Turkey: Economy and State

Investor infrastructure, political development, inflation & co. A comprehensive look at Turkey as an investment destination.

In summary: Istanbul in numbers

• Total number of home sales in Turkey between 2013 and 2018: 8 million.
• Total housing stock in Turkey in 2018: 34.2 million.
• Total number of house sales to foreigners in Turkey between 2013 and 2018: 134,000
• Class A office supply in Istanbul in 2019: 5.7 million square meters
• Active gross leasable area in shopping malls across Turkey in 2019: 14.5 million square meters
• Total logistics real estate stock in Istanbul in 2019: 4 million square meters

Source: Investment Office of the Presidency of the Republic of Turkey

Infrastructure: airports, railways, bridges

If you invest in Istanbul, you’ll be in the city in no time. Turkey has been investing large sums in the development of its infrastructure for a long time. In the years around 1990 to 2000, many new airports were built in the country. In 2010, there were 99 active airports in Turkey.

Investments in the road and aviation sectors will continue in the coming decades, as can be seen above from the large investments. According to the Ministry of Transport, it appears that the Erdoğan government will rebalance its policies in the infrastructure sector and build at least 10,000 kilometers of high-speed rail lines.

Chinese companies in particular are helping to finance the projects. Double-track railways between Ankara and Istanbul and between Ankara and Konya are currently under construction.

Of great importance in the infrastructure sector, Istanbul has become an “infinite city” where not even the construction of a third bridge connecting Europe and Asia will solve the complex traffic problem.

The infrastructure is certainly needed, after all, the Turkish state is growing continuously.

Population: Forecast 2024

Stability also often lies in the reproduction of the population. This is where the intergenerational contract kicks in. Here you can see the total Turkish population from 1980 to 2018 and forecasts until 2024 (in millions of inhabitants).

You can find more statistics at Statista

Political development: party and leadership

Turkey is a constitutionally secular republic. Actually. President Recep Tayyip Erdogan’s Justice and Development Party (AKP) has pushed an Islamist agenda and eroded democracy piece by piece.

Erdogan further consolidated his power after the 2018 elections, allowing an AKP coalition with the Nationalist Action Party to retain control of the unicameral National Assembly. While Erdogan won a narrow victory for a second four-year term as president.

25 percent still work in agriculture

Turkey’s largely market-based and diversified economy is driven by its industrial and service sectors, but traditional agriculture still accounts for about 25 percent of employment.

Although the economy has proven resilient in the past, political instability has blocked necessary reforms, and a currency crisis and recession in 2018 have put the country under severe pressure. The resilience of the Turkish economy is due to sound public finances, well-capitalized banks, and a dynamic and diversified private sector.

Until 2018, economic growth was pretty much always stable. Until a currency and debt crisis plunged the economy into recession.

Inflation rate: Forecast 2021

Inflation rate from 1980 to 2019 and forecasts to 2021 (year-on-year).

Reforms: Labour market and justice

The economy thus requires reforms to make the labor market more competitive. More urgently, the government will need to strengthen the effectiveness of the judiciary and the fight against corruption, both of which were damaged after the crackdown following the 2016 coup attempt. The event also caused major waves in Germany.

The most famous case is probably the arrest and imprisonment of journalist Deniz Yücel. But the Jan Böhmermann case also made headlines, due to “lese majeste”, a remnant in the German legal code that has since been abolished by the case.

Unemployment rate

Unemployment rate from 1980 to 2018 and forecasts to 2021:

Rating: Fragile States Index (FSI)

Assessment according to the Fragile States Index (FSI) from 2010 to 2020.

You can find more statistics at Statista

International market position & growth

Turkey’s largely free market economy is driven by industry and increasingly by the service sector, although the traditional agricultural sector still accounts for about 25% of employment, as described earlier.

Out of 137 countries covered in the 2017-2018 Global Competitiveness Index, Turkey ranked 53rd, down two places from 2016-2017 but still higher than the historic low of 43rd in 2012.

The depreciation of the lira in 2017 helped Turkish exports, and the government stimulated domestic demand by strengthening monetary and fiscal policy.

The government is playing a more active role in some strategic sectors and has used economic institutions and regulators to target political opponents, undermining private sector confidence in the judicial system.

Credit rating: reduction by rating agencies

Between July 2016 and March 2017, three rating agencies downgraded Turkey’s sovereign credit rating, citing concerns about the rule of law and the pace of economic reforms.

Economic impact of the crisis

German-Turkish trade relations

GDP (Gross Domestic Product): Current

What do the latest figures from the Turkish Statistical Office tell us?

The growth rate deteriorated in 2018, but the 2019 figures also give pause for thought. Data released in March 2019 from the statistics office show the effects are carrying over. After a sharp contraction in the previous quarter, which was 3%, as value added fell by 8.7% in the construction sector, 6.4% in industry, 0.5% in agriculture and 0.3% in services.

Gross Domestic Product (GDP) fell from $851.5 billion in 2017 to $784.1 billion in 2018. In the fourth quarter of 2018, GDP was $184.9 billion, which is the lowest amount since the first quarter of 2017, when it reached $175.9 billion, while GDP per capita at current value in 2018 was about $960,000 dollars.

GDP forecast 2024

Gross domestic product (GDP) in current prices from 1980 to 2018 and projections to 2024 (in billions of US dollars).

Here you can see real gross domestic product (GDP) growth from 1980 to 2019 and forecasts to 2021 (year-over-year).

GDP per capita: real growth for inhabitants

GDP is a top indicator of the overall economy, but what do individual residents get out of it? Is GDP per capita rising or falling? Here you can see the gross domestic product (GDP) per capita in current prices from 1980 to 2018 and forecasts to 2024 (in US dollars).

Factor: Tourism

Agriculture, industry, services, all important sectors of Turkey. Looking at the country as a whole, one sector in particular stands out, tourism. Already a large part of Turkey’s GDP. But by 2028, Turkey should be able to increasingly detach itself from tourism, as seen here. This is the evolution of the direct and total contribution of the Turkish tourism sector to GDP from 2012 to 2028 (in billions of euros).

• 2012: 35,54 %
• 2018: 32,78 %
• 2028: 33,14 %

Investing in real estate: Prices

While you can buy only 16 m² for 1 million in Monaco, 25 m² in New York and 28 m² in London, as an investor you get 98 m² for the same price in Istanbul. In comparison, you would currently get 77 m² in Berlin. Let’s start with the most important fact: What do I get for my money?

Square meter price

Here you can see the current prices per square meter worldwide. The big question is how much living space do you get, exemplified by $1,000,000. Similar to the “Big Mac Index”, this calculation is good to compare the different cities.

For $1 million, you get:

• Monaco – 16 m²
• New York – 25 m²
• London – 28 m²
• Berlin – 77 m²
• Istanbul – 98 m²

Turkey on top in financial support

70% of property owners in Turkey have received help with property financing. Here you can see the percentage of property owners who received financial assistance in selected countries around the world in 2012.

You can find more statistics at Statista

Price levels in comparison: living in the city

How cheap or expensive is living in Istanbul? Compared to the other metropolises, you can quickly see that life in Istanbul is relatively cheap at only 66.3 points. In Germany, the price level is currently 73.8 (Munich) and 72.6 (Frankfurt). Price level in the world’s most important metropolises (in points):

• Oslo 103.0
• Zurich – 100.0
• Tokyo – 83.4
• New York – 74.1
• London – 73.9
• Istanbul – 66.3

New investments! View real estate now

İyi günler – Here are our new objects that you can invest in now:

Istanbul, 41250: Villa in Kartepe

1,810 SqFt Cardpe

• Property: Istanbul, 41250: Villa in Kartepe

Istanbul, 34530: Penthouse Loft in Kumburgaz

2,970 SqFt Kumburgaz – $570,000

• Property: Istanbul, 34530: Penthouse Loft in Kumburgaz

Spain: Investment in a foreign property

Spain is one of the most popular holiday destinations for Germans. No wonder, because here there is besides sun and beach also wonderful landscapes. Besides Mallorca, there are many other beautiful holiday destinations in Spain. However, if you are already sure that your foreign property should be in Mallorca, you can read our article that specializes specifically in Mallorca.

• Find yourdream property in Mallorca – Tips & Tricks

But which places in Spain are the most beautiful and where is it most worthwhile to invest in a property abroad? We have picked out 5 different places where you could buy a property abroad.

Investing in real estate: Spain

Living and working abroad is a very memorable experience, professionally, personally, culturally and of course financially. In this free guide, you’ll get investment tips for all the major cities in Europe, America and Asia, from New York to London to Paris.

• Investing abroad: Real estate (external)

Barcelona: The city of wonders

If one city in Spain is very impressive, then it is Barcelona. Barcelona stands out especially because of the many colors, the works of art and the special architecture and attracts tourists almost magically. No wonder, because in this city there are countless sights, such as the Sagrada Familia. If you decide to buy a property abroad in Barcelona, you will benefit from many opportunities for activities and a charming environment. Unfortunately, as is often the case in popular cities, there is often a lot of traffic.

Malaga: Port city

If you are thinking about buying an overseas property in Malaga, then you have probably been there on holiday and been enchanted by the port city. Malaga is known for its beautiful sandy beaches and hotels. On the one hand the perfect conditions to relax, on the other hand the probability is high that during your stay you will meet many tourists. If this bothers you, you should take this into account when looking for the right place in Malaga.

Malaga: Tourist Hotspot

Malaga map and location in Spain

Beach and promenade: 360

Toledo: City of three cultures

The city of Toledo is located in the middle of Spain and is one of the cities that has the most attractions to offer. But what else is convincing about this city? When you are in Toledo, you feel like you are back in the Middle Ages, as there are no modern buildings and everything remains as it used to be. For this reason, this city was named a World Heritage City by Unesco. If you are fascinated by this, you might consider buying a property here.

Toledo Video & History

Toledo’s situation in Spain

Valencia: City of Arts and Sciences

The city of Valencia is located directly on the Mediterranean Sea. In Valencia you can expect a great total package, because here you have a historic old town, shopping opportunities, many restaurants and modern architecture. Children will also never be bored in this city. From a planetarium to an oceanarium, everything is included here. Since there is so much to explore in this city, there is no shortage of tourists here either. Nevertheless, if you have fallen in love with the city, you can start looking for real estate.

Valencia Video

Map and location in Spain

Granada: Southern Spanish Andalusia

The city of Granada is a symbol of the harmonious coexistence of a multicultural society, as people of different cultures have lived together here in the past. Even today, the multiculturalism in Granada is very pronounced. If this is exactly what you love, you should opt for a property abroad in Granada. There is a lot to discover here, and not just in terms of architecture.

Granada’s landscape and mountains (video)

Map and location

House & Apartment for sale in Spain

From the valuation to the speculation tax. In this guide you will find all the important factors simply explained. Learn step by step the procedure in the apartment sale to be able to answer the question: Selling with or without an estate agent? The private sale of real estate involves many risks and sources of error, starting with the apartment valuation to the offer price to the individual marketing, from “advertising” to internal customer network and off market real estate sales.

• Sell apartment
• Sell house
• Sell land
• Sell property

Buying: Portals for cheap real estate

Was the right place of residence there for you? If so, then you can start your search right now. Since there are countless real estate portals that mediate foreign properties in Spain, it is often difficult for many to find the right real estate portal for you. No problem, because we have 5 property portals for you together, which have different functions. There are real estate portals that focus only on the country of Spain and there are also larger portals that take care of foreign properties around the world.

Kyero – The Spain – Specialist

The real estate portal “Kyero” deals exclusively with real estate in Spain. The properties are advertised directly by real estate agents. Whether you are already looking for a property for sale or just want to rent a property, you will find it here. The advertisements are very clearly arranged and you can get an overview of which property is suitable for you in a very short time.

Bellevue – Real estate from all over the world

The Bellevue real estate portal brokers properties from all over the world. On this site, you benefit from numerous filter functions, so you can get to the results that interest you relatively quickly. There is a huge offer here, from small apartments to huge houses. If you are still in doubt about which country to buy your property abroad in, you can make ideal comparisons here.

Immowelt – The all-rounder

Immowelt is a real estate portal that is very clear. No matter what concern you have around real estate, you could find a suitable solution here. For this reason, it could be worthwhile to include this website in your search for a property abroad in Spain. The advertisements are clearly arranged and mostly equipped with various information about a property.

Idealista – The way to the ideal property

The real estate portal Idealista takes care of properties from all over Spain. The advertisements are presented very clearly. Through the filter functions, you can not only search for the right property abroad in a specific location, but the visitor even has the option to place their own ad. So it’s worth visiting the website every now and then to check whether there are new advertisements.

Immobilienscout24

You have probably heard the name of this real estate portal before. Here, not only properties from Germany are rented and sold, but from all over the world. In addition, there is a lot more information about real estate. Also in search of foreign real estate in Spain you could find here.

Luxury property in Mallorca

Welcome to the Germans’ favourite island. Lots of sun, relaxed people, the sea and only 1-2 hours flight from cities like Berlin, Paris and Madrid. This makes Mallorca one of the most popular regions for many from business and industry, but also for celebrities who are attracted to the island. Especially on the mainland, a little off the coast, you will find villas, fincas and condominiums of the extra class. But beware. If properties are tied up, you will quickly pay too much. Therefore, we strongly recommend working with a local real estate agent. Because in Mallorca there are also Spanish laws, from the residence obligation (subject inhabited houses) to tax issues. Therefore, before we take a look at available apartments and houses, we briefly highlight the property prices in Mallorca.

• Luxury Real Estate Mallorca

Buying property abroad: Tips

• New York, LA, London & Co: Luxury Real Estate
• Real estate agent
• Buy a holiday home
• Foreign property France
• Foreign property Italy
• Foreign property Mallorca
• Luxury Real Estate Mallorca
• Off market – especially in hot real estate markets