Turkey: The Property Shangri-La

Turkish Economywhich has a hugely successful tourism industry
Turkey's dynamic economy is a complex mix ofalready, and all of this investment confidence and
modern industry and commerce, along with acontribution is allowing for the creation of jobs,
traditional agriculture sector that still accounts forwhich means that local purchasing power is
more than 35 per cent of employment. It has asignificantly improving.
strong and rapidly growing private sector, yet theTourism
state still plays a major role in basic industry,Steady growth - Turkish tourism can be
banking, transport and communication. The largestcharacterised by these two words. The year
industrial sector is textiles and clothing, which2005 was a turning point for tourism in Turkey. In
accounts for one third of industrial employment. It2004, there was a 29 per cent growth in the
faces stiff competition in international marketsnumber of arrivals. In 2005, the foreign visitor
with the end of the global quota system.arrival growth rate was 25 per cent. This indicates
However, other sectors, notably the automotivethat Turkish tourism has sustainable growth and
and electronics industries, are of rising importancestability. In 2005, incoming tourist receipts came
in Turkey's export mix.to $11.9 billion (6.1 billion) compared to $10.6 billion
(5.4 billion) in 2004. In 2005, the biggest change
Privatisation sales are currently approaching $21occurred in the number of tourists coming from
billion (10.8 billion). Oil has been flowing through thenon-European countries. The USA, Iran, Denmark
Baku-Tblisi-Ceyhan pipeline since May 2006,and Syria were the countries which showed the
marking a major milestone that will bring up to 1highest growth rate in the number of arrivals.
billion barrels per day from the Caspian to market.EU talks boost holidays in turkey.
Without a doubt, the commitment of theMore and more people are taking holidays now
government to economic reform, supported bybecause of their increased purchasing power. With
prudent macroeconomic and structural policies, hasevery step towards Turkey's EU membership,
played a significant role in strengthening investormore people in Europe are considering the Turkish
confidence in the Turkish economy.coast as an exotic option that is also close to
Foreign Direct Investment (FDI)their homeland. EU membership talks and the
FDI in Turkey is rapidly increasing as a result ofbooming Turkish economy have made Turkey a
the Turkish government working consistently hardfavourable nvestment haven. Reduced inflation
to make investment both easier and moreand interest rates have stabilised the economy
attractive. As a result of thesince 2003.
government'sefforts, between January andIf Turkey can get the FDI it needs and attain full
October in 2006 alone almost $16 billion (8.2 billion)EU membership, it will become one of the most
was committed to Turkey in the form of FDI.important and influential countries in the world as it
Money is flowing into everything from bankingwill, strategically and politically, represent a bridge
tomanufacturing and one particular sector wherebetween the Middle East and Europe. The future
FDI has reached record levels is the real estateprospects for Turkey and its economy are,
sector. A number of significant, internationaltherefore, very positive indeed over the medium
property companies such as Emaar Properties andto long- term, making the country an exciting
ETA Star have committed millions to housing andinvestment opportunity for property buyers
commercial property projects in Turkey, and,seeking significant returns over the same term
going in to 2007, bidding is taking place for aperiod.
range of new projects such as the biggest realAs the Turkish economy continues to expand and
estate project to date in Istanbul for thethe standard of living improves further, the
construction of three skyscrapers and aforthcoming membership of the European Union
yachtmarina. Donald Trump is said to be in thewill further lift what is already a buoyant
bidding war for the development that willeconomy. the inventory of property bought and
beconstructed in Zeytinburnu.sold in turkey continues to grow because of
But Istanbul isn't the only area to be boosted byongoing government reforms and partnerships
FDI; there is a great deal of investor focuswith business and overseas investors.
beginning to target the southern Turkish coastline,