Turkey Real Estate 2023: Trends and Investment Outlook

Turkish Airlines is soaring to new heights in 2023, with a remarkable 20% increase in passenger numbers during the first eight months of the year. The national flag carrier served an impressive 56 million passengers during this period, compared to 46.7 million in the same timeframe last year. Notably, international-to-international passengers saw a substantial 34% rise, reaching 19.7 million, showcasing the airline’s tremendous growth in this sector. With a Passenger Load Factor (PLF) of 82.9%, Turkish Airlines continues to efficiently manage its resources, providing travelers with an outstanding experience.

While the airline’s passenger business is thriving, there is some concern regarding a 6.9% reduction in cargo or mail traffic. Nevertheless, Turkish Airlines remains committed to meeting its customers’ cargo needs and recently approved the acquisition of ten additional Airbus A350-900 aircraft. This strategic move will further strengthen the airline’s position in the region and ensure an exceptional travel experience for its passengers as it continues to expand its impressive fleet of 428 aircraft.

Istanbul, Turkey’s largest city, recently witnessed a remarkable surge in foreign tourist arrivals during July, hitting a decade-high record of approximately 1.87 million visitors, signifying a 6% increase compared to the same period in the previous year. This surge in tourism can be largely attributed to the growing number of holidaymakers from Europe, particularly Germany and the United Kingdom, along with a notable influx of visitors from Russia. These positive trends have important implications for Turkey’s economy, as tourism plays a vital role in generating revenue and employment opportunities.

From January to July, Istanbul welcomed nearly 9.78 million foreign tourists, marking a substantial 15% increase from the same period in the previous year. This figure accounts for nearly one-third of the 26.77 million tourists who visited Turkey during this timeframe. The Turkish government’s commitment to boosting tourism as a means to reduce the current account deficit and tackle inflation is proving successful, with predictions of 60 million foreign arrivals in 2023 and 90 million by 2028. This growth is expected to lead to significant economic benefits, as tourism contributes approximately 10% to Turkey’s GDP and employs around 1.7 million people in accommodation and food services, accounting for about 5% of total employment in the country.