With its growing economy, stable political landscape and strategic location at the crossroads of Asia and Europe, Turkey's favourable investment landscape is attracting more and more foreign investors.
Why is Turkey a good investment?
- Growing economy: Turkey's economy has expanded by an average 5.5% each year for more than a decade.
- Strategic location: Its location at the gateway between Asia and Europe puts Turkey in a position of geographic strength, fostering its trade ties and turning it into a regional centre for large businesses.
- Favourable investment conditions: Turkey has opened itself up for investment with a number of incentives for foreigners, including low tax rates and citizenship by investment in Turkey.
- Large, young population: Turkey's youthful population, where half the population is under 30, is bolstering a strong workforce and domestic and regional consumer demand.
How can I invest money in Turkey?
There are three ways foreigners can invest in Turkey. As with any investment, each comes with its own risk and reward.
Banking in Turkey
Turkish banks offer high interest on investments made in Turkish lira. However, these are generally offset by Turkey's relatively high levels of inflation. Banks generally guarantee investments, but only to a limited degree. You might want to consider a repo account: a fixed-length deposit that offers higher interest rates if you agree not to withdraw the money for a fixed term.
Investing in the stock market in Turkey
The Istanbul Stock Exchange has grown hugely in the last couple of decades. A number of fast-growing industries are attracting foreign investors, including technology, software and medical firms. The Istanbul Stock Exchange has a list of banks, brokers and other entities that can help you plan any investments.
Investing in property in Turkey
A bricks and mortar investment in Turkey is one of the safest investment options for overseas investors.
Due to increased tourism, the real estate market in Turkey has exploded, becoming a popular destination not only for retirees and lifestyle buyers, but for property investors. Turkey's investment property offers lucrative capital gains, and its young, increasingly educated population is driving rental demand, allowing investors steady rental income.
However, while property prices remain lower than comparable destinations, the days of bargain property in Turkey is almost over.
Where is good to buy property in Turkey?
1. Istanbul: If you're investing, buying an off-plan or nearly completed property in Istanbul is a good bet. With its young, dynamic population and growing reputation as a centre for business and finance, Istanbul is attracting foreign investors looking for serious capital gains.
2. Antalya: With its two-million strong population, the Mediterranean city of Antalya is ideal for investors looking to capitalise on a dynamic and fast-growing city. Popular with young professionals, the rental market in Antalya is strong, allowing for consistent rental income while you wait for your asset to grow.
3. Fethiye and Bodrum: While investors in these summer holiday favourites are not as lucrative as you'd find in larger cities, if you're prepared to wait for the long-term capital gain you can earn decent holiday rental income from buying a property in Fethiye or Bodrum.
Is Turkey safe to invest in?
With its strong fundamentals and consistent economic performance, Turkey is one of the safest emerging markets for a foreign investment. Turkey's large, youthful population is an important signifier for foreign investors: a large consumer market drives the economy, which means that even in tough times, domestic demand will keep the country buoyant. And with favourable policy that has opened up the country's investment market to foreigners, the only way is up for anyone wishing to invest in Turkey.
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