Last Updated on December 28, 2023 by Aydoğan Aknar
Lucrative Investment for Foreign Businesses, A Haven for Foreign Investments
Antalya, renowned as one of Turkey’s prime holiday destinations, has evolved beyond its allure for vacationers. It has emerged as a hub for lucrative investment for foreign businesses, with a notable surge in foreign-owned businesses, especially following the Russia-Ukraine conflict. Let’s delve into the details of this economic transformation and explore the sectors that have become magnets for foreign entrepreneurs.
Antalya’s magnetic pull extends beyond sun-seekers and beach lovers. In recent years, the city has witnessed a remarkable influx of foreign businesses, turning it into a hotspot for international investments. This surge can be attributed in part to the geopolitical shifts, notably the conflict between Russia and Ukraine, prompting a significant wave of relocations to Antalya.
Business Landscape in Antalya
The statistics speak volumes. Antalya boasts more than 6,000 companies owned by foreigners, with Russians leading the pack at 1,224 businesses. Germans and Iranians follow closely, with 751 and 676 companies, respectively. The sectors of wholesale and retail food, real estate, construction, and travel agencies have become focal points for foreign investors.
Impact of Geopolitical Events
The outbreak of the Russia-Ukraine war acted as a catalyst for foreign businesses flocking to Antalya. The city became a sanctuary for those seeking stability and opportunities amidst the geopolitical uncertainties. Notably, a substantial number of individuals from Russia and Ukraine have relocated to Antalya, further boosting the demand for housing and subsequently driving up property prices.
Key Business Sectors
- Wholesale and Retail Food Businesses Foreigners are actively involved in 495 companies within this sector, reflecting the global appeal of Antalya’s culinary landscape.
- Real Estate Market With 478 firms operating in real estate, it’s evident that the housing market is a key draw for foreign entrepreneurs.
- Construction Companies Over 450 construction companies owned by foreigners highlight the city’s growth and development.
- Travel Agencies and Tour Operators Antalya’s allure extends beyond its borders, attracting entrepreneurs to establish 410 travel-related businesses.
Antalya’s Tourism and Housing Market
The city welcomes approximately 10 million international holidaymakers annually, creating a vibrant tourism sector. The recent influx of people from Russia and Ukraine has significantly impacted the housing market, leading to a surge in rents and property prices.
Real Estate Market Statistics
From January to September, foreign nationals purchased a total of 10,372 houses in Antalya and Alanya. However, this figure reflects a slight decline from the previous year, indicating fluctuations influenced by external factors. In September alone, foreign nationals acquired 1,007 homes, underscoring the sustained interest in Antalya’s real estate market.
House prices in Antalya witnessed a substantial 100% leap in the third quarter of 2023 compared to the previous year, reaching 32,258 Turkish Liras ($1,147) per square meter. Concurrently, the average rent price in the city stood at 16,574 liras ($589) in the same quarter.
Agriculture Industry and Foreign-Owned Companies
Antalya’s well-developed agriculture industry is not exempt from foreign influence. The city hosts 355 foreign-owned companies engaged in the trade of agricultural products, further diversifying the economic landscape.
Business Launch Trends
From January to September, foreigners initiated a total of 666 companies in Antalya. Russians led the way with 238, followed by Germans and Iranians with 59 and 57 businesses, respectively. Ukrainians and Azeris also contributed to the entrepreneurial landscape with 44 and 36 companies.
Economic Impact on Antalya
The influx of foreign businesses contributes significantly to Antalya’s economy. While presenting opportunities, it also poses challenges that the city must navigate to sustain this growth. The integration of diverse businesses adds a layer of richness to the local economy, fostering a dynamic environment.
Antalya’s transformation from a holiday haven to a global business hub is a testament to its resilience and adaptability. The city’s ability to attract foreign investments, particularly during challenging times, underscores its appeal as a strategic destination for entrepreneurs. As Antalya continues to evolve, the future holds promising opportunities for both locals and the growing international community.
- How did the Russia-Ukraine war influence business in Antalya? The war acted as a catalyst, prompting a significant increase in foreign-owned businesses in Antalya.
- Which sectors attract the most foreign investments in Antalya? The wholesale and retail food business, real estate, construction, and travel agencies are key sectors for foreign investors.
- What is the impact of the war on the housing market in Antalya? The influx of people from Russia and Ukraine has driven up rents and residential property prices in the city.
- How many foreign-owned companies are there in Antalya’s agriculture industry? Antalya hosts 355 foreign-owned companies engaged in the trade of agricultural products.
- What are the prospects for Antalya’s economy in the future? Antalya’s diverse business landscape suggests promising opportunities, but challenges need to be navigated for sustained growth.