€5 Billion in New Commitments: Why French Capital Deems Turkish Real Estate a Strategic Asset

The recent report by the Turkish-French Chamber of Commerce (CCIFT) is not just statistics; it is the strongest possible endorsement of the long-term resilience of the Turkish economy. French and Franco-Turkish companies have already poured €3.6 billion ($4.1 billion) between 2020 and 2024 and, critically, plan to inject an additional €5 billion ($5.76 billion) over the next three years.

This massive, strategic inflow of foreign capital is a critical signal to real estate investors: the largest European corporations view Turkey not as a temporary market, but as a long-term, competitive global hub.

The Scale and Depth of French Engagement

The CCEF "Sustainable Impact" report proves that the French capital presence is a fundamental pillar of the Turkish economy:

- GDP Contribution: French companies contribute 1.6% of Turkey's GDP, amounting to approximately €18.7 billion annually, showcasing their indispensable role in the country's economic dynamism.

- Employment and Demand: These companies directly employ more than 143,000 people (and approximately 385,000 indirectly). This cohort of highly skilled, high-earning employees creates stable, growing demand for quality residential and commercial real estate in key cities like Istanbul, Izmir, and the major industrial zones.

- Strategic Production: With 197 production facilities across the country, these companies position Turkey as a competitive production hub for global markets (22% of turnover is exported).

Long-Term Confidence and Innovation

What is particularly important for investors is not just the numbers, but the quality of the investment:

- R&D Commitment: Between 2022 and 2024, €700 million was invested in R&D and innovation. 52% of the companies conduct joint projects with universities. This signifies that French capital is creating a sustainable value chain through knowledge transfer and technology, ensuring the long-term prosperity of the economy.

- Resilience: The presence of giants like Oyak-Renault, Sanofi, and Alstom confirms that even during economic fluctuations, these companies maintain their partnerships and long-term confidence in the country.

- ESG Factors: The emphasis on social equality and environmental responsibility (71% of companies conduct annual carbon footprint assessments) attracts responsible and sustainable investments to Turkey, enhancing the country's overall investment profile.

For the real estate investor, this is a clear indication that the world's largest corporate investors have already made their decision: Turkey is a strategic base for growth. The planned €5 billion in additional investment over the next three years will not only boost employment and GDP but will further drive real estate appreciation, especially in the areas hosting these 197 production facilities. Investing now is an opportunity to follow the "smart capital" of Europe.