The Turkish government has revealed a new package that will rejuvenate the economy by creating 120,000 jobs and encouraging investment. While the country has seen an average of 5 percent annual growth since the AKP party came to power in 2002, during the last two years the economy has slowed. Elections are also looming, and AKP hopes that the ambitious economic plan will win favour with voters in the lead up to June. President Erdogan’s party is determined that Turkey become one of the world’s top 10 economies within a decade, and this plan is one step toward that goal.
Turkish property & economy news
Last week the Turkish minister for Labour and Social Security Faruk Celik made a rallying cry for influential G20 states to turn words into actions and make moves to eliminate global poverty. Turkey, who has G20 presidency, is urging the world to sit up and take notice as ever-widening gap between rich and poor turns critical. Turkey is well qualified to comment on the issue of leaving poverty behind - a World Bank report shows that poverty levels in Turkey have dropped dramatically, from 16 percent a decade ago to just five percent today.
The Turkish housing market has been revived by domestic demand as falling interest rates allow first time buyers to gain a hold in the property market, boosting sales volume and bolstering the economy. Overall sales were up in February, with mortgage house sales increasing by more than 50 percent. Istanbul maintains its position at the top of the sales hierarchy, with 19 percent of sales completed there last month. This is due in no small part to increased investor attention, with buyers attracted to the low-cost, high yield residential complexes outside the city centre.
An updated Customs Agreement between Turkey and the EU is set to cement Turkey’s importance as a trading partner and solidify its role in a lucrative free trade agreement with the US. The Customs Agreement has been in place for almost 20 years, and has not kept pace with Turkey’s position as a trading partner and threatened its position in future trade deals. The updated agreement will not only open Turkey up to foreign markets, but is paving the way for future trading and energy deals with the EU.
Technology is booming in Turkey, with overseas and domestic investment facilitating a rapid growth in software development and communications technology. Turkey’s youthful population is driving the demand for better, faster communication and transforming the way Turkish businesses work, with an emphasis on independent, mobile-connected working units. Spending in the technology sector is set to reach US$11.7 billion this year as the sector hits its stride.
A gas pipeline connecting Azerbaijan's largest natural gas fields to Europe via Turkey is set to cement Turkey's status as the crossroads between Europe and the Middle East. The move will make Turkey the region's key energy distributor and ensure future access to lower-cost gas. The pipeline will also allow Turkey to distance itself from Russia, who previously supplied the country with most of its gas supply.
The hotel formerly known as the Golden Savoy will become Jumeirah Bodrum Palace Hotel - the second Jumeirah in Turkey after the Pera Palace Hotel Jumeirah in Istanbul - a sure sign of the prestige that Bodrum is held in amongst those who appreciate all things luxury and a high quality of life with the finer things at your finger tips or even closer.
Forbes’ annual “rich list” was released a couple of weeks ago and an analysis by the magazine showed that Turkey’s wealthiest are investing in Turkish real estate, with 85 of the top 100 richest Turks holding significant stakes in property. Turkey’s economy has remained strong in the face of global turmoil, making it a natural choice for safe and profitable investment. We outline the top spots for investing in Turkish real estate, and what makes them stand out from the crowd.
Turkish women are making headlines around the world with their social media-led campaigns urging for equality and an end to women-directed violence. Educational reforms have already begun to make changes in a country where illiteracy rates are five times higher for men than women, but the women who are now finding their voices are asking for change - and fast.
Investment in Turkey remains high, with foreign interest focussing on pensions, mining, automotive, dairy and shopping centres. New laws introduced over the past two decades have ensured investing in Turkey has not only become easier, but that it’s now immensely profitable. Turkey is now among the top vehicle manufacturers in Europe, and only Russia has more shopping malls. The dairy industry is tipped to grow exponentially, as is the pension sector, after measures introduced in 2013 transformed the country’s pension schemes.
The scope for renewable energy sources like geothermal, wind and hydropower in Turkey is huge, and so far relatively untapped. However, this is set to change with an ambitious plan concocted by the Turkish Energy Ministry and the European Bank for Reconstruction and Development aims to have a third of Turkey's energy sourced from renewables by 2023. Investment is being poured into infrastructure and development, which will allow Turkey to transform its energy sector while aligning itself with EU protocol.
Branded residential projects are being built in almost every district of Istanbul. At the expensive end they’re creating revenue for the city as investment properties, and at the lower end they’re providing much-needed accommodation for the ever-growing city, accommodation that’s regulated and soundly built. A study conducted by EVA Real Estate Consultancy shows that branded residential projects are on the rise, with new developments being built in almost every corner of the city.