In 2020, foreign direct investment net inflows excluding the real estate sector fell to negative for the first time in Turkish history.
Foreign direct investment inflows to Turkey have been decreasing in recent years and last year dropped to minus levels for the first time in the country’s history. In other words, when the real estate market was excluded from the equation, there was a net direct investment outflow from Turkey.
According to the Central Bank of Turkey (CBRT) data, net direct capital inflow excluding real estate was minus 424 million dollars. More accurately, 424 million dollars of foreign direct investment wall pulled out of the Turkish economy. CBRT data, which dates back to 1984, reveals that this has never happened before in the history of Turkey. In 2019, foreign direct investment was $1.146 billion.
In the first 11 months of 2020, Turkey received 6 billion 53 million dollars of foreign direct investment inflow. Real estate investments of foreign investors constituted 64.2 percent of the stated figure with 3 billion 888 million dollars.
During this period, Domestic investors have invested $2 billion 589 million abroad. Also, net direct investment inflow including real estate was 3 billion 464 million dollars. However, when the net real estate investment inflow of 3 billion 888 million dollars was excluded, net direct investment inflow fell to negative.
During the first 11 months of 2020, Foreign direct investment including real estate reached $3.5 billion, became the second least figure in history after 2004. When looked back, foreign investment numbers were considerably impressive for Turkey. In 2019 it was $6.2 billion, $9.4 billion in 2018, and in 2015 14.2 billion foreign direct investment was recorded, and in 2006 it reached a record high of $19.9 billion in total.
According to Turkey Statistical Institute (TURKSTAT) data, 40,812 houses sold in Turkey in 2020. The number was relatively low compared to 45 thousand 483 in 2019, however better than expected considering the pandemic.
Iranian citizens bought 7 thousand 189 houses last year, followed by Iraq with 6,674, Russia with 3,078, Afghanistan with 1,929, and Azerbaijan with 1,279.
Translation: Cem Cetinguc