After Europe, United States is the second largest investor in Turkey
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Number of American investors in real estate in Turkey increased by 115.2% in 2021 compared to the previous year 2020, according to Turkish press reports, and official data.
Reports indicated that total real estate sales to foreigners increased by 43.5% in 2021 year, to become the total real estate sales to 58,576, according to an Anadolu Agency report based on Turkish Statistical Institute data.
The number of sold houses in Turkey to foreign investors for whom are holding a US passport increased by more than twice the usual rate, to reach the total sold housing units to 1,416 units purchased by Americans in Turkey, compared to 658 units in 2020, the report said.
Most of the real estate investors are Muslim with American citizenship who immigrated to the United States to live there and they established their businesses there, and now are looking for alternative homes, noting that most of them are of Arab origin, and other from Pakistan and India.
Beside real estate investment, Turkey witnessed a remarkable turnout by American investors in the foreign direct investment sector (FDI) during 2021, making the United States of America as the second largest foreign investor in Turkey.
Britain comes in first place in the foreign direct investment sector in Turkey, followed by the United States in second place, and then Netherlands, Switzerland, United Arab Emirates, Germany, Luxembourg, South Korea, Japan and Ireland.
Turkey is a preferable destination by foreign buyers for several purposes, including investment, retirement, health care, tourism, vacations, and education, and it comes on the list of foreign direct investment activity in the fields of wholesale and retail trade, manufacturing, information and communication technology, financial services, transportation Which received the most investment.
According to press reports, Turkey's share in global foreign direct investment increased to about 1% in 2020, while it was about 0.6% in 2019, and Turkey aims to raise its share in global foreign direct investment to 1.5%, according to the government's foreign direct investment strategy document for the period. 2021-2023.
Why Turkey is a destination for foreign direct investments
The increase in foreign direct investment is due to the strong performance of the growth of Turkish economy and the structural reforms that made through the last 15 years. The total foreign direct investment to Turkey amounted to $225 billion in the period from 2003 to 2020, after it was $15 billion. Only for the year 2002, it caught the attention of investors to make Turkey the destination of many international investors.
The strength of the Turkish economy is due to that Turkey is one of the members of the Group of Twenty till 2021, and its geographical location, as it is the main road for crossing trade between Europe and Asia, which made it one of the most important countries for investment.
Turkey is now the most popular ninth destination for foreign direct investment with 160 projects in total Europe in 2020, and maintained its ranking in 2019, with its share in Europe overall increasing from 3% in 2019 to 3.1% in 2020, despite the impact of The lockdown imposed by the Turkish authorities and its effects due to the Covid-19 pandemic.
Turkey ranked in second place among similar countries, as the most popular destination for foreign direct investment after Poland, with a share of 16% in 2020, compared to third place in 2019.
Turkey is recently targeting the e-investment market, as Istanbul is the headquarters of one of the most important e-commerce platforms recently, and these platforms are trading nearly $100 million to launch cryptocurrency products, build infrastructure for new energy banks and banks in their investment offerings, in addition to growing the user base.
These investments comes after 15 years of the government’s efforts, including internal reforms that included roads, bridges and mechanization of the bureaucratic system, in addition to carrying out many legal reforms in the field of investment in general, in order to attract and facilitate foreign investment, and it carried out many reforms which are those related to the procedures and legal transactions of investors such as permit residency, real estate and factories and companies establishment, and also Turkey established investment zones that full equipped for the purpose of investment, including:
Planned Industrial Zones
The industrial zones are distributed in all Turkish provinces, and were designed to allow the companies to work within a convenient environment for investment, and due to the available infrastructure and available facilities such as water, electricity, communications and many other services, number of industrial zones operating in the field of industry has reached more than 260 cities, Turkey aims to establish many other cities, and has offered many facilities, including:
• Exempting land purchases from value-added tax (VAT).
• Exemption from real estate tax for 5 years, starting from the establishment date.
• Exempting the process of annexing or separating plots of land from taxes.
• Exempting the construction or use of its facility from taxes.
• Reducing costs of resources such as water, natural gas and communications.
• Exempting solid waste from municipal taxes if the organized industrial zone does not benefit from the municipality's services.
Free Zones
Turkish government has established a number of free zones inside its borders, it was created to increase and develop the economy and manufacture for outside exporting, so it established 19 free zones with the borders of Europe and the Middle East, and gave these zones many advantages to the free zones between the countries from customs exemptions Facilitations in exporting, manufacturing, and other advantages.
At Ramzy Real Estate Company, we are glad to accompany you on the journey of buying property in Turkey and to provide you with a range of services to make the process smooth and easy , as we are always keen to present a variety of options for residential and investment properties in addition to helping you obtain Turkish citizenship for those looking for it.
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- Legal advice .
- Property Management.
- After-sales services .
- Legal services and obtaining Turkish citizenship.
- Buying and selling real estate in Turkey.
- For more details, you can contact us via the communication platforms or via the WhatsApp attached on the site.
Editing by Ramzy Real Estate Team ©
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