Friday 3rd September 2010
The race for a place in Turkey's OSBs
Demand for plots in Turkey's Organized Industrial Zones (OSBs) has been so great that some OSBs have sold out, which is testament to the magnificent growth that Turkey has seen in the first quarter of this year. Indeed, the Turkish economy surged by 11.7 percent in the first quarter of 2010, making second only to china in terms of positive growth.
In the Manisa OSB, for example, there has been a significant increase in investment. Investment in new business is already at TL 904 million, and employment in the OSB will rise from 24,000 to 50,000 once all projects that are in process have been completed. In fact, in 2005, Manisa emerged as the leader of 200 other European cities to be selected by the financial times as: “The Best and the Most Suitable Investment City”.
The chairman of the Manisa OSB, Sacit C. Türek, says that an abundance of business activity in the province is the major reason for the huge interest that has been shown. He goes on to claim that the vast majority of companies that have invested in the OSB have international connections.
Between the Kayseri and Tire OSBs, a total of 40 companies have begun investment projects this year. Kayseri OSB chairman Ahmet Hasyüncü points out that in 2003 the OSB had 400 industrial companies whereas that figure now stands at 860, with employment increasing to 50,000 people from 30,000 people.
Such has been the demand for plots in the Tire OSB that its chairman Kamil Porsuk, claims that there are no longer any plots available despite having many vacancies during the economic crisis. Something that might disappoint potential investors to the OSB, but says a great deal for investment prospects in Turkey in general.
In the Aliağa OSB, 15 companies have committed to new investments this year with the OSB's chairman, Atil Akkan, stating that: “The investment climate is perfect these days. The companies that recently began production are running at full capacity.
With the Turkish government being asked to allocate more and more land to the OSBs, it may not be long before they are all at maximum occupancy meaning that many companies are moving quickly so as not to miss out.
Property investors are benefiting from Turkey's strong economic growth by investing in the most up and coming residential area within Istanbul, called Beylikduzu. Review one of our Istanbul Property Investments and download the Investor Report for further information.