Strategically situated at the crossroads of Europe, the Middle East, and Central Asia, and home to almost 78 million people, Turkey has easy access to 1.5 billion consumers and has under gone a profound economic transformation over the past decade. The country is a major energy corridor and serves as a terminal connecting Europe, Central Asia, and the Middle East. With its favorable location, existing potential, mega projects, and ambitious targets for 2023, Turkey offers great opportunities for investors by combining a large construction sector with growing commercial and industrial output.
The Turkish economy rebounded from a severe crisis in 2000-2001 to emerge as the fastest-growing economy among the OECD countries and second fastest among G-20 countries, with a growth rate of 9% in 2010 and 8.5% in 2011. It is on track to become the leading OECD economy through 2017, with annual growth set to average 6.7%.
Interms of the annual price growth index, with an 18.5 percent rate of increase, Turkey emerged as the best-performing housing market in Europe, ahead of Ireland, Luxembourg, Estonia, and Iceland. Moving to the retail market, remarkable growth has been driven by high retail demand. One of the most important subsectors, which will affect real estate market potential very positively in the near future, is urban renewal.
The demand drivers of the Turkish real estate sector include the country’s advantageous geographical location, extensive urban renewal and development, large capacity and strength in the construction sector, population growth and demographic advantage, increasing per capitain come, and ease of doing business.