Investment Opportunities in Turkey in 2023
Looking for a country to invest in? Then, Turkey is definitely the one for you. Thanks to its booming economy, innovative business environment, state incentives, and such, many international investors target Turkey directly head-on not to miss any profitable business opportunities in the years to come, especially in 2023.
In 2023, the Turkish state is going to celebrate its 100th foundation anniversary and for the sake of that centennial celebration, the Turkish government plan and design its largest investment projects and its economical and financial boost packages to better the Turkish economy and to draw more foreign direct investments (FDI) by making Turkey more attractive business-wise.
Why You Should Invest in Turkey
Due to its strong growth rates and structural changes carried out during the previous 15 years, Turkey has caught the attention of several foreign investors. FDI Markets reports that despite the tragic impact of Covid-19, Turkey became the ninth most popular FDI destination with 160 projects in all of Europe in 2020, maintaining its position in 2019 and increasing its share from 3 percent to 3.1 percent.
Additionally, among its peer nations in developing Europe, Turkey was placed as the second-most popular FDI destination after Poland in 2020, up from the third position in 2019, with a 16 percent stake.
But why exactly does Turkey have such a popular place in the eyes of foreign investors, really? Before going through the investment opportunities, let’s have a look at these solid reasons to invest in Turkey briefly:
1. Booming Economy
Turkey's average annual GDP growth rate from 2003 to 2021 was 5.4%, making it one of the world's fastest-growing economies. The Turkish economy has recently seen unprecedented growth, according to the list of economies by GDP at PPP (Purchasing Power Parity). From 2003 to 2020, it rose from 18th to 11th internationally and was rated 13th.
2. Advantageous Location
At the intersection of Europe, Asia, and Africa, Turkey has access to a wide range of markets, making it a productive and affordable hub for important markets. Within a 4-hour flying range, Turkey provides simple access to 1.3 billion people and a combined market with a GDP of USD 26 trillion throughout Europe, the Middle East, and Central Asia.
3. Abundant Business Opportunities
Investors have access to 1.3 billion consumers thanks to the sizable domestic market and regional markets with free trade agreements. Additionally, Turkey offers a lot of chances in other industries where it has a competitive advantage, including automotive, machines, defense, aerospace, energy, agro-food, infrastructure, and financial services.
4. Innovative Business Environment
All investors receive equal treatment under Turkey's straightforward, international-compliant investment laws. Additionally, the Turkish government has always placed a high priority on reforms that support a skilled labor force, innovative production, sustainable growth, a sustainable environment, and global development cooperation. Back in the early 2000s, a comprehensive reform process was started, and it is still going strong today.
5. State Incentives
Turkey offers a comprehensive investment incentives program with a wide range of instruments that helps to decrease the upfront cost burden and expedite returns on investments. This program is applicable to both greenfield and brownfield projects.
6. Young & Dynamic Population
Considering the significant issues that investors are facing everywhere in Europe due to aging and declining populations, Turkey's youthful and educated population is a huge asset. With its expanding, juvenile, and active population—which is the engine behind a robust labor pool and a rich domestic market—Turkey provides fantastic potential.
What kind of investments should you make in Turkey?
Turkey, a nation of about 80 million people, is ideal for investment because of its young, vibrant, and competent population. Aside from that, Turkey is becoming even more alluring to investors because of state incentives, tax exemptions, and free land distributions.
Let's now examine the industries that will be the most lucrative and secure for investment in Turkey in 2023:
1. Real Estate and Properties
The two most significant industries that drive the Turkish economy forward are construction and real estate. The fast population expansion and city redevelopment initiatives are the primary causes of the construction and real estate sectors' dynamism. As a result, the real estate and construction industries will continue to be quite lucrative for investors.
Since September 2017, international buyers have purchased real estate for 6% of the total transactions. Its rise has been anticipated. In addition, these foreign investors are not required to get a resident visa in order to buy any real estate. Turkish Citizenship may be applied for by foreign investors who invest a minimum of 400K USD.
2. IT and Technology
Turkey has prioritized technological research and development during the past few years. A technology department is now present at many Turkish institutions, which makes it simpler for investors to access this industry.
Investment opportunities in software development, biotechnology, nanotechnology, and electronics are very favorable in Turkey. Despite the fact that this industry is home to a large number of domestic and international businesses, there are still several market gaps and possibilities.
3. Fashion Industry, Textile and Ready-to-Wear Sectors
First and foremost, we must acknowledge that China controls the vast bulk of the global textile market. The quality being offered, the abundance of raw materials, satisfying specific requirements, flexibility, and the benefit of Turkey's position in relation to the major demand of Europe and the Middle East are only a few of the advantages the Turkish textile and ready-to-wear business also has. These factors ensure that the textile sector remains thriving and appealing to investors.
Also, additional incentives will be provided to attract investors who are concentrating their efforts on the textile industry in the eastern regions of the nation.
4. Green Energy and Environmental Resources
In terms of continuous operation, the energy industry is a very crucial sector for practically all economic activity. Turkey has a 130-billion-dollar energy imbalance in this area, and investments are likely to be made to close the gap. Turkey is attracting attention in this area thanks to the extensive incentives offered to companies in the energy and natural resource sectors. The following incentives are available to investors in hydroelectric power, wind, solar, natural gas, biofuel, and geothermal energy.
5. Sustainability and Recycling
The Environment and Recycling industry is becoming more significant and engaging as major efforts are made to stop the damage caused by industrialization, reduce environmental degradation, and combat global warming. Regarding membership in the EU, negotiations with Turkey continue. The fact that the nation has ratified the Kyoto Protocol demonstrates how crucial this issue is to Turkey. The government has stated that it would invest 7 to 9 billion euros in this industry since it is crucial to our collective well-being.
Turkey will reduce value-added tax, customs tax, investment in allocation, interest assistance, tax relief, and many other supports in this respect to encourage both domestic and foreign investors in recycling.
So, Is Investing in Property the best type of Investment?
As we put onto the top of our list of investment opportunities, the investment in property looks like the best type right now for the case of Turkey. Turkey has one of Europe's most promising real estate markets, making the saying "location, location, location" particularly applicable here. Turkey has fantastic potential for real estate developers and investors by fusing a sizable construction industry with expanding commercial and industrial production. Turkey is strategically located at the intersection of Europe, the Middle East, and Central Asia.
Inflows of foreign direct investment into Turkey were USD 7.8 billion in 2020, with real estate accounting for USD 4.4 billion, or 57% of all FDI.
The future is dominated by urban regeneration and large-scale initiatives, notably in Istanbul. Marmaray, the Yavuz Sultan Selim Bridge, the Eurasia Tunnel, and Istanbul Airport are a few of the city's recently completed mega projects.
7.5 million housing units will be included in the Urban Renewal and Development plan. The plan has a $400 billion budget, with the business sector contributing significantly.
Where You Should Invest in Turkish Real Estate
In addition, once the reciprocity legislation was repealed in 2012, sales of real estate to foreigners started to rise. In 2020, the total number of dwellings sold on the Turkish real estate market surpassed 1.5 million units. In Türkiye, 40,812 residences were sold to foreigners in 2020. Istanbul was the best-performing province in terms of selling homes to foreigners in 2020, with 19,175 sales, followed by Antalya with 7,735 sales, Ankara with 2,746 sales, and Bursa with 1,340 sales.
You may also check out our rich branded portfolio of properties in Turkey, choose them and purchase them easily and you can do all kinds of transactions, including the paperwork and such, on Propline’s online systems.
Want to Invest with Peace of Mind? Then Propline is the Solution
If you want to invest in properties abroad with peace of mind, meaning no questions of credibility, trust, or safety, then, Propline is the solution you are looking for. Since every money transaction you will make by using Propline’s online system, your money is going to be insured, which we call Insured Money Transfer Service. By using this service exclusive only to our dear customers, you will not have to face any financial loss, any second thoughts when investing or any doubt about being defrauded while investing in or purchasing a property.
So, what do you say? Shall we begin?