Foreign Investors Continues to Invest in Turkey

Turkey is one of the world's most important countries in attracting foreign investors to the many and varied sectors. According to Kearney's research, which is an international consulting company, global foreign direct investment decreased by 33% with the effect Covid-19 pandemic all over the world in 2020, and the rate has increased by 35% in Turkey. Among the reasons to prefer to Turkey by foreigners, there are factors such as serving as a logistics hub for a wide geography thanks to its unique geographical location, strong manufacturing industry infrastructure and capacity to focus on value-added products, and young and qualified labor force.

The Confidence of Foreign Investors in Turkey is Increasing

Turkey, offering attractive opportunities to international investors in the long term as well as a strategic geographical location, is among the countries attracting the world around the capital has an important position. Turkey offers the opportunity to invest to investors in many areas such as finance, energy, transportation, mining, retail, tourism, and health. In addition, due to its location in the world, Turkey is one of the countries preferred by investors with its proximity to the European and Middle Eastern markets.

Among the reasons to prefer Turkey by foreigners, there are factors such as government incentives for foreign investors, large internal regional markets, a young and qualified workforce, a liberal investment environment, and many different sector opportunities to invest. The sectors where foreigners make the most investments in Turkey are as follows, respectively; finance and insurance, energy, informatics, and communications, wholesale and retail trade, food, transportation, storage, and construction.

According to data compiled by the Central Bank of Turkey, most investments came from European countries in Turkey since 2003. Asian and American countries followed, respectively, European countries.

While there was an outbreak of a deep economic recession because of Covid-19 all over the world, foreign investors continue to invest in Turkey. Foreigners who do not invest only on a sectoral basis at the same time bought many residences in Turkey.

Turkish citizenship is not the only investment reason for foreigners

According to Real Estate International Promotion Association field research with the aim to determine trends and expectations of international investors in the real estate sector in Turkey, it holds 92.7% of the property investors who acquire real estate in Turkey. The survey, in which 410 investors from 48 different countries participated, is the most comprehensive study conducted to date. According to the survey, only 1 in 4 foreigners aim for Turkish citizenship, and invest in Turkey. In line with this data, it is concluded that citizenship is not the only factor for investment and foreigners have invested with confidence in Turkey without citizenship purposes.

Other noticeable data of the research are as follows:

- Foreigners are buying real estate in Turkey for most investment purposes. Foreigners have bought property in Turkey with the purpose of 45.4% investment, 30.5% short-term vacation, 27.8% permanent life, 27.6% citizenship, 23.7% retirement, 13.9% residence permit, 9.5% education, 6.8% business and trade, 8.1% for other purposes.

- Foremost among the factors affecting the decisions of foreigners to invest in Turkey comes incentive policies of the Turkish government and citizenship acquisition.

- When country-based investment purposes are examined, the rates of the countries' purposes to buy a property in Turkey are as follows;

- Jordan 84.2% citizenship purpose

- Russia 76.5% short-term vacation purpose

- Germany 64% short-term vacation purpose

- UK 50% permanent life purpose

-57,2% of foreigners prefer to buy newly built properties, 31.8% of prefer to buy under-construction properties, and 11% prefer to buy second-hand properties in Turkey.

You can contact us via our website or through info@diyarturk.com to learn more about investing in Turkey and to be aware of the opportunities.