The Relationship Between Migration and Investment in the World

Mr. Bayram Tekçe, Chairman of Tekce Overseas, talked about the relationship between global immigration and investment. The presentation will be held at the Re360 Real Estate Meetup on December 7, 2022. Mr. Tekçe also serves as the Vice-Chairman of the Association for the Promotion of International Real Estate (GİGDER). He also chairs the research and publication committee within the association.

The main purpose of the summit is to educate the public about the relationship between various issues. These topics include real estate, investment, immigration, sustainability, climate change, infrastructure, development, digitalization and more. Mr. Tekçe spoke on topics such as immigration, investment and the latest book published by GİGDER. To educate the public and investors, GİGDER has published a series of books.

Previous books have examined foreign investor preferences and compared government policies towards foreign direct investment. The latest book is titled "Immigration and Investor Relations in the World". It showcases in-depth industry research and looks into the future. The following are highlights from the speech and book;

Foreign real estate investment in Turkey should be encouraged

According to statistics, the global real estate industry has an annual flow of 400 billion US dollars, including international procurement. Turkey is one of the top 10 countries for real estate investment. However, Mr. Bayram Tekçe said Turkey was not living up to its potential. In his opinion, entering the top 5 should be Turkey's goal.

He pointed out that appropriate measures should be taken to promote foreign real estate investment in Turkey to achieve this goal. He explained that foreign direct investment in real estate is an important source of income for countries around the world. This contributes significantly to their economic growth.

He went on to say that Turkey's real estate market has the potential to contribute significantly to economic growth. But moves to attract foreign direct investment (FDI) are not enough. According to Mr. Tekçe, the government should encourage foreign direct investment through appropriate policy and investment program selection for different needs.

According to Mr. Tekçe, Turkey's first goal should be to attract high net worth individuals (HNWI). HNWIs are individuals with assets over $1 million. Wealthy people generally prefer to spread their investments. In this regard, a country that offers favorable living conditions is more suitable for high-net-worth individuals to invest in.

For this reason, many countries are trying to attract these people. It is said that if the conditions remain unchanged, Turkey will become the seventh preferred country by 2025.

Mr. Tekçe and Mr. GİGDER pointed out that the definition of irregular and regular migrants should be clarified in public opinion. This is crucial to attract high net worth individuals (HNWI) to invest in Turkey. So what is immigration, what is immigration, and what is the difference between irregular and regular immigration?

Migration is the movement of people from one place to another in order to settle. The term immigrant is usually used for people who move permanently between different countries. Irregular migration is the movement of people from one country to another without permission. In some cases, these persons can gain protection and rights through refugee status on humanitarian grounds.

But irregular immigration is of course seen as a security issue because of the difficulty of identifying it. Regular immigration, on the other hand, defines the movement of people with their permissions and rights under the law. Regular migration can arise for many different reasons. These reasons might be retirement, the economy, living in a better natural environment or climate, or access to better public services.

Whatever the reason, regular immigration provides a skilled workforce, diversity of consumers, greater visibility on the international stage, and cash flow. Therefore, it can contribute to the growth of the Turkish economy.

Immigrants should be provided with various investment immigration opportunities

Mr. Bayram Tekçe also pointed out that various real estate investment programs should be offered to immigrants. The resettlement needs of immigrants should be considered to attract the skilled and wealthy. Investing in real estate is often considered the best way to move and overcome the difficulties of immigrant visa extensions.

People often prefer to obtain a residence permit by purchasing real estate. Countries generally attract more FDI through residency programs than through naturalization programmes.

However, sometimes a residence permit does not meet the needs of Turkish immigrants. When this happens, some people turn to citizenship options, and some people start to rethink their relocation plans. In the end, this situation can be frustrating for many.

Mr. Tekçe noted that Turkey could attract more foreign direct investment and qualified personnel. This can be achieved by offering various real estate investment options for residency status in Turkey. Mr. Tekçe and GİGDER proposed a three-tier residency and citizenship program to achieve this.

According to books published by GİGDER, this three-step program includes a silver visa, a golden visa and a citizenship program. The Silver Visa is the first step in the program. It is reserved for those wishing to relocate for education, retirement and holiday purposes.

Silver Visa Program as a visa type with minimum investment requirements. On the other hand, the Golden Visa will require immigrants to invest in more real estate in Turkey. This type of visa is for people who want to work in Turkey or move to Turkey permanently.

Countries such as Spain, Portugal, Greece, Southern Cyprus and Malta have had golden visa schemes in place since the 2010s. These countries are located in the same region as Turkey. Therefore, according to Mr. Tekçe, they are direct competitors of Turkey in terms of foreign direct investment.
Turkey could also attract significant foreign direct investment, as these countries have done over the past decade. This can be done by implementing appropriate procedures.

Digital nomads are the new target for investment project residency

Globalization, the development of better communication channels and the recent pandemic have affected everyone's outlook and lifestyle. In the wake of these events, thousands of companies have shifted to remote working. This situation has led to a massive increase in the number of digital nomads.
A digital nomad is someone who lives abroad but still works remotely in order to work in their home country. Some of them adapted to a completely nomadic life, traveling to other countries every few months. On the other hand, some people prefer to settle in the country where they have always dreamed of living.

Regardless, digital nomads can also make significant contributions to the host country’s economy through investments and purchases. After all, digital nomads are typically highly skilled workers earning around $119,400 a year. The market's total investment potential is estimated to be $21.4 billion, currently growing at 23% per annum. The growth of this market is expected to continue until 2025.

Because of this, many countries are looking for ways to attract digital nomads. The number of countries offering residency to digital nomads through investment is growing. In the past two years, it has grown from 27 to 49.

Some countries have already taken necessary legal measures to ease the living conditions of digital nomads. Includes Germany, Spain, Greece, Norway, Malta, Italy and Cyprus.

According to Tekçe and GİGDER, the Turkish government should also take necessary legal measures. And promote Turkey as the best country in the world for digital nomads.

Citizenship is a mark of dedication and prestige

According to Tekçe and GİGDER, Turkish citizenship should be a sign of dedication and prestige. Currently, many foreign investors and ordinary immigrants who only want to live in Turkey for specific occasions are applying for citizenship. This happens because of a lack of alternatives.

Obtaining Turkish citizenship becomes a mark of dedication and prestige, as it should be in this proposed three-step plan. This way, only foreigners who have a genuine connection with Turkey and a sense of belonging will apply for citizenship.

Ultimately, this three-tier immigration-investment program can elevate Turkey's standing on the international stage. Ultimately, it will improve the lives of everyone in Turkey.