Turk Property Law | Invest Turkey
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Invest Turkey

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Turkey, officially known as the Republic of Turkey, is a transcontinental country located between Asia and Europe. It has its capital city at Ankara whilst the largest city is Istanbul. With a population of approximately 76 million as at 2012, consisting of mainly young & upwardly mobile population, makes it an ideal country for investors who want to plough money in the country’s fast developing real estate industry.

Turkey covers a very large area of about 783,562.38 km² which again means there is a lot of potential for development. In the last decade, the Turkish real estate sector has grown tremendously. While there has been a general decline in the real estate business in Europe, Americas and many parts of the world due to the recent economic meltdown, Knight Frank figures show the real estate sector in Turkey grew by 18.4% in 2014-2015.

Istanbul has been touted by PWC and Deloitte Consulting to be the most attractive city for real estate investment in Europe while Turkey overall is ranked 3rd most lucrative country for investment in real estate globally. The increase and appetite for foreign investors in real estate has been motivated by the potential of Turkey’s EU membership. This has accelerated holiday home owners and investors around the world to purchase properties in Turkey. More important is also the legislative amendments that have been done to several laws including the property title registry law, the mortgage law, residency and the redrafting of tax laws which all directly affect how overseas investors can buy and develop properties in Turkey.  These amendments are believed to have stimulated the competitiveness of the Turkish real estate sector.

Why Invest In Real Estate in Turkey?
Booming economy – Over USD 800billion GDP, annual real GDP growth projections in excess of 5%, 17th largest economy in the world (expected to be 14th by 2017) with heavy exports reaching USD168 billion makes Turkey the ideal country to invest in real estate.

High and dynamic population – Turkey has a high population of about 76 million with over 60% comprising the young generation. The younger generation are better placed to set up businesses and support the expansion of Turkish economy.  In addition, changing customs and traditions in the country mean that younger people are leaving parental homes earlier and setting up on their own. This increases the need for quality accommodation and housing. Turkish central real estate association has estimated that there is a shortfall of around 2.5 million properties in Turkey.

Low taxes and incentives – Any investor would want to invest in a country that offers incentives in various sectors. Turkey offers incentives on various areas while has reduced corporate tax from 33% to 20%.

Large Domestic market – Turkey has a very big market locally because of the high and learned population. Tourist arrivals reached 30 million in 2015. This creates an ideal investment opportunity for real estate developers.

Good infrastructure – well developed air, land and sea transport, advanced energy sector and highly developed technological infrastructure in transportation and communication puts Turkey well ahead of other emerging as the place to invest safely and profitably.

Benchmarking Turkey
Comparing Turkey to other developed and emerging countries can give you an in depth analysis on why it is the ideal investment destination for real estate developers and individual overseas property buyers. UK, US, France, Russia and Greece are some of the countries that compete with Turkey for investment opportunities.

In the finance and banking sector, Turkey has one of the strongest banking regulations while Greece has the least.  It is ahead of France and Russia and only slightly below the UK in terms of finance and banking regulations and skilled workforce. This brings higher investor confidence and supports foreign direct investment. The fact that Turkey imposes no restrictions on funds flows to and from Turkey helps money-flows a great deal easier and safer. Turkey also has the best banking sector and finance manpower skills compared to the BRICS (Brazil, Russia, India, China and South Africa). The majority of the population being the youth, they are well trained in various sectors and have strong technical skills.

Turkey also leads in Globalisation, Flexibility and Adaptability compared to US, Russia, France and Greece. It has opened its doors for other countries to invest which in turn has enabled it get more foreign capital and direct investments. Attitudes toward globalisation are international trade are more viable than countries benchmarked to.

Setting up a business and registering title to real estate in Turkey (see graph above) are also the easiest when compared to US, Russia, UK and Greece. The New Turkish Commercial Code (New TCC) has made it easy to register a company and start a business.  The New TCC Code No. 6102 published on the official gazette on 1st July 2012 adopts a corporate approach that meets international standards. With only a single shareholder, you can now register a joint stock company or limited liability company. The New TCC also eliminates the need for foreigners to secure minority shareholders before having their companies to be registered. You can also register your company in one single day and it becomes a legal entity provide you apply with all the documents to the trade registry office.

Putting all the above factors into consideration, it is clear that investing in Turkey real estate stands to be more lucrative than in US, France, Greece, Russia and other EU countries. The Republic of Turkey has made all efforts to make it as simple as possible for real estate investors to participate and support the growth of the country. You are likely to generate higher return on investment in Turkey than any other country in the EU and most other countries globally.