Buoyant Turkey turns on the charm

Turkey’s potential is indisputable, but international investors still have to back up their intentions with firm commitments in cash.

If the development projects showcased at this year’s Mipim fair in Cannes are anything to go by, Turkey is set for a building boom that will - if they all go ahead - last well beyond the centenary of the Republic in 2023.

Eye-catchers among the Istanbul projects presented were the 250-meter-high Metropol Tower, the Istanbul Finance Center located on the Asian side of the city; Zorlu Center, a $2.5 bn (€1.9 bn) mixed-use project in the central business district; Istanbloom, a 46-storey, luxury residential tower and several new mall developments including the award-winning Marmara Park which opened its doors last year. The project makers - a group of some 50 mainly domestic developers - were also out in force to win international exposure and investment for their shiny new creations.

The projects exemplify a new-found confidence in Turkey that has come hand in hand with political stability and steady economic growth over the past decade. During that time, Turkey has experienced average GDP
growth in excess of 5% per year, compared to less than 1% in the European Union. In dollar terms, Turkish GDP has more than tripled.

And although latest statistics point to slightly lower economic growth this year than the 4% forecast earlier, it is still way above the zero or near-zero growth predicted for many western European countries. Last year, an economic slowdown had to be ‘engineered’ by the Turkish central bank through monetary measures following fears that the economy, approaching a growth rate of 9% in 2011, was overheating. Thanks also to political and other reforms, the country has benefi ted from increased foreign investment and a rising stature within the global economy.

That status was cemented further by Turkey’s election as Country of Honour at this year’s Mipim - an honour it will bear again next year together with Russia and Brazil - and a hike in the country’s credit rating to investment grade by rating agency Fitch last November.

Istanbul has also applied to host the 2020 Olympics, alongside other contenders Madrid and Tokyo.

The full Focus on Turkey section is available in the attachment below