The era of the pandemic has affected all markets and most industries. Turkey is no exception. It has been a tough year for Turkey, but Turkey is still a great investment for those interested.
Here are 7 Reasons Why Investing in Turkey is a Good Idea
1. Turkey’s economy is doing better than expected
Despite a tough year for the world, Turkey is one of the only few countries to show growth in their GDP. China being the other. According to Bloomberg, Turkey’s economy grew by 5.9% in the last quarter of 2020. There is strong demand within Turkey post- lockdown and with its effective vaccination programs, it is expected to rise in 2021. The IMF predicts that in 2021, Turkey’s economy will grow by 6 %.
Average GDP Growth 2003-2020 IMF WEO
Real GDP Growth (Index. 2002 =100) IMF WEO
2. Lira exchange rate
The Turkish lira, at the moment of writing this, sits at around 8 lire a dollar. It is at a record low and is not expected to recover immediately. While this means that prices of certain goods will rise to match inflation, there is a period before it does.
The real estate market hasn’t been affected by the inflation rate yet. This means that the interested investor will get more lira per dollar. The prices will indeed rise eventually, and property costs will increase, so acting quickly can be beneficial.
3. Strong Population Demographics
In Turkey, the median age is 32.2 years. With a large educated and young population, Turkey has a strong labor force.
4. Great infrastructure
As a country, Turkey is always trying to improve its infrastructure. It has several of the most expansive transportation networks in the world with its central location in the world. Istanbul Airport is set to be the largest in the world with its completion in 2025. The Gebze-Izmir Motorway is another example of Turkey’s dedication to infrastructure. The 377 Km motorway will essentially connect Istanbul to Izmir with an almost direct motorway.
Located between Southeast Europe and West Asia, Turkey is literally at the crossroads of the world. Strategically located near Europe, MENA, and central Asia, Turkey is next to markets worth 26 Trillion USD. With its central location, Turkey is about a 4-hour flight from these markets.
Along with a great location for conducting business, Turkey is known for its beauty. It has over 8000 Km of coastline, beautiful forests, and snowy mountains. Perfect for your needs.
6. Property Costs
Due to the surplus number of houses and house prices remaining below inflation, property in Turkey is a real value for money.
Compared to places like France, UK, and Spain, the average cost of property per square meter is very low.
According to Global Property Guide,
7. Citizenship by Investment Program
With the citizenship by investment program, gaining citizenship in turkey is extremely easy. The most effective way is to buy a property worth at least 250,000 USD. Turkish citizenship offers
- Visa-free travel to 110 countries
- Transferable citizenship
- Dual citizenship
- Ability to relocate your business to the US or UK under corresponding visas
3 Potential Issues with Investing in Turkey
While Turkey might be a great place to invest, there are a few things to be kept in mind.
1. Weak Lira
The fluctuating lira can also have damaging effects in the long term. The inflation rate needs strong financial management to be kept under control. Turkey has recently let go of its Central Bank Governor which has caused tumbling rates.
2. Geo-political issues.
Turkey is part of the EU-Turkey Customs Union and has been moving to be a full member. However, the negotiations have stalled and need to be kept an eye on. There are also rising tensions with the US under the Biden administration.
There’s always a risk of earthquakes in Turkey. Due diligence is required when selecting a property in Turkey.
As long as you keep these in mind, Turkey is still a prime country to invest in. With its excellent location, strong and rebounding economy, booming population, and citizenship programs, there are plenty of reasons why you should buy a property in Turkey now.