Turkey has undergone a profound economic transformation over the last 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 current GDP of approximately USD 820 billion in 2013.
It’s geographical location, population growth and demographic advantage, the increase in income per capita, extensive urban renewal and development, large capacity and power in the construction sector and ease of doing business are the demand drivers of the Turkish real estate sector. The real estate sector in Turkey represents 19.5 percent of the total GDP, which brings great investment potential to the sector. The share of the real estate sector in GDP increased by 2.3 percent in 2000 and by 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 between 2000 and 2005. However, the sharpest increase was observed between 2006 and 2009 with 20.5 percent.
Having boomed as fast as 9.3% and 8.8% in real terms in 2010 and 2011, OECD
projects a real GDP growth of around 4% in 2014 and 2015, while the EIU projects
on average 5% growth until 2017.
Monetary policy played a vital role in reining in inflation in recent years. Turkish
inflation has stayed under 10% since 2004 and year-end inflation was 7.40%
in 2013. EIU forecasts that average inflation will further ease to 4% by 2018.
Ten Good Points to invest in Turkey:
- Successful Economy, by reaching USD 820 billion in 2013, up from 231 billion in 2002.
- Population, of 76.7 million, largest youth population compared with the EU, Young, dynamic, well-educated and multi-cultural population.
- Qualified and Competitive Labor Force, which lead to increases in labor productivity.
- Liberal and Reformist Investment Climate, with highly competitive investment conditions, strong industrial and service culture, equal treatment for all investors.
- Infrastructure, New and highly developed technological infrastructure in transportation, telecommunications and energy, Well-developed and low-cost sea transport facilities.
- Centrally Located, easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa.
- Energy Corridor and Terminal to Europe, located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region.
- Law Taxes & Incentives, corporate Income Tax reduced from 33 percent to 20 percent.
- Custom Union with the EU since 1996, Free Trade Agreements (FTA) with 20 countries.
- Large Domestic Market, 57 million credit card users in 2013, up from 16 million in 2002, 39.2 million international tourist arrivals in 2012, up from 13 million in 2002 .