Turkey offers attractive investment opportunities to investors who wish to catch the start of a property market that is on the verge of explosive growth. Surviving the economic crash few years back, it has emerged stronger to resist the current phase of global economic slowdown. The property market of Turkey has evolved from providing cheap housing to urban population, to an ever increasing number of overseas investors wishing to invest in property for holiday lets. Turkey has recently started the process of gaining membership into European Union, and whilst this may be a lengthy process it will add significantly to the economy and to the property market in specific. The government has recently introduced new legislation to enable foreigners buy property in Turkey, and is endeavoring to make the real estate transactions more transparent and easy to transact. This has fuelled an unprecedented demand for Turkey properties, especially in the coastal areas.

Majestic mountains, rivers, crystal clear seas with long sandy beaches are the main attractions of this splendid country. Long summers, relaxed lifestyle and a low cost of living have made it a preferred retirement destination for many Europeans. It has a huge population of wealthy middle class looking for affordable property. Officially, there is a shortage of more than 2.5 million houses in Turkey, therefore creating a large demand for re-sales of property which is ideal for the investor. Depending on location and quality of the property, Turkish properties can produce capital appreciation in the order of 25% to 30% per annum. By investing in solid projects in the best locations at the off plan stage, investors can buy at discounted rates and sell on prior to project completion. A short term investment of this type can reap significant benefits.

Long-term investors looking to make some money along with owning a property can be assured of a rental yield of 5-10% in addition to a healthy appreciation of the investment. A massive growth of 13.1% of foreign visitors, mainly from Austria, France and Slovakia has aided the growing demand of real estate. There are certain areas where investments in properties have yielded better returns owing to domestic or foreign interest. Areas such as Bodrum, Western Mediterranean and in particular Istanbul have experienced significant returns.

American eye on Cevizlibag

Hürriyet

ISTANBUL - A business center with 400 offices in Cevizlibag is to be erected by American real estate company Coldwell Banker, sitting on a 30,000 square meter lot, near a busy bus stop. They have invested $50 million in this project to be launched in two months

American real estate company Coldwell Banker now has an eye on the Cevizlibag district after completing studio apartments in Beylikdüzü.

A four-block apartment project consisting of 320 flats will be wrapped up in May. Coldwell Banker’s Turkey CEO Gükhan Isik said they will push the button again in May for a business center with 400 offices in Cevizlibag. The building to sit on a 30,000 square meter lot is near to the bus stop, said Isik, adding that they invested $50 million in this project to be launched in two months and be finished in 18 months.

The global economic crisis will not affect "the correct" projects, he said. "We researched the market and are serious about our business. Several business connections are being established in the Cevizlibag region. Yet many companies are running business in small and inefficient offices. Metro, Metrobus and tramway stops are nearby. No one has considered investing in the area but we know that we will quickly sell the offices."

The company’s signature project titled "Studio Life" is in Beylikdüzü, its first housing project in Turkey. Ninety percent of the flats are 42 to 66 square meters and the rest is 86 to 92 square meters. Isik said over 300 of 320 flats were already sold; most were sold to investors. Thanks to overseas branches around the world, Coldwell Banker in this project sold about 100 flats to foreigners with British and Dutch citizens among the top buyers. They made a first with studio apartments project and others are following their footsteps.

"People are not only looking for a place to live but also buying a quality of life. There were those who underestimated us and said, ’These are like a henhouse.’ The size of a flat is not important. But the important thing is whether it is enough for you. I am living in a similar one and it is a good quality place. Our ’Studio Life’ project is in a five-star hotel category. Prices vary between 63,000 and 115,000 Turkish Liras." In addition to the office project in Cevizlibag, Isik said they wanted to begin a new housing project in Istanbul’s Anatolian side. Coldwell Banker plans to build both studio and normal-size flats in this project. The company keeps looking for appropriate lots for construction but they prefer to have one in Pendik and Atasehir. Isik said they have other lots in Maslak and Gaziosmanpasa on the European side.

Coldwell Banker plans to offer 20 franchises in 2009, 15 of which will be in Istanbul and remaining five will be in cities with population over 1 million. "Potential buyers in Turkey are thinking how to eliminate real estate agents in a business deal. Agents who fail to offer descent consultancy services are to be blamed. If a potential customer is going after a few hundred liras in closing deals, then it means realtors are not offering good services. We will use our international experience in our franchises. For instance, our Ümraniye office will be able to sell a house in Canada. Since we are the project builder at the same time, the duty and advantage of the franchiser will be to rent or to sell in similar projects."

Founded in United States and having worldwide investments, Coldwell Banker is a 103-year-old company with about 4,000 branches and 130,000 real estate agents in 35 countries. The company is an affiliate of the Cendat Group, which owns 10 hotels chain including Ramada, Days Inn and Wyndham in addition to travel agencies and car rentals such as AVIS and Budget. Coldwell Banker’s turnover in 2008 is announced as about $450 million. They also plan to have a university in Turkey, similar to the Coldwell Banker University in the United States established for education and training of new comers in the sector.

 

Investing in property in Turkish coastal areas

Hürriyet Daily News News

ISTANBUL - According to a leading British tour operator, Turkey has knocked Spain off the top spot in terms of being the most popular summer holiday destination for Britons in 2008.

This may not seem so significant, until one remembers that Spain had dominated that top spot for the past 30 years. It seems that the appeal of Turkey is rising and rising and in the words of the Association of British Travel Agents, Turkey is enjoying "spectacular growth," according to Rhiannon Davies from Shelter Offshore, an online publication.

The World Travel and Tourism Council predicts that Turkey's period of growth has really only just begun. They predict that over the coming decade the rate of growth in the tourism sector will reach at least 5 percent annually, which is fantastic news for a nation that is already seeing its economy go from strength to strength.

In recent weeks the nation's currency has slightly recovered from deep falls against the dollar, and as Turkey continues its slow but steady march towards European Union entry, doing everything that is required of it to secure entry, international confidence is rising in this nation.

In the interim, however, the Turkish economy is considered emerging, the nation is largely cash driven and therefore property prices remain low. Mortgages are expected to boost the market, and as big name property developers such as Dubai's Emaar Properties enter the real estate market, so internationally speaking, interest in Turkey's brand new and exciting property market is increasing.

All of these positive factors mean that for anyone with a relatively small amount of capital that they want to invest, Turkey could make a very exciting and potentially profitable choice. You can buy in today at a low price, (apartments in coastal areas start from just 35,000 pounds), benefit from one of the first mortgages, rent out your home to the increasing tourism demand and ultimately profit from your property when you come to sell it as it will have likely risen in price as demand for real estate increases and values rise in line with this demand.

For a low cost, low risk entry into property investing, Turkey makes a fantastic choice. What's more, there is no denying the level of interest in Turkey as a holiday and an investment location, therefore an investor buying in today is not leading the field and therefore shouldering all the risk, they would just be getting in on an early wave of real estate demand. They probably stand the best chance of riding the wave of rising property market success in Turkey, which is why property in Turkey is a good investment to consider.

 

VAT cuts promote luxury home sales in Turkey

by Meltem Kara - Hürriyet

ISTANBUL - Government’s stimulus package includes lowering of the value added tax from 18 to 8 percent for three months for homes over 150 square meters. The tax cut has led to an average of 10 percent decreases in prices. Villa and luxury homes now have prices that are about equal to a modest three-bedroom apartment

All eyes have turned to luxury resident and villa projects after the government lowered the value added tax to 8 from 18 percent for three months for homes over 150 square meters.

The measure comes as a part of the government’s stimulus package. The tax cut has led to an average of 10 percent decreases in prices. Villa and luxury homes now have prices that are about equal to a modest three-bedroom apartment.

The government’s decision to temporarily cut the tax has led to sudden price decreases ranging from 30,000 Turkish Liras to 180,000 liras for units that are 150 square meters or more. However, sector leaders drew attention to the fact that low and medium-income groups did not benefit from this decision. Sector players demand that similar attractive measures should be applied to the whole sector and not only to homes of 150 square meters or more. They expect the stimulus decision to be expanded to homes smaller than 150 square meters.

Visits and calls to the sales offices of luxury houses have increased in the past weeks, according to sector representatives. This increase has not yet reflected on sales statistics, they added. One reason for the lack of change in sales figures is the expectation that the Turkish Central Bank will decrease home loan interests by one point as it did in interest rates. The VAT rate applied to homes smaller than 150 square meters is 1 percent anyway. Since prices of homes larger than 150 square meters are much higher than medium-size apartments, the tax cut reflects as a significant price cut.

At Teknik Yapi’s Uprise Elite Project, prices of 240-square-meter units dropped from 898,000 liras to 822,000 liras. In Uphill Court Bahçesehir, 171-square-meter apartments are now priced at 523,000 liras, down from 575,000 liras.

Significant reductions in luxury home prices

Hektas Construction’s Idealist Kent Project offers 390-square-meter houses for 1.33 million liras, down from 1.5 million.

Balkaya Construction’s Citycourt villas used to start from 885,000 Turkish liras. After the tax cut, they are now down by 75,000, offered at 810,000 liras. Duplex apartments for 627,000 liras are now priced at 574,000 liras.

Saros Insaat’s Zeytinsuyu Tepesi villas are down to $175,000 from their previous price of $250,000.

At Doga Gayrimenkul’s Doga Hanimeli Project, a 3+1 apartment of 140 square meters is down from $600,000 to $360,000. At Agaoglu’s My World Atasehir project, prices range between 269,000 Turkish liras to 1.14 million liras. Meanwhile, Yuvatas Construction pays half of the 8 percent VAT.

The top price of 938,000 liras at Tepe Park Villas is now down to 860,000 liras. INDER President Yasar Asçioglu said even though the decision is correct, it is not sufficient to inspire the market. Financial mechanisms should also participate in stimulus packages.

Teknik Yapi’s president Nazmi Durbakayim said to stimulate the real estate sector, VAT rates should be cut at several levels and the financial burden on small firms should be lifted.

Soyak’s acting CEO Emre Çamlibel said Turkey’s housing problem stems from the fact that low- and medium-income groups cannot buy houses. To be able to overcome this problem, a large-scale housing policy should be adopted.

One of Dumankaya partners, Ugur Dumankaya said costs of builders should be eased and tax cuts for items at the production stage should be introduced. Alper Ünsal from Alper Construction suggested measures affecting the entire sector instead of small arrangements.

Istanbul ranked highly for investment prospects

_{Source: smartnewhomes.com}

_06/02/2009

Investors could turn to Istanbul for potential property opportunities during this time of economic uncertainty, it has been suggested.

According to a new survey put together by the Urban Land Institute and  pricewaterhouseCoopers (PwC), the country is among the top targets for those looking at real estate.

Respondents ranked Istanbul third in terms of best global prospects for investment, despite suggestions 2009 could be a tough year for some.

John Forbes, real estate leader in Europe, Middle East and Africa for PwC, said the predictions could be unfounded for investors who were careful.

"For those with equity to invest, there will be opportunities as the banks start to take action," he stated.

Earlier this week, Atlas International advised property buyers that Turkey is a strong region for potential property investment - in particular for those in search of buy-to-let opportunities.

One reason given for this was the amount of cheap flights visitors to the country can access.

Istanbul’s ghettos welcome skyscrapers

Hürriyet Emlak
5 /2/ 2009

ISTANBUL - Piyalepasa, Bomonti, Dolapdere and Hacihüsrev are all known as slum areas, but that nametag is changing. They have recently become the most favored property investment areas.

Surrounded by former slums, Piyalepasa, Bomonti and Dolapdere could become one of the most attractive centers in Istanbul, drawing the attention of domestic and foreign investment groups.

Domestic real estate groups are bargaining with shanty house owners who are situated on the Piyalepasa, Bomonti, Dolapdere line. And some groups are even investing in shanty houses in Hacihüsrev, the most famous slum area in Istanbul.

Kasimpasa and Kurtulus, two of Istanbul’s oldest districts, are getting a great deal of attention from investors. Piyalepasa, Bomonti and Dolapdere are dynamic areas in Kasimpasa and Kurtulus and have become the recent favorite places for investment.

The most noteworthy project on the Piyalepasa, Bomonti, Dolapdere line is the "7 Tepe, 7 Tünel" (7 Hills, 7 Tunnels) project which was developed by the Istanbul Metropolitan Municipality. The main goal is to reduce the traffic in local districts of Istanbul with tunnel systems. The project increased property value and activated infrastructure investments in the area. Some forthcoming plans for the Kasimpasa, Dolapdere, Bomonti, Piyalepasa line are the Tarlabasi urban regeneration project, Piyalepasa tower line and the tunnel projects.

The new face of Hacihüsrev

Hacihüsrev, a famous Roman settlement, is going to change its face. Hacihüsrev, a district in Beyoglu, derives its name from Hacihüsrev Street. The area is between Haci Ahmet Bostane Street and Piyalepasa Avenue. The district of Hacihüsrev’s name was changed to Istiklal with the demand of citizens in 1991.

According to a rumor, the Hacihüsrev name originates from the figure, Hacihüsrev, who is said to be the architect of the historic story of transferring ships on top of greased logs to Haliç via land during the conquest of Istanbul. If such a rumor is true, than this district traces back to the Ottoman times.

The mansions of captains and civil servants who offered services at Kasimpasa shipyard were also located in Hacihüsrev since it is more spacious than other areas. Most of the mansions and waterside residences did not survive after the 1940s. The gardens and grasslands, covering up the foothills of Hacihüsrev, were favorable recreation spots.

Shack building started in the 1950s and continues today. The density of shanty houses in Hacihüsrev is lower than other shantytowns, but it is known for its high crime rate. It was said that the security problems will be solved with the modernization of Hacihüsrev. Now new, luxurious residences in Piyalepasa are drawing attention to Hacihüsrev.

Increase in land values

In Bomonti and Kurtulus, construction firms are building new residences. Anthill Residences is one of the lowest-priced residence projects in Istanbul. In virtue of this project, the land values on Piyalepasa Avenue will also rise. A skyscraper group is going to build on Piyalepasa Avenue, just like in Gayrettepe and Esentepe. Even now, residence projects’ construction can be seen. Memorial MiddleIst, Cevahir Otel and Perpa plan to construct giant, attention-drawing towers. The construction firms are hunting for slum houses whose land value will sky-rocket as a result of the residence projects. The Elysium Residence, Ofton Insaat’s project, takes the lead in change. Ofton Insaat’s investments attracted the attention of investors and construction firms to Piyalepasa, Bomonti and Kurtulus.

Istanbul emerges as investment favourite

February 04, 2009   

Source: propertyshowrooms.com

Istanbul is one of the top cites for real estate investment, a new survey has revealed.

PricewaterhouseCoopers' (PwC) sixth annual emerging Trends in Real Estate Europe report found the Turkish capital to be second only to Munich and Hamburg in terms of offering opportunities to those looking to make purchases abroad.

The country secured first place in offering development prospects, however respondents to the survey expressed concern over the danger of buying property in Istanbul, ranking it as the eighth riskiest city in which to invest.

Real estate leader in Europe, the Middle East and Africa at PwC John Forbes noted that this will be a "tough year for many investors".

"For those who bought at the top of the market it could be a struggle for survival," he remarked, adding that it is likely there will be opportunities available for those with equity to spend.

Atlas International recently cited Turkey as a popular location for investors looking to make purchases outside of the eurozone, as prices in the country are low compared to elsewhere in Europe.

Dubai developer looking beyond Gulf for investment

31 January 2009

Source: propertywire.com

A Middle East real estate company is setting up a separate division to buy distressed property and take advantage of bargain prices across the globe.

Dubai based Deyaar Real Estate said the new department will be particularly looking to acquire distressed assets in countries such as Turkey and India with the aim of expanding its land bank.

'The new department will look at buying distressed assets across the globe with India and Turkey being likely markets,' said chief executive Markus Giebel.

It marks a move beyond the Gulf region where the company has put future unsold projects on hold due to the global financial turmoil.

But Giebel said the company is on a sound financial footing and that 2009 will see the company deliver five residential and commercial projects in Dubai of the 22 currently under construction.

He said the firm had secured financing for all of its existing local projects and it may also look at project financing, debt instruments or joint ventures while remaining committed to the Middle East.

'Despite challenging economic conditions globally, Deyaar remains focused on contributing to the sustained growth and continued stability of the real estate sector in Dubai and the wider region,' added Giebel.

Figures just released in the company's 2008 financial report show full-year revenues of $809.4 million, a 136% increase on 2007 results. Of this, $300.6 million is recorded as profits, a year on year increase of 105%.

Foreigners make profit from realty

Jan 20. 2009

Source Hurriyet daily news

AYDIN - Foreigners who have bought property in Turkey are now on the other end of realty deals, as they are selling properties for large profits. Real estate agencies in Bodrum, Marmaris, Kusadasi and Didim say properties are put up for sale as a result of the economic crisis

Foreigners who previously bought houses in Turkey are now selling their properties for a large profit.

Real estate agencies in Bodrum, Marmaris, Kusadasi and Didim said foreigners, most of whom are the British, German and Dutch, are putting properties up for sale in order to profit as a result of the economic crisis.

"Following the law that enabled foreigners to buy property in Turkey, many foreigners bought property here. Some 10,000 foreigners bought properties in Didim over the last five years as a means of investment.

Purchasing property for investment purposes
They would sell them now for higher prices even if there was no crisis," said Osman Coskun, chairman of Didim Real Estate Agencies Foundation. "Some foreigners living in Didim own four or five houses. They bought them for investment purposes at the time and now they are selling them to make a profit," said Carole Fascione, chairwoman of Didim Foreigners Foundation.

Believing that stagnation in the real estate industry will increase foreign demand, Müslüm Yildirim, the second chairman of Kusadasi Real Estate Foundation, or KUSEMDER, said, "The economic crisis is not just in Turkey. It has been affecting European markets more harshly.

Despite the crisis, those who have money invest in Turkey."

"I do not believe there will be an air of panic and foreigners will not sell their properties at prices lower than their real value. Conversely, the crisis is deepening in Europe and that will increase demand in Turkey.

A pensioner gets a salary of 1,000 euros per month. It is hard to live on this money in Europe while it is quite a big amount in Turkey’s economic conditions. Besides, Turkey is unprecedented in terms of its nature and climate," Yildirim said.

"The number of foreigners buying property in Bodrum has increased by 60 percent in the last five years," said Ömer Yetgin, chairman of Bodrum Real Estate Counselors Foundation.

’No need for panicking due to crisis’
"An air of panic, using the crisis as an excuse, should be avoided. Foreigners, who bought properties for investment purposes five to 10 years ago, are now tending to sell their villas and properties.

However, the number of foreigners in Bodrum who want to sell their houses are less than in many other tourism centers as they bought their house to live in Bodrum, not to make a profit," he said.

"Foreigners have been defrauded by some unregistered real estate agencies and sold properties at unjust prices. Some 600 foreigners, mostly British, German, Dutch and Danish, want to sell their houses for this reason," said Yusuf Kenan Akkus, chairman of Marmaris Real Estate Counselors Foundation.

Dr.Christina Weiss, member of the Executive Board of Management fur Immobilien AG (MFI), a real estate managing and developing company

Jan 19. 2009

Source Balkans.com

Balkans.com: What, in your opinion, are the strengths and weaknesses of real estate in the Balkans? 

  Weiss: In contrast to most western and eastern European countries, the Balkans are enjoying a positive demographic development. The population has been growing steadily for years – and is considerably younger. This means a large demand potential in nearly all segments of the real estate market. As the population grows, more space is also required, especially in the retail trade and residential sectors. In recent years, the political, legal and economic conditions have come closer to European standards in countries such as Turkey. One weakness of many south-eastern European countries is still the lack of transparency in the real estate markets. 

  Balkans.com: Which country in the Balkans do you see with the most gain in real estate in the next five years? 

 Weiss: Many south-eastern European markets offer great potential for development. The greatest leap forward will certainly be made by those countries where the highest level of legal stability and liberal markets are to be found – i.e. where the opportunities for foreign investors are the best to participate in the development potential. We currently see excellent conditions in Turkey. This is one of the future real estate markets. The country has a strong unsatisfied demand in many segments.

  Balkans.com: What Balkan projects is your corporation currently involved in? 

  Weiss: We have established a joint venture for investments in the Turkish shopping center market together with avm partners, one of the largest, independent letting specialists and shopping center consultants in Turkey. The new company is called avm mfi partners. We are planning six to ten shopping centers and four refurbishments by 2016. Total investment volume: roughly € 1 billion. 

  Balkans.com: Why did you select the Balkans for investments? 

  Weiss: As a shopping center manager and developer Turkey is extremely interesting for us. According to studies by Jones Lang LaSalle, Turkey, with 50 square meters of shopping center area per 1,000 inhabitants, is still well below the EU average of 190 square meters per 1,000 inhabitants (source: Jones Lang Lasalle Shopping Center Development, March 2008). Even though the need of high-quality shopping centers is largely covered in Istanbul and Ankara, this is still not the case in other large cities. Against this background, the Balkans offer us the chance to diversify our portfolio geographically and to break into new international markets. So far, our investments were focused on Germany.   BBN: Will you be expanding your real estate investment in the Balkans? 

  Weiss: In addition to Turkey, we also see development potential in other Balkan countries, e. g. Greece or Bulgaria. We are carefully observing these markets and are already talking to potential partners about possible co-operation and locations. In principle, we are open-minded towards the Balkans and will continue to invest there if the conditions are right.   

  Balkans.com: How does your company stand apart from its competition? 

  Weiss: We really attach importance to the quality and the ambience our customers experience during their stay in our shopping centers. Our centers clearly differ both inside and outside from the centers of our competitors – more and more they are multifunctional and they always offer ambitious architecture. Our shopping arcade concept combines well-designed commercial areas with a high-quality shopping atmosphere incorporating typical local elements. Moreover, in all our business activities our participation in all properties is geared towards the long term.   

  Balkans.com: How do you see the future of real estate in the Balkans? 

  Weiss: As already mentioned, there are many positive trends which speak in favor of individual countries. We expect good development especially in Turkey and we are by no means alone in our opinion. With reference to the Balkans, it can only be assumed that as a whole the development will be positive. The lack of transparency in some of these markets, however, makes any forecast difficult. 

  Company Profile 

  mfi Management für Immobilien AG   

As one of the leading management companies for inner-city shopping arcades, mfi Management für Immobilien AG and its nearly 500 employees now all have classic business areas and services on offer which a specialist permanently associated with the property needs: Project development, general planning and architecture, project, building and quality management, letting and long-term centre management – all from one source. Thus, mfi continues to be responsible, stands by its concepts and guarantees a continuous value enhancement of the property.

 The company offers its investment partners a wide range of services such as the analysis of the location, verification of the current or calculated rental volume respectively as well as of the development potentials of the property, overall assessment of its efficiency, development concepts and recommendations on how to proceed.

Furthermore, mfi develops new pioneering / trend-setting / „fit for the future“ concepts for difficult or ageing centers, which are struggling to survive on the market, with the intention to make them attractive again for new customers. Doing so, the company also establishes a basis / lays the foundations and opens the doors to international investors for owners of shopping centers, and at the same time offers the services of the mfi management - an experienced operator of (shopping) centers, who is also engaged in their further development.

   Only a short time ago, the closed-end “German Shopping Centre Fund” (calculated minimum volume: approx. two billion Euro) was set up, preceded by a joint venture with the British company Henderson Global Investors. Henderson is one of the leading independent asset managers in Europe.

At present, in Germany, mfi AG manages a real estate portfolio worth 3.9 billion Euro, about 1,150,000 sqm rental space and 2,400 leases. In total, the portfolio consists of 25 properties (arcades, parks and centers) being managed, revitalized, built or planned by the company, and located in Berlin, Hamburg, Munich, Cologne, Düsseldorf and Leipzig, among others.

 Furthermore, mfi AG has started to do business abroad. At the Expo Real in Munich (Oct 2007) mfi and avm partners, Turkey’s largest independent letting specialist and shopping centre consultant, announced their collaboration on the turkish shopping centre market. Under their new name – avm mfi partners – the two companies will raise six to ten shopping centres and implement for redevelopments (total investment volume: about one billion Euro) by 2016.   

mfi Partners

mfi is working together with professional and successful finance partners, leading national and international banks and investment companies.  Over the years, the cooperation partnership between mfi and Bayerische Landesbank is granting success and continuity. Further business partners are AXA Investment Managers, Bayern LB, Commerzbank, Commerz REAL GmbH, Deka Immobilien Investment, Deutsche Bank / Rreef GmbH, Dresdner Bank, Eurohypo, MEAG, REAL I.S. AG, SEB ImmoInvest, Sparkasse KölnBonn, Sparkasse Essen, Union Investment, Westdeutsche ImmobilienBank, WestFonds.  International investors are Ivanhoe Cambridge, the leading Canadian investor and operator of shopping centers as well as the US American TIAA-CREF Teachers Insurance and Annuity Association College Retirement Equities Fund.     

Dr. Christina Weiss (mfi, member of the Executive Board)

  Dr. Christina Weiss is an experienced management professional in the real estate business. After her studies (civil engineering and business administration at the Technical University of Berlin and the University of Illinois in the USA) she earned her PHD in international marketing at the Humboldt University of Berlin.  Since 1995 she has been employed at the company of mfi AG filling different positions, i. e. as Project Manager, Authorized Officer, Head of Controlling and Organization; since January 2004 she is member of the Executive Board, responsible for Controlling and the International Expansion, called “mfi International”. 

Turkey attracts $9 billion from Gulf

01 November 2008, Saturday

Turkey has scored yet another major investment, totaling nearly $9 billion, from a major Gulf investment fund despite the ongoing turbulence in the global financial markets.

Turkish officials were quick to portray the investment as a vote of confidence and a sign of the success of Turkey's economy in recent years. "We punched through the face of the crisis," senior executives of the fund said. The investment is primarily focused on the agricultural industry in Turkey, particularly the multi-billion dollar Southeastern Anatolia Project (GAP), officials said.

Vision3, a strategic alliance between Ithmaar Bank B.S.C., Abu Dhabi Investment House and Gulf Finance House -- all globally respected financial institutions in the Gulf region -- signed an agreement yesterday with the Investment Support and Promotion Agency of Turkey (ISPAT) at Dolmabahçe Palace in Istanbul.

ISPAT President Alpaslan Korkmaz, State Minister and Deputy Prime Minister Nazim Ekren, Ithmaar Bank B.S.C. Chairman Khalid Abdulla Janahi, Gulf Finance House Chairman Esam Janahi and Abu Dhabi Investment House Managing Director Rashad Janahi attended the ceremony.

Starting with an upfront capital payment of $1 billion, the fund will allocate $3 billion to the Turkish agricultural sector in 2009. The total capacity of the fund, named AgriCap, is $6 billion, and Turkey is the first country to sign a preliminary agreement with it. "It may leverage up to $9 billion and may even go higher if we can bring additional investors along with us," Abdulla Janahi said. He noted that there has been much interaction between Turkey and Gulf countries in recent years and that meetings between top officials have paved the way for more investment. Noting that the fund also covers the hospitality, entertainment, tourism and energy sectors, he said they may be interested in deals in these areas as well.

Ekren said his government has decided to make substantial infrastructure investments in agriculture to make investment in the real economy desirable for potential investors.

Stressing that the goal is to make Turkey a country of choice for real economy investments, he explained that the private sector may capitalize on this infrastructure by investing in organic farming, tourism and sustainable energy. Ekren stressed that the food and commodity market is gaining strategic importance and that Turkey is committed to modernizing its agriculture and raising the living standards of its people.

Korkmaz said their new investment strategy is to attract investments to the real economy from funds with an abundance of liquidity. He said these investments will generate employment and enhance agriculture projects like GAP, the East Anatolia Project and the Konya Plains Project, all of which will boost the economy in the region.

Korkmaz said: "We are very proud that such an important first step targeting our agricultural sector -- definitely one of our country's strategic powers -- has been taken during such a time of global economic slowdown. This step also translates into a confirmation of the trust placed in our country." He stressed that his agency's overall aim was to secure value-added investments that will also provide know-how and employment.

Also speaking at the ceremony, Rashad Janahi commented: "The Republic of Turkey has a centuries-old agricultural tradition and is home to some of the most fertile arable land in the world. Given the positive ambition that characterizes AgriCap, together with the depth of agricultural know-how across this great country, there is a vast amount we can achieve in the identification of visionary agriculture initiatives. Turkey has a proud agricultural heritage and a government that appreciates the visionary goals AgriCap has set. We applaud their foresight and look forward to working closely with them in the identification of unique agricultural opportunities."

Vision3 initiatives follow intensive due diligence and individual feasibility studies that confirm a high level of demand across the infrastructure, agriculture and hospitality markets. While each of the alliance's three financial institutions will leverage their networks and experience in the creation of AgriCap, they will all operate as stand-alone businesses under their own management structure.

Abu Dhabi Investment House was established in 2005 as an investment company under the supervision of the UAE Central Bank. It provides comprehensive products and services that include private equity, real estate investments, investment advisory services and fund management. It was founded by a combination of leading financial institutions and a group of prominent businessmen and investors from the Gulf region. It enjoys unique relationships with various leading financial and investment institutions, including prominent decision makers in the Gulf region and Europe. Since its inception it has been associated with major landmark infrastructure projects across the region including Beirut Gate (Lebanon), Entertainment City Qatar (Qatar), Sunset Hills, Porta Reef and the Lagoon (Kingdom of Bahrain), in addition to enormously successful investment funds. Today, in less than three years, the investment house has successfully launched over 13 funds and manages approximately $4 billion.

Founded in 1999, Gulf Finance House has grown rapidly to become one of the most respected investment banks in the Middle East. Over a nine-year period Gulf Finance House has successfully launched and announced economic infrastructure development projects and investments with an aggregate end value exceeding $30 billion. Its shares are actively traded on the London Stock Exchange, the Kuwait Stock Exchange, the Bahrain Stock Exchange and the Dubai Financial Market. Key businesses include Development Infrastructure, Venture Capital & Private Equity in MENA and Asset Management. It boasts a strong track record of launching economic infrastructure transactions. Venture capital is also becoming an important contributor to revenue alongside economic infrastructure. Most of its transaction deals are largely unleveraged. Historically, it has raised approximately $1 billion in equity annually and is expected to raise $2-3 billion annually from this year onwards.

Ithmaar Bank, a 24-year-old financial institution, is a full service investment bank licensed by the Central Bank of Bahrain and has business spanning the Middle East, North Africa, South Asia region, as well as Asia Pacific and Europe. Ithmaar went public in March 2006 and its shares today are traded on both the Bahrain Stock Exchange and the Kuwait Stock Exchange. Ithmaar and its various subsidiaries and affiliates (together the Ithmaar Banking Group) cover a wide range of financial services, including investment banking, commercial and private banking, equipment leasing and real estate development. As of June 30, 2008, Ithmaar had total assets, including funds under management, of $4.66 billion and total equity of $1.33 billion. For the year ending Dec. 31, 2007, Ithmaar's net profit was $188.3 million.

Ithmaar is a growth-oriented institution whose business is currently in the developmental stage and is premised on growth opportunities in its core direct business areas, which are private equity, investment banking and private banking.

Source TZ

Land deals pay well

ISTANBUL - The real estate market has been a traditional favorite for investors. Experts say the best vehicle for investment in the Turkish market these days is land for development, but they also warn investments should be undertaken with caution.

Real estate experts have ranked land purchases at first place, ahead of other real estate investments. "If you have a house and savings for an investment, then invest in land," many experts say.

Locations in Istanbul such as Çekmeköy, Kemerburgaz, Halkali, Ikitelli, Mimaroba-Sinanoba, Western Atasehir, Beylikdüzü, Kurtköy, Zekeriyaköy, Tuzla, Bahçesehir and Riva have seen increase in prices. Sile, Çatalca, and Silivri have also seen great profits.

While everyone is asking, "how much higher can prices go?," few experts are presenting worse-case scenarios. It is true prices in certain places have plateaued and lands there are probably overvalued. Some experts say in order for markets to synthesise these prices, there needs to be a slow down. This was proven correct this year. The steep price increase in the first nine months of the year started to slow and although prices did not retreat to previous levels they did start to level out. Riva, Ömerli, Çavusbasi, Kurtköy, Avcilar and Silivri are examples of locations where prices are now steady.

"In Istanbul alone there are 400,000 new units and 600,000 previously owned units up for sale," said Nizamettin Asa, the vice president of the Istanbul Chamber of Public Realtors. This, according to Asa, indicates the number of available units is slowing down and has increased land prices. This is why even the increase in commercial and industrial land prices has also slowed, although it is not as evident as in residential prices.

Good investment

Buying land is one of the most important investment vehicles, but it is not like other real estate, it requires expertise, said realty experts who spoke to the Ekonomist magazine. Building permits, road access and water management should be taken into consideration when buying land. There is also the paperwork and necessary reports from the Ministry of the Environment and the Conservation Council on Culture and Nature. Experts said people who are not qualified to undertake land sales should not attempt it alone. They warned that land purchases should not be made without help from professionals like civil engineers, architects or city planners.

There are other factors driving land prices up in certain areas. "The first is the route for the third Bosphorus bridge. Even small villages have been affected by this. The second is the Metrobus route. With the new Metrobus route, E-5 traffic that extended to Mecidiyeköy and Merter will now extend to Avcilar," said Basak Soner, a board member of Turyap, a highly respected realty company.

The Metrobus route from Merter to Avcilar has invigorated the area and helped sales in development projects in those neighborhoods, especially in Bahçelievler and Yenibosna.

"We have seen land prices go up this year, as they did in previous years," said Soner, adding some places have increased 1,000 percent in value. Some of this is an artificial increase in land prices, said Soner. Sales of land to foreigners have also increased over the last two of years, Soner said. Villages surrounding Beykoz and Sariyer have seen an increase in demand because of the third bridge. Western Atasehir has been of special interest because that area is developing as a financial center, she said, adding surprisingly she still heard a lot about Basaksehir and Ikitelli.

IPIN - Investment Property In Turkey

IPIN (International Property Investment Network) painstakingly researches hundreds of new property developments in in Turkey and around the World but selects only the most outstanding based on a very strict vetting criteria ensuring solid investment potential and increased investor safety.

Demand is increasing for property in the Turkish city of Istanbul, it has been claimed.

Ozgül Ozkan Yavuz, director of events and organisations for Istanbul2010, explained that demand for property has been increasing and the city's title of European Capital of Culture for 2010 may result in further interest in Istanbul property.

"In the last five years, Istanbul is growing a lot in terms of tourism," she explained, noting that the city is seeing a 19 per cent yearly increase in the number of tourists visiting the area.

And investors thinking of purchasing property in the city may wish to do so soon, as Ms Yavuz stated that "there will be more demand from the international arena" once Istanbul takes on its Capital of Culture title.

Turkey's Ministry of Culture and Tourism recently revealed that 21.5 million foreigners visited Turkey between January and September of this year, approximately a quarter of which chose Istanbul as their destination.

Istanbul’s newest women’s network

21.10.2008

Women from around the world live and work in Istanbul, and for many, finding time to socialize and network with other expat women who also work is a difficult proposition. In between juggling the demands on their time from a job and home, it is a welcome relief to be able to meet with other expat women who understand what it is like to move to another country, and are also learning all the intricacies of a new culture and language.

A new group, the International Professional Women of Istanbul Network (IPWIN), has just been launched to meet the needs of professional women in the city. The goal of the group is to offer a place where women can come together to share stories, experiences, tips and information, as well as offer support to each other. Upcoming plans include panel discussions, key-note speakers, training seminars and social events.

The inaugural meeting of IPWIN was held on Oct. 14 at the elegant Dutch consulate. Over 120 expat women from various countries came to celebrate the founding of this much awaited networking group. Attendees currently work, or have worked, in a myriad of fields including academia, journalism, the arts, engineering and real estate. As members circulated the rooms of the consulate, they renewed old friendships and made new connections. All were surprised at the turnout and look forward to becoming active in the group as it takes off.

Designed by women, for women, IPWIN welcomes expat professional women who are currently working, seeking out their next career move, taking a break from employment or considering returning to the work arena after an absence. The common bond of the group is women who want to meet, network and discuss issues that are relevant to women working in all fields in Istanbul. This is the place to debate, share ideas and learn from one another.

For more information on IPWIN, email IPWIN@iwi-tr.org. So the organizers can better understand and serve the needs of members, they welcome all feedback and input from members. IPWIN aims to bridge the communication gaps between all expat working women throughout Istanbul.

Expat Zone

KATHY HAMILTON

Turkish firms abandon plans amid global crisis

Reuters By Daren Butler

Monday October 13 2008  

ISTANBUL, Oct 13 (Reuters) - A Turkish investment holding company decided against a planned a capital hike and a real estate firm abandoned an $85 million property purchase on Monday, citing the global financial turmoil.

Global Investment Holding said it had given up plans to raise its capital to 500 million lira ($357 million) from 225 million lira, saying project financing had dried up amid current economic conditions.
Real estate company Sinpas subsequently said it decided at a board meeting on Monday it was exercising its option to hand back 118.3 million lira ($85 million) worth of properties which it was buying in Istanbul's Ikitelli district.

Turkish financial markets have been hit hard by the recent market turmoil, with shares losing half of their value since the start of the year while the lira has hit 19-month lows.
Economic growth is also slowing after strong expansion in the EU-membership candidate country in recent years, but few companies have so far indicated changes in their plans.
The investment firm Global said in a statement to the Istanbul Stock Exchange it was not facing problems in securing the operating capital needed for current projects.
"The domestic and foreign project finance market has dried up amid the current economic conditions, and there is no longer a need for a capital increase," Global said in a statement.
"Our company is not facing any problems regarding equity capital and the operating capital for existing projects," it said.

Trading in Global shares was suspended after the announcement. Its shares were down 2.7 percent at 0.36 lira before the suspension.
Global Investment, in a consortium with Hong Kong's Hutchison, made the winning tender last year for the operating rights to the Aegean port of Izmir. A Turkish court on Monday rejected a trade union bid to cancel that sell-off, state-run Anatolian news agency reported.
In March a consortium including Global also won a tender for Ankara's gas distribution network with a final bid of $1.61 billion.

In a separate statement, Sinpas said it had decided not to go ahead with the Ikitelli real estate purchase after a board meeting to discuss "the impact of negative developments in financial markets on the real estate market". Shares in Sinpas were up 5.2 percent after the announcement.

Last month, a consortium including Sinpas made the highest bid of 850 million lira ($684 million) for a separate area of prime real estate in an Istanbul coastal district. (Editing by Will Waterman and Andrew Callus)

A Property Buyers Guide To Turkey

September 28, 2008

Turkey has to rank at the forefront of developed countries. A vast land mass with a coastline stretching 6,000 kilometres and bordering no less than eight countries Bulgaria to the northwest; Greece to the west; Georgia to the northeast; Armenia, Azerbaijan (the exclave of Nakhichevan) and Iran to the east; with Iraq and Syria to the southeast. Turkey has long been renowned for her international trade and with a foot in both Europe and Asia may be called truly intercontental.

Turkey, strategically placed astride two continents enjoys a unique blend of Eastern and Western traditions. Turkey is a democratic, secular, unitary, constitutional republic, the political system was established in 1923 under the leadership of Mustafa Kemal Atatürk, the father of the modern republic after the fall of the Ottoman Empire. Turkey is an associate member of the EEC since 1963 and full accession talks started in 2005. It is my opinion that acceptance for full membership will take some considerable time; there are many issues to be ratified before than can be accomplished.

The history of this vast country stretches back to one of the earliest ever recorded Neolithic settlements and then the Iron Age with the first major empire, that of the Hittites from the 18th through the 13th century BCE. The remarkable history of Turkey is evidenced with hundreds of archeological and historical sites stretching across the country. Many of these ancient monuments and sites are preserved today in a remarkable state of repair when you consider the thousands of years they have withstood the test and trials of time and earthquakes.

The internationally acclaimed Amphitheatre at Aspendos on the southern Mediterranean coast stands as a monument to the skills of the architects and builders of that time. Seating some 20,000 people it is still in regular use during the summer months when concerts and public performances are still staged to regular full houses. Acoustically it is a marvel hard to better - even with today’s technological advances.

From a tourism aspect Turkey has a great deal to offer. Although still a little difficult and time consuming for travelers from many parts of Europe, transport links are improving all the time with new airports opening, the latest Gazipasa, 35 miles east of Alanya is opening to commercial flights mid year next year (2009). The effect this will have on property values along this stretch of coast should not be glossed over. Bodrum International airport now provides a twelve months a year service where previously it was open only during the summer months. This serves to illustrate the impact that tourism is having on the country as a whole and should serve to inspire greater tourism traffic and a more stable economy.

Many first time visitors to Turkey are surprised to find an advanced, progressive country, a first class national road network which puts many developed countries road infrastructure to shame. I admit to constant amazement at the ignorance shown by many who labour under the misapprehension that Turkey is full of donkey drawn carts and bhurka’d ladies; how far from the truth this actually is. Reservations held by many about travelling to a largely Muslim country and the unfortunate bad and biased press post twin towers, can be completely ignored, you are more likely to see bhurkas (the traditional full body and face covering for Mulsim women) in Birmingham, London (Harrods) and New York than Turkey. If you venture into the more rural areas and smaller villages, you may find it does become more traditional.

Istanbul, formerly Constantinople and the former country capital city, now considered by most to still be the commercial capital, but Ankara now, of course the political capital and the seat of government. Istanbul is a fantastic city with a population around 20 million and the centre of the Christian world for hundreds of years, still boasting some of the oldest Christian churches to be found anywhere. It is a truly multi-cultural, multi-denominational city, packed full of history. Istanbul is fast becoming a skyscraper city to match many across the world, stunning architecture and technologically advanced. The other side of Istanbul is the original and the fascinating. There are the wonders of the Grand Bazaar, the quaint old Ottoman buildings the hustle and bustle of the street markets and vendors, the brain spinning aromas of spices and Turkish food. As one of the major players in the textile industry for thousands of years, you may find some of the most beautiful fabrics silks and hand woven materials anywhere in the world. Another world famous product from Turkey is the hand woven rugs and carpets, many taking a year or more to complete. Intricate traditional designs meticulously incorporated into wonderful floor coverings and wall hangings. These can often cost many hundreds of pounds, even thousands, but they will be the antiques of the future and heirlooms to be handed down through the family.

Istanbul is rather like a country in a country, completely different to anywhere else in the country, exciting, captivating, romantic, engrossing and completely unique. Istanbul is expensive, now ranked among the top most expensive cities in the world today, but worth every penny. Take a trip to Taksim Square, the heart of the city, alive and breathing with a heart and soul. It talks to you, no it simply shouts at you – to be seen, enjoyed, breathed in and exhaled with enthusiasm. In Taksim you will find the complete contrast of the modern, Burger King, MacDonald’s nestling beside an aroma full Traditional Turkish restaurant or kebab house. Flower sellers in the square that take me back to my earlier days of the Paris boulevards and the west bank. Istanbul is a city for everyone, it has culture and theatre, museums and galleries, breathtaking views over the Bosphorus and the Sea of Marmara and where you can stand in Europe on minute and Asia the next. This amazing city truly does have something for everyone and no trip to Turkey is complete without a visit.

If you venture out of Istanbul one can find the resort areas much favored by tourists. Antalya is the province, the host of Belek, for those whose interests lie in golfing pursuits. Belek now boasts 17 courses with international acclaim and suitable for Golfers of all levels and skills. Just 25 minutes from Antalya international airport and rapidly becoming THE area for discerning buyers for residential property. Carrrying on further east you will reach Alanya. For some years now Alanya has been a favored spot for Germans and Scandinavian people, now very much a destination for the Brits also. Here in Alanya you can find a quality apartment with 2 bedrooms and views over the sea and or Torus mountains for as little as 70,000 euros, but be warned, prices are increasing by some 14 – 15% a year.

Travelling in the opposite direction from Antalya, west along the coast you reach Kemer, a resort town, bustling in the summer months although a little quiet in the winter. Here one can swim in the crystal blue waters of the Mediterranean, snorkel, and parasail, water ski or take a boat trip along the beautiful coast, visit any one of a number of small islands for a barbecue or picnic and in the short winter months one can visit Saklikent, just 30 mins. from Kemer, THE winter ski resort where every snow pursuit may be enjoyed followed, perhaps, with a swim in the warm Med in the afternoon. Now how many resorts can offer sun, sea, sand AND snow in the same day.

Further west and you will reach Kas and Kas Kalkan, quaint fishing villages, white painted houses with all the charm and character you could wish for. Cast your eyes upwards to the hills over the harbour and you will see million dollar villas, stunning designs and with views you can only dream of.

Patara, the birthplace of Father Christmas, yes he WAS born in Turkey. In short you can only visit Turkey to believe the extraordinary contrasts of the ancient, the modern and the futuristic, no writer can accurately portray the wonders of this remarkable country. To see is to believe.

Robin Hollingbury

Turkey Still a Good Property Market

As much of Europe and the United States wonder what will come next in the tumultuous financial and real estate markets, Turkey is providing a bit of calm in a sea of unrest. House prices and sales have fallen in the US, England, Spain and other countries, but Turkey is looking for continued growth in the years ahead.

Deutsche Bank predicts 5-6% economic growth per year over the next 10-15 years, so the economy will continue to produce and grow. Because of Turkey’s strict banking laws, the country has been relatively unscathed by the ongoing turmoil in financial markets. The country only recently introduced mortgages and the majority of buyers rely on their savings to buy property. Interest rates for mortgages have been high as well, so people have avoided using them.

In addition to a strong economy and healthy real estate sector, Turkey has seen an upswing in tourism. Officials are expecting 24 million visitors by the end of 2008, which is an increase of 14% over 2007. The country continues to invest in infrastructure and facilities, particularly in the Mediterranean coast as well as the city of Istanbul. Istanbul is one of the most popular city destinations for property buyers in Europe, and the Turkish coast is where holiday travelers head.

On top of everything else, Turkey is growing as a popular golf destination. The International Association of Golf Tour Operators (IAGTO), a global trade organization for golf tourism, annually presents awards for the best resorts and countries for golf throughout the world, and in 2008 Turkey won for the Golf Destination of the Year – Europe. With so much going for it, Turkey is a solid investment for those who want to buy abroad.

International real estate conference opens in Turkey

Turkey is to host the Central Europe Real Estate Unions Network conference for the first time. The Central Europe Real Estate Unions Network annual conference will take place in Istanbul beginning today and ending Wednesday.

The participants will discuss the recent developments in the real estate sector and will evaluate the cooperation and investment opportunities within the sector, both at national and international level.

“We have acquired the right to hold this conference in Turkey with the help of the publicity report prepared by Istanbul Metropolitan Municipality,” said Sabri Ateº, head of the network in Turkey and of the Chamber of Istanbul Real Estate Commission Agents. The buoyant real estate sector in Turkey, particularly in Istanbul, is also seen as a factor in Turkey’s selection.

Foreign investors find Turkey a safe haven for investment  

21 September 2008, Sunday
 

Recent Treasury figures show foreign companies operating in Turkey were able to transfer close to $27 billion to their countries of origin between January 2003 and July 2008, while investing a record amount of $65.4 billion in the same period as foreign direct investment (FDI) in addition to creating employment and enhancing the production capacity of the Turkish economy.

Analysts see the homeward transfer of profit by foreign companies as a positive sign for the economy. "It's a win-win situation," said Nurettin Canikli, an economist and expert on finance. Canikli, who is also a member of Parliament from the ruling Justice and Development Party (AK Party), explained to Today's Business that the record amount of transfer of profits will draw more FDI to Turkey. "The fact that new foreign companies are entering the Turkish market will stimulate Turkish production capacity," he said. "Nothing is wrong with foreign companies making profit, since it will ultimately benefit the Turkish economy," Canikli added.

Despite a financial crisis in the US markets and global markets, foreign companies in Turkey are pleased with the investment climate, though the latest figures show a slowdown in the inflow of FDI. With new revisions to regulations that allow foreign companies to transfer earnings and profits to their home countries, international companies feel safe investing in Turkey, generating employment and bringing know-how to Turkish industry.

FDI in Turkey slowed down between January and July compared to the same period last year, recent Treasury data showed. The net FDI inflow to Turkey was $762 million in July 2008, reaching $9.4 billion in the period between January and July -- a decline of 35.5 percent from the same period last year, when it was $14.5 billion. Turkey was able to attract a record $21.9 billion of FDI in 2007.

The report released yesterday by the Treasury shows there is still robust foreign interest in the Turkish economy. Accordingly, 261 companies with international capital have been established and 50 instances of foreign capital participation with existing domestic companies occurred in July. Of $9.4 billion in total FDI, the equity investment inflow component reached $7.6 billion in the January-to-July period, with $3.2 billion in the financial intermediaries sector. About 68 percent of the equity capital entry is from European Union countries.

Canikli welcomes the numbers and quips, "The more the merrier." Stressing that foreign investors will first manufacture and create employment opportunities, Canikli said, "It is very natural for them to take some of the profit to their home countries," adding, "If they think they will not reach projected profitability, foreign investors will shy away from the Turkish economy."

Canikli considers the inflow and outflow of capital to be a healthy sign for the investor-friendly Turkish economy. "In all developed countries, conditions are the same, and Turkey caught the train and improved its investment climate," he said. "Turkey proved itself to be a reliable market for fund managers and investors who have been hurt by financial turmoil in the US and European markets," Canikli noted. "This is a chance for Turkey to score big," he emphasized.

Professor Mithat Melen, a deputy from the opposition Nationalist Movement Party (MHP), agrees with Canikli. Speaking to Today's Business he stated that foreign companies created "added value" for the Turkish economy, including but not limited to employment, production, tax revenue and social security premiums. He said he particularly valued the employment and exports that FDI has created in Turkey. "If foreign companies transferred $27 billion in profit back home, it means they enjoyed great sales in Turkey and benefited the Turkish economy by around $100 billion," he said.

Melen noted that stability played an important role in attracting FDI to Turkey. "Against the backdrop of financial crisis in the world, Turkey can serve as a model of a safe haven for investment." He explained that Turkey needs to continue with its reform process to counter external shocks.

International Investors Association of Turkey (YASED) board chairman Tahir Uysal warned yesterday that FDI would slow in 2009 as a result of negative developments in international markets and ongoing political uncertainty in Turkey. Noting that Turkey is in a good position vis-à-vis fiscal and monetary policies, Uysal said, "Next year we will see the results of concerns by foreign companies on the stability of the Turkish political system." He also said the financial crisis in the US had resulted in a recession in European economies. "This might impact the Turkish economy badly, as the EU is a significant trading partner for Turkey," Uysal said, adding, "Despite all these negative reports, FDI to Turkey has progressed well, although it will fall short of the $20 billion target for 2009."

Source: Today's Zaman

History and guide to buying property in Turkey

Turkey has been called “the cradle of civilization” and by travelling through this historic land, tourists will discover exactly what is meant by this phrase. The first city ever settled in the world with comparatively modern organizational systems such as agriculture, animal husbandry, and trading, was a Neolithic city Catalhoyuk, in central Turkey, dating back to 6,500 BC. From the days of Catalhoyuk up to the present, Turkey boasts a rich culture that through the centuries has made a lasting impression on modern civilization. The legacy of all those admirable cultures make Turkey a paradise of information and cultural wealth. Hattis, Hittites, Carians, Lelegians Phrygians, Urartians, Lycians, Lydians, Ionians, Persians, Macedonians, Romans, Byzantines, Seljuks, and Ottomans have all made important contributions to Anatolian history, and ancient sites and ruins scattered throughout the country give proof of each civilization’s unique distinction. When you travel by car, within half an hour you can meet to an ancient city, remaining from those civilizations. Even in the ancient times, this fascinating country was respected by those ancient people, therefore it has been called as ANATOLIA, which means in ancient Greek, ”The lands, where the sun rises from ” as many vital initial ideas came into existence from her fertile lap. No doubt, people always have been proud of breathing on this amazing peninsula, combining different cultures, customs and traditions, and she, once again started to offer her hospitality to new cultures & people, by introducing a new law permitting foreigners to buy houses, who deserve to meet her affectionate and fertile lands.

According to the law on ‘property purchase by foreigners in Turkey’ enacted on January 7, 2006, foreign nationals (real persons) are able to acquire real estate in Turkey on the conditions of being reciprocal and complying with legal restrictions.

At the heart of the Aegean lies Didim,an ancient town of marvelous landscapes,wondrous ruins and over 30 coves and beaches.Altinkum which means “golden sands” certainly lives up to its name.Altinkum has three main beaches and its gentle slopes make it ideal for families.Towards the smaller “third beach” new five star hotels are being constructed and a new marina is due to start shortly which will berth up to 400 yachts.Also land has been set aside by the government to create a golf course which should add to Altinkums fast growing reputation as a place to invest.

Altinkum is situated 1 hours drive from Bodrum airport which is to have a new 8 million pounds terminal built, to supply the ever increasing number of tourists to the region.Bodrum airport will be open all winter this year with charter flights arriving for the first time.Izmir international airport is also open year round and is 1 hour 45 minutes away by car.Easyjet have just announced that they will be operating flights to Turkey and it will only be a matter of time before other low budget airlines start.

Major attractions also include a large water park,famous hisitorical sites such as the Temple of Appollo,nearby ancient cities of Miletus and Priene offer something to suit all ages.Ephesus the largest city in ancient Asia Minor is home to The Temple Of Artemis one of the seven wonders of the ancient world.Ephesus is home to Virgin Marys House,her final resting place and a major attraction of Catholics from around the world.

Thousands of European people are purchasing in Altinkum and property prices are rising on a monthly basis.New shops,bars and restaraunts are opening on a daily basis to cater for these new residents of Didim, and the town is now open all year round, due to the increasing number of foriegners making Didim their home.The weekly market held every Saturday in the old town, provides all the provisions you need.Turkeys largest supermarket chains have opened large stores in Didim and Tesos are starting to expand in Turkey.

Didim has recieved a Grant from the Turkish Government to improve the roads,electricity supply,sewrage and public facilities in order to improve Didims reputation and encourage even more tourists to visit this beautiful area.Construction is fuelling Didims local economy and the local people welcome the tourists with open arms.

With all these attractions and future plans for the region most analysts are predicting that the Altinkum resort will in time become one of the largest and most desirable areas for investors and holidaymakers alike.This is just the start and we would encourage you to come and meet us and see for yourself what is happening one of the worlds fastest growing touristic resorts.

Andrew Coates partner of ADO Properties Ltd who are developing projects in the area says on investing in property in Altinkum in particular

‘Altinkum has seen major changes in the property market over the last three years.The announcement of the Ageans largest marina starting to be constructed which will berth 800 yachts is going to positively effect property prices in Altinkum.Recently a tender was submitted by companies to develop large areas of land for golf courses in Altinkum.If these are announced we will raise our prices by 20% overnight as will most of the other developers who are developing here.Our company generally increase our prices of the apartments and villas for sale by 20% during the construction of our developments in Altinkum,and many investors in Europe are purchasing off-plan and capitalising on these price increases by selling on completion.

The new mortgage reforms introduced this year will also buoy the market as Turkish people and foreigners have never been able to borrow Money for Turkish property.All in all we feel that buying property in Turkey will prove a very good investment both in the short term and long term’

Foreign investors in search of large plots of lands in Pendik, Tuzla

September 18, 2008 

The towns and villages located to the north of Istanbul’s Pendik and Tuzla districts, along with the regions at the corner and north of TEM Highway, have recently become magnets for real estate investors, particularly foreign investors from the Gulf countries.

Akfirat and Tepeoren districts in the region particularly stand out with their villa projects, while Kurtkoy, which has recently become a mass housing region, stands out with its shopping center projects. Meanwhile, companies are laying the grounds for five-star hotels in the region.

In addition to the above-mentioned districts, Orhanli draws attention with its industrial zones and its education institutions, while Sumdu district is expected to become a highly popular area with the construction of recent housing projects. Turkey’s Mass Housing Administration, or TOKI, has launched a housing project in Aydinli district. Giant companies also implement housing projects in Akfirat, Kurtkoy and Aydinli districts.

Akfirat town and Tepeoren, which is located in the vicinity of Akfirat, stand out with 100,000 square meters of land and with 300 to 500 square meters of shared lands. The minimum price of the shared lands and small plots of lands that are not zoned range from YTL 20,000 to 25,000 in the region. Meanwhile, 350- to 400-square-meter zoned lands in the region are sold for YTL 55,000 to 60,000, according to real estate agents working in the area.

The opening of Viaport Shopping Center and the Marmaray project will also have positive impacts on the region. Families particularly opt to reside in houses with 1+1 plans. Some people prefer to stay in their original houses during the week and opt to come to these houses at the weekends. “These people regard the houses in the region as village holidays,” Onan said.

The price per square meter of the lands available for the construction of villas might surpass YTL 250 in the region. Orhanli and Aydinli districts, which are lucrative for property investment, have limited land available for the construction of houses.

Meanwhile, the price per square meter of industrially zoned lands in the region ranges from YTL 440 to 565. The lands in the region have added to their values considerably since even the lands whose price per square meter amounted to YTL 10 five to six years ago, have grown in value by 20 to 30 fold.

“The prices of the lands have added to their values by six-fold right after the construction of the Formula One track,” said Necati Lermi, the owner of N/G&Miler Real Estate. “There are thousands of hectares of land in the vicinity of the race track. The size of the lands in the region amounts to 16,800 hectares and approximately 3,000 hectares of this land belongs to Formula One,” Lermi said.

Source: TDN

Buying in Turkey - Frequently asked questions

March 25, 2008 

How best to buy property in Turkey? We recommend that you use a licenced estate agency. Check out their certificates before you engage their services. The local Chamber of Commerce accredits licenced estate agencies and a certificate from the Chamber of Commerce (Ticaret Odası) should be displayed on the wall of a licenced estate agency….but check that the photograph on the certificate shows one of the personnel working in the office and not a third party who is not working in the office…..dont be fooled by the explanation "oh, he’s on holiday!"

 Do not buy a property through a friendly waiter, hotel receptionist, friend of a friend etc. Ask yourself, “would I do this if I was buying property in the UK?”

 What happens during the buying process? The legal procedures are really quite straight forward. We can act on your behalf throughout the process as is normal with our Turkish customers. We are fluent in both English and Turkish. However, for foreign buyers we recommend you engage the services of a good English speaking solicitor who will act on your behalf. 

Once you find your ideal property, your agent or your solicitor will carry out the searches on the Title Deeds for you and ensure that there are no outstanding debts registered against the property and that the seller is actually the person detailed on the Title Deed. Thereafter a contract will be drawn up between the buyer and the seller. (The contract should contain the following:

1. Details of the purchased property and full names and addresses of the buyer and the seller
2. Details of payment times and how these will be paid
3. Any extras included in the sale price

The buyer will then be required to pay a deposit in order to secure the chosen property. At this point it is also advisable to open a Turkish bank account; we will help you with this. There is then normally a wait of 12 to 16 weeks (however, at present due to the volume of applications, the wait can be longer) for the paperwork to be cleared by the military.

As soon as the local Title Deeds Office receives clearance from the Army, the remaining balance (usually 10% of the purchase price is retained by the buyer until the deeds arrive) plus any additional costs are transferred to the Turkish bank account and the Title Deeds can be exchanged. BEWARE of agents or developers that ask for full payment up front. Why pay for everything when you have note received everything?

The Title Deeds formalities can all be carried out in your absence by leaving a Power of Attorney with either your agent or with your solicitor. Should you decide to use your agent for this work, they will take you to a notary to arrange this Power of Attorney. There is an official translator within the notary’s office to ensure that you understand the Power of Attorney.

What’s ‘due diligence’? Put simply, due diligence refers to the buyers need to check out the legitimacy of the investment that they are making. It sounds scary but in fact it is the essential checks that one would make during the buying process in any country. Just because the sun is bright and the locals are friendly, that is not reason to lose one’s concentration on the job in hand.

A buyer should be confident that the land title deeds are in place and belong to the developer. Does the developer have a good financial background? Has the developer a good track of quality and finish on their completed projects. Does the developer offer guarantees? Is planning permission in place? For a completed build, is there a licence for habitation?

These are the basic elements and a quality developer will have the relevant documentation to hand. Some clients take advice from their solicitor on this hence the need to have an independent English speaking solicitor.

What is a Sales Contract, a Title Deed and a Tapu?

You will come across both the Sales Contract and the Title Deeds when buying your property in Turkey - in fact they are the most important documents in the whole process.

The sales contract is the legal document that agrees the sale between the buyer and the seller. The contract should state that you the buyer agrees to buy the property at the price you have agreed to pay, and the date by which you agree to pay it.

 The contract will also state that the seller agrees to sell you the property at the agreed price. (Please remember that deposits are usually non-refundable in the event of a cancellation of sale by the purchaser) The sales contract will also include any extras that you have negotiated with the seller.

The Title Deed is the legal document of ownership of the property. The Turkish name for this document is "Tapu Senedi", hence the Tapu you may have heard about. Once the property is sold, the title deeds are transferred from the seller to the buyer and that concludes the sale. If there are any restrictions on the property they will be itemised in the title deeds.

Therefore it is very important for the solicitor to check the deeds carefully before recommending that the sale proceed. You can also ask to have restrictions placed on the deeds once transferred to you if you wish.

In order to have the deeds transferred into your name, the details of the sale will be submitted for security clearance and once clearance has been given, the deeds will be transferred.

I’m not Turkish, can I buy a property in my own name?

All citizens of the countries listed below can legally own a real estate in Turkey due to reciprocity principle and are liable with the same rights / procedures as all the Turkish citizens. Presently a new law is pending which may allow this list to open up to other countries in the near future. We will update the list if/when this happens.

Argentina, Australia, Austria, Barbados, Belgium, Bosnia-Herzegovina, Brazil, Canada, Central African Republic, Chile, Colombia, Dominican Republic, Egypt, El Salvador, Federal Republic of Yugoslavia (Serbia), Finland, France, Gabon Germany, Greece (providing that some restrictions are reserved), Guatemala, Holland, Ireland, Israel, Italy, Kenya, Luxembourg, Malawi, Malaysia, New Zealand, Norway, Panama, Republic of South Africa, Peru, Somalia, Spain, Sweden, Tanzania, Turkish Republic of Northern Cyprus, Turkmenistan, UK, USA, Venezuela, legal immigrants and World Citizens.

The real property acquisition of nationals of the following countries depends on some provisions and permissions:

Cibuti, Chad, Denmark, Philippines, Ghana, South Korea, Haiti, Croatia, Iran, Japan, Switzerland, Lebanon, Macedonia, Mexico, Nepal, Nicaragua, Pakistan, Poland, Portugal, Singapore, Uzbekistan, Greece, Sri Lanka, Togo, Trinidad - Tobago, Uganda, Jordan.

What if I want to sell later on? Are there any costs or complications involved?

Freehold resale costs are around 5% (comprising sales tax, local documentation and legal fees). Property may be sold to Turkish, or foreign nationals without restriction. Because of the change in law (Decree 32 August 1989) the lira is now convertible so proceeds of the sale of a property can be converted to whatever currency and subsequently transferred to any country you choose.

Do I have to pay Capital Gains Tax?