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Hurriyet, Turkey
Aug 21 2012
Not that ready for int'l land buyers
ISTANBUL- Hürriyet Daily News
by Servet YeĊ?ilyurt
Real estate firms, along with construction companies, should get ready
to meet varying demands from buyers from 183 countries, who are
declared eligible to acquire land or house in the country, says a
sector professional
Rerecent law easing property sales to foreigners has created much
enthusiasm in the local real estate industry, but buyers may fall out
of love with Turkey if the diversity of foreign demand is not studied.
`[The new property law] is a factor that will seriously contribute to
all of Turkey, particularly the Mediterranean and the Aegean coastal
band. But are we real estate firms ready, and in terms projects
offered?' said Gürkan AkkuĊ?, a manager at Realty World Turkey, in an
email reply to Hürriyet Daily News questions.
The Turkish real estate sector should cater to the varying demands
from different countries, he said, adding that the sector should
produce appropriate real estate that meets the varying demands of
different cultures.
Language skills not enough
`Are [real estate firms] adequately prepared for what kind of a
residence, say, an Iranian or a Kuwaiti citizen would want? Have we
produced property that suits the citizens of every country? Or have
real estate firms put together portfolios meeting demand? Real estate
firms that are ready to serve such needs and promote themselves in the
countries [where demand comes from] will be the winners,' he said.
Foreign language skills are not enough to meet the needs of foreign
buyers in Turkey, according to AkkuĊ?. Firms should study the culture
of buyers and sellers and should know how to behave to different
buyers from different cultures and have a good idea of the type of
residence they want.
AkkuĊ? said, however, that construction firms should also ask
themselves the same questions.
A decree listing the countries whose citizens are eligible to acquire
property in Turkey was released on Aug. 6. Citizens of 183 countries
are allowed to acquire fixed property, buildings and land in Turkey,
with the exclusion of some countries such as Armenia.
`The important thing is how quickly the sale process, that is the
[receipt of the] deed and permission process, will be. This not clear
yet. It especially confuses real estate firms,' AkkuĊ? said.
He said some activity in real estate transactions has been witnessed
in Istanbul and the in the southern provinces, particularly Antalya,
MuÄ?la and Mersin, but those might be transactions that had begun
before and were finalized right after the law was enacted.
Middle Eastern demand
Foreign interest in the Turkish real estate market comes primarily
from Middle Eastern and Turkic countries, said Vehbi Hariri, senior
executive director at CBRE Commercial Real Estate Services Turkey, in
recent phone interview. Russia, Britain and France lead European
countries in terms of real estate demand in Turkey, he added. The
demand is mainly focused in the southern provinces of Turkey, he said.
It is hard to determine how the instability in the Middle East has
affected the Turkish real estate sector due to the summer season and
Ramadan, Gürkan AkkuĊ? said, noting that initial data show that
citizens of Iran, Kuwait, Saudi Arabia and Azerbaijan have shown more
interest in the local property sector as the code has taken effect.
Property purchases spurred by the new code will be seen in the second
half of the year and in 2013, according to him.
`The situation will be clear starting from September. Actually people
do not want spend their money right now. Both sellers and buyers have
been on hold.'
Commercial market vibrant
As for foreign demand in Turkey's commercial property market, several
multinationals, mainly from the insurance and banking sectors, are set
to relocate and expand into the Istanbul market over the next 12
months, according to a recent CBRE report.
`Even with the implementation of new projects, supply is unlikely to
meet the projected demand any time soon,' the report said.
There is interest from all sorts of investors, including sovereign
wealth funds, investment funds and private equity funds in the Turkish
real estate market, according to a report published by Jones Lang
LaSalle, a leading commercial property advisory firm, in July. Retail
remains the priority market for investors, the report, which covered
the first half of the year, said.
MILITARY OK TO BE EASED
ISTANBUL / Hürriyet
Turkey is preparing to lift a procedure that requires the approval of
the General Staff for every land sale to foreigners.
All the military and security zones in the country will be determined
and registered at deed offices as part of a recent joint project by
the General Directorate of Land Registers and the General Staff. This
will allow a quicker sale process as it would remove the red tape of
military permission, which extends the sales period by nearly 15 days.
The project is expected to be finalized in two or three months as a
joint study on mapping land continues, according to officials.
August/21/2012
Aug 21 2012
Not that ready for int'l land buyers
ISTANBUL- Hürriyet Daily News
by Servet YeĊ?ilyurt
Real estate firms, along with construction companies, should get ready
to meet varying demands from buyers from 183 countries, who are
declared eligible to acquire land or house in the country, says a
sector professional
Rerecent law easing property sales to foreigners has created much
enthusiasm in the local real estate industry, but buyers may fall out
of love with Turkey if the diversity of foreign demand is not studied.
`[The new property law] is a factor that will seriously contribute to
all of Turkey, particularly the Mediterranean and the Aegean coastal
band. But are we real estate firms ready, and in terms projects
offered?' said Gürkan AkkuĊ?, a manager at Realty World Turkey, in an
email reply to Hürriyet Daily News questions.
The Turkish real estate sector should cater to the varying demands
from different countries, he said, adding that the sector should
produce appropriate real estate that meets the varying demands of
different cultures.
Language skills not enough
`Are [real estate firms] adequately prepared for what kind of a
residence, say, an Iranian or a Kuwaiti citizen would want? Have we
produced property that suits the citizens of every country? Or have
real estate firms put together portfolios meeting demand? Real estate
firms that are ready to serve such needs and promote themselves in the
countries [where demand comes from] will be the winners,' he said.
Foreign language skills are not enough to meet the needs of foreign
buyers in Turkey, according to AkkuĊ?. Firms should study the culture
of buyers and sellers and should know how to behave to different
buyers from different cultures and have a good idea of the type of
residence they want.
AkkuĊ? said, however, that construction firms should also ask
themselves the same questions.
A decree listing the countries whose citizens are eligible to acquire
property in Turkey was released on Aug. 6. Citizens of 183 countries
are allowed to acquire fixed property, buildings and land in Turkey,
with the exclusion of some countries such as Armenia.
`The important thing is how quickly the sale process, that is the
[receipt of the] deed and permission process, will be. This not clear
yet. It especially confuses real estate firms,' AkkuĊ? said.
He said some activity in real estate transactions has been witnessed
in Istanbul and the in the southern provinces, particularly Antalya,
MuÄ?la and Mersin, but those might be transactions that had begun
before and were finalized right after the law was enacted.
Middle Eastern demand
Foreign interest in the Turkish real estate market comes primarily
from Middle Eastern and Turkic countries, said Vehbi Hariri, senior
executive director at CBRE Commercial Real Estate Services Turkey, in
recent phone interview. Russia, Britain and France lead European
countries in terms of real estate demand in Turkey, he added. The
demand is mainly focused in the southern provinces of Turkey, he said.
It is hard to determine how the instability in the Middle East has
affected the Turkish real estate sector due to the summer season and
Ramadan, Gürkan AkkuĊ? said, noting that initial data show that
citizens of Iran, Kuwait, Saudi Arabia and Azerbaijan have shown more
interest in the local property sector as the code has taken effect.
Property purchases spurred by the new code will be seen in the second
half of the year and in 2013, according to him.
`The situation will be clear starting from September. Actually people
do not want spend their money right now. Both sellers and buyers have
been on hold.'
Commercial market vibrant
As for foreign demand in Turkey's commercial property market, several
multinationals, mainly from the insurance and banking sectors, are set
to relocate and expand into the Istanbul market over the next 12
months, according to a recent CBRE report.
`Even with the implementation of new projects, supply is unlikely to
meet the projected demand any time soon,' the report said.
There is interest from all sorts of investors, including sovereign
wealth funds, investment funds and private equity funds in the Turkish
real estate market, according to a report published by Jones Lang
LaSalle, a leading commercial property advisory firm, in July. Retail
remains the priority market for investors, the report, which covered
the first half of the year, said.
MILITARY OK TO BE EASED
ISTANBUL / Hürriyet
Turkey is preparing to lift a procedure that requires the approval of
the General Staff for every land sale to foreigners.
All the military and security zones in the country will be determined
and registered at deed offices as part of a recent joint project by
the General Directorate of Land Registers and the General Staff. This
will allow a quicker sale process as it would remove the red tape of
military permission, which extends the sales period by nearly 15 days.
The project is expected to be finalized in two or three months as a
joint study on mapping land continues, according to officials.
August/21/2012