Last Updated on 30/05/2023
Turkey has been lately an attractive investment destination appealing to investors from all over the world. It is due to several favorable circumstances and important facts. Turkey has a strategic location, allowing it to act as a bridge between Asia and Europe. Moreover, the Turkish government encourages investors by offering them specific incentives to boost the country’s economy and become one of the top 10 economies in the world by 2023. This ambition seems realistic, knowing that Turkey is the 17th biggest economy with a GDP of over 849 Billion dollars according to the statistics of 2018. So let’s take first a look at the best sectors for investment in Turkey
Top Reasons to Invest in Turkey
Strategical location
Turkey has a very advantageous location between 3 continents, being thus a bridge linking South and North, West and East, which makes it a favorable and reasonable trade route. This location gave it access to about 1,7 billion people in Europe, the Middle East, and North Africa, giving it access to different investment markets.
Successful economy
Turkey has a successful economic model considered a fast-growing economy with a GDP growth to 851 Billion in 2017 after it was 231 Billion USD in 2002. So, we are talking about an increase of more than triple the amount within only 15 years. Besides, Turkey has an average economic growth rate of 5% in real GDP.
Turkey’s economy is also considered dynamic thanks to the rise in export volume with 335% between 2002 and 2007.
Foreign investment has an important share in the Turkish economic operations, with a 1983 Billion USD in Direct Foreign Investment over the last 15 years.
Competitive and qualified workforce
Turkey has a young population, with more than 50% are under the age of 32. Moreover, it has over 31 million young educated people with more than 8000,000 University graduates and 985,000 college graduates, making Turkey a qualified workforce.
Expanded Infrastructure
Turkey has a developed infrastructure convenient for most types of investment, whether it is in energy, communication, or technical investments. It also has significantly developed transportation with 100 airports and advanced maritime transportation.
Customs Agreement with the EU
Turkey has a customs agreement with the European Union since 1996 in addition to free-trade agreements with 21 countries which facilitates the trade transaction with Europe.
Best Sectors for investment in Turkey for Foreigners
Turkey’s economy has many advanced sectors with an appealing return. Besides Turkish government gives some incentives to investors in specific sectors like tax exemption and free land allocations. Among the top-safest investment options are real estate, tourism, startups and others. The opportunity to get a second passport is one of the reasons why foreigners invest in the Turkey economy.
So here is an overview of the best investment sectors in Turkey.
Construction and Real Estate
Investing in the Construction and real estate sectors is a smart and profitable way to make remarkable returns relatively quickly. It is one of the most important sectors keeping the Turkish economy high and stable. Properties sales in Turkey increased rapidly to reach 8,3 million sales between 2015 and 2020.
This development is due to the rapid population growth in addition to the urban regeneration projects held by the government, which attracted local and foreign investors.
IT and Technology
Turkey has been attributing great importance to technology in recent years. It is why Turkey stands in a favorable position regarding software development,
nanotechnologies, and electronics. Many local and foreign companies are investing in IT sectors; however, the market is still offering advantageous investment opportunities to benefit from.
Textile and Ready to wear
The textile and ready-to-wear clothing sector is considered a developed industry with excellent quality and high productivity. It is due to many factors, such as the richness and the availability of raw materials. Besides, we should mention Turkey’s important situation in relation to Europe’s great demand and the Middle East. These features will make the textile industry always keep its importance as a vibrant and profitable sector in the Turkish economy. So it will always be an appealing opportunity for investors looking for a profitable, stable market.
Energy and Natural Resources
The energy sector in Turkey is essential to all the country’s economy in terms of limitless execution.
Turkey’s energy has a deficit of 130 Billion USD that the country is trying to close through increasing investment in this sector. That’s why the Turkish government is presenting important incentives to encourage investors to invest in one of the following fields:
– Hydroelectric power
– Solar and wind energy
– Natural gas
– Bio-energy
– Geothermal energy
Investors willing to operate in this field will benefit from:
– VAT exemption
– Tax discount up to 40%
– Employers’ Share of Social Security contributions.
– Interest support up to 700,000 TL
Environment and recycling
To protect the environment from the damage and the pollution engendered by industrialization, Turkey took the smart initiative to encourage investment in and recycling. Moreover, the Turkish government decided to invest up to 9 billion euros in this sector since it is an essential issue for the country.
Fort his reason, any local or foreign investment is encouraged by VAT reduction, interest support, and many other supportive incentives.
To conclude, Turkey is an attractive destination for foreigners willing to invest and do profitable projects. It shows a diversity of sectors in addition to favorable and stable circumstances.
Best Sectors for investment in Turkey Antalya
Turkey’s Antalya is a well-liked vacation spot because of its stunning coastline, interesting historical attractions, and thriving tourism sector. If you are considering investment opportunities in Antalya, discover with us some sectors that have shown potential. The tourism sector remains Antalya’s primary source of income and continues to draw both domestic and foreign tourists in large numbers. So in regions with heavy tourist traffic, investing in hotels, resorts, restaurants, and entertainment facilities can be profitable option and one of the best sector for investment in Antalya Turkey.
In addition to that, real estate investment opportunities are available in Antalya, especially in the residential and commercial sectors. Apartments, villas, and commercial spaces can be purchased for a profit in tourist hotspots or locations that are developing quickly.
Connect with our professionals if you seek profitable property for sale in Antalya.
Moreover, Antalya has the potential to develop into a center for investments in the health and wellness industry as wellness tourism gains popularity. Building healthcare facilities, retreats, spas, and wellness centers or investing in medical tourism in Antalya is a good choice.
FAQ
What is the best investment opportunity in Turkey?
There are several investment opportunities in Turkey. The safest and most profitable options are real estate, t ourism, and startups.
Which business is most profitable in Turkey?
Real estate and tourism are among the most profitable business in Turkey.
What are the fastest growing sectors in Turkey?
According to Statista Data, household appliances in Turkey are now the sector with the fastest sales growth, going from 13 billion Turkish lira in 2019 to 96.7 billion in 2022.
What is the leading sector in Turkey?
Manufacturing has been a crucial sector for Turkey, encompassing a wide range of industries such as automotive, textiles, machinery, electronics, and chemicals.
Where is the best place for investment property in Turkey?
The answer to this question depends on the investment option you choose. If you would like to invest in real estate for example, we would recommend you Istanbul city where the demand is the highest. However if you prefer investing in tourism it is better to consider coastal citites like Antalya.
How to get Residence Permit in Turkey with investment?
To get Residence permit in Turkey with investment, you need to determine the investment option first, meet the requirements, Make the investment and then prepare the documents and apply for the residence permit. If you are interested, MEO Consultants can provide you with assistance during all the procedure. Get a free consultaion now.
