Construction and Consulting

Facts and figures about Turkish economy

Turkey is at the centre of an economic and political area known as 'Eurasia', where three regions of the world, Europe, the former Soviet Union and the Middle East intersect. The proximity to the Balkans and the rest of Europe as well as to the growing emerging markets in Central Asia, the Middle East, and North Africa creates unique business opportunities. The experience of numerous global firms confirms Turkey as a predominant investment location and export platform. Companies like Coca-Cola, GE, Procter & Gamble and Phillip Morris, as well as international investment institutions like the World Bank Group's International Finance Corporation have already selected Turkey as a regional base. Turkey is fast becoming a production centre for Europe in diverse industries, but in particular in automotives.

Turkey is the leading investor in the Caucasian and Central Asian Turkic Republics. Due to her strong cultural and historic ties, Turkey provides privileged access and a perfect base to develop business with these countries. The international image of Turkey in terms of a destination for investment is generally shaped by the diverse market opportunities, both domestic and export-oriented, that Turkey offers.

After more than 40 years of struggle towards integration with the EU and 25 years with the rest of the world, Turkey has now embarked on a new level of development. Not only are the aftershocks of the economic crisis that hit the country hard in 2001 fading away, but also the country's full potential has been brought to the attention of foreign investors, mainly thanks to the commencement of full membership negotiations with the EU and the success of an economic programme that has so far been yielding positive results.

Turkey has been a healthy recipient of Foreign Direct Investment (FDI), with the same increasing at an 8-year CAGR of 28%. FDI grew at high double digits during the first half of the decade, saw super-normal jumps in the middle and started declining then onwards. Country accumulated FDI of over USD60bn between 2005 - 2010.

Property in Turkey – coastal areas in particular- has become an excellent destination for international home buyers in the last few years. The spectacular capital growth in the emerging property market in the country is attracting the international investors as it has been experienced in Spain before. Turkey has very specific advantages for holding its importance and will benefit from these features in the future. The consideration points which determine the demand for buying or investing in Turkey are;

• A large and fast expanding tourist industry that looks set to continue to grow. Creating even more demand for quality accommodation which is ideal for off-plan property investors.
• Stunning beaches and a climate that is also ideal for retirement life
• Very low cost of living (4th lowest, among OECD countries) and low crime rate
• Started process of joining the EU, which traditionally makes a huge difference to any property market.
• Very liberal investment climate, including free (international) movement of capital, profits, dividends and salaries, free-trade zones and subsidies.
• Ranking the 17th largest economy in the world and 7th in EU, Turkey is one of the most dynamic emerging markets in as a predominant investment location.
• Recent adoption a law simplifying the process for setting up a company. Today it is possible to create a business in 24 hours (compared to 53 days previously) by registering at the trade registry, with only three authorizations required instead of 19. Tax rates are dropped in 2006 to 20 percent, down from 30 percent.
• Agreements to preclude double taxation,
• A large, high skilled, flexible and competitive labor force at relatively low costs,
• A modern infrastructure and high quality standards in construction sector