Why would you invest in real estate in Turkey?Wed, Jul 15, 2020 12:00 AM
Large, dynamic population
The country has a population of about 76 million, about 60% of which comprises of the younger generation. The young generation is better-placed to support the expansion of the Turkish economy and to set up businesses. Moreover, the changing traditions and customs in the country mean that the young generation is leaving parental homes earlier and are setting out on their own.
This is increasing the need for housing and quality accommodation. The Turkish central real estate association indicates that the current rate of supply by the year 2020, and there will be a shortage of some 2.5 million houses in the country.
The over USD 800 billion G.D.P. annual real G.D.P. growth plans over 5% and 17th largest economy in the world (which is expected to be 5th by 2030) with substantial exports reaching USD 153 billion will make Turkey the ideal country to invest in the real estate.
Good infrastructure – Well-developed air, sea transport and land, progressive energy sector and well -developed technological infrastructure in communication and transportation put country well ahead of other emerging countries as a best place to invest profitably and safely.
Large Domestic market – Turkey has a vast market locally because of its population. Tourist influxes have reached a peak of 32 million by the year 2019. This makes the best investment opportunity for real estate developers.
Benchmarking Turkey to France, UK, Russia, Greece, and the U.S.
As compared to the other emerging and developed countries, Turkey can give you an in-depth analysis of why it is an ideal investment place for real estate individuals and developers, overseas property buyers. France, the U.K., U.S. Greece, and Russia are some of the countries that compete with Turkey for investment goals.
Low taxes and incentives – Any investor would want to invest in a country that offers incentives in many sectors. Turkey offers incentives in various areas. Corporate tax rates have been reduced to 20% from 33%.
In the finance and banking sector- Turkey has one of the sturdiest banking rules and regulations, as compared to Greece that has the weakest. It is ahead of Russia and France and is somewhat below the U.K. in terms of banking and finance skilled workforce and regulations.
Reality is that Turkey imposes no limitations on fund flows to and by the country helps money flow more safely and easily. Turkey also has the best finance and banking sector manpower skills when compared to the BRICS. Since the mainstream population is youth, they have strong technical skills and are well trained in different sectors.
Turkey also leads to Globalisation, Flexibility and Adaptability Compared to Russia, U.S. Greece, and France. Turkey has opened its doors for other countries to invest, which on the other hand, has enabled it to get more foreign direct and capital investments. Attitudes toward international trade and globalization are more feasible than other countries.
Setting up a business and registering title to real estate - The New Turkish Commercial Code (New T.C.C.) has made it easy to register a company and start a business, as compared to the U.K., U.S., Greece, and France. The New T.C.C. Code No. 6102 published in the official gazette on 1st July 2012 that adopts a corporate approach that meets international standards.
By only a single shareholder, you can now get register to a joint-stock company or limited liability company. The New T.C.C. also eradicates the need for foreigners to secure minority shareholders without having their companies registered.
You can also register your company within 24 hours, after which it becomes a legal entity, providing you apply with all the documents with the trade registry office.
Keeping all the above factors into consideration, it seems clear that investing in Turkey real estate seems to be more profitable than investing in France, US, Greece, Russia, and EU countries. The Republic of Turkey has made all its efforts to make it as simple as possible for the real estate investors to support and participate in the growth of the country. You are more likely to make higher return on investment in Turkey than any other country in the EU and other developed countries globally.