The Relationship Between Migration and Investment in the World
PREFACE
'We Must Formulate Policies by Perceiving the Difference Between Qualified Foreign Investors and Irregular Migrants'
Turkey, positioned in the heart of potential markets ranging from Iran to Central Asia, the Gulf to Europe and America, is preparing to create a new hub with the power of globalization, digitization, and the post-pandemic era amid the global migration wave. As our country revives its cosmopolitan culture from its history, the real estate investments of regular immigrants coming to our country for reasons such as education, retirement, climate, health, leisure, trade, production, and work opportunities are set to generate a revenue of $10 billion with sales of 75,000 units this year. As GİGDER, while laying the milestones step by step towards achieving our goal of 100,000 sales and $20 billion in exports annually by 2025, we often witness the sector being misinterpreted in the public eye due to some misleading information regarding foreign real estate sales and a lack of understanding of fundamental concepts related to immigration.
The foreign investors, numbering in the millions alongside the regular immigrants whose number is expected to reach 75,000 this year, are often lumped together simply because they are 'foreign.' Due to this misconception, the negative consequences of irregular migration affecting the economy, especially the real estate sector, are attributed to foreign home sales. Particularly in the last two years, the significant demand for housing created by the increasing number of irregular migrants is unfairly stigmatizing our sector as one of the reasons for the rise in rental prices.
It is crucial for GİGDER to clearly explain the difference between irregular migration, asylum seekers, refugees, and qualified investors among regular immigrants, as it holds importance for our mission to increase international real estate investment efficiently and sustainably. In our new research titled 'The Relationship Between Migration and Investment in the World,' we aimed to fill the information gap in the public, support the formulation of sustainable policies with sound conclusions, and elevate Turkey to its deserved position on the world stage. In the final section of our research, we provided numerous recommendations for the establishment of an effective residence and citizenship policy for Turkey through investment.
Having successfully become one of the top 10 countries attracting the most real estate investments in the international real estate market, Turkey should thoroughly understand the relationship between migration and investors with a vision to enter the top 5 by 2025. When determining strategic policies in this field, the country should focus not only on the impact of irregular migration on our economy, politics, and sociology but also on projecting it to the world.
The World will Meet in Turkey with “HomeTurkeyHome”
The Turkish economy, with its 1.8% growth performance in 2020, became the second country to grow after China among the G20 members despite the epidemic. Our country, which is expected to reach the level of 10 billion dollars this year by accelerating its international direct investments in sectors such as automotive, white appliances, software and logistics, with the reforms initiated in the economy and law, today distinguishes itself positively in many areas from exports to real estate, from logistics to health. These features once again emphasize the privilege of investing in Turkey, which is already popular with its qualified workforce, population and location.
Connecting the continents on an East-West axis, Turkey is now much closer to being a country where continents meet in real estate, from the Middle East to North Africa, from Europe to America. As the international reference of the real estate sector, which has a critical importance in Turkey’s growth with its share of over 50% in international direct investments, we will introduce not only our industry but also the unknown beauties of Turkey with our multi-faceted promotion campaign ‘HomeTurkeyHome’ to world investors who have not yet discovered our country.
In these days when we are making preparations for this precious meeting, we say, “Now is the time to get to know and discover Turkey together, which has grown despite the pandemic and differentiated itself from its competitors in the world with its positive data.”
The Turkish economy, with its 1.8% growth performance in 2020, became the second country to grow after China among the G20 members despite the epidemic. Our country, which is expected to reach the level of 10 billion dollars
Istanbul, one of the most important cities of global trade and production with its population exceeding 20 million, stands out as one of the most important centers in fields such as finance, logistics and transportation in the world geography reshaped by the pandemic. We are getting ready for the process in which we will appear in the international real estate arena with high value-added products by increasing the brand value of Istanbul and Turkey, with all our staff.
We are developing milestones that will make us more attractive to foreign investors, milestones which we have mentioned in our Real Estate Export Strategic Action Plan that will increase the revenue of property sales to foreigners (standing at 6 billion dollars in 2020) to 20 billion dollars annually in 2025 and which include many innovative elements from education to certification, from real estate export centers to establishing a dispute resolution center. These important milestones will enable foreign investors to navigate in a more ‘corporate, fast-paced, effective and reliable’ space in Turkey.
Climate change is the biggest problem facing the post-pandemic world. Accordingly, the real estate sector is being reshaped with agenda items such as health, comfort, trust and energy efficiency. In this process in which foreign investments are directed to real estate, we, as developers, need not to remain indifferent to the change brought about by this new post-pandemic world order, and integrate flexible and rational new solutions into our projects.
We Are Ready to Host The World With Our Understanding of Urbanism
We are moving stronger under the leadership of the new reform mobilization initiated by our government in the economy and law in 2021 when a year of intense pandemic impact has been left behind and economies are expected to enter the recovery process with vaccination. Our efforts and courage to move Turkey’s place in the top 10 in the international real estate market to the top 5 are higher with the recent progress we have made.
Turkey, which brings together two continents and hosts the most important centers of the Three Sacred religions, is rapidly evolving from a point where civilizations were born in its cradle and then opened up to the world to become a geography where cultures meet again today. Despite the pandemic, Turkey, whose potential markets from Iran to Central Asia, from the Gulf to Europe and America have diversified and the demand for housing has increased, thus leading to the least shrinking markets in the world, is the most concrete proof of this.
Turkey is now a country where international buyers prefer to start a new life, work, spend their retirements, receive health and education services or invest by saying ‘Home Turkey
Home’. Based on this, we have named our digital platform ‘Home Turkey Home‘, which is the basis of our promotion attack, which includes The Guide to Acquiring Property in Istanbul’, which we have prepared in cooperation with ITO.
Effects of the Covid 19 on Overseas Real Estate Sales in Turkey
One of leading sectors which is affected by the Covid 19 virus is the Real Estate sector is one of the most important export fields and foreign currency generating services around the globe which is gaining importance every day Turkey is located within the attraction centers of the world before this pandemic specifically for some geographies Turkey was the prime location for real estate investment Within these uncertain days it is even more important to establish the current reputation and strength without losing any momentum whatsoever in Covid 19 days.
When viewed in the scope of foreign exchange earning services it is seen that the service sector is most affected by Covid 19 and our sector is directly and indirectly affected by this Stopping of flights and travel restrictions have caused foreign customer traffic to come to a stopping point for those who wants to buy real estate from our country.
Within the light of these developments it is apparent that PropTech application is much more important than before in the digital World it will be easier to overcome the post covid 19 threshold in the digital market, therefore the stakeholders especially the real estate sector in Turkey have to use the digital infrastructure and proptech applications quickly and effectivly.
In this period our country has set the best example decisiding and implementing the proactive and constructive prevention packages to the world’s public opinion and has signed indelible lines in humanitarian aid including developed economies.
Those who invest in real estate in Turkey is now far past beyond investing in the future.
It is a fact that those who invest in Turkey will also be investing in health opportunities.
Those who invest in Turkey will be investing in not only a peaceful future but also a healthy climate.
Those who invest in Turkey will be investing in health and peace safe future as well as a strong administration.
With its increasing value in the world the sector that we are in, has gained access to exemplary social infrastructure as well as economic gains new opportunities to its new guests and to process the name of our country in bolder letters when it comes to real estate.
As the comfort and speed in the realization of the transactions are made possible by technology we will continue to push the limits and we will encounter new records together.
GİGDER has prepared the Property Buying Guide: Istanbul for international investors.
Property Buying Guide in Istanbul, prepared in cooperation with the Istanbul Chamber of Commerce and Real Estate International Promotion Association (GİGDER), is aiming at to explain the Turkish real estate sector and investment processes, and to guide international investors who want to invest in Turkey. The guide was enriched with information brochures in 6 languages, Arabic, French, Chinese, Russian and Persian, for international investors.
You can download the guide and brochures from the link below:
