Investment returns in Turkey and its types
2022
23 Aug
Table of Contents
What are the best types of investment in Turkey?
To answer this question, we will give you a presentation on the most important types of investment in Turkey, as follows:
1. Real estate investment in Turkey
Real estate investment in Turkey has witnessed a great boom in recent years, as the prices of apartments in Turkey have recorded a significant increase in prices, and reached their peak during the past two years with the large movement in the residential market, which led to a greater demand than supply, as well as for some other factors, for example, currency fluctuations play a role in the steady rise in apartment prices.
Local and international statistical reports have recorded a continuation of price increases during this year 2022 as well, the latest of which was a report issued by the Knight Frank global real estate agency, which dealt with the increase in apartment prices in more than 56 countries during the first quarter of this year 2022.
In the details of the above-mentioned Knight Frank report, Turkey ranked first in the world in the increase in the investment value of its apartments during the first quarter of this year 2022, as the annual increase in apartment prices in Turkey during the first quarter of 2022 reached 110%.
Real estate investment returns in Turkey
Real estate investment returns in Turkey differ radically according to some facts, including, for example:
- Specifications of the property, such as its location - its proximity and distance to the city center - and the attractions in its surroundings, the distance to the seashore, its views, and whether it is in a residential complex or in an ordinary building.
- Real estate type: residential (villa, apartment), agricultural (farm, land), or commercial (office, shop, hotel...).
- Age of real estate: modern real estate is more popular than its old counterparts.
- Additional real estate services: which are included in high-end residential complexes, until it has become a feature that indicates the luxury and sophistication of the property such as swimming pools, sports clubs, private gardens, and various playgrounds.
- The quality of the property: in terms of its finishes, the quality of its implementation, and the added technologies, such as smart home technology, and others.
2. Business investment in Turkey
It can be said that the incentives to invest in Turkey make an attractive point for investors, and thus make it a promising market for trade. These investment incentives can be talked about through the following points:
- The strength of the Turkish economy and its entry among the 20 most powerful economies in the world.
- The strategic location that Turkey occupies is along two large continents, surrounded by 3 seas; the Black Sea, the Mediterranean Sea, and the Aegean Sea from various sides. It also includes an internal sea, the Sea of Marmara, in addition to its long maritime borders with Africa.
- Government facilities are provided by the Turkish state to investors, with the aim of attracting them to invest in Turkey.
- The possibility of Turkey being considered a suitable alternative to some Asian countries due to its geographical location near Europe given the sharp rise in the cost of sea freight, in addition to the disruption of supply chains affected by the Coronavirus epidemic, which may prompt European companies to think of reducing their dependence on Asia, and towards closer alternatives such as Turkey, where the international credit rating agency, Fitch, confirmed in its latest analysis that Turkey is the country that will benefit the most from the shifts in supply chains in Europe.
- As well as considering Turkey as an alternative to Russia in embracing international companies after many American and international commercial companies discussed the idea of transferring their headquarters from Russia to Turkey, due to the war between Russia and Ukraine.
Returns on business investment in Turkey
Trade in Turkey has succeeded in attracting the attention of many international investors, through its impressive growth performance and the structural reforms that Turkey has implemented in the past ten years. As Turkey ranked ninth among the most popular international direct investment destinations across Europe in 2020.
Turkey's strategic location - which we have already mentioned - provides great incentives for all international investors, and this location emerges as one of the most important advantages that Turkey offers to international investors.
Moreover, the possibility of reaching 1.3 billion people from Turkey in the important centers in Europe, North Africa, the Gulf region, and Central Asia by flying for only 4 hours, in addition to raising the size of the economy to reach $26 trillion, all of this makes Turkey an important production and management base, and also makes it Including many unique business opportunities in Turkey.
3. Agricultural investment in Turkey
There are many advantages that make agricultural investment among the important investments in Turkey, including:
- Availability of large areas of fertile and arable land.
- Diversity of crops that can be grown and exported abroad, such as walnuts, hazelnuts, tea, olives, and other agricultural crops.
- Availability of manpower that has sufficient experience to work in agriculture
- Availability of water sources with the presence of springs, lakes, and groundwater wells in various Turkish regions.
- Climatic factors are suitable for growing various types of agricultural crops.
- Availability of the latest agricultural machinery and agricultural mechanization techniques, in addition to pesticides, fertilizers, and materials needed for agriculture.
Agricultural investment returns in Turkey
Agricultural investment in Turkey is described as a successful investment, as Turkey is one of the countries that supports and develops agricultural investment, and provides it with various facilities, and agriculture in Turkey is one of the economic resources that distinguishes the country from many other countries of the world, whether an agricultural investment is through local investors or foreigners.
In order for the investment in agricultural land in Turkey to be feasible and achieve rewarding financial returns, the project should be carefully studied, and the feasibility studies should be based on realistic foundations, based on consultations of specialists in this field.
4. Industrial investment in Turkey
The exports of the industrial sector in Turkey have always achieved many records month after month, and year after year, despite the turbulent geopolitical climate in the region, the conditions of the Coronavirus pandemic, and the Ukrainian war, which together had a significant impact on the movement of exports in the countries of the region.
Turkey has recorded record exports in 2021, and it also dreams of becoming the "factory of the world" at the gates of Europe, investing in the depreciation of its local currency, and the desire of multinational companies to bring their production closer to their main markets.
Turkey's exports in 2021 reached $225.4 billion, and it seeks to increase this amount to $300 billion in 2023.
Industrial investment returns in Turkey
The latest official statistics indicate the extent of the development of industry in Turkey, as the exports of the industrial sector in Turkey during the first five months of 2022 amounted to 76 billion and 947 million dollars, achieving the highest value of exports for the first five months in the history of Turkey's foreign trade.
How does Gars help you in your investment journey in Turkey?
1. In the legal field
Gars, Consulting Company supports your investments, through legal studies by a specialized team, so that the investment is fraught with a safe legal status in all respects.
2. In the accounting field
Gars Consulting Company provides a professional service in the field of legal accounting that includes organizing commercial records, health insurance procedures, and preparing financial schedules, in addition to following up on the payment of taxes.
3. In the consulting field
Through a team of experts in the legal field, Gars Consulting Company helps investors by providing the necessary advice to protect the investor, calculating their investment returns in Turkey, as well as clearing all tax matters by certified accountants.
Edited by Gars Consulting Company ©
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