Turkey has one of the fastest-growing economies in the world with a 5.1 percent average annual GDP growth and it is a perfect country for Investment due to its successful economy, qualified workforce, liberal investment environment, etc. The Turkish governmental incentives, tax-exempts, and many others are making Turkey even more appealing to foreign and local Investors.
But, if you are confused about choosing the most profitable and reliable field for investment there, we’ve compiled the most ideal investment sectors in turkey.
Here are the 7 most ideal sectors to invest in Turkey!
1- Real Estate:
Real Estate investment has been one of the most interesting and profitable sectors in recent years, foreign and local investors are generating a higher return on real estate investment in turkey especially in cities like Istanbul, Izmir, Antalya, bursa and etc. In the January-June period 2021, house sales to foreigners increased by 43.7 percent and became 20.488 compared to the same period of the previous year.TUIK The main reasons for the real estate sector to be important due to the rapid population growth, the modern infrastructure, and luxury projects. Besides, foreign investors do not need a residence permit to be able to purchase any real estate. And investors who invest a minimum amount of 250.000 USD have the right to apply for Turkish Citizenship.
Here are the top reasons:
1- Reasonable real estate prices: Real estate prices in Turkey, in general, are still very competitive in comparison to other countries like (Spain, Portugal, and Greece).
2- lower cost of living: The cost of living in Turkey is, on average, 54.77%lower than in the United States, and the rent in Turkey is, on average, 82.47%lower than in the United States.
3- Profitable for investors: Despite the expansion of urbanization in turkey the demand for real estate is exceeding the supply, this leads to generating a high return on selling and renting.
4- Income/property lower tax: The Organisation for Economic Co-operation and Development (OECD) in 2019 found that turkey’s property tax percentage is below the average of the total tax percentage taken in the world with only 0.1% on residences.
5- Modern construction technology adoption: Real estate developers in turkey are focusing on building modern infrastructure and constructing and applying the latest trends in architecture and advanced home technology.
6- Turkish citizenship opportunity: Foreign nationals who are purchasing real estate in Turkey with a total value of 250,000$ or more have the right to apply for Turkish citizenship.
Turkey ranked 6th among the most preferred tourist destinations in the world, attracting more than 46 million visitors in 2018. With its unique location, attracting districts, megaprojects, and etc., the tourism sector continues to grow more and more. The Turkish government offers incentives such as reduced utility prices and, reduced tax rates and pursuing policies aimed at eliminating any bureaucratic barriers that may prevent growth in the tourism sector and harm investors.
Turkey has considered one of the largest vehicle manufacturing countries in the world with about 415 million units produced between January and April 2021. The auto industry plays a key role in the Turkish economy, over the past five years alone, Toyota has increased its production in turkey by 95 percent, Ford by 52 percent, and Fiat by 35 percent. Turkish automotive sector attracts many foreign and local investors and the country is considered as the home to many global suppliers where there are more than 250 global suppliers that use Turkey as a production base.
Turkey is an attractive market for energy companies and investors because the government gives comprehensive incentives in the energy and natural resources sector as well as the demand for energy and natural resources has been increasing due to the economic and population growth in Turkey. Therefore, the Turkish government plans to increase the ratio of renewable energy resources (solar, wind, hydroelectric, geothermal, biomass) in total installed capacity to 30% by 2023 that the total energy investments are expected to reach approximately 110 billion dollars. This sector might be somewhat risky due to the need for a huge amount of initial capital investment to convert a renewable resource into energy, so installing generation plants for renewable energy sources is quite expensive for both government and private investors. Therefore, making the right decision for energy investment is very important.
5- Financial Investments & Startups:
Turkey has one of the largest talent workforces in Europe, the Middle East, and North Africa regions with around 1 million university graduates per year, including over 40,000 engineering and engineering trade graduates. While the Turkish startup ecosystem garnered record-high investments of 137 million dollars in 2020, investments figures in the first half of 2021 have already exceeded the 1 billion dollars thresholds, setting a new record for the year. Turkey supports Foreign investors as well they are very welcomed to invest in the Turkish startup ecosystem, either directly or through funds to benefit from the successful exit to global companies.
6- Agriculture & Food:
Agricultural and food investment in Turkey is a very successful sector thanks to turkey’s convenient geographical conditions and climate. Turkey became one of the top countries in supporting and developing such investments, and it aims to become one of the five biggest producers in the agriculture and food sector until 2023 so, it provides a series of incentives for foreign and local investors in the agriculture and food sector and supports the mechanism that includes advantageous regulations, taxing system, competitive workforce, and investment incentives.
Turkey is the leader in producing hazelnuts, dried apricots, dried grapes, and dried figs. Also, Turkey happens to be the strongest producing country in milk and dairy products such as yogurt, cheese, kefir, and ayran in the region. Globally, Turkey exported about 1,800 kinds of agricultural products to more than 190 countries in 2020, with about 18.8 billion dollars exporting volume.
7- INFORMATION TECHNOLOGY:
The information and connections technology sector is considered a priority sector in Turkey with more than 2 thousand active companies in the Turkish information and communications technology field, and various initiatives have been taken to promote this sector in the area. The government supports such investments and provides an incentives package that includes corporate tax exemptions, VAT exemptions, social security premium support, and more for both local and foreign investors. An estimate of 18 billion dollars worth of international investments attracted since 2000.