Turkey’s Business Landscape: Thriving Sectors and Investment Potential
Turkey is strategically positioned between Europe and Asia, providing a significant financial advantage for economic growth and development. Therefore, it holds great potential for investments – both domestic and global.
The country has performed remarkably in various sectors, attracting foreign investments and flourishing in various industrial areas over the past few decades.
The Real Estate Investment Potential
Total FDI influx in Turkey – USD 13.3 Billion
42.2% (USD 5.6 Billion) of the total FDI in 2021 Invested in Real Estate
Urban Renewal and Development encompassing 7.5 million housing Units
A total of $400 million was invested in the project
Total homes sold in Turkey (2016-2021) – 7.1 million
Homes sold to foreigners (2016-2021) – 206,768
Grade A Office Supply (2021) – 5.8 million sqm
In 2021, the Turkish property market made sales of 1.4 million homes. The abolition of the reciprocity law in 2012 led to a rise in real estate purchases by foreigners, establishing a new record in 2021 with 58,576 homes sold to foreign buyers in Turkey.
By the end of 2021, Istanbul’s existing Grade A office stock exceeded 5.8 million square meters. Over 1.6 million square meters of office space is under construction which includes the Istanbul Finance Center (IFC). The total Grade A office supply had been expected to reach nearly 7.4 million square meters of gross leasable area over the year.
The Tourism Sector
Turkey is known for its beauty, serenity, and history. This makes it an ideal place for tourist attraction. The tourism sector is among the major sources of economic development in the country. It has been ranked as the 4th preferred tourism destination in the world. The country ranks 7th in the FDI for tourism in all of Europe. This reflects the potential Turkey’s tourism business holds.
Turkey benefits with 29.9 million tourists
Considered the 4th preferred destination worldwide
7th most preferred in Europe
With a USD 834 spending per tourist
Turkey is known for drawing in over 29.9 million tourists and creating USD 20.8 billion in international tourism receipts. subsequently, tourism in the country continues to flourish benefitting from its strategic location, natural beauty, and historically rich places. The country flaunts 14,323 establishments for tourist accommodations, with 529 blue-flag beaches, and 1,500 thermal springs, making it a top destination for different kinds of the tourists, including cultural, religious, and geothermal. Tourism is supported by the government with incentives and policies to cater to bureaucratic obstructions. Moreover, the country is also known and preferred for its golf destinations.
The Carpet Industry
Carpet Industry generated USD 1.6 billion in revenue in the year 2024
The revenue is expected to grow by 0.60% in the next 5 years
The Turkey Rugs and Carpet Market is projected to develop from USD 495.10 million in 2024 to USD 575.54 million by 2029, with a CAGR of 3.06%. Eminent for their particular colors, tones, designs, and techniques, Turkish carpets frequently include gold accents, splendid color ranges, and Islamic decorations. As one of the world’s biggest manufacturers of carpets, producing around 40% of worldwide rugs, Turkey has an extensive trade market. Regardless of disturbances during the Coronavirus pandemic, Turkey situated itself as an alternative production center point to China, helping its rug industry flourish.
Turkey’s machine-made carpet business has seen a significant expansion over the years – with exports esteemed at around USD 2.6 billion in the year 2020 – essentially from Gaziantep, Istanbul, Usak, Bursa, and Kayseri. A prominent market trend has been the rising interest in sustainable rugs and carpets. The focus is to manufacture environmentally sustainable products, reduce carbon emissions, and create awareness about climate change. consequently, the industry has driven its focus toward manufacturing environment-friendly products.
