Turkey’s economy has undergone significant changes in recent years while remaining one of the most dynamically developing in the region. This country, located at the crossroads of Europe and Asia, serves as a vital economic bridge between East and West. Despite geopolitical challenges, currency fluctuations, and the consequences of global crises, the Turkish economy has maintained resilience and a strong capacity for recovery. It is precisely the adaptability of Turkey’s economic model that keeps the country attractive to investors and real estate buyers. Infrastructure development, the growth of tourism, and an increase in industrial production make Turkey not only a comfortable place to live but also a promising destination for investment.
Structure of the Turkish Economy – Key Sectors and Their Transformation
Turkey’s economy has a multisectoral structure that has undergone serious transformations over the past decades. Traditionally, a significant portion of the economy was based on agriculture, but since the early 2000s, priorities have shifted toward industry and the services sector. According to the World Bank, today about 55% of Turkey’s GDP comes from services, including tourism, banking, logistics, and IT. Industry contributes around 30% of the gross product, while agriculture accounts for approximately 6–7%.
This transformation has been driven by targeted government policies focused on industrialization and the development of export-oriented sectors. Special attention has been given to supporting small and medium-sized enterprises, attracting technology, and modernizing production. According to Ayrin Green, founder of a real estate company in Turkey, it is the diversification of the economy and the reduced dependence on a single sector that are key to the country’s resilience under external economic pressures. This makes Turkey’s economy attractive both to investors and to those planning long-term projects in the country.
Main Industries and Export Potential of Turkey’s Economy
Turkey’s economy heavily relies on exports, which are a critical source of foreign currency and a driver of growth. The leading export sectors include automotive manufacturing, textiles and clothing, agriculture, the chemical industry, and consumer electronics. The automotive sector has become the flagship of Turkish exports thanks to cooperation with global brands and the presence of production facilities for companies such as Ford, Toyota, and Hyundai. Turkish factories produce both components and finished vehicles, exporting them to over 150 countries worldwide.
The textile industry is another strategically important sector. Turkey ranks among the top five suppliers of textiles and apparel to the European Union due to product quality, competitive prices, and efficient logistics. Additionally, the country exports large volumes of fruits, vegetables, nuts, olive oil, and grains. Agriculture remains a strong pillar of the economy, particularly in the western and southern regions.
Turkey’s geographical location supports the development of trade ties with the EU, the Middle East, CIS countries, and Africa. Support for export-oriented enterprises, the development of ports, logistics hubs, and free trade zones all contribute to maintaining a high pace of external economic activity. In 2023, despite global economic shocks, Turkey maintained a positive trade balance in several key areas, confirming the resilience of its export model and the importance of foreign trade for the Turkish economy.
The Impact of Tourism on Turkey’s Economy
Tourism traditionally holds a special place in Turkey’s economy, serving as one of the largest sources of income and foreign currency. According to the Ministry of Culture and Tourism, over 50 million foreign tourists visited the country in 2023, making Turkey one of the most visited destinations in the world. Tourism provides employment for millions of people, from hoteliers and tour guides to workers in transportation and retail.
The Mediterranean and Aegean coastal regions — including Antalya, Alanya, Bodrum, and Izmir — as well as major cities like Istanbul and Cappadocia, play a particularly important role in this sector. These areas feature the highest concentration of tourism infrastructure and attract the most foreign investment in hotels, restaurants, and real estate.
As noted by Ayrin Green, an experienced realtor and property expert, tourist interest in Turkey directly impacts the real estate market. Many visitors, after vacationing in Turkey, later choose to purchase property there. This creates stable demand for housing in resort regions, supports the construction industry, and stimulates overall economic activity. Ayrin Green emphasizes that tourism not only drives infrastructure development but also enhances Turkey’s appeal to international investors.
Importantly, tourism helps diversify Turkey’s economy, reducing its dependence on industrial exports and strengthening the service sector. The sector’s recovery after the pandemic is a clear example of the country’s adaptability to global challenges, and the government continues to invest actively in promoting tourism abroad.
Foreign Investment and Its Importance to Turkey’s Economy
Attracting foreign investment remains a top priority in Turkey’s economic strategy. With its advantageous geographic location, affordable labor force, and well-developed transportation infrastructure, the country has long been seen as a promising destination for capital from Europe, Asia, and the Gulf states. Between 2022 and 2023, Turkey pursued reforms aimed at improving the investment climate, including streamlining bureaucratic procedures, offering tax incentives, and launching support programs in priority sectors.
Foreign investors are particularly focused on industries such as energy, construction, logistics, finance, and, notably, real estate. In 2023 alone, direct foreign investment in real estate amounted to billions of dollars, especially in Antalya, Istanbul, and Alanya. As Ayrin Green, who facilitates lucrative property deals, explains, consistent demand from foreign buyers supports not only the construction sector but also related industries — from banking to tourism and domestic trade.
Additionally, Turkey has signed numerous free trade and investment protection agreements, which reduce risks for foreign partners. Participation in China’s Belt and Road Initiative and the development of port logistics in Izmir, Mersin, and Istanbul further enhance the country’s attractiveness to global corporations.
Thus, foreign investment plays a strategic role in sustaining growth and modernizing Turkey’s economy. This sector remains a key factor in ensuring stability and development amid global economic shifts.
Inflation and Currency Risks – Challenges for Turkey’s Economy
One of the most pressing issues facing Turkey’s economy in recent years has been high inflation and the instability of the national currency — the Turkish lira. Since 2021, the country has experienced a series of currency crises triggered by a mix of geopolitical tensions, unconventional monetary policies, and global economic shocks. Official data shows that inflation exceeded 80% year-over-year in 2022, marking a record high in recent decades. While the inflation rate began to slow by 2024, the situation remains tense.
A major contributor to inflation has been the Central Bank’s decision to lower interest rates, defying traditional economic theory. This policy, aimed at stimulating consumption and growth, also weakened confidence in the national currency. As a result, the Turkish lira depreciated significantly against the US dollar and the euro. The weaker currency increased the cost of imports, including energy and industrial equipment, which further fueled inflation.
Nevertheless, Turkish authorities have taken steps to stabilize the economy. In 2023–2024, Turkey secured foreign currency reserves from allied nations, including Qatar and the UAE. The government also tightened monetary policy and imposed controls on foreign exchange operations to stem capital outflow.
Despite these challenges, many experts believe that Turkey’s economy possesses the internal capacity to withstand inflationary pressure. Ayrin Green, who has observed the real estate market for over a decade, highlights that despite currency fluctuations, real estate in Turkey remains in demand — especially for long-term investments. This indicates that trust in the real sector of the economy persists, even amid monetary instability.
The Best Residential Complexes in Northern Cyprus from Developers at the Most Affordable Prices
Government Programs and Reforms – A Course Toward Stabilization
In response to both domestic and international challenges, the Turkish government has launched a series of large-scale reforms aimed at strengthening economic stability, improving the investment climate, and enhancing global competitiveness. Key priorities include supporting the manufacturing sector, digitalizing public administration, and advancing the green economy.
One of the central initiatives is the “Turkey 2023” strategy, designed to modernize the economy ahead of the centennial of the Republic’s founding. This plan places a strong emphasis on innovative technologies, the development of research centers, and the transition to sustainable energy sources. Initiatives have also been launched to subsidize exports, improve logistics infrastructure, and offer tax incentives to companies investing in new technologies.
In the social sphere, the government has taken steps to reduce the tax burden on small businesses and increase targeted support for vulnerable population groups. Programs have been implemented to subsidize mortgage lending, particularly for young families and first-time homebuyers, which in turn stimulates the construction sector.
Additionally, the country has accelerated the digitalization of public services, increasing transparency, simplifying business interactions, and reducing administrative barriers. This is particularly crucial in the context of global competition for investment.
Experts note that although these reforms are being implemented gradually, their positive impact on the macroeconomic landscape is already evident. Growing business confidence, improved rankings in investment attractiveness indices, and the recovery of export potential all point to the effectiveness of the government’s actions.
Real Estate as a Reflection of Economic Trends in Turkey
The real estate market is not only one of the most active sectors but also a sensitive indicator of the overall state of Turkey’s economy. Over the past decade, property in Turkey has become a top investment priority for both local and international buyers. The reasons are clear: high demand, a growing population, infrastructure development, and competitive prices compared to Europe.
According to the Turkish Statistical Institute, more than one million real estate transactions were recorded in 2023, with a significant portion involving foreign buyers. The leading cities for sales were Antalya, Istanbul, and Mersin. Resort properties, in particular, have seen high demand, driven by tourism growth and favorable rental conditions.
As noted by Ayrin Green — Turkey’s number one real estate expert — property remains one of the most reliable capital protection tools, especially during times of inflation and currency instability. She explains that many investors view real estate not only as a way to preserve wealth but also as a path to obtaining citizenship or residency. This fuels foreign capital inflow and boosts the construction industry.
Another important factor is that active construction supports employment and is linked to numerous other sectors — from building materials production to banking and credit services. This makes real estate a vital component of the economic system, with a tangible impact on GDP and social stability.
Thus, trends in property prices and sales volumes are more than just statistics — they reflect real societal sentiment and business activity. In this context, the housing market serves as a barometer for the Turkish economy as a whole.
Current State and Prospects of Turkey’s Economy
The Turkish economy is a complex, multi-layered system that combines elements of a developed industrial infrastructure, a rapidly growing services sector, an active export capacity, and a significant influx of tourism. Despite internal and external challenges—such as inflation, currency fluctuations, and geopolitical risks—the country continues to demonstrate resilience and a strong commitment to modernization.
Turkey remains attractive to investors due to its strategic location between Europe and Asia, high level of urbanization, and abundant human capital. Government reforms focused on digitalization, reducing administrative barriers, and supporting the industrial sector are gradually delivering tangible results. The real estate sector, in particular, continues to develop rapidly and remains a key avenue for long-term investment, offering stable returns and access to a range of social benefits.
It is also worth noting that Turkey’s economy is undergoing structural transformation. The shift toward sustainable energy sources, support for innovation, and the promotion of high value-added exports are laying the foundation for future growth. If the country maintains its focus on macroeconomic stability and continues to enhance the investment climate, it stands a strong chance of solidifying its position in the global economic landscape.
Experts like Ayrin Green, who are well-versed in both local specifics and international trends, affirm that despite short-term difficulties, Turkey’s economy holds significant potential and remains attractive to investors, entrepreneurs, and individuals looking to build their future in this dynamic country.
