The Republic of Turkey is located at the crossroads of the European and Asian continents. Due to this feature, it has a very important geostrategic power. Turkey is located on a unique geography with natural beauties, deep-rooted history, and rich culture. When we look at the country in general, it is observed that all four seasons are experienced. It has good relations with its neighbors Greece and Bulgaria in the west and Georgia, Azerbaijan, Iran, Iraq, and Syria in the east. It is a peninsula surrounded by seas on three sides, by the Black Sea to the north, the Aegean Sea to the west, and the Mediterranean Sea to the south.
Turkey can be expressed as an ideal country for investment with its population of over 85 million and a dynamic and qualified workforce. In addition, with the free land allocations, incentives and tax reductions provided for foreign investors, investing in Turkey become very attractive. At this point, the most profitable and best investment areas suitable for investing in Turkey listed as follows.
- Agriculture Investment
- Industrial Investment
- Tourism Investment
- Real Estate Investment
- Agricultural Investment in Turkey
Turkey’s agricultural sector, with its current profile, reflects the richness of ancient Mesopotamia. Turkey is at the top of the list among the world’s leading countries in the field of agriculture with its favorable geographical opportunities and climate suitable for agriculture, large lands, and abundance of water resources.
Turkey has a strong agricultural industry. According to the data obtained in 2021, the financial contribution of the agricultural sector to the country was 47.3 billion USD.
Among the features that make the sector strong are the country’s young population, market size, dynamic economy, strong tourism income, and favorable climatic conditions.
Turkey is the world’s 10th largest producer in the agricultural sector.
With its production volume, it has managed to become one of the largest exporters of agricultural products in Eastern Europe, the Middle East, and North Africa. This situation greatly contributes to Turkey’s maintaining a positive trade balance. Turkey exported around 1,800 agricultural products to more than 190 countries in 2021, generating an export income of 18.8 billion USD.
Turkey has proven itself as a country that is preferred as a regional power and supply center among the leading countries in the agricultural sector. The country also offers several incentives to potential agricultural and food investors to encourage investment in the sector.
- Industrial Investment in Turkey
Existing industries in Turkey constitute 27% of the gross domestic product and approximately 93% of the country’s exports. The first foundations of the industry, which continued to develop in the country, were laid in the last years of the Ottoman Empire, and it has continued to progress without losing momentum until today.
Turkey is expressed as the leading country in its geography in terms of its industrial diversity. The number of items in Turkey, which has an export volume of more than 500 million dollars, is listed as follows according to the surrounding countries: Turkey 39, Russia 28, Ukraine 21, Romania 20, Greece 16, Israel 15, Egypt 11, and Iran 8.
In 1980, the number of exporters in Turkey was 1000 and the ratio of the industry to exports was 10%. According to the evaluations made in 2009, the number of exporters was 47.000 and the ratio of the industry in exports was 92%. This development potential places Turkey at the top of the list of countries to invest in.
- Tourism Investment in Turkey
Tourism in Turkey is a very important sector. The ratio of tourism revenues in the country to exports is 16.7%. All tourism activities taking place in the country are evaluated under the responsibility of the Ministry of Culture and Tourism of the Republic of Turkey. Many touristic places in Turkey reflect the history and culture of the country like a mirror. In addition, touristic activities are carried out on the Mediterranean and Aegean Sea coasts of the country. Along with all these, it can be said that health tourism has become popular in the country, especially in recent years.
As one of Turkey’s largest cities, Istanbul, as the capital of the Ottoman Empire, also contains many ancient structures. Hagia Sophia, Blue Mosque, and Topkapi Palace are just a few of the works in this precious heritage. Other important tourist areas in the country are; Ephesus, Troy, Bergama, Side, Cappadocia, Nemrut, and Pamukkale, together with the House of Virgin Mary, which have survived from the Roman Empire period.
Coastal regions with natural wonder beaches have an important tourism potential for people living in various cities of Turkey and tourists from all over the world. The most important beaches of the country start from the Aegean coast and reach the Mediterranean and end at the borders of Antalya. Bodrum, Cesme, Fethiye, Marmaris, Kusadasi, and Alanya, which are located within the borders of Turkey, are the most important holiday destinations in the region.
There are some incentives offered to tourism professionals who have a tourism operation certificate.
Within the scope of these incentives, treasury and forest lands can be allocated to investors by the state for touristic facility investments. The land is allocated to the use of the investor for 49 years. A very small amount of rent is paid annually to the government. VAT and customs duty exemption is another type of incentive offered to businesses with a tourism operation certificate. In this context, incentives such as tax deductions and insurance support for employees are provided to the investor. Tourism enterprises also pay their electricity, natural gas and water bills at the lowest tariff applied to the industry and residences in that region. This provides serious support to the tourism industry in terms of energy.
- Real Estate Investment in Turkey
The real estate sector in Turkey includes opportunities that can meet the priorities and expectations of foreigners who want to invest. Today, Turkey is a center of attraction for individuals and companies to invest in land and housing. The interest in real estate investments in Turkey, especially from the Middle East and Gulf Countries, is increasing rapidly. The Republic of Turkey provides facilities for Turkish citizens as well as foreign citizens to invest in Turkish soil through housing, land, and similar real estate.
Turkey has become competitive with the real estate sectors of the developed countries of the world with its large-scale development investments throughout the country. Turkey has made a breakthrough with highways, airports, gigantic bridges, kilometers-long tunnels, and many other development investments throughout the country. These zoning investments have been a factor that makes real estate investment in Turkey convenient.
How to Invest in Real Estate in Turkey?
Investing in the real estate sector means owning a property that you can profit from in the future, rather than just buying a house to live in. After purchasing a house, you can also renovate the house you bought and have the opportunity to sell the house for a price higher than the price you bought it. Another method preferred by real estate investors is to rent the real estate they buy. Rental income from real estate investments can, in some cases, yield much greater returns than the investment made to purchase the property.
The change in the region to be invested in over time is another factor that the investor should consider. Popular regions may lose value over time depending on different variables. Therefore, the investor should take this into account.
Since the cost of investments is high, it is of great importance to make the right decision. As in many investments, it is of great importance to work with people with expertise when investing in this field. At this point, Istanbul Property is a successful company that has a deep-rooted experience in the field of real estate and serves its customers with its expert consultant staff. Istanbul Property provides a quality consultancy service to minimize the risk of error for investors.
What are the Cities in Turkey that Need to be Invested in?
When it comes to investment in Turkey, one of the first investment tools that come to mind is real estate. The most suitable cities for real estate investment in Turkey are listed as follows.
- ISTANBUL: Istanbul ranks first in real estate investment according to statistics. The city maintains its feature of being one of the most popular cities of those who prefer real estate as an investment in every period. In addition to its deep-rooted historical and regional values, mega projects such as the 3rd bridge, 3rd airport and Kanal Istanbul can be expressed as other factors that make Istanbul real estate attractive to investors.
- BURSA: Leaving all the cities of Turkey behind and taking its place at the top of the list in real estate investment, Bursa draws attention as the most popular city of recent years. Bursa is expressed as a very convenient region for investment, with its industry and the advantage it has gained with its proximity to the 3 big cities of Turkey.
- ANTALYA: According to statistics, Antalya is the 3rd city in real estate investment. Antalya, which is the most preferred city in Turkey in the tourism sector, has an indispensable place for real estate investors.
- IZMIR: Having the distinction of being the third largest city in Turkey, Izmir ranks 4th in real estate investment according to statistics. Izmir has attracted the attention of foreign investors with its skyscraper projects realized in recent years. New projects in the area of urban transformation in the region are in great demand.
- KOCAELI: Kocaeli, an industrial city, ranks 5th in real estate investment according to statistics. It draws attention as one of the centers preferred by investors with its increasing housing sales prices per square meter.
Does the Turkish Government Support Investors in Turkey?
Turkey supports investors. It offers many government incentives to investors who want to invest in the country. With the contribution of these incentives, investors can continue their activities more efficiently and profitably. Foreign investors who want to invest in the country are also supported by the state. There are many government incentives for foreign investors.
The government incentives that foreigners who want to invest in Turkey can benefit from can be listed as follows:
- VAT Exemption
- Customs Duty Exemption
- Tax Reduction
- Social Security Premium Support (Worker’s Share)
- Social Security Premium Support (Employer’s Share)
- Income Tax Withholding Reduction
- Interest Rate Support
- Land Allocation
- R&D Incentive
