Turkey is set to become more appealing to foreign investors in coming months, thanks to reforms announced by the Government that are designed to improve the country’s investment environment.
In December 2015, Turkey’s newly formed government revealed its action plan for 2016, which included new measures ranging from reducing costs in organised industrial zones to the relaxing of licensing procedures for investors. This is good news for investors of property in Turkey - increased foreign investment drives demand for quality real estate, in particular in areas popular with international executives, such as Istanbul suburbs.
“The government will take new steps to bolster Turkey’s status as a foreign direct investment destination with the reform package designed to improve our business environment,” Prime Minister Ahmet Davutoğlu said at a press conference. “Obtaining energy permits and licenses will be made easier, while company establishment procedures will be more streamlined. A new patent law will be introduced in accordance with the reform package pertaining to science, technology and innovation.” He added that land costs in organized industrial zones will also be reduced and regional development agencies will be granted new power.
Meanwhile, Deloitte Turkey’s report revealed that in 2015, foreign investors accounted for 70 per cent of Turkey’s M&A deals, with their share increasing by a hefty 44 per cent over the previous year, to reach a value of $11.5billion. 245 M&A transactions took place in 2015, with foreign parties involved in 125 - compare this to 2014, when there were 236 M&A deals.