THE INVESTMENT MAP OF THE FUTURE | #03 FOLLOW THE WATER WATER SECURITY IN INDUSTRIAL INVESTMENT
Adding a Water Security Layer to the Industrial Map
For years, we have been asking the same questions about industrial investment: Is the land suitable? Is energy available? What is access to motorways and railways like? How far away is the port? Is labour available? In our view, the quantity, quality and long-term supply of water should have a more prominent place in this assessment.
Food, textiles, chemicals, metals and many other production processes require water. From cooling and process water to cleaning and steam generation, water is a fundamental part of the infrastructure that affects a factory’s production continuity.
The Ministry of Agriculture and Forestry’s Water Efficiency Campaign framework draws attention to the pressure on Türkiye’s water resources. The assessment that water shortages could occur from 2030 onwards if the necessary conservation and efficiency measures are not taken should be understood as a conditional projection. Source: Water Efficiency Campaign.
Published on 14 March 2026, the National Water Plan 2026–2035 emphasises planning according to water availability. By considering water alongside the needs of production, energy, food and ecosystems, this framework also raises an important question for real estate investment: Is the planned production compatible with water conditions in its basin? Source: National Water Plan announcement.
The Ministry of Industry and Technology’s Industrial Areas Master Plan aims to expand planned industrial areas from 160,000 to 350,000 hectares. In the first phase, 16 new investment areas covering a total of 59,000 hectares were announced in 13 provinces along the Samsun–Mersin corridor. These figures refer to the targeted expansion and designated areas, rather than completed facilities. Source: Industrial Areas Master Plan announcement.
The Ministry’s site selection criteria encompass earthquake and disaster risks, logistics connections and the efficient use of water resources. In our view, this reinforces the need to assess industrial land alongside the long-term requirements of production. Source: Selection criteria for new industrial areas.
Water Allocation and Production Continuity
An industrial area occupying a large space on the map is not sufficient in itself. Just as energy and logistics connections matter, so does a reliable supply of water suitable for the production process. Disruptions to water supply can affect production capacity and operating conditions, particularly in water-dependent processes.
According to the actual figures for 2021 published by the Ministry, agricultural irrigation accounted for approximately 77 per cent of total water use. This historical figure shows that water planning for industry cannot be considered separately from the needs of agriculture and settlements. Source: Agricultural water use data.
As industry grows, new facilities may depend on a resource shared with cities, agriculture and ecosystems in the same basin. Investment analysis should therefore ask not only where water will come from, but also under what allocation conditions and how it will be supplied during dry periods.
Assessing Industrial Investment in Konya in the Context of Basin Conditions
The Konya Closed Basin is an important example for considering the water needs of agriculture, industry and settlements together. The Ministry’s basin management work likewise addresses drought, water resource conservation and efficient use together. Source: Konya Closed Basin management assessment.
Assessing an industrial site in Konya solely by its proximity to an organised industrial zone (OSB) or a ring road may therefore be incomplete. Where will the water for the new investment come from? Will reclaimed water be available? Is the industrial water infrastructure adequate? How will dependence on groundwater be managed?
Industry and Water in the Aegean Should Be Read on the Same Map
The Ministry of Agriculture and Forestry’s 2024 activity report lists Gediz, Küçük Menderes and Büyük Menderes among the basins for which sectoral water allocation plans have been prepared. This planning approach is based on assessing water demand at sector and basin level. Source: Ministry’s 2024 activity report.
When examining an industrial investment in Manisa, Kemalpaşa, Denizli or Aydın, the basin in which the parcel is located, its water supply system, wastewater infrastructure and reuse capacity should be considered alongside port and motorway access. Sites with the same industrial function may face different water supply risks; the effect of this difference on value should be investigated for each property individually.
Water Efficiency and Reuse in Industry
Following the water does not mean looking for land close to a water source. In the industrial areas of the future, a strategic advantage may also arise from the capacity to maintain the same production with less freshwater.
The Water Efficiency Strategy Document and Action Plan 2023–2033 sets a target of water savings of up to 50 per cent through cleaner production techniques and efficiency measures in industry. This figure is not a saving that has been achieved or guaranteed for every facility. Applicability must be assessed according to the production process, existing technology and water quality. Source: Water Efficiency Strategy Document and Action Plan.
Closed-loop cooling, treated water reuse, rainwater harvesting and process optimisation are among the practices that can be examined in this context. From an investment perspective, what matters is whether the solution is appropriate for the facility’s production needs and infrastructure.
The Ministry of Environment, Urbanisation and Climate Change’s project on treated wastewater reuse in organised industrial zones also supports this direction. According to the Ministry’s launch announcement, the project, scheduled for completion in November 2026, aims to assess reuse potential; this timetable does not mean that implementation has been completed in all organised industrial zones. Source: Circular water management project in organised industrial zones.
What the Water Resilience Premium Means
We use the term “Water Resilience Premium” to describe the strategic advantage that reliable water supply, treatment, reuse and the capacity to sustain production during dry periods may offer industrial real estate.
The concept does not represent a measured market price differential or a guaranteed increase in value. It is a perspective we propose for assessing the possible effects of water management capacity on a property’s risks and long-term use.
The question to ask goes beyond whether there is a river nearby: Does this industrial area have a water system capable of supporting production over the long term?
Investment Analysis from Anadolu Properties’ Perspective
At Anadolu Properties, we believe that energy, railways, motorways, ports and industrial areas must be assessed together with water security when mapping the investments of the future. Land prices alone do not explain the conditions that affect production continuity.
When comparing an industrial area in Konya with one in another basin, the quality of the water source and the pressures it faces should also be examined. When assessing an investment in Manisa or Denizli, the relevant basin’s allocation plan and the facility’s actual water needs should be considered alongside port access.
In our pre-investment review, we seek answers to the following questions:
- Water supply and allocation: From which source and under what allocation conditions will water of the quantity and quality required for production be supplied?
- Basin and drought: How are existing water pressures, groundwater dependence and conditions during dry periods being assessed?
- Infrastructure and reuse: Is the capacity for treatment, reclamation and alternative water supply compatible with production needs?
- Property suitability: What do water conditions indicate when considered alongside zoning, ownership, industrial use, environmental constraints and valuation data?
The indicators monitored should not be limited to reservoir storage levels. Water planning for new industrial areas, reclamation investments in organised industrial zones, treatment facilities and dry-period allocations should also form part of the analysis.
Understanding Future Industrial Value through Water Management
The expansion of Türkiye’s industrial map is making water management a more visible part of investment decisions. In our view, tomorrow’s industrial investor should ask not only whether a factory can be built in a location, but also under what conditions production can be sustained there for 20 years.
The distinction between land with water and land where water can be managed is central to this perspective. Proximity to a source alone does not ensure an increase in value; water allocation, infrastructure, basin conditions and the property’s legal and technical suitability must be assessed together.
Following water on the investment map of the future means investigating which data support production continuity.
Mustafa Yılmaz
CEO – Anadolu Properties
Europe–Türkiye Investment Bridge
