Why invest in Turkey in 2023? 10 Reasons to Invest

Turkey, a nation at the crossroads of Europe and Asia, has been gaining significant attention from investors worldwide. With a host of compelling factors, it's no wonder that Turkey is emerging as a preferred destination for those seeking promising investment opportunities. Here are ten compelling reasons why you should consider investing in Turkey in 2023:

1. Robust Economy

Turkey's economy has shown resilience and growth, often outpacing other emerging markets and tripling in size over the past 20 years. This robustness is underpinned by a diversified economic structure that includes manufacturing, services, and agriculture. A strong economy often correlates with a healthy Turkish real estate market, as it increases consumer confidence and spending power. Additionally, economic stability can attract long-term institutional investors, further bolstering the real estate sector.

2. Domestic Accessible Markets

Turkey's strategic location between Europe and Asia provides businesses with access to diverse markets. This geographical advantage can also be leveraged by the real estate sector, attracting international investors and tenants who see Turkey as a gateway to broader markets. Turkey has a population of 85 million and free access to over 1 billion consumers in the EU and FTA area. The influx of international businesses can also lead to increased demand for high-quality commercial and residential spaces.

3. Strategic Location

Beyond market access, Turkey's location makes it a logistical hub, connecting major international trade routes with working hours that intersect with 16 Time Zones. This is particularly beneficial for commercial real estate, as businesses will seek locations that offer logistical advantages for distribution and supply chain management. The presence of major ports and transportation networks can make certain areas particularly valuable for industrial real estate.

4. Favourable Demographics

Turkey's young and growing population is a significant asset with half of the population under the age of 33.5. The working age population of Turkey far outperforms Europe. A youthful demographic typically correlates with increased demand for housing, as young families look to settle and invest in property. This can drive up both property values and rental yields, making residential real estate a particularly attractive investment option.

5. Skilled and Competitive Labour Force

A skilled labour force makes the country attractive for businesses across sectors. This, in turn, can create demand for office spaces, industrial properties, and residential housing for employees, thereby boosting the real estate market. The annual number of graduates in Turkey continues to rise as upgrades are made in the education system. The availability of a skilled workforce can also attract industries that require specialised facilities, further diversifying real estate investment opportunities.

6. Continuous Reform Process

Turkey's commitment to economic reforms enhances its business environment with major reforms happening every 18-24 months across various areas. For the real estate sector, streamlined regulations can simplify property transactions, zoning laws, and construction permits, making it easier for investors to enter the market. These reforms can also lead to increased transparency, reducing the risks associated with property investment.

7. Business Friendliness

A transparent legal framework and support mechanisms for foreign investors can make Turkey an attractive destination for international real estate investment. This can lead to increased foreign direct investment in the property market. The ease of doing business can also make it simpler for investors to navigate property acquisition, management, and eventual resale. Treaties are in place to avoid Double Taxation with 87 countries and rising. 

8. Lucrative Incentives

Various incentives like tax breaks and grants can make investment more appealing. In the real estate sector, these incentives can significantly reduce the cost of property development and ownership, thereby increasing the sector's attractiveness. These financial benefits can make Turkey particularly appealing for large-scale developments and long-term investment strategies.

9. Booming R&D Ecosystem

A strong focus on R&D can attract businesses in technology and innovation sectors. This can create demand for specialised real estate like tech parks, R&D centers, and co-working spaces, offering new avenues for investment. The government's focus on innovation can also lead to the development of smart cities, incorporating advanced technologies into urban planning and real estate development.

10. Sectoral Opportunities

Turkey's diverse economy means there are multiple sectors ripe for investment, including automotive, energy, finance, and infrastructure. In real estate, this could translate to a variety of opportunities ranging from industrial and commercial spaces to tourism-related properties like Turkish hotels and resorts. The diversity of sectors allows for a more risk-balanced investment portfolio, offering options that can cater to different market conditions and investor preferences.

The aforementioned factors collectively make Turkey a compelling destination for real estate investment in 2023. A robust economy and favourable demographics can drive demand for residential properties. The strategic location and accessible markets make commercial and industrial properties attractive. Continuous reforms and business-friendly policies can simplify the investment process, while lucrative incentives can offer financial advantages. The booming R&D ecosystem and diverse sectoral opportunities provide niche markets within real estate for specialised investment.