Why Invest to Property in Turkey

Traditionally foreign investors have been purchasing property in Southern Euro-Med countries but now they are seeking fresh alternative destinations to invest in, like Turkey !

The potential for returns on investment in this area are enormous. Last year alone, property prices rose by around 50% and with more people looking to buy homes in Turkey, that extra demand is sure to push prices even higher.

In 2004 more than 17 million people visited Turkey

The number of visitors to Turkey is expected to double in the next few years and Turkish investment in tourism and infrastructure is expected to keep pace. Moreover future projects are planned such as the creation of more leisure facilities such as golf courses, health resorts, tourism centres and sport stadiums that support international events like

Garanti Bank Deal Tops Turkey’s M&A List

Hurriyet Daily News - The Spanish banking group BBVA’s (Banco Bilbao Vizcaya Argentaria) November 2 announcement that the company will buy a stake in Turkey’s Garanti Bank is the country’s top merger & acquisition (M&A) this year, according to data from mergermarket, an M&A intelligence service. 

With a transaction value of EUR 4.2 billion, the deal surpassed the value of the August 9 privatization of Bogazici Electricity Distribution Grid. The rights to operate the grid were sold to the Turkish companies Is-kaya and MMEKA for EUR 2.261 billion. 

The top 20 Turkish M&A deals tracked by mergermarket represent a huge increase compared to crisis-hit 2009. Last year’s highest-volume deal was the privatization of the Osmangazi electricity distribution grid for EUR 327 million. 

According to an e-mailed report from mergermarket, the privatization of the Gediz electricity distribution grid and the sale of 54.17 percent of fuel retailer Petrol Ofisi to Austria’s OMV ranked as the third and fourth top M&A deals, with volumes of EUR 1.452 billion and EUR 999 million, respectively. 

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/291110-turkey-acquisitions-mergermarket-garanti-bank.aspx

Turkish Technology Market Reaches 9 Billion Euro

Hurriyet Daily News - The value of Turkey’s booming electronics market has reached EUR 9 billion, making the country the seventh largest electronics market in Europe, according to electronics retailer Darty Turkey’s CEO. The CEO of Turkish technology retailer Darty said at a press conference in Istanbul that the company’s massive 30 percent growth this year could be attributed to the opening of five new stores. 

"We are opening our 21st store in December in the Avcilar district of Istanbul, and by opening five stores every year, we are fortifying our hold in the Turkish market,” said Darty Turkey CEO Nedim Esgin on Wednesday. 

Darty’s Turkey operation grew by 30 percent in 2010, obtaining a 2.5 percent share in a booming technology market, said Esgin, adding that Turkey is the only country to host all four of the leading electronic chains in the world - Media Markt, Darty, Best Buy and Electro World. Because of this competition, expansion in the technology retail sector is essential. 

“The volume of the electronic goods market in the world is around EUR 700 billion, and Turkey is a big component with its EUR 9 billion market. Now Turkey is the seventh biggest market in Europe, and we predict that this growth tendency will continue,” he said. 

According to the CEO, the Turkish technology market will surely surpass that of the Netherlands in the next two years and rank sixth in the world, provided its robust growth continues. 

Source: http://www.invest.gov.tr/en-US/sectors/Pages/ICT.aspx

Energy Industry Received Over Usd 5 Billion Of Investments in 2010

Today’s Zaman - Turkish Energy and Natural Resources Minister Taner Yildiz said on Thursday that energy investments corresponding to 3,500 MWs were added to Turkey’s installed capacity in 2010, worth approximately USD 5 billion. 

"I thank the private sector for its investments," said Yildiz, while addressing the opening of a conference on "Energy Policies in Turkey towards 2030 and the Future of Energy Regulations" held in Ankara Hilton Hotel by the Association of Energy Experts. Yildiz thanked all investors who contributed to the growth, development and supply security of Turkey and wanted continuation of the investments. "The private sector makes investments in places where it sees stability and profit. Turkey provided the private sector with the necessary conditions," he added.

Source: http://www.invest.gov.tr/en-US/sectors/Pages/Energy.aspx

Fitch Lifts Turkey's Rating Outlook to "Positive"

Reuters - Ratings agency Fitch lifted its outlook on Turkey's rating to "positive" from "stable" on Wednesday, citing the country's economic recovery and improving public finances. 

"Turkey's improving public finances are increasing confidence in its sovereign creditworthiness... debt dynamics are favorable, helped by strong GDP growth and a marked decline in interest rates," said Fitch in a statement. 

"The government is lengthening the maturity of its debt, thereby reducing market risk, while financing is supported by a deep local market, as well as strong current capital inflows," it added. 

Fitch expects Turkey to grow 8 percent this year, above a government forecast for growth of 6.8 percent. 

Source: http://www.invest.gov.tr/EN-US/TURKEY/FACTSANDFIGURES/Pages/Economy.aspx

HSBC: Turkey is The Premium Emerging Country

Dunya - Recent upgrades by rating agencies have brought Turkey under investor scope once again. According to an HSBC Global Asset Management analysis, reported by Reuters, Turkey is the preferred country among emerging economies. Controlling assets over USD 411 billion, the fund noted Turkey’s high performance in the financial crisis and praised the structural reforms it has undertaken in the past decade. 

The analysis cites the recent upgrades as preparatory steps for the country’s attainment of an investment grade rating, widely expected to happen as early as next year. 

Source: http://www.invest.gov.tr/en-US/successstories/Pages/HSBC.aspx

IMF: Turkey To Have The Second Highest Growth Rate in Europe

Dunya - Turkey will be among the top three countries to grow above 5 percent in Europe in 2010-2011 and will rank second after Belarus, according to data released by the International Monetary Fund (IMF). IMF data suggest that Belarus will achieve a rate of 6.9 percent, followed by Turkey with 5.8 percent. Kosovo will be the third country to grow over 5 percent, following Turkey. 

Asian countries like China and Indonesia will also grow over 5 percent, as will Egypt and Ethiopia in Africa, while larger economies like the USA, Canada, Russia and Japan will grow between 2 and 5 percent. The countries to experience a contraction in their economies in the aforementioned period are Greece, Venezuela and Romania. 

Source: http://www.invest.gov.tr/en-US/turkey/factsandfigures/Pages/TRSnapshot.aspx

Dutch Investments Increasing in Turkey

Dunya Special Issue - Dutch investments in Turkey will increase with the improving investment environment, according to the Ambassador of the Netherlands in Turkey. 

An article by Ambassador Jan-Paul Dirkse in Dunya daily highlights Turkey’s improving investment environment and strong trade ties between the two countries. “Dutch companies invested EUR 4.3 billion in Turkey in the year 2009, making the Netherlands one of the largest foreign investors in Turkey. Multinational Dutch firms such as Unilever and Philips have been active in Turkey for years and an increasing number of finance and real estate companies from the Netherlands are investing in Turkey,” the Ambassador wrote in his article, affirming his confidence in Turkey’s improving investment environment attracting more Dutch investments in the country.

Source: http://www.invest.gov.tr/en-US/investmentguide/Pages/10Reasons.aspx

Southeastern Turkey Becoming An Investor Magnet

Dunya - Turkey’s Southeastern Anatolia region is rapidly turning into a production hub for companies seeking to reach the neighboring markets. 

Domestic and foreign companies, including a Greek plastics producer and a British packaging firm, are flocking to Organized Industrial Zones (OIZ) in the region for easy-access to the developing Iraqi, Iranian and Syrian markets. Turkey’s policy of visa-free travel, combined with government incentives and available labor force, has transformed the region into a potential production base for producers, even leading to a shortage of space in OIZs in the region’s major cities like Diyarbakir and Mardin.

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/241110-southeastern-turkey-investor-magnet.aspx

Turkish Car Market Registers Record Growth In October

Zaman - Car sales in Turkey reached new heights in October, making the country’s car market the growth champion in Europe. 

A sharp spike of 246 percent was observed in October’s car sale figures, when compared to the same month in 2009, while European car sales contracted by 16 percent in the same period. 

Backed by economic indicators bettering those of Europe, the Turkish car market outlook is expected to remain positive for the months to come. Sales in the period from January to October have also risen by 22 percent year-on-year, reaching more than 360,000 units. 

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/241110-turkish-car-market-record-growth.aspx

OMV Sees Turkey As Its Third Business Hub

Hurriyet Daily News - Austria-based energy giant OMV, operating in the oil, gas, electricity and renewable energy fields, aims to develop Turkey as its third business hub after Austria and Romania by integrating the country into its core market for refining and marketing (R&M), also establishing Turkey as a link to northern Iraqi and Caspian supplies. 

Speaking to members of the press at the OMV Media Summit on Friday, CEO Wolfgang Ruttenstorfer said that OMV aims to turn Petrol Ofisi into an energy company from an oil distribution line by integrating all their businesses in the country under its roof. "We value the company very much and plan to create a complex energy company out of it for actualization of all our future energy investment in Turkey by integrating gas and power investments beneath it,” he said. He also noted that Turkey plays a key role in the company's integrated regional business scheme due to its proximity to Caspian and northern Iraqi oil reserves. According to the company's estimates, by 2015 the energy demand growth rate in Turkey will be 12 percent for oil, 31 percent for gas and 37 percent for power, making Turkey an essential component in the OMV portfolio. 

Source: http://www.invest.gov.tr/en-US/infocenter/news/Pages/231110-omv-turkey-third-business-hub.aspx