The Turkish business world welcomed the new incentive package, which was announced by the Prime Minister, with excitement as it has raised hopes that the markets will take a deep breath amid the uncertain atmosphere caused by the ongoing global financial turbulence.

Nihat Ergün, Minister of Trade and Industry Speaking to reporters in Ankara said that the government will address investments that are currently under way in a new stimulus package. The minister added that a number of investment projects had been started prior to the announcement of a recent incentive package and were still in progress. Entrepreneurs said that Turkey, which has been indirectly affected by the crisis as the consequence of a spillover effect, should manage to free itself from the grip of the global economic meltdown.

A previous stimulus package that took effect in March saw many consumers reach for their savings rather than bank loans, which remain costly despite huge rate cuts and now the government recently embarked upon another stimulus package, this time focusing on boosting investment. With the new package, entrepreneurs will have a corporate tax rate of between 2 and 10 percent, depending on the region they invest in. The government recently divided regions into four categories, based on their current economic development level and possible investment opportunities.

With regard to reactions from the business communities concerning the new package, Mr. Nihat Ergün said many welcomed the plan, calling it satisfactory. “There are some remaining details we have to iron out, but work is under way to this end,” he said.

Leading figures from the Turkish business world said they welcomed this package. The president of the Istanbul Chamber of Commerce, Murat Yalçintas, described the package as “extremely coherent and inspiring.” He added that the government was taking the right step against the crisis and that small businesses will be relieved by the incentives introduced in the package and also the new package will inspire confidence and improve morale in the domestic markets., Hazim Sesli, The president of the Young Businessmen's Association of Turkey assessed the package is very positive and also “encouraging” for the future of the markets

Banu Kıvcı Tokatlı, Finans Yatırım chief economist, said the new incentives will provide support for the real estate, auto and home appliances sectors, which were battered by the crisis more than any other sector, preventing the recession from becoming deeper.

Labels: Economy

A new report by Merrill Lynch (MER) Global Research predicts 3.2 percent economic growth rate in Turkey for 2010, despite the general slowdown in the world economy.

Merrill Lynch forecasts global growth of 1.3 percent in 2009, down from 3.2 percent in 2008, rising to 3.1 percent in 2010. Turkey will make a quicker recovery than other countries of the region thanks to comparatively minimal damage in the banking sector, and it expects lower interest rates and higher government spending to stimulate domestic demand. The analysis expected a 6.3 percent inflation rate in Turkey in 2009. Turkey will emerge as one of the few safe havens for investment following the end of the crisis and entrepreneurs who invest in Turkey will not lose out, but will instead make considerable profit.

Meanwhile, Mehmet Şimşek, Turkish state minister for the Treasury told a New York meeting of a U.S.-based Turkish-American business association that his country's economy would begin recovery by 2010. Simsek added that a permanent recovery of the global economy would also require Institutions such as the IMF, the World Bank and other regional banks should do more to support countries like Turkey because these countries have been the locomotive of the global economic growth over the last years.

According to Finans Invest, the more good news for Turkish investors is the stocks closed their best month since 2003, while they may rally further after the benchmark index crossed the 200-day moving average for the first time in almost a year and a half. The benchmark index jumped after Tevfik Bilgin, head of the Banking Regulation and Supervision Agency, said profits at banks will increase and their balance sheets passed a stress test.

Labels: Economy, Turkish-property

The Turkish government announced a comprehensive economic stimulus package and new regulations will lower the private consumption tax rates while the value added tax (VAT) also will be lowered from 18 to 8 percent.

The government has previously introduced three smaller packages and the Central Bank in February has lowered its benchmark interest rates to a record low of 11.5 percent. The new tax regulations seek to stimulate domestic demand in Turkey's leading industries. Industry Minister Zafer Caglayan explained the details of the reduction that the package will introduce temporary tax cuts for three months in the housing, home appliances, and automotive sectors. The VAT on apartments over 150 square meters (1,614 square feet) in size will be lowered from 18 to 8 percent. The package also foresees measures to boost exports by allocating an additional 500 million liras ($296 million) to Eximbank, a state-owned bank geared to supporting exporters.

The minister commented: "We are aiming for three things in this law, which is regarded as both a regional and a sectoral incentive: Strong competitiveness, high added-value and international competitive power. The investors will make their investments according to the new law. Following the enforcement of the law, we expect a substantial increase in foreign investments".

According to the International Investors Association (YASED) report, investors currently waiting to carry out new investments in Turkey believe that economic sentiment would shift to a more positive outlook in 2010. Turkey's city investment arena is now taking a strong hold, where huge foreign investment and new commercial activity in centers such as Istanbul are prompting some great investment opportunities in both residential and commercial property.

In a related development, Turkey held direct talks with the IMF after a long period. Although Turkey maintained that the conditions set forth by the IMF were "unacceptable" and against the country's national interests, industry experts believe that following local elections at the end of March, Turkey might finally go ahead and conclude the IMF loan agreement.

Labels: Economy, Latest-news

Today's Zaman has reported that More than $10 billion (£5 billion) was spent by overseas investors buying Turkish real estate till the end of 2007 and the country's economy is growing at an increased rate.

According to Data from the Turkish Statistics Institute, Turkey's economy has continued to experience growth this year during the first quarter of 2008, the country's gross domestic product (GDP) was 6.6 per cent up when compared to 2007.

Property hunters looking for a second home or an investment property may wish to consider buying in Turkey for the low prices available in the country. Sunday mail has reported that Properties start as little as £19,000 for a holiday home, a good deal compared with the costlier areas of the Mediterranean such as Spain and Portugal.

The figures are likely to be of interest to overseas investors considering buying property for sale in Turkey, as the country has already become the "preferred venue" for property investment in the Mediterranean region. With the growing demand, property experts consider, Turkish real estate is as close as investors can get to a safe bet in terms of guaranteed returns.

This comes after the Voices newspaper reported that Turkish properties are becoming increasingly popular with Brits who want to live abroad and predicted that a record number of British buyers will snap up a Turkish residence this year.

Labels: Economy, Investment-property

British tourists and investors are tempted by the turquoise coastline, water sports, water skiing and scuba diving that is on offer in many of Turkey's coastal towns. Many people who visit Turkey are impressed by the Mediterranean climate, hospitality and great value of the country that they turn from tourists to property investors.

According to the statistics, even though the prices have gone up to 15 to 20 percent in the last year, prices are still cheap when compared to British standards. Turkey is becoming exciting destination for property buyers and already 17,000 British have property in Turkey. Julian Walker, managing director at Spot Blue has said that one-bedroom flats can go for £25,000, two-beds for £50,000 and villas for £90,000. According to the reports by Conti Financial Services revealed that enquiries about Turkey has increased to a whopping 147 percent when compared to other European countries like Spain, by contrast, enquiries fell by more than 28 per cent.

According to the law on 'property purchase by foreigners in Turkey', foreign nationals are able to acquire real estate in Turkey on the conditions of being reciprocal and complying with the laws. Both Turkish citizens and foreign owners have equal property-ownership rights. The mortgage law available over long periods to house buyers and is expected to transform both the housing market and the Turkey's urban environment. Annual Real Estate Tax (a tax similar to the Council tax in the UK) rates for building land, non-residence-purpose buildings and residential buildings are 0.3%, 0.2%, and 0.1%, respectively. Foreign buyers will have to pay 25 per cent deposit and mortgages are available over 15 years.

Turkish economy is positively moving forward and leads the way in emerging markets and well ahead of popular tourist destinations like Cape Verde, South Africa, Thailand and Egypt. More overseas investors arrive much more conveniently in turkey due to the low cost flights and this of course makes buying property in Turkey more accessible. The development of the property rental market in Turkey is moving in the right directions as Turkey’s tourism figures continue to soar. The rental market can provide a good return on investment for property investors in Turkey with the expected arrival of further low-cost flights to Turkey.

Linda Travella, spokeswoman for the National Association of Estate Agents International has said that buying property in emerging countries requires more research and local knowledge. The process would be different when compared to UK system.

Labels: British, Economy, Turkish-property

Sabri Ateş, chairman of the Istanbul Real Estate Dealers Chamber, said urban transformation projects in Istanbul should start right away and must be completed in next 5 years.

The rehabilitation of the old residential areas; old houses that were constructed illegally and in insalubrious condition would be replaced with fresh ones with the green areas, parking areas and social facilities. The future of the Istanbul will depend on this urban transformation which will make it as a truly cohesive society. The construction sector has direct influence on other sectors .The urban transformation will be focused to balance conservation, utilization for sustained growth and reduce earthquake repercussions.

Mr.Ateş said that the urban transformation project which would positively affect the Turkish economy should be effective immediately for the salvation of Istanbul and to develop a long term plan for maintaining and strengthening of infrastructure. The selection criteria for the urban transformation will be based on technical feasibility, financial viability and environmental prosperity.

Labels: Economy, Infrastructure, Istanbul

Survey from holidaylettings.co.uk has revealed that demand for rental property in Turkey falls within the elite list of top 7 on the property investment list that the company advertises in for demand for rental property. Turkish economy is positively moving forward and leads the way in emerging markets and well ahead of popular tourist destinations like Balearics, Canary Islands and South Africa.

Gordon Lyons of International Property Agents has said that more overseas investors to arrive much more conveniently in turkey due to the low cost flights and this of course makes buying property in Turkey more accessible but due to the low availability of the flights, the market is still under developing stage. The development of the property rental market in Turkey is moving in the right directions as Turkey’s tourism figures continue to soar. The rental market can provide a good return on investment for property investors in Turkey with the expected arrival of further low-cost flights to Turkey.

Gordon Lyons further said that Tourism growth in the nation is on the roll and Figures shows that 20 million tourists a year visiting the country. The Turkish property rental market is growing and investors are making their Turkish real estate dreams really pay off as investment with a view to holiday rentals is backed up by booming turkey's tourist market.

Labels: Economy, Market-Trends, Rentals

NatWest International, a UK bank report says that the turkey's construction sector is extremely vibrant and also about the increase in demand in construction sector with low property prices. In recent years the real estate and construction sectors have made up about 10 percent of Gross National Product.

Turkey's economy is now enjoying strong growth and is attracting foreign investors. The banks real estate experts reckons that the real estate and construction sector will outpace overall economic growth this year to become a more important chunk of the economy. According to the survey conducted among real estate experts of the bank, Bulgaria and Turkey top the list with 75 and 56 percent in buyers preferences followed by France with 46 percent and Portugal fourth with 41 percent.

In the survey, 53 percent of the respondents coupled the rising demand with the low prices and media effect, 33 percent stressed the importance of advertisements in the press abroad. Majority of the English real estate consultants said property investors demands increased overseas and emphasized that the increasing real estate prices in England for this sudden surge of property market in turkey.

Labels: Economy

Turkey's EU bid with the European Union made life easier for foreign investors in Turkish property market. In terms of income already turkey has been classified as the 20th biggest economy in the world by the World Bank. The country's economic growth and EU bid has created new downstream investment opportunities and in property market.

Rhiannon Williamson, director of www.ShelterOffshore.com , said the government and the majority of people's opinion are favoring the country joining European Union. Government authorities stick with political and economic reforms to meet EU entry requirements.

Several sectors like transport, telecommunications have been liberalized independent regulation authorities have been created, and these reforms have helped the in-depth economic modernization process. Banking and financial reforms is under way,
Ms Williamson added that work is going on to make property laws similar to those in EU member states to give more confident and secured environment for foreign investors in turkey.
German chancellor Angela Merkel has also made her intentions clear about denying Turkey full membership in EU. France has also opposed turkey's bid to join EU. Spain and the UK are supportive of turkey's bid. Despite tensions between certain EU countries and Turkey, still attracts number of European investors.

Labels: Economy, Market-Trends