Turkey has a very dynamic economy with a vigorous and rapidly growing private sector. The country’s most important industries are textiles and clothing, employing between them over 35% of the workforce. These sectors also produce the main exports although other manufacturing industries such as car making and electronics, are of growing significance. Low labour rates and proximity to markets in Europe and Middle East have encouraged the growth of these manufacturing industries. Agriculture remains an important economic activity, employing around 40% of the country’s labour force. Despite widespread mechanization and large-scale irrigation projects, traditional farming methods and low production predominate in many areas.

Turkey has successfully introduced a series of structural reforms as part of IMF program. Public finances were restructured, the banking sector was reformed and the privatization process was re started. More importantly, the EU gave Turkey a date (October 3rd, 2005) to start accession talks.

Turkey achieved GNP growth after 2002 reaching 9,9% in 2004. Inflation was curbed to single digits by the end of 2004. As both macro-economic conditions and political outlook have improved, so stability of the country’s financial markets has also been achived.

How has the prospect of EU membership helped the economic situation?
EU membership was the most significant factor in the recent surge in asset prices, including Turkish property, as the long feared risk of political and administrative instability has been replaced by the prospect of EU convergence. The convergence process has attracted European investors.

What is the outlook for the Turkish Economy?
Thanks to the strong commitment to continuing economic and political reforms and further improving relations with the EU, Turkish economy continues its sustainable growth among the leading emerging markets.

Do you recommend foreign investors buy property in Turkey?
We do recommend the purchase of real estate. However, a careful assessment of the specific property is key to making a value creating decision. Coastal areas where tourism is developing quickly such as “Bodrum” and developing industrial cities, such as “Istanbul” where housing is scarce are the two main areas that we believe property will appreciate in the years to come.