Turkey is a country that is rapidly emerging as a hotspot for overseas investors, it has been stated.

Mercedes-Benz Turkey has raised its market share in Turkey in the recent five years. Tufan Akdeniz, the company's sales and marketing director announced that Turkey's light commercial vehicles department, said the company's market share was up in Turkey in 2009 despite the global economic crisis, like in the last four years. "We are aiming to maintain a similar uptrend this year", said Akdeniz during a ceremony in the Mediterranean province of Antalya.

Meanwhile, Ilhan Atis, Adana Governor, a city situated on the Seyhan River in south-central Anatolia said that a Singapore-based company is interested in investing in the Ceyhan Energy Specialization Zone. Ceyhan will be one of the most important locations in the future, said Atis, and the Investment plans of the Istanbul-based conglomerate Calik Holding in the area have become definite, he said, adding that foreign companies are also keeping a close eye on the region.This is expected to increase the property prices in the region.

During the investment conference held in Paris, Alpaslan Korkmaz, President of the Prime Ministry Investment Support and Promotion Agency of Turkey (ISPAT) briefed French business people and presented the investment environment and incentives in Turkey. This promotion campaign toward French business community has succeeded in attracting interest to the country, particularly in property investment.

Hong Kong-based Li&Fung Group, the world's largest supply chain, has chosen Turkey as its base for the EMEA region, and has now opened its European regional office in Istanbul. The investment by Li&Fung, which has been announced as USD 700 million, will initially create direct recruitment for 400 people. Victor Fung, Chairman of the company stated Turkey is the country of the future, and therefore, they have chosen Istanbul over London and Hamburg, which were among their investment plans previously.

In related news, The share of foreign investors in the Istanbul Stock Exchange (IMKB) increased to 67.4 percent amounting to TRY 87.2 billion in stock value on January 8, said officials. On December 31, the share of foreign investors was 67.29 percent. (USD 1 = approx. TRY 1.46)

Labels: Investment-property

The construction sector in Turkey was far from being rejuvenated during 2009 but the Construction firms are expecting to see a boost in the second half of 2010 as investment in off-plan property increases.

According to the Hurriyet Daily News, Erdal Eren, the chairman of the Turkish Contractors Association said that 2009 had been a tough year for the industry as the country's real estate market suffered from the economic crisis. The shrinkage in the sector continued throughout the year, with 18.9 percent and 21.4 percent contraction rates in the first and second quarters of the year, respectively and the overall contraction rate declined from its peak of 14.7 percent in the first quarter to 3.3 percent in the third quarter, the recovery in the construction sector remained limited, posting a contraction rate of 18.1 percent in the third quarter of the year. However, he predicted that 2010 would be better.

In order to boost sales and support the suffering sector in the face of the economic meltdown, the government introduced a cut in title deed fees and value-added tax (KDV) in March, which lasted until the end of June. Ugur Dumankaya, executive member of Dumankaya İnşaat, one of the largest and most respected companies in the construction business, said that 2009 was actually a successful year for firms that had managed to set up good organizational structures, admitting, however that sales had remained low compared to the low levels of mortgage interest rates.

Meanwhile, The Monetary Policy Committee at the Central Bank of Turkey took the decision to leave interest rates unchanged after 11 months of reducing the overnight borrowing rate. The bank took the decision following "a moderate pace of recovery in the economic activity". It added that interest rates were likely to remain at low levels in the medium term.

In good news for rental property investors, one sector of the Turkish economy which performed particularly well in 2009 was tourism. The Hurriyet Daily News reported last week that the country had surpassed its target of 25 million foreign visitors in 2009. Tourism minister Ertugrul Gnay said that "per capita tourist income is expected to rise above the world average" for the country in 2010.

Labels: Investment-property, Off-plan

Turkish State Railways (TCDD) head Süleyman Karaman has announced that the directorate will work to improve the country's high-speed train services in 2010 with plans to invest around USD 3.5 billion next year.

"Turkey ranks eighth in railway technology worldwide and sixth in Europe. The TCDD will focus on high-speed trains in the new year," Karaman noted. Turkey launched the country's first high-speed train service between the Turkish capital province of Ankara and the Central Anatolian province of Eskisehir on March, 2009. TCDD is working to extend this line from Ankara to Konya in the south and from Eskisehir to Istanbul in the west. The high-speed trains features many luxuries, including entertainment screens for every seat that play movies and display the current position and speed of the train. Spacious seats offer plenty of room during the smooth ride. The train can reach speeds of 260 kilometers per hour and will considerably reduce hours-long trips.

He further said that work on the high-speed train line between Ankara and İstanbul is ongoing, as is work on the line between İstanbul and Eskişehir and this line will be operational in 2012 or 2013. He added that they will finish the line between Ankara and Konya in 2010 and Sivas project is continuing at the maximum pace. He also stated that they will renovate the country's railway lines in 2010. These rail developments will transform thousands of journeys, pushing up prices in existing commuter locations and creating new property hotspots along the way.

It is generally believed that improved rail services are unlikely to have as great and impact as new low-cost flights to previously little-known regions of the country, he nevertheless expressed his confidence that prices will rise, particularly in popular holiday destinations.The local market is picking up, being occupied now with the long summer holidays and new measures are now taking effect which leaves the market is wide open for overseas buyers to march in and grab something special in 2010.

Labels: Infrastructure

Turkey is a country that is rapidly emerging as a hotspot for overseas property investors, it has been stated.

In Dubai to open Akbank's office in the Dubai International Finance Center (DIFC), Suzan Sabanci Dincer, Akbank Chairman, has said Turkish companies can attract capital through professionalism.

"The Gulf countries have set their sights on Turkey", said Sabanci. "Fewer countries in the world are attracting investments. Turkey's young population and favorable average age are attracting interest. Foreign investors see Turkey as a bridge in this sense. I can see the possibility of Saudi Arabia investing in Turkey. " He added.

According to Mortgage Solutions-online, Mortgage expert with Conti Finance Michael Axelrod said that the country is "rising fast, becoming one of the top investment destinations in 2009". He also remarked that the country is tipped to see tourist numbers reach 30 million this year, stating that this is good news for holiday rentals investors as demand for these "will continue to outstrip supply".

Mr. Axelrod said his firm has seen a 65 per cent rise in applications for homeowner loans in the country, with Turkey benefiting from not being in the Euro zone and therefore being cheaper for UK buyers.

In related news, Atlas International recently cited Turkey as a popular location for investors looking to make purchases outside of the eurozone, as prices in the country are low compared to elsewhere in Europe.

Labels: Latest-news

Turkish minister called on Hungarian businessmen and investors to establish partnerships with their Turkish counterparts in order to reach out to the world markets.

Nihat Ergun, Turkey's Industry and Trade Minister invited Hungarian businessmen and entrepreneurs to invest in Turkey. Speaking at the opening of the Turkey-Hungarian Business Council, he said Turkey is a country of opportunities with a competitive market and a liberal business and investment environment.

He also said that Turkey offers alluring opportunities for the businessmen in the region to access markets over a wide area, including Europe, the Middle East, Black Sea, Central Asia and the Gulf region. In reassuring news for overseas investors, he said that Turkey has strengthened its economy thanks to its solid monetary policies and the recent structural reforms. The country has removed all obstacles to investment, improved the business environment and made legal improvements to attract direct foreign investments.

The trade volume between the two countries in 2008 stood at EUR 1.334 billion. "Despite the recession caused by the global economic crisis, it is pleasing that the trade volume between Turkey and Hungary reached EUR 951 million in the first three quarters of 2009", he noted.

Meanwhile, Julian Walker, a spokesman for Spot Blue, a specialist in Turkish property, said: "Turkey is currently one of the best destinations for those looking to invest in overseas property. The country is also one of the few logical choices for those seeking to balance lifestyle and financial advantage in their retirement."

According to recent figures, more than 20,000 homes in the country are currently owned by investors from the UK. It has been reported that the weakening pound could lead to a slew of Britons looking to buy property outside of the eurozone, with Turkey being one of the obvious choices.

Labels: Overseas-property

Forum Istanbul, the largest shopping and lifestyle center in Europe was opened on November 17th in Bayrampaşa, near the center of Istanbuls European side. Generating employment for 5,000 persons, Forum Istanbul aims to draw 25 million visitors per year and a targeted annual turnover of €500 million.

Developed by Multi Turkmall, Forum Istanbul is the seventh project in Turkey and the first in Istanbul of Multi Turkmall. The construction of Forum Istanbul was completed by a total investment of €750 Million during the global economic crisis. Forum Istanbul consists of 495,000 m² total construction area, 175,000 m² rentable space, 265 national and international brands.

Speaking during the complex’s opening ceremony; Multi Turkmall CEO Levent Eyüboglu said that including the stores’ investments, the total figure for the complex adds up to 1 billion euros. The shopping center stands on an area of 495,000 square meters and will employ 6,000 people. “We had never made such an effort as we did to build this shopping complex,” he said. “I doubt we can ever do anything better and more beautiful than Forum Istanbul.”

In good news for rental property investors, Forum Istanbul intends to play an important role also in the cultural, artistic, entertainment and social life of Istanbul, and has already started to host national and international events. The “50 Years with Barbie and Lego Exhibition”, featuring hundreds of Barbie dolls and giant sized Lego installations which is exhibited in more than 40 cities has opened in Forum Istanbul. The exhibition, which will remain open until January 24th, 2010.Another is the Fish in Color Exhibition. This will remain open until December 17th, 2009, and showcases the work of Sculptor; Server Demirtas and his team.

Meanwhile, Culture and Tourism Minister Ertuğrul Günay said that Forum Istanbul is a very suitable investment for the city and he added that The ministry will continue to give full support to “forum” projects that are being constructed all over Turkey.

On his part, Bayrampaşa Mayor Hüseyin Bürge said he had always dreamed of his district being remembered for something other than the Bayrampaşa jail. “Finally, with this project, my dream has become real.”

Labels: Istanbul

Increasing numbers of visitors, a new list of reputable real estate agents and the news that Turkey set to become the fastest growing country in Europe in 2010 with a 2.8 percent growth rate are set to give Turkey's property market a boost.

European Commission's economic forecast report for fall has estimated that Turkey would shrink 5.8 percent this year and the growth rate would climb up to 3.6 percent in 2011. The commission report said unemployment would rise to 13.9 percent in 2010 and fall to 13.5 percent in 2011. Tourism officials expect the number of tourists to increase significantly in 2009 and again in 2010 when Istanbul becomes European Capital of Culture.

According to the World Tourism Organization (WTO), Tourism grew 1.47 percent in Turkey as shrinking 7 percent in the world in the January-July period of 2009. Overall figures from the Turkish tourism department indicate that visitor numbers are predicted to rise by 10% this year bringing in billions of dollars worth of revenue.

Tourism minister Ertugrul Gunay said that Tourism grew 1.47 percent in Turkey in the same period with number of tourists rising up to 21.8 million. Number of tourists increased only in Turkey among the ten most popular tourism destinations in the world.

Further good news for Turkish property investors is the property prices have been falling like many other parts of Europe and are set to become even more attractive to foreign real estate investors especially those from the UK as the pounds continues to be weak against the euro and the dollar.

Labels: Latest-news, Market-Trends

The present time offers a good opportunity for overseas investors to invest in Turkish properties, it has been stated.

Recep Tayyip Erdogan, Turkey’s Prime Minister announced that Turkey attracted investments of around USD 6 billion in the first eight months of 2009. Mr. Erdogan said during a meeting at the Investment Support and Promotion Agency of Turkey (ISPAT) that Turkey will continue to attract more direct investments as the global crisis has been overcome.

Erdogan also added that Turkey has become a center of attraction for investments, thanks to its radical reforms, stability and strong economy. There are 22,821 international companies in Turkey, including 12,463 from European countries and 3,888 from the near and Middle Eastern countries, which is good news for those looking properties in Turkey.

Meanwhile, M Bahadir Teker, Founder of broker Istanbul Mortgage said that the country is currently enjoying a favorable combination of affordability, lower interest rates and a plentiful supply of mortgages, according to Financial times reports.

He commented: "We're going to see growth next year and new development opportunities arising mid-year, so I think now is a good time to buy."

In related news, Didim today suggested that Altinkum is a good place to invest in during 2010. The resort is good for tourist rental because it appeals not just to the overseas sector made up mainly of Britons and Germans, but also Turks looking for domestic breaks.

Labels: Investment-property

Istanbul property market should receive a much needed boost from greater tourism levels, which are expected to increase, when the new Terminal Istanbul is opened in Sabiha Gokcen International Airport.

The city has two airports; one on the European and Sabiha Gokcen International Airport on the Asian side. The Turkish government is also working on the undersea link via metro to enhance connectivity with the Asian side. The terminal, built in a record time of 18 months, was inaugurated by Turkey's Prime Minister Recep Tayyip Erdogan. "With the opening of this airport terminal building, a new era for economic partnerships has begun. This has opened many more avenues for the Indian and Turkish companies to join hands", said India’s Minister of Civil Aviation, Praful Patel, during the inauguration ceremony.

The new terminal will become fully operational on November 9 and it currently handles five million passengers annually. Turkish Airlines will begin its flights to seven new European destinations including London, Moscow, Amsterdam and Berlin. ris bin Othman, Chairman of Malaysian Airports said that Malaysian Airlines also plans to start operating three times a week to the new airport.

Turkey's Prime Minister Erdogan said Turkey would invest $350 billion in transportation and communication over the next 25 years. He added that the government has plans to construct several new airports in Istanbul which is good news for rental property investors. Despite being the economic and cultural hub of Turkey - the city is also expected to be named the European Capital of Culture in 2010.

Labels: Infrastructure, Istanbul

The Turkish Investment Summit was organized at the Renaissance Chancery Court Hotel in London which provided plenty of time for social networking, acquiring new contacts and discussing business with potential partners in Turkey.

The Turkish Embassy in London and the European Bank for Reconstruction and Development (EBRD) are jointly organized the "Investment Summit" . In good news for overseas property investors in Turkey, The Turkish Investment Summit will provide an in-depth look into the global and domestic outlook for Turkey, including a spotlight on European Union accession.

The summit was attended by Turkish Finance Minister Mehmet Şimşek, Varel Freeman, EBRD first vice president; Alpaslan Korkman, chairman of the Investment Support and Promotion Agency of Turkey; and Tevfik Aksoy, an economist at Morgan Stanley in London are also among the key speakers of the summitother topics included in the summit are maximizing Turkey's energy potential with a special focus on renewable energy sources, a review of Turkey's best investment opportunities, an in-depth look at real estate; infrastructure; and banking, finance and private equity.

Speaking at the event, Alpaslan Korkmaz, President of the Investment Support and Promotion Agency of Turkey (ISPAT), said that Turkey is attracting foreign investments. He pointed out that many investors in Europe will be feeling uneasy about investing for the coming decade and it will take at least 4-5 years for the US economy to rebound. He commented "Turkey is emerging as a new destination for investments and we will see investor interest surge by the next year".

Labels: British

Foreign and domestic investors are awaiting initial public offerings of large Turkish companies, according to Huseyin Erkan, President of the Istanbul Stock Exchange (IMKB).

Mr. Erkan said that it is the perfect time for initial public offerings. The Privatization Administration should definitely consider making an initial public offering. He noted that it is appealing for foreign investors that Turkey has managed the crisis well and performed admirably.

In a landmark development, the Athens Stock Exchange and the Istanbul Stock Exchange have announced the creation of an index with the 30 largest companies, 15 of the largest and most heavily traded companies from each market. The number of stocks from the banking sector will be limited to four from each market to boost trading in the region’s largest stock markets.


"The GT-30 will certainly add further visibility to both markets, which is a significant contribution at a time when the world markets are gradually recovering from the financial turmoil”, said Mr. Erkan.

He commented: “If large companies are offered to the public now, I expect the demand to be high. An initial public offering for one or two medium-size or large-scale companies may take place through the end of the year. The significant initial public offerings are likely to take place in 2010.”

In good news for Istanbul property investors, Ali Babacan, Turkey's State Minister and Deputy Prime Minister, said the vision of the government is to make Istanbul initially a regional and eventually a “global finance center”. He enumerated those factors as low business running costs, qualified labor force, domestic and regional economic growth potential, and attractive style of living.

Due to the huge FDI inflows, Construction activity is booming in and around Istanbul and along Turkey’s enormous coastline. Buoyed by a supply of quality residential property, a growing retail sector and increases in disposable income and employment opportunities, the demand for property seems set to continue. Istanbul has great investment potential as growing population and economic growth has lead to high price rises in recent years. Also locals are involved in the property market which means there is excellent resell market and exit strategy. So now would be an ideal time to purchase off-plan property in the city.

Labels: Investment-property, Latest-news

The international community has full confidence in Turkey's economic policies and investors interest in Turkey is rising, said the country’s Deputy Prime Minister and Economy Minister Ali Babacan.

According to Hurriyet Daily News reports, the Deputy Prime Minister said that Istanbul hosted all the prominent actors of the global economy, these meetings can also be considered as the world's largest fair of finance and economy." He also noted that Turkish economic officials had the chance to meet executives of international rating agencies and informed them about Turkey's strong economic structure and its good macroeconomic performance in recent years. Turkish real estate owners have been boosted by the news that government to announce an action plan to make Istanbul an international finance hub.

Robert Hormats, Undersecretary for Economic, Energy and Agricultural Affairs at the US Department of State, said that his country is impressed with Turkey's economic achievements. Mr. Hormats said Turkey is an important economic partner of the United States in addition to the long-standing strategic alliance and he added that one of the reasons for their visit to Turkey is to increase trade and investments between the two countries, and that the United States sees Turkey as a strong economic partner, rather than just a security or strategic partner.

Buying property in Turkey could be a lucrative move as Turkey's Privatization Administration signals that the country will see a rapid privatization process in the upcoming period. As the Turkish economy bounces back, Financial analysts said that the growth next year have altered their figures to reflect a more positive outcome than originally thought. As the country continues to pull through the recession, analysts have expanded their projections for the gross domestic product of the country and Turkey could pass through real estate boom next year that haven't seen in generations."

In related news, Rudi Thomaes, President of the Federation of Belgian Enterprises, said, "We should talk about Turkey instead of China because Turkey is among 11 countries that have a bright future." He added that, as Belgian businessmen, they have also witnessed positive improvements in Turkey.

Labels: Istanbul, Turkish-property

Addressing the opening session of the 10th Transportation Council in Istanbul, Turkish Prime Minister Recep Tayyip Erdogan said that his government is planning to construct several new airports in Istanbul.

Erdogan said Turkey would invest $350 billion in transportation and communication over the next 25 years. There are currently two airports in the city, Atatürk Airport is on the European side and Sabiha Gokcen is on the Asian side. Erdogan said, "The existing airports cannot meet the growing demand for air travel. A new terminal building will be inaugurated on Oct. 31.

However, this is not sufficient either. We have to construct several new airports in Istanbul."
Despite being the economic and cultural hub of Turkey - the city is expected to be named the European Capital of Culture in 2010. Istanbul's population is currently growing by 1.5 per cent a year, and with all this in mind, it is no real surprise that property investors looking to take advantage of the city's potentially rewarding rental yields.

According to the International Investor's Association, foreign investment in Istanbul property is estimated to reach an all-time high this year, with more than $15 billion set to be spent. Justin Walker from Spot Blue says, "There are a range of city-centre apartments in the popular neighbourhood of Beylikduzu for under £36,000, just 45 minutes from the airport. There are fantastic rental potentials in this bustling part of the city from a growing domestic and international population in Istanbul".

In related news, a recent PriceWaterhouseCoopers and Urban Land Institute survey officially named Istanbul as the second-best place in the world to invest in property, with affordable property prices, cheap living costs and decent rental yields.

Labels: Infrastructure, Istanbul

Turkey has the aim of developing and strengthening economic and commercial ties between Turkish and Danish companies. In a meeting in Istanbul, Representatives of major companies from Denmark have reiterated their firm support for Turkey's European Union accession bid.

Chief executive officers of 19 leading Danish firms, including Maersk, one of the world's biggest sea transportation companies, energy firm Dong and leading beer producer Carlsberg, with representatives from Dogan Broadcasting and Publishing Holding attended the meeting of Young Presidents' Organization, held at the Dogan Media Center.

Speaking at the meeting, Stefen Kragh, Egemont Group head said, "Turkey is one of the world's top 15 economies, and has a great potential to develop." Kragh said some of his colleagues were in Turkey for the first time to attend the meeting, and had already had their views of Turkey changed, and added; "Now they all believe that Turkey should be part of the EU.” If the government can make significant progress; and full EU membership for Turkey looks like becoming a reality it will likely trigger a buying spree; with overseas property investors attempting to buy in advance of the massive price growth.

EU membership provides a massive boost to property price growth in new member states; with Bulgaria and Estonia as shining examples. The Turkish property market is doing brilliantly in its own right, with prices still growing on some properties even as prices fall all around the world. This being made possible mainly by record tourism growth; 23million visitors last year, and 30million expected this year.

Labels: Turkish-property

Italy wants to expand its investments in Turkey, currently concentrated in western regions, throughout the country, according to an Italian Official.

Carlo Marsili, the Italian Ambassador to Turkey said that economic relations between the two countries steadily improved, noting that the number of Italian companies operating in the Turkish market is proof of Turkey's importance for Italy. Currently, there are about 714 companies, including Pirelli, Fiat Italcementi and UniCredit. He highlighted the fact that Italian direct investments in Turkey amounted to USD 5 billion, accounting for a three percent share in overall foreign investments in the country, while the annual trade volume between the two countries stands at around USD 20 billion.

Marsili said the Italian companies in Turkey mostly operated in the industrial, cement, banking and SME sectors. He added that they want to spread Italian investments in the western region to other parts of Turkey, noting they are making assessments on cities like Adana, Gaziantep, Konya and Kayseri. This is yet more good news for the Turkish property market; it is both a testament to the massively rising popularity of Turkey with European Investors.

Roberto Luongo, director of the ICE's Istanbul office, told Hurriyet Daily News and Economic Review in an interview, "We think research and development centers and technoparks will have the utmost importance in boosting a country's development." Italian representatives are scheduled to visit Ankara and discuss projects on launching "technoparks" in Turkey.

Italian companies have a keen interest in Turkey, Luongo emphasized. "Italy is Turkey's third-largest trade partner, following Russia and Germany." Italian investments in Turkey total around USD 4.7 billion, "We are the fifth largest investor in Turkey," said Luongo.

Labels: Investment-property