Türkiye’s direct investments abroad continue to rise, led by real estate

Türkiye‘s direct investments abroad have experienced a consistent increase, particularly driven by a strong surge in real estate transactions. In September, Türkiye’s outbound direct investment reached $236 million, with $149 million allocated to real estate acquisitions.

Meanwhile, inbound investments into Türkiye totaled $434 million, of which $164 million came from real estate.

Key figures

• Outbound direct investment (September 2024): $236 million, primarily driven by real estate purchases.
• Inbound direct investment (September 2024): $434 million, with $164 million from real estate investments.
• Net capital inflow (September 2024): $649 million, contributing to a total of $3.443 billion for the January-September period, compared to $2.7 billion during the same period last year.
• Outbound investment (January-September 2024): $3.631 billion in total, reflecting Türkiye’s continued trend of investing abroad, especially in real estate.

Real estate investment surge

Real estate has become a key factor in Türkiye’s foreign investment strategy. In the first nine months of 2024, real estate investments abroad reached $1.83 billion, a significant increase compared to $1.44 billion in the same period last year.

This highlights the growing importance of the real estate sector in Türkiye’s international investment portfolio.

Weakness in global investment environment

Despite some improvements, the global investment landscape remains weak, with Türkiye still facing relatively low levels of international direct investment.

However, the inflow of foreign capital into Türkiye showed a modest increase, with foreign direct investment totaling $3.86 billion in the January-September period, compared to $3.63 billion in outflows.

Real estate’s dual role

Both inbound and outbound real estate investments are playing a significant role. While Türkiye has been exporting capital in the real estate sector, it has also seen substantial investments flowing into the country.

Total inbound real estate investments for the January-September period amounted to $2.95 billion, making it a central area of focus in Türkiye’s foreign investment inflows.

Looking ahead

Türkiye’s economy continues to face challenges in attracting international investments, but there are signs of gradual improvement, particularly in the real estate sector.

The country’s growing role as a capital exporter is evident, with a large portion of its investments directed abroad, especially in real estate.