One of the most promising real estate markets in Europe now is Turkey.
Strategically situated at the crossroads of Europe, the Middle East, and Central Asia, and home to almost 81 million people, Turkey offers great opportunities for real estate developers and investors by combining a large construction sector with growing commercial and industrial output.
The country will carry out the next round of economic reforms “assertively” as it seeks to insulate the economy from political risks.
Turkey’s success over the past 15 years can be attributed to its bold and far-reaching reforms.
Last year, Turkish exports topped $157 billion, a 10 percent rise over 2016 that pushed exports to their second highest level in history. However, imports also rose, by almost 18 percent, which meant a $77 billion deficient in the foreign trade balance.
Despite internal and external shocks, the Turkish economy grew by almost 7 percent last year, with 5.3 percent in the first quarter, 5.4 percent in the second, and a massive 11.1 percent in the third quarter.
The economy has grown by an annual average of 5.6 percent growth over the past 15 years, which has meant changing fortunes for its citizens, and greater employment opportunities - last year, 1.3 million new jobs were created for Turks, an impressive number considering the EU, with its 510-million strong population, created 1.9 million.
Standing with the EU
Although Turkey is not an EU member, since 1995 the country has been a member of the customs union agreement. Turkey applied for EU membership in 1987 and talks began in 2005. These stalled in 2007, and Turkey must successfully complete negotiations on 35 policy chapters to work towards European standards.
Despite EU accession currently being a pipe dream for Turkey, relations between Turkey and Europe are positive.
As well as EU being Turkey’s largest export market, with around half its exports imported by European countries, almost 70 percent of foreign direct investment in Turkey comes from Europe.
Turkey’s economy is one of the world’s fastest-growing
Turkey’s economy is doing surprisingly well. In the third quarter of 2017 GDP surged by 11.1% year-on-year, outperforming all major countries. This is partly because Turkey did so badly in the same period in 2016 when the economy shrank by 0.8% after a failed coup.