Over the past ten years, Turkey has experienced a very significant financial change and its monetary essences are very stable. In 2013, it is the seventeenth biggest economy in the world with a GDP of nearly USD 820 billion, and also the sixth biggest economy in Europe.
Factors forming demand in Turkey’s real estate sector which are geographical location, population growth and demographic advantage, high capacity of construction sector and also ease of transact business. The real estate sector of Turkey has a big investment potential that provided by the data of around 20 percent of total GDP. The GDP offer of the land division has increased by 2.3% in 2000 and 3.8% in 2012. The average ratio of construction, real estate, rental/business activities and new house sales in total GDP has increased by 16.7 percent from 2000 to 2005. Yet, the biggest increase occured as 20.5 percent between 2006 and 2009.
While land and development collected USD 1.6 billion of total FDI in 2012, FDI inflow increased to USD 12.5 billion, on the enterprise side. Sales of real estate to foreigners began to rise in 2012. After that real estate sales to foreigners reached USD 2.64 billion which was a result of the new real state law. The Ministry of Environment and Urbanization represented that it increased from 2% to 5%-6% percent in 2013 as economical.
The current situation, along with strategic plans and basic data of future projects, has a huge potential for investors in Turkey’s real estate sector:
In addition to all these, Turkey set new goals and urban renewal projects and the most suitable mega projects in the city continue to process which other projects are Marmaray, Kanal Istanbul, the third Bosporus Bridge and third Istanbul International Airport. In this direction, The Turkish Government decided to renew and reinforce buildings in terms of a budget of USD 400 billion.
With its current potential, mega projects and assertive goals set for 2023, Turkey offers great opportunities for investors in the real estate sector from all over the world.