TEP INVESTMENT - Real estate in Turkey

1. SUCCESSFUL ECONOMY 

• Booming economy; more than tripling its GDP, reaching USD 786 billion in 2012, up from USD 231 billion in 2002 (TurkStat)
• Stable economic growth with an average annual real GDP growth rate of 5 percent over the past decade (TurkStat)
• Promising economy with a bright future as it is expected to become the fastest growing economy among the OECD members during 2012-2017 with an average annual real GDP growth rate of 5.2 percent (OECD Economic Outlook No. 91)
• 16th largest economy in the world and 6th largest economy compared with the EU in 2012 (GDP at PPP, IMF WEO)
• Institutionalized economy fueled by USD 123 billion of FDI in the last decade and ranked as the 13th most attractive FDI destination in 2012 (A.T. Kearney FDI Confidence Index)
• A dynamic and mature private sector with USD 153 billion worth of exports and an increase of 325 percent between 2002 and 2012 (TurkStat)

2. POPULATION 

• A population of 76 million (2012, TurkStat)
• Largest youth population compared with the EU (Eurostat)
• Half the population under the age 30.1 (TurkStat)
• Young, dynamic, well-educated and multi-cultural population

3. QUALIFIED AND COMPETITIVE LABOR FORCE 

• Over 27 million young, well-educated and motivated professionals (TurkStat)
• Increasing labor productivity
• Approximately 600,000 students graduate annually from over 170 universities (2012, Student Selection and Placement Center-OSYM)
• More than 700,000 high school graduates with around half from vocational and technical high schools (2012, Ministry of National Education)

4. LIBERAL AND REFORMIST INVESTMENT CLIMATE 

• The second biggest reformer among OECD countries in terms of its restrictions on FDI since 1997 (OECD FDI Regulatory Restrictiveness Index 1997-2012)
• Business-friendly environment with average of 6 days to set up a company, while the average in OECD members is more than 12 days
• Highly competitive investment conditions
• Strong industrial and service culture
• Equal treatment for all investors
• More than 33,000 companies with international capital
• International arbitration
• Guarantee of transfers

5. INFRASTRUCTURE 

• New and highly developed technological infrastructure in transportation, telecommunications and energy
• Well-developed and low-cost sea transport facilities
• Railway transport advantage to Central and Eastern Europe
• Well-established transportation routes and direct delivery mechanism to most of the EU countries

6. CENTRALLY LOCATED 

• A natural bridge between both East-West and North-South axes, thus creating an efficient and cost effective outlet to major markets
• Easy access to 1.5 billion customers in Europe, Eurasia, the Middle East and North Africa
• Access to multiple markets worth USD 25 trillion of GDP

7. ENERGY CORRIDOR AND TERMINAL OF EUROPE 

• An important energy terminal and corridor in Europe connecting the East and the West
• Located at a close proximity of more than 70 percent of the world’s proven primary energy reserves, while the largest energy consumer, which is Europe, is located right to the west of Turkey, thus making the country a linchpin in energy transit and an energy terminal in the region

8. LOW TAXES & INCENTIVES

• Corporate Income Tax reduced from 33 percent to 20 percent
• Tax benefits and incentives in Technology Development Zones, Industrial Zones and Free Zones could include total or partial exemption from Corporate Income Tax, a grant on employer’s social security share, as well as land allocation
• R&D and Innovation Support Law
• Incentives for strategic investment to decrease imports, for large-scale investments, as well as for regional investments

9. CUSTOMS UNION WITH THE EU SINCE 1996 

• Customs Union with the EU since 1996, and Free Trade Agreements (FTA) with 22 countries
• More FTAs underway
• Accession negotiations with the EU

10. LARGE DOMESTIC MARKET 

• 20 million broadband internet subscribers in 2012, up from 0.1 million in 2002
• 68 million mobile phone subscribers in 2012, up from 23 million in 2002
• 54 million credit card users in 2012, up from 16 million in 2002
• 131 million airline passengers in 2012, up from 33 million in 2002
• 31.8 million international tourist arrivals in 2012, up from 13 million in 2002

Source: www.invest.gov.tr