It is widely considered that the real estate sector is facing a credit crunch. Most of the companies in the construction sector, which is the locomotive of the economy, accept that the boom in land prices as well as the increase in the prices of iron, cement and steel have led them to experience tough times. The companies claim that there will be a drastic rise in house prices soon.
Prices in the secondhand house market have dropped by 30 percent, which means that an apartment that was worth YTL 200,000 ($326,744) can be purchased for less than YTL 150,000 ($122,529) in cash. “One of our customers who bought an apartment for $185,000 in 2005, awaits to sell the same flat for $170,000 today,” said a real estate agent.
“The real estate sector will pick up in September as usual even though it is in stagnation at present,” said Nabi Cücük, chairman of Reha Medin Real Estate Agency.
The sale of more luxurious apartments, which are called A and A Plus, did not experience a negative trend in the last two years. There are apartments for each income group. Prices start from $50,000-60,000 and go beyond millions of dollars.
Tuesday, May 6, 2008
Esate agent closures
Real estate agents have been badly affected by the widespread crunch in the construction sector. Many real estate agents, who enjoyed a golden time in 2005 and 2006, are about to go bankrupt.
“For weeks, there have been 39 keys sitting in my office, either for rent or sale. Real estate agents have never experienced such trouble before,” said Mesut Güleroğlu, head of the İzmir Real Estate Agents Society (İZEKO). He also noted that the number of keys at his office for properties waiting to be sold usually do not exceed three or five, and most of them would be gone in 10 days at the most.
There has also been financial contraction in the second-hand housing sector, as the boom in housing loans as well as stagnation in the market has led consumers to act cautiously, which has, in turn, caused the business of real estate agents to stagnate. “In student districts like Bornova and Buca, houses which were worth YTL 700 ($559.85) last year cannot be let out to tenants even for YTL 500 ($399.89) this year. Meanwhile, second-hand apartments cannot be sold even at half price,” said Güleroğlu.
“For weeks, there have been 39 keys sitting in my office, either for rent or sale. Real estate agents have never experienced such trouble before,” said Mesut Güleroğlu, head of the İzmir Real Estate Agents Society (İZEKO). He also noted that the number of keys at his office for properties waiting to be sold usually do not exceed three or five, and most of them would be gone in 10 days at the most.
There has also been financial contraction in the second-hand housing sector, as the boom in housing loans as well as stagnation in the market has led consumers to act cautiously, which has, in turn, caused the business of real estate agents to stagnate. “In student districts like Bornova and Buca, houses which were worth YTL 700 ($559.85) last year cannot be let out to tenants even for YTL 500 ($399.89) this year. Meanwhile, second-hand apartments cannot be sold even at half price,” said Güleroğlu.
Land valuations in Turkey
WASHINGTON, May 1, 2008 – The World Bank today approved a loan equivalent to US$203 million to the Government of Turkey for the Land Registry and Cadastre Modernization Project. The Project will improve the effectiveness and efficiency of the land registry and cadastre services.
"The Project constitutes a next generation of Bank operations in the area of land management and cadastre, where the country already has a well functioning property rights regime, but is striving to take the land registry and cadastre data use to the next level by spreading its benefits to people, businesses and multiple sectors, and facilitating better access to real estate information through the e-government platform,” said Wael Zakout, Sector Manager and Task Team Leader for the Project. “This project will also help improve customer service by reducing the time taken to register a property transaction to a few hours, and develop property appraisal function in line with international standards.”
The project will (i) renovate and update cadastre maps to support digital cadastre and land registry information; (ii) make the digital land registry and cadastre information available to public and private entities (iii) improve customer services in land registry and cadastre offices; (iv) improve human resources in the Turkish Land Registry and Cadastre Agency (TKGM); and (v) develop policies and capacity to introduce best international practices in property valuation in Turkey.
While the Turkish Cadastre and Registration system is considered one of the most effective in the region and registration of property transactions is done within one day in many offices, there are still many shortcomings to be addressed to ensure that the system modernizes to reach the same service level as in the European countries. Many of the Cadastre and Land Registry offices rely on manual systems, with old documents, some of them dating back to the Ottoman times. In addition, the TAKBIS system (Turkey’s computerized Cadastre and Land Registry Software) runs in only 140 out of the 1000 offices.
The most challenging aspect is that cadastral maps continue to be in a paper format, vary in accuracy and consistency, and are not linked to the national network. This makes it difficult to support E-government applications as cadastre maps serve as a base mapping for many government applications. Furthermore, in many localities maps are out of date and do not correspond with the ground locations and areas, differing sometimes by up to 10 meters.
The project will be funded by an IBRD flexible variable spread loan. It will have a maturity of 23.5 years including a 5 year grace period.
"The Project constitutes a next generation of Bank operations in the area of land management and cadastre, where the country already has a well functioning property rights regime, but is striving to take the land registry and cadastre data use to the next level by spreading its benefits to people, businesses and multiple sectors, and facilitating better access to real estate information through the e-government platform,” said Wael Zakout, Sector Manager and Task Team Leader for the Project. “This project will also help improve customer service by reducing the time taken to register a property transaction to a few hours, and develop property appraisal function in line with international standards.”
The project will (i) renovate and update cadastre maps to support digital cadastre and land registry information; (ii) make the digital land registry and cadastre information available to public and private entities (iii) improve customer services in land registry and cadastre offices; (iv) improve human resources in the Turkish Land Registry and Cadastre Agency (TKGM); and (v) develop policies and capacity to introduce best international practices in property valuation in Turkey.
While the Turkish Cadastre and Registration system is considered one of the most effective in the region and registration of property transactions is done within one day in many offices, there are still many shortcomings to be addressed to ensure that the system modernizes to reach the same service level as in the European countries. Many of the Cadastre and Land Registry offices rely on manual systems, with old documents, some of them dating back to the Ottoman times. In addition, the TAKBIS system (Turkey’s computerized Cadastre and Land Registry Software) runs in only 140 out of the 1000 offices.
The most challenging aspect is that cadastral maps continue to be in a paper format, vary in accuracy and consistency, and are not linked to the national network. This makes it difficult to support E-government applications as cadastre maps serve as a base mapping for many government applications. Furthermore, in many localities maps are out of date and do not correspond with the ground locations and areas, differing sometimes by up to 10 meters.
The project will be funded by an IBRD flexible variable spread loan. It will have a maturity of 23.5 years including a 5 year grace period.
Property in Altinkum
Construction firms in Aydın's Didim district on the Turkish Riviera reacted strongly against the Mass Housing Administration's (TOKİ) initiative to build homes and holiday villages in coastal cities and sell them to foreigners.
“This case will cause unfair competition. TOKİ should go on with its actual job, which is building homes for low-income groups”, said Mustafa Bekar, owner of the construction firm Karya Grup. TOKİ opposes many contractors who undertake luxury construction projects for foreigners, said Bekar. “It would be a big mistake that the state entered harsh competition with us. As a social association, TOKİ was founded with the aim of maintaining social balance and helping low-income groups own homes.”
We see that TOKİ has deviated from its actual job. The construction works undertaken by TOKİ with low costs lead the prices to drop further. The state should find ways to increase property prices for foreigners, not to decrease them, Bekar said. He said it is not right for TOKİ to construct houses in coastal cities. "It is beneficial for neither the state nor us to create competition by the hand of the state and to cause prices to drop; only foreigners take advantage of this," said Bekar.
“This case will cause unfair competition. TOKİ should go on with its actual job, which is building homes for low-income groups”, said Mustafa Bekar, owner of the construction firm Karya Grup. TOKİ opposes many contractors who undertake luxury construction projects for foreigners, said Bekar. “It would be a big mistake that the state entered harsh competition with us. As a social association, TOKİ was founded with the aim of maintaining social balance and helping low-income groups own homes.”
We see that TOKİ has deviated from its actual job. The construction works undertaken by TOKİ with low costs lead the prices to drop further. The state should find ways to increase property prices for foreigners, not to decrease them, Bekar said. He said it is not right for TOKİ to construct houses in coastal cities. "It is beneficial for neither the state nor us to create competition by the hand of the state and to cause prices to drop; only foreigners take advantage of this," said Bekar.
Military clearance in Turkey
Firstly, although the new law has been signed by all members of the council of ministers, there is still a little way to go before the law is brought into effect.
As it stands now, the proposed law is waiting to go to the Grand Assembly for Parliament to vote on, once through that stage, a paper is issued to give effect to the new law, this paves the way for the next step. Only after this has happened can the circular order be issued by the General Manager of the Land Registry. It is at this time, the law becomes practically effective. As far as estimating a time period before this actually happens, we could be talking about maybe 4-6 weeks, for all the correct procedures to be completed, perhaps by the middle of June.
The new law brings in 2 very important changes that will greatly improve the whole process of applying for and obtaining a Tapu.
The first, and for me the most crucial, is that as a result of this change, all information regarding sensitive land areas, whether it be military, ecological, cultural, environmental or for energy purposes, will be held by the Land Registry office, thereby possibly removing the requirement for the sometimes lengthy delay waiting for a Military check, and of course the cost that goes with it, usually around 700 YTL.
There is a very real possibility that, should you be a cash buyer with money ready to pay for your purchase on the day, you could now realistically expect your Tapu on the SAME DAY.
Secondly, the area of land that foreigners can own within a city was 5/1000 of the total city area, including but not limited to, forests, parks and areas of outstanding natural beauty, now determining the area as a percentage, but now not including forests, parks and areas of outstanding natural beauty, the limits will only apply to certified and agreed construction suitable land. This limit has now been increased to 10% of suitable land within the city boundaries.
It should be added that foreign companies are also still able to buy land and property in Turkey as a result of these changes, but that the same rules apply to companies as they do to individuals.
It has to be stated though that even though the new law will be introduced, there will still be some small delays while the whole process is brought up to speed.
It should also be noted that any applications already waiting for their military check may be brought back to the city offices, where a decision may be made locally following the successful introduction of the new process.
source http://www.thedidymian.com/news/128/ARTICLE/1468/2008-05-03.html
As it stands now, the proposed law is waiting to go to the Grand Assembly for Parliament to vote on, once through that stage, a paper is issued to give effect to the new law, this paves the way for the next step. Only after this has happened can the circular order be issued by the General Manager of the Land Registry. It is at this time, the law becomes practically effective. As far as estimating a time period before this actually happens, we could be talking about maybe 4-6 weeks, for all the correct procedures to be completed, perhaps by the middle of June.
The new law brings in 2 very important changes that will greatly improve the whole process of applying for and obtaining a Tapu.
The first, and for me the most crucial, is that as a result of this change, all information regarding sensitive land areas, whether it be military, ecological, cultural, environmental or for energy purposes, will be held by the Land Registry office, thereby possibly removing the requirement for the sometimes lengthy delay waiting for a Military check, and of course the cost that goes with it, usually around 700 YTL.
There is a very real possibility that, should you be a cash buyer with money ready to pay for your purchase on the day, you could now realistically expect your Tapu on the SAME DAY.
Secondly, the area of land that foreigners can own within a city was 5/1000 of the total city area, including but not limited to, forests, parks and areas of outstanding natural beauty, now determining the area as a percentage, but now not including forests, parks and areas of outstanding natural beauty, the limits will only apply to certified and agreed construction suitable land. This limit has now been increased to 10% of suitable land within the city boundaries.
It should be added that foreign companies are also still able to buy land and property in Turkey as a result of these changes, but that the same rules apply to companies as they do to individuals.
It has to be stated though that even though the new law will be introduced, there will still be some small delays while the whole process is brought up to speed.
It should also be noted that any applications already waiting for their military check may be brought back to the city offices, where a decision may be made locally following the successful introduction of the new process.
source http://www.thedidymian.com/news/128/ARTICLE/1468/2008-05-03.html
Retire in Turkey
Turkey is proving to be the ideal place to buy land and build your own villa. Europeans, especially the British, typically spend half of the year in their Turkish homes, while their friends and families come to visit or move into nearby villas too
ISTANBUL – Turkish Daily News
For foreigners settling down and living a quiet, warm and safe life, Turkey's southern regions are popular spots and look set to become even more so.
Brits carry the banner where expatriates living in Turkey are concerned. A press release on the Web site www.homesgofast.com mentions that British pensioners seeking to save money are heading to Turkey to benefit from the low cost of living and cheap property prices. On several occasions foreigners build their own houses themselves, proven to be a good way to save even more money.
The southern parts of Turkey in particular have been host to many foreign construction companies building houses for British people or Scandinavians. Turkey is seen as a perfect place to live for retired people because it is an ideal place to invest in land and build villas.
Increasing number
Julian Walker, head of UK-based Turkish property firm Spot Blue, indicates that trends point to an increasing number of people interested in building abroad. For many, Turkish properties offer the best value for money. “According to recent figures, there are over 2 million people in the UK and Ireland who own property overseas – that's one in 30 people,” said Walker, adding, “Many of those are looking to relocate permanently.”
“Analysts say that as many as 85 per cent of overseas property buyers are happy with their investment, compared to just 50 per cent who live on UK pensions,” said Walker. “It's not hard to see why buyers are choosing Turkey – it gives investors great value for their property, a lower cost of living, a warm, Mediterranean climate and really friendly people.”
Former BBC engineer David Nigbur and his wife Rosemary say their cost of living has fallen dramatically after organizing the construction of their three-bedroom villa in Üzümlü. This small town is just outside Fethiye, in the southwest of Turkey near the Mediterranean Coast and is only a 45-minute drive from Dalaman International airport. The value of their completed property has already increased by 30 per cent. The land and the house cost 113,000 pounds but just two weeks later it was valued at 140,000 pounds. The couple said that they are very happy with the villa and the location despite initially thinking that it would be hard to live in another country.
The southern part of Turkey has not only been developed in terms of new homes – it also hosts many new hospitals, parks and cafes. Most of the foreigners who come to settle are primarily concerned about the medical care in the region.
Many foreigners consider the vast size of Turkey and the opportunities for exploration this offers. They often ask their friends to come and settle in nearby villas. And once foreigners settle in the country their children and grandchildren come for frequent visits to Turkey.
Settling in Turkey
Rosemary told Homesgofast.com, part of Marr International Ltd, that she has plans to open a gallery soon because she is an art lover. She said, “Turkey is a stunning place to live and very affordable. We were originally going to Greece but when it joined the EU prices shot up. We are so glad that we ended up in Turkey as the people and climate here are fantastic.”
The fact that many foreigners are interested in buying properties in Turkey is expected to draw an increasing number of foreign investors to the land.
ISTANBUL – Turkish Daily News
For foreigners settling down and living a quiet, warm and safe life, Turkey's southern regions are popular spots and look set to become even more so.
Brits carry the banner where expatriates living in Turkey are concerned. A press release on the Web site www.homesgofast.com mentions that British pensioners seeking to save money are heading to Turkey to benefit from the low cost of living and cheap property prices. On several occasions foreigners build their own houses themselves, proven to be a good way to save even more money.
The southern parts of Turkey in particular have been host to many foreign construction companies building houses for British people or Scandinavians. Turkey is seen as a perfect place to live for retired people because it is an ideal place to invest in land and build villas.
Increasing number
Julian Walker, head of UK-based Turkish property firm Spot Blue, indicates that trends point to an increasing number of people interested in building abroad. For many, Turkish properties offer the best value for money. “According to recent figures, there are over 2 million people in the UK and Ireland who own property overseas – that's one in 30 people,” said Walker, adding, “Many of those are looking to relocate permanently.”
“Analysts say that as many as 85 per cent of overseas property buyers are happy with their investment, compared to just 50 per cent who live on UK pensions,” said Walker. “It's not hard to see why buyers are choosing Turkey – it gives investors great value for their property, a lower cost of living, a warm, Mediterranean climate and really friendly people.”
Former BBC engineer David Nigbur and his wife Rosemary say their cost of living has fallen dramatically after organizing the construction of their three-bedroom villa in Üzümlü. This small town is just outside Fethiye, in the southwest of Turkey near the Mediterranean Coast and is only a 45-minute drive from Dalaman International airport. The value of their completed property has already increased by 30 per cent. The land and the house cost 113,000 pounds but just two weeks later it was valued at 140,000 pounds. The couple said that they are very happy with the villa and the location despite initially thinking that it would be hard to live in another country.
The southern part of Turkey has not only been developed in terms of new homes – it also hosts many new hospitals, parks and cafes. Most of the foreigners who come to settle are primarily concerned about the medical care in the region.
Many foreigners consider the vast size of Turkey and the opportunities for exploration this offers. They often ask their friends to come and settle in nearby villas. And once foreigners settle in the country their children and grandchildren come for frequent visits to Turkey.
Settling in Turkey
Rosemary told Homesgofast.com, part of Marr International Ltd, that she has plans to open a gallery soon because she is an art lover. She said, “Turkey is a stunning place to live and very affordable. We were originally going to Greece but when it joined the EU prices shot up. We are so glad that we ended up in Turkey as the people and climate here are fantastic.”
The fact that many foreigners are interested in buying properties in Turkey is expected to draw an increasing number of foreign investors to the land.
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