Best Locations to Invest in Turkey
Turkey is a country where investments are increasing day by day with a developing economy and a qualified workforce. Turkey, which connects Asia and Europe, has many important transportation points that attract the attention of foreign investors. There are investment incentives offered to foreign investors in many sectors such as real estate, agriculture, energy, telecommunications, etc. It is possible to invest in many regions and many cities of Turkey.
Investment Incentives in Turkey
Turkey is at a time when it attaches great importance to investment incentives. In very different cities, there is an investment incentive system for very different sectors. Incentives are categorized under four main headings as a regional incentive, general incentive, project-based investment incentive, and strategic investments. The most intense demand is seen in the regional incentive heading. This is because the resources, workforce, and other similar structures that each region has can meet different demands from each other.
There are several aims of the investment incentive system in Turkey:
- Increasing the production of dec goods and products with high import dependence to reduce the current account deficit,
- Supporting high and medium-high-tech investments that will ensure technological transformation,
- Supporting cluster activities,
- Increasing the effectiveness of support elements,
- Reducing regional development differences,
- Increasing investment support is provided to the least developed regions.
In regional incentive implementation, cities are more important. In this pursuit, the aim is to reduce the decency difference between the provinces. The provinces included in the support within Turkey are divided into 6 separate regions. There are many incentives in this implementation such as VAT exemption, customs duty exemption, tax deduction, interest or dividend support, insurance premium support, and income tax withholding support. The 6 regions and some of the provinces of Turkey are listed below:
Which Locations to Invest in Turkey
Istanbul is the first city that comes to mind when it comes to Turkey. With its dense population, high-quality workforce, and natural beauties, it also attracts the attention of foreign investors very much. It has been proven that investments made in every region of İstanbul are profitable. Most investments are made for real estate in Istanbul. Beşiktaş, Sarıyer, Bakırköy, Levent, and Akaretler can be listed as the preferred districts, especially for real estate investment.
According to the report prepared by the Young Businessmen’s Association of Turkey, the choice of investment place in Istanbul ranks first with 12.8% as the number of investment incentive documents. Again, when looking at the services sector report, it seems that Istanbul ranks first. Investments made in the services sector in Istanbul contain a 27% share. This situation is no different in the manufacturing sector. Istanbul is in first place with a rate of 12.5%. Although Istanbul offers a lot of options, we can say that it is one of the most popular real estate investments.
Ankara, the capital of Turkey, is another of the cities where foreign investors are especially interested. Ankara has many commercial investments. In addition to having many industrial areas, real estate investments are also increasing day by day in Ankara. Considering the share it receives from the fixed total investment, Ankara is 3rd with 6.5% in 2014. For the services sector, it ranks second with a rate of 11.7%.
Antalya is one of the cities of Turkey that has tourism potential. It receives constant migration from within the country and from abroad. It has a dynamic population and is a city convenient to development. The fact that there is such a great interest in tourism has led to some growth in the city. In particular, the expansion of transportation areas and the increase in real estate investments can be given as examples of these growths. It ranks fifth in the overall investment list with a rate of 5%. Foreign investors prefer Antalya for sectors such as tourism, real estate, as well as for the agricultural industry. Antalya ranks third in the list of agricultural industries with a rate of 7.4%.
İzmir is one of the favorite cities of Turkey for the tourism sector. With its 4.28 million inhabitants, ancient cities, and natural beauties, it is the focus of many foreign investors. In addition, eco-friendly investments are also increasing in Izmir. Increasing the number of solar-powered facilities, establishing the Blue Flag Coordination Unit, and building an Integrated Solid Waste Management facility are just a few of the developments made in 2020.
On the other hand, the manufacturing sector, the service sector, and the real estate sector are also very popular in Izmir. Under the name of the urban transformation project, real estate is planned in a better quality, more systematic way. This, in turn, pushes foreign investors to the idea of investing in real estate in Izmir.
Bursa is one of the fastest developing cities in terms of investments. About 700 foreign investors from almost 70 countries are making investments in Bursa. There are 18 organized industrial zones, 1 free zone, and 7 ports in the city. It is known as the fourth most economically developed city in Turkey. Bursa also has many investments in the textile, automotive, agri-food, machine metal, furniture main sectors and rising rail systems, aviation, and defense sectors. These aspects are preferred by foreign investors.
Kocaeli is one of the most important cities in Turkey for its industry. In addition to investments in the industrial sector, there are also many investment opportunities in the fields of agriculture and food. Cattle breeding, fruit growing, vegetable growing, and dairy farming activities are recognized in Kocaeli. There are factories when the manufacture of almost any product is carried out. On the other hand, there are city planning activities, especially in recent years. This encourages foreign investors to invest in real estate in Kocaeli.