and groups are owned by Turks, 15% by foreigners and 3% by national and foreign partners.
- Turkey has 7,200 km of coastline and ranks 2nd out of 38 countries with 454 blue flag beaches; it is ahead of Spain with 579 beaches of this type. Turkey has 22 marinas with the words “Blue flag”.
- In terms of geothermal tourism potential, Turkey is among the top seven countries in the world and ranks 1st in Europe with 1,500 thermal springs. The capacity of the various resorts collectively reached 55,140 people.
- The Belek region is considered the most important Golf destination in Turkey and is among the most popular tourist destinations in the world with 15 Golf courses, a capacity of 50,000 beds and a flow of 2 million tourists. In addition, Belek received the best Golf destination in Europe award from the international Association of Golf tour operators (IAGTO) in 2008.
- Based on tourism figures for 2017, Forbes ranked the top 10 most visited cities in the world, placing Antalya in 6th place.
- By 2023, the tourism sector sets annual targets of 50 million tourists, with revenues estimated at us $50 billion.
- The Turkish government offers incentives and policies for low-cost utilities and tax incentives. It is also working to remove bureaucratic barriers that could undermine growth in the tourism sector.