22.9.08

Golf

a representative of a Turkish-based company, Atlas, which has officially signed up to a 49-year lease to operate a golf course on land designated by the Ministry of Culture and Tourism.

The plans are centred on an area of land at Mercimek, which borders the Zonguldakllar estate and close to the Sultan Kent and Konya Kültür housing estates on the Akbük road.

The area covers 173 acres of land on which there will be allocated a clubhouse, an 18-hole golf course and a holiday village with a capacity of 420 beds.

Mr Kinaci, a map engineer based in Milas, confirmed the project would cost $40 million (approximately £20 million) – with the golf course costing close to $10 million.

He said: “I can confirm to Voices Newspaper that Atlas has signed a 49-year lease to operate a golf course and hotel project on the land at Mercimek.



“The project has been put to public consultation and there are no objections.”

He added: “As far as we are concerned, once all the legalities are complete, Atlas will build the first golf course in Didim. It will be a major boost to tourism to the whole area.”

Atlas is a company predominantly in the steel and shipbuilding industries in Turkey. This project is believed to be their first foray into the golf tourism business.

Mr Kinaci said: “We are moving ever closer to reality. We are being extremely cautious as we want to get everything right and ensure that the news we give is accurate, clear and concrete to the public.

“We would not want to raise people’s hopes unnecessarily, but things are beginning to happen.”

He declined to give any time schedule on developing the course or when Atlas hoped to open the golf course and hotel facilities.

Seda Türk, Didim council’s planning department manager, and Meltem Öz, Didim Council’s city planner, confirmed Atlas’ interest was more than just a ‘passing one’. And they confirmed that it would provide a big boost to the tourism of the area.

On a separate note, Mayor Mümın Kamaci said representatives of an unnamed Swedish company had visited Didim council offices this week to look at the potential of building a new golf course in the area.

He said that the company had been given a number of options and they had departed back to Sweden to ‘mull over’ the proposals.

4.9.08

Jet2Turkey

Located on Turkey's southwestern Mediterranean coast in the Mugla Province, Dalaman is the ideal destination for tourists visiting the seaside resorts to the west and east of Dalaman such as Fethiye, Marmaris, Koycegiz, Oludeniz, Dalyan and Hisaronu. With culture, nightlife and wonderful beaches, holidays in Dalaman have something for everyone.

Flights will be from Leeds Bradford and Manchester and will start in Summer '09 so register your interest now and we will let you know before the seats go on sale so that you can plan ahead and get the best deals for your trip to Dalaman next year!

21.8.08

Didim

Prospective investors in Turkey were delighted with the recent news that the government’s temporary ban on the issue of title deeds (Tapu) to foreigners has been lifted. Now that the Turkish government has had time to re-draft the relevant law, title deeds are being processed as usual. This is welcome news for foreign investors, especially now that mortgages are more readily available in Turkey - the essential elements for overseas property investors are firmly in place.


The government’s move will reassure prospective investors looking for a good short, medium or long-term investment. The changes to the law are not expected to make any significant difference to individual foreign property investors because they primarily affect foreign companies rather than the growing numbers of foreign investors who usually buy property in officially zoned areas around cities, town and holiday resorts.

Turkey remains a popular investment location, especially now that a number of lenders are offering mortgages to non-residents. Ken Thorkildsen, Director of Obelisk Private Finance, says that Turkey’s mortgage market is evolving, particularly since the passing of the country’s new mortgage law in 2007 which allows lenders more freedom in their lending practices. “Prior to the 2007 Mortgage Law, mortgages were only available to Turkish nationals, at high, double-figure, interest rates,” explains Ken, “now non-resident property owners can take advantage of multi-currency mortgages with low fixed rates. Mortgages are available to citizens of countries with whom Turkey has a reciprocal arrangement, such as the UK and Ireland. There are a handful of lenders offering mortgages to non-residents and that is set to grow as demand increases from foreign investors.”

Now that the Tapu ban has been lifted, Land Registry offices across Turkey have restarted processing applications for the transfer of title deeds to foreign nationals. This is cause for celebration amongst investors, particularly those interested in buy-to-let. Recent survey results published by the Daily Telegraph and undertaken by independent travel group, Cooperative Travel, show that Turkey has pushed Spain from its top position as favourite holiday location for Brits, partly because of the over-valued euro, but also because the cost of living is a fraction of what it is in the UK.

Turkey is a popular tourist and investment location for a variety of reasons, not least because it is now better served by low cost airlines, making access easier and more cost effective. Most importantly, property in Turkey is still significantly cheaper than other similar locations. Now that mortgages for non-residents are gradually becoming more available and the government has passed its new Tapu law, investment in Turkey has been given the green light.

9.8.08

disneyland

Turkey is to build a Disneyland resort near the town of Oren, 35 kilometres south east of Milas, after reaching a deal with all parties concerned in just 3 days. Disneyland Turkey, which will rival Eurodisney Paris, is to be situated just 90 minutes from Didim.



The complex is expected to be constructed in under 2 years, planning was completed after officials visited Eurodisney Paris and Germany’s Heidi Park. It will be built over an area of 1.3m square metres and will employ a “cast” of almost 17,000 staff.



According to the news, reported in Turkey’s Hurriyet daily, all the permission from 74 authorities has been granted and construction will commence after the proposal is signed by the Council of Ministers.



Project manager, Tekin Erdogan said “The electricity station in Oren had a negative effect on tourism in the area. It was struggling to bring any tourism investment to the town. We decided a different angle was needed to attract both investors and holidaymakers. This will be bigger than the Disneyland resort in Paris.”

He also stated that there will be 5 hotels of up to 7 stars with a total capacity of 8,000; a marina is also being built close to the resort.



Animation shows with cartoons heroes, the entertainment facilities, Turkish-Ottoman and Selcuk architectural examples are projected to attract an estimated 12,000 visitors daily. People will be able to visit the Turkish Disneyland via the marina. There will also be scheduled ferry services from selected locations to the fun park.



Babakn Olcaysu who is the licence owner of the Oren Investment Concept said “The government has given its full support to the project. We got all the permissions in just 3 days. The project is expected to cost $3.2 billion. Babakn added:” This will attract tourists from all over the world, and will be of great benefit to all cities around it.”

30.7.08

tax

If you propose to invest in property abroad or take a more permanent step and live abroad, tax planning is one of the most important considerations. Obtaining tax advice – and this should be from a professional tax adviser with knowledge of tax regulations both in your home country and the country where you plan to invest – before you make any investment decisions means that you can make the most of opportunities to reduce your tax liabilities.


Within the general tax considerations of owning assets abroad is the question of inheritance tax, an aspect that many property investors tend to overlook. However, this is one area that has wide implications for the future of your heirs. Careful inheritance tax planning can make the difference between your heirs continuing to enjoy your investments or losing them to pay a large inheritance tax bill.

While inherited assets in some countries attract no inheritance taxes, in other countries taxes can be higher than 80%, particularly if the beneficiary is not a close relative. It is therefore very important to bear this in mind when making investment plans. A further issue to consider is that regardless of the country you choose to invest in or move to, you may still be liable for inheritance tax in your home country. “Inheritance tax rules have important implications for investors,” comments Ken Thorkildsen, Director of Obelisk Private Finance. “If you do not plan your inheritance tax carefully, you may find that your heirs face high tax bills both in the country where you invested and in the UK.”

In general, resident heirs pay less inheritance tax than those who are non-resident and many countries also offer generous deductions or total exemptions for beneficiaries who are direct relatives, e.g. spouse, children or parents. This is the case in Andalucía, home to the Costa del Sol, where recent legislation means that direct heirs who have been resident in the region for 5 years, are exempt from inheritance tax on assets up to the value of €175,000. Ken welcomes this recent development which he believes “has hugely positive implications for the resident ex-pat population in one of Spain’s most popular investment destinations.”

Laws on inheritance tax are complicated and inheritance tax regulations vary in individual countries. For example, Spanish law rules that in the case of a married couple, 50% of the net assets are liable for inheritance tax on first death, whereas under UK law, a married couple may be liable for 100% of the assets minus allowances. Basic familiarity with a country’s tax regimes and its implications should be a high priority for the global property investor. This coupled with expert guidance from a tax expert, can make a substantial difference to the planning of an investor’s estate and by extension, to the beneficiaries. “An essential aspect of owning assets in more than one country is to draw up a will in each country,” advises Ken. “This helps speed up the inheritance process and makes things much easier for your heirs.”

Given the complexity of inheritance regulations and the fact that in many countries they are in a state of constant change, Ken offers the following advice: “No action should be taken without consultation with a professional tax adviser. While there are many ways of reducing inheritance tax liability, only an expert can offer guidance on the right ones for you and your particular situation.”

26.7.08

Mortgages

Garanti Bank has begun to offer a new “non resident mortgage” to foreigners looking to purchase property in Turkey. With the new service the bank will enable foreigners to obtain lira or foreign exchange indexed loans with a maximum 240-month maturity. Foreigners will also be able to obtain loans of YTL 500,000 or the equivalent amount in foreign currency

19.7.08

Tapu

A circular concerning the implementation of a bill regulating property sales to foreigners was issued Thursday. The circular restarted the process of property sales to foreigners, which had been suspended April 16 after the Constitutional Court's annulment of the existing legislation created a legal loophole.

The regulation enables foreign companies, which had previously been granted rights equal to Turkish ones to purchase real estate on the basis of the Foreign Direct Investment Law-No. 4875, to own real estate by permission of the governor's office. The regulations, which will come into effect in three months, will determine the basic aspects of how to receive this permission. As a result, no land will be sold to the companies concerned until then.

Meanwhile, companies operating in foreign countries and foreign real persons will be able to own up to 10 percent of the land within a building scheme. In addition, the area that foreigners can own will be restricted to two and a half hectares and demands by foreigners that surpass these limits will be rejected, according to the new amendment.

Parliament passed the bill regulating property sales to foreigners on July 3 after it was revised taking into consideration the Constitutional Court's annulment of previous legislation.

17.7.08

FADESA

One of Spain's major developers, Martinsa Fadesa, has filed for voluntary administration after failing to renegotiate a €150m (£119m) loan earlier this week. The company reportedly owes The debts of around €5bn (£3.98bn).
company said in a regulatory filing that it had lodged a petition for court administration, marking the start of Spain’s largest bankruptcy process since the introduction of new rules in 2004.

It follows the rescue in March of Immobiliaria Colonial by by creditor banks, which swapped debt for equity held by the controlling shareholders in Spain’s second-largest property company.

Martinsa Fadesa is the latest in a long line of Spanish property companies to run into difficulties, following the collapse of the Spanish housing market last year, after a decade or so of booming activity. Many small construction companies and property developers have either filed for protection or been absorbed by larger groups. The number of companies entering administration this year has more than doubled compared with 2007, according to lawyers.

“Filing for voluntary administration is the best way to avoid aggravating a crisis situation that could become irreversible and have serious repercussions on creditors and all shareholders' interests," said a spokesperson. "The company, along with its administrators, will from now on focus in revenue-generating, through the sale of assets and land management and restructuring the company so the project can be revived.”

10.7.08

Market

News in the foreign press pertaining to Turkey's real estate sector experienced a surge in the aftermath of the approval of a bill by Parliament on July 5 that regulates property sales to foreigners. The attention paid to Turkey's real estate sector, which is characterized by low prices, has been increasing, wrote British newspaper The Times, adding that prices in the sector are expected to skyrocket if Turkey manages to join the European Union.

“It is possible to purchase a property on Turkish shores at a relatively low price of 35,000 sterling (pounds). Does this sound attractive to you?” wrote the paper. “A clever couple can buy a property with a little amount of deposit and with two credit cards. Credit-card companies provide the opportunity of zero interest rates for 15 months period for those with high credit rankings,” The Times wrote.

The paper emphasized that prices in the country's real estate sector are far lower than that of the EU average. “British customers have started to settle in Turkey's popular cities such as Istanbul and coastal areas such as Antalya and Bodrum in the aftermath of the opening of Turkey's real estate market to foreign customers in 2003. The investors expect an increase in the prices of the country's real estate market if Turkey becomes a member of the European Union,” wrote the paper.

9.7.08

Parador

Parador Properties, which had a number of overseas operations, including Cyprus, has gone into voluntary administration.

The company was once considered to be one of Europe’s top estate agents. It used to fly prospective purchasers to their desired destinations and offered advice about specific areas and communities. Simon Lambert and managing director Jack Hamilton founded Parador in 1998.

Parador’s PR company, Quay West Communications, announced: “It is with regret that Parador Properties has announced that, due to the downturn in the overseas property market, it has gone into voluntary administration. This does not affect property purchases by any of its clients, as all contracts were made between the individual client and the builder; Parador Properties acted only as an introductory agent.”

3.7.08

Tapu

A DRAFT bill seeking to expand the scope of the law regulating property sales to foreigners was today (THURS) endorsed by Parliament.

The bill, which was discussed in Parliament last week, has been taken back to the Justice Commission at the last minute.

Amendments for opening up properties in prohibited military zones and strategic regions (lands) to foreigners through permission from governor's offices were sent to the Justice Commission for ratification.

This was passed, and sent back to Parliament which duly gave the title deeds lawchanges the nod. They now await being rubber-stamped by President Abdullah Gul.

During previous meetings in Parliament, the ruling Justice and Development Party, or AKP, was forced to withdraw the regulation expanding the scope of property sales due to opposition pressure.

The regulation, which was taken back to the Committee at the last minute, enables private business enterprises in Turkey launched or contributed to by foreign investors to exercise the rights for immovable and limited property for conducting their operations enumerated in main contracts.

The same principal will be valid in case immovable properties are transferred to another company with foreign investment or in case an immovable owned company with national capital becomes foreign owned through share transfer.

Acquisitions of companies in strategic properties under Article No 28 of the Law on Prohibited Military Zones and Security Zones and in military zones, security zones and some strategic lands enumerated in the same law, will be subject to the permission of governor under whose jurisdiction the related property falls.

The demand for permission will be decided after an evaluation of the acquisition's conformity with the country's security and operation field, in the commission established with the participation of related representatives within the governor's office.

The draft bill handled by Parliament for property sales to foreigners, maintains foreign persons and institutions can possess immovable lands, 10 percent of the total land, within the frameworks of zoning implementation plan and piecemeal plan, while the regulation expands the scope of possessing properties.

Mortgages

A Turkish bank has introduced a new product in housing credits, "Mortgage with Low Installments," to the market, reported daily Milliyet yesterday.

In Finansbank's new mortgage program, installments start at YTL 500, according to authorities at the bank. The installments are determined on the basis of triple combinations, such as, YTL 500, YTL 750 and YTL 1,000, and increase on a two-tiered basis, such as YTL 500 for the first two years, YTL 750 for the second two years and YTL 1,000 for the remaining period.

Consumers are provided with the opportunity to choose the appropriate amount of credits and the payment plan that best fits their incomes. "Finansbank's new product encompasses an installment plan that has not been implemented until now and, therefore, this new product is the first of its kind in housing credits," said Erkin Aydın, Finansbank Mortgage and Personal Loans group manager.

28.6.08

Istanbul

Istanbul's Fener, Balat, Ayvansaray, Galata and Tarlabaşı districts have recently become centers of attraction for the upper echelons of society and particularly the business world. The Fener, Balat and Ayvansaray districts are located on the shores of the Golden Horn, while Galata and Tarlabaşı are situated above these districts. The prices of residences have increased 10-fold in some areas.

The Golden Horn, which has been a center of culture and amusement for ages, had been regarded as an area most people wanted to move away from due to the unplanned construction of industrial buildings, irregular urbanization and environmental pollution. Parallel to this, the Fener, Balat, Ayvansaray, Galata and Tarlabaşı districts failed to attract appropriate attention from society. However, the bleak picture concerning these districts began to alter as crucial changes are taking place in these areas under the umbrella of urban transformation projects.

One of the major reasons behind this change is the increased interest of higher income groups in houses in these areas. The fact that the upper echelons of society began to reside in these areas with higher payments, resulting in the forced migration of the previous residents of the areas, entirely changed the face of social life in this region. The increase in house prices also altered the characteristics of business life in the vicinity, since classic businesses in the area were replaced by elegant restaurants and cafes.

Among the 1,400 parcels of land in the Fener and Balat districts, 750 are considered historical heritage. The UNESCO project, which began nine years ago, had a crucial impact in changing the face of the region, since the area has been experimenting with a significant transformation of its characteristics as compared to a couple of years ago. The project “Rehabilitation Program of the Fener and Balat Districts,” which is being undertaken in cooperation by the European Union and Fatih Municipality, was launched in January 2003. The EU supports the project with an economic package of 7 million euros and the project encompasses the restoration of 200 historical houses, the construction of a social center, the reorganization of Balat Bazaar and improvements in the solid waste system.

Meanwhile, the Galata district has also become a center of attraction recently, and as in the case of the Balat and Fener districts the prices of even ramshackle houses now range from $200,000 to $300,000. It has become impossible to find houses available for rent at a price of YTL 500 in the area, with the rents of certain houses with a view increasing to $3,000. The houses in Galata have predominantly received the attention of foreigners. This interest in the area by foreigners reached a peak in the aftermath of the purchase of some houses by foreign professors. In this regard, the Galata region has become one of the most popular areas of residence for Europeans working in Istanbul.

rates

The Federal Reserve left US interest rates unchanged at 2% yesterday, ending the most aggressive series of rate cuts in 20 years, as America tries to perk up its flagging economy and avoid a full-blown recession.

Fed Chairman Ben Bernanke said in a statement: “Although downside risks to growth remain, they appear to have diminished somewhat and the upside risks to inflation and inflation expectations have increased.”

It’s hoped that the central bank’s decision not to cut interest rates for the fist time in 10 months, will signal the start of an economic recovery for the US. This in turn could offer the UK economy a much-needed boost. However, with the costs of crude oil and commodities rising rapidly over the past year, the reality is that the risk of a recession continues to loom over the US.

The Fed said: “In light of the continued increases in the prices of energy and some other commodities and the elevated state of some indicators of inflation expectations, uncertainty about the inflation outlook remains high.”

Many observers now expect US interest rates to remain unchanged over the next few months.

Economist James Knightly of Dutch bank ING said: “The outlook for corporate profits and therefore investment is deteriorating, with downside growth risks intensifying given market borrowing costs continue to rise despite the stable policy rate. The threat of a prolonged recession remains very real.”

Related story
European Central Bank president Jean-Claude Trichet has implied that multiple eurozone interest rate rises were possible, after refusing to rule them out. The bank is widely expected to raise the cost of borrowing to 4.25% next month in a bid to counter inflation. This in turn could strengthen the euro currency further against the UK pound, which would increase the cost of buying property in the eurozone.

Trichet said: “I didn’t say that we could envisage a series of increases. That being said of course, we never pre-commit. The observers, the market, know that pretty well.”

20.6.08

Izmir

A Turkish company, in partnership with a Russian-based firm, has launched an all-service shopping mall project in Turkey's third-largest city İzmir.
Construction on the mall, to cover a 54,000 square meter area, will start within the first quarter of 2009 and is expected to be finished by the end of 2010.

Sitting right in the city center, the project is designed to unify the two sides of the Agean city. Tekfen-OZ Real Estate Development Co. Inc., founded by Tekfen Real Estate Development Co. and the U.S.-based Och-Ziff Capital Management Group, a global institutional alternative asset management firm with approximately $30 billion of assets, and Renaissance Construction, an international construction company founded in 1993 in Russia with Turkish capital, are equal participants in the joint venture, the Tekfen-OZ Renaissance Shopping Mall.

With expectations of 12 million visitors annually, the project includes a shopping center, offices, houses, cultural areas, cafes, restaurants and a 2,600 vehicle parking lot.

“This is the largest real estate development project in Izmir that is being processed under a single project,” Mehmet Erktin, board chairman of Tekfen-OZ Renaissance, said at a press conference in Istanbul yesterday.

“Despite having a considerable shopping center potential, there is a lack of real estate investments in Izmir. The city will receive a living quarter that it deserves through our project,” Erktin added.

The project includes a 60,000 square meter leasable shopping center area and a 60,000 square meter area for residences and office blocks, for a 200,000 square meter total construction area.

“Turkey ranks below the world average in terms of shopping centers, but Istanbul exceeds that measure. There is a shopping center deficit in İzmir in spite of the fact it is a large city when European standards are considered. We aim to make up that deficit,” said Erktin.

The project aims to provide wide and spacious open air areas, compatible with the Aegean lifestyle and climate, rather than the classic closed door shopping mall concept.

At the shopping mall, set to be the largest in the region, Izmir residents will have easy access to various services, including cinemas, cultural activities, offices and houses. The project is expected to provide employment for 5,000 people and is valued at nearly $250 million.

16.6.08

golf

FOUR investors have visited Didim this week to investigate the potential of kick-starting the much-vaunted golf course projects.

Two Swedish and two Turkish groups visited the area to look at land off the road on the way to Akbük which has been allocated by government ministers for golf tourism.

The visit on Wednesday (June 11) came two years after Spanish company FADESA investigated the potential of setting up a top quality golf course in Didim, but declined to follow up their interest.

The four investors visited Mayor Mümin Kamacı and the Didim Estate Agencies Association before the association’s deputy chairman Sevim Külekçi took them on a site visit. The investors left Didim the same day.

One investor Fuat Yücel, speaking to Voices Newspaper by phone, said they were pleased with the visit. He added: “We want to be involved in golf tourism with our foreign partners in the Aegean region and we see great potential in Didim.

“We have a planned budget of 20 million Euros for a project, but we still need to investigate other areas in Bodrum and Ayvalık before we make a firm decision.

“If we decide on Didim, we will open the golf course in three years.”

14.6.08

Turkey

Just as Turkey looks as if it is shaping up to become the next major holiday-home and investment destination, its government has stopped title deeds being issued to foreigners.


Safe as houses: Bodrum Castle overlooks the lively old town. The peninsula is popular with British and Turkish buyers alike
The country did it for six months in 2005, too, in an attempt to prevent large tracts of rural land being bought up. The latest ban - announced in April and awaiting ratification in parliament - has a similar purpose, limiting foreign ownership to 10 per cent of the land in any town.

Agents selling in Turkey expect the restriction to be lifted soon. "I don't see it as a problem, as you could never expect to receive your title deeds within three months anyway," says Julian Walker from Turkish property specialist Spot Blue. "For anyone buying now, the suspension will have ended by the time they reach completion."

Even 10 per cent foreign ownership of land is a high figure that is unlikely to ever be met, Walker points out. "Even in Spain, 95 per cent of sales are to the domestic market. In Turkey, there are 77,000 foreign property owners out of a population of 77 million, which is 0.1 per cent, so 10 per cent is light years away," he says.

"You have to remember Turkey is a poor country, 20 years behind the West in its property market, laws and business practice. And even though finance is available, it is also still typically a cash market."

advertisementApart from this blip, Turkey's property market is proving resilient, with prices expected to rise by 10-15 per cent this year, says Knight Frank.

The currency exchange company Moneycorp reports that British interest in Turkish property has trebled in the past year. A NatWest survey of mortgage lenders predicts that Turkey - where 22,650 Brits own property - will be the third most popular

destination for UK buyers in the next three years, with most sticking to the area between Kusadasi on the Aegean coast and Alanya on the Med.

In its attempts to double tourist numbers to 10 million by 2010, the Turkish government is investing in infrastructure and attractions, including new golf courses in Dalaman and Belek.

It is also encouraging new air routes and airport expansion. EasyJet now flies to Dalaman and Istanbul, BA to Antalya. A new international airport at Edremit will open up areas around Ayvalik, north of Izmir - until now, despite good beaches, great windsurfing and attractive property, the preserve of Turkish buyers.

Beyond its appeal as a value-for-money location for holiday homes - outside pricier Istanbul or Bodrum, the average two-bedroom apartment costs £35,000-£90,000 - Turkey is also drawing investors to Istanbul, where new development is taking place on both sides of the Bosphorus.

Prices average about £700-£900 per square metre, with studios from £40,000 in developments such as Life Studio near Ataturk international airport (through The Right Move Abroad), or Astrum Towers, six miles from the airport, which agent Regnum predicts will see annual growth of 30 per cent.

So, this Christmas - or whenever the restrictions ease - why not vote for Turkey?

BODRUM FAR FROM HUMDRUM

Lively resorts, leisure facilities and low-priced newbuild properties make the Bodrum peninsula one of Turkey's best-known areas for British visitors, while quieter spots such as Yalikavak and Gumusluk appeal to wealthy Turkish property buyers wanting £1m-plus villas.

"Bodrum is one of the most popular coastal regions," says Jane Griffiths, managing director of Regnum, "and Turkey's appeal is widening to take in growing numbers of Eastern European holidaymakers as well as British. Small apartments can achieve rents of £300 a week."

13.6.08

altinkum

The act that regulates property sales to foreigners has caused much debate. The Constitutional Court had canceled the pertaining article on Jan. 16, causing sale of land to foreigners to come to an abrupt halt. The draft was once again discussed in Parliament yesterday. Experts are divided on the subject, with some in support and some listing drawbacks

YASEMİN SİM ESMEN
ISTANBUL - Turkish Daily News


Parliament yesterday debated the law that regulates the sale of land to foreigners. Some experts believes the new act will allow for more land to be sold to foreigners, while others believe it will bring more limitations, as it will make the procedures more confusing.

Yet, another long-standing issue is will selling land to foreigners become a threat to Turkey's security and independence?

“It should not be overlooked that taking hold of land [by foreign entities] will also mean giving away political and cultural independence,” read a press statement by the Union of Chambers of Turkish Engineers and Architects, or TMMOB.

But some, like Center of Economics and Foreign Policy Studies, or EDAM, Chairman Sinan Ülgen, do not agree. “It is not appropriate for Turkey to have harsh implementations with regard to property sales to foreigners, except for those also stated in the act, as having strategic importance for security reasons,” he said. Ülgen does not believe the lands bought by foreigners can be used as a tool for political leverage.

Istanbul Real Estate Agents Chamber Vive President İzamettin Aşa also supports sales to foreigners, although a bit more conservatively. “I support property sales to foreigners. I do not think it should be restricted. However, it should be under a certain legal framework and in the best interest of Turkey,” Aşa said. He suggested a team composed of military men, bureaucrats, real estate agents, and technical experts, collaborating to study the situation, will be in Turkey's best interest.

Another issue is an economic one. Ülgen finds foreigners' acquisition of land to be beneficial for Turkey economically. “It is a contribution to Turkey's economy. The land that is sold to a foreigner does not become the property of another country,” he added.

Aşa does not agree that selling land to foreigners has any additional economical benefits. “I, too, am an economist. But as real estate agents, we have the chance to see things first hand in the field, with the people. I would like an economist to explain how selling to foreigners is more advantageous,” said Aşa.

He explained that years ago selling to foreigners was more beneficial. “They would compare the prices in Turkey to other countries, find it cheap, and buy. This happened mostly in the Aegean region. But for the past two years, they have been buying at market prices, and have even started bargaining like Turks,” said Aşa.

Another much debated point is the reciprocity principle. It states that citizens of countries that Turkey has reciprocity treaties with, can acquire property in Turkey, just as Turkish citizens can buy property in those countries. There are 88 such countries. “This principle states that if property is sold to Turkish citizens in a country, then property can be sold to that country's citizens in Turkey,” said Ülgen. He explained the amount of land sold to foreigners in Turkey or the amount of land sold to Turkish citizens in other countries were never compared or held as a determining factor.

The list of countries that Turkey has a reciprocity treaty for real estate, used to be announced by the Deeds and Cadastre Directorate, explained Aşa. “But the list has not been announced for the past 1-1.5 years. Now a foreigner [willing to acquire property] has to apply to Deeds and Cadastre Directorate and wait for their answer as to whether he or she can buy the property,” he said. He added that this caused concern among real estate agents that land may be sold to citizens of countries not having a reciprocity treaty with Turkey.

Ülgen dismissed concerns that it is impossible to determine the amount of land owned by companies with foreign partnership or foreign ownership. “It is clear under which companies these lands are registered. The capital structures of these companies are clear; there are no such risks,” he said.

Ziya Ercan is the chairman of Muğla Real Estate Consultants Association and deputy president of Turkish Real Estate Consultants Federation. He explained that even though the Deeds and Cadastres Directorate kept the data on reciprocity treaty, there were some ways to bend the law. “For example, a Turkish citizen would establish a company with a foreign partner. As long as the Turkish share is more than 51 percent, they can buy property. Then the Turkish partner transfers his rights to the foreigner.”

As a whole, Ülgen believes the new act will be beneficial for Turkey. He explained the sale of property to foreigners had become impossible when the Constitutional Court canceled the Deed Act's articles, pertaining to the sales of property to foreigners.

Aşa, on the other hand, is not so optimistic. He said the Constitutional Court had canceled the Act as it gave “unlimited rights” for property sales to foreigners. “But they have increased the rights and brought the act onto the agenda once again. It seems like the Constitutional Court will cancel it again. Such a chaos should be prevented,” he said. In fact, the Republican People's Party, or CHP, is expected to take the issue to the Constitutional Court once again. Aşa added, “It is hard to understand why the pertaining law is being toyed around with so much lately. The rights drawn up by the previous law were clear.”

Aşa said even without the additional confusion, the real estate sector has been suffering. “The Housing Development Administration of Turkey, or TOKİ, and the high inflation rate have already blocked the sector.”

Even though he believes the new act will be beneficial for the real estate sector, Ercan agrees with Aşa that the real estate sector has been suffering. He showed TOKİ's constructions as an element that affected the construction sector adversely. Another element, Ercan explained, was the cheap housing loans the banks have been offering since 2004. “There was a big interest in housing loans between 2004 and 2006. Now the buying power has decreased because of that. And the sector has come to a halt,” he said.

4.6.08

Marmaris

Last week's hottest news occupying international and local press about Marmaris was the funny – tragicomic, actually – story in Russian media about sharks on the coast of Marmaris.

According to Russian radio news and some Web sites, the beaches around Marmaris and Bodrum were closed off because of shark attacks! The source of the news was unknown, and some Web sites even used shark photos from different parts of the world to decorate their pages.

As expected, this shocking information provoked genuine panic among Russian and Ukrainian tourists preparing for a holiday in the area. Russian tour operators answered hundreds of phone calls from their clients asking about the situation. Tour operators and hoteliers in the area immediately asked Turkish officials for an explanation, although they knew there was not a bit of truth to the shark news.

In a written explanation, the Culture and Tourism Ministry denied the information aired by Russian press on the closing of several beaches on the Aegean coast because of sharks in the area. “Nothing of the sort is possible. No sea resorts were closed,” the ministry said. So, what did really happen and how did it turn out in the press?

All it was was a bit of “over-imaginative journalism.” The truth about sharks around Marmaris is completely different and has indeed been known for a long time. Boncuk Bay in the Gulf of Gökova was declared a protected site in 1990.

Another declaration was made by ICRAM (Italy's Central Marine Research Institute) in 2004 at a meeting of the EEA (European Elasmobranch Association) to explain the results of the observation of the sandbars in the bay. The bay hosts sandbar sharks (Carcharhinus Plumbeus) every year from May to August in what is the only known procreation area of sandbar sharks in the Mediterranean Sea.

The Environment and Forestry Ministry's Authority for the Protection of Special Areas (ÖÇKKB) started a project in Boncuk Bay in 2007 aiming to observe, research and protect sandbar sharks, “sensitive” inhabitants of the coast. For this reason, the bay was sealed off to tourism, or any visits, a short time ago. Currently, officials in Boncuk do not allow people to enter the bay.

Under the protection rules, all kinds of fishing, swimming and scuba diving, as well as anchoring and sailing activities have been prohibited in the area along the bay marked with buoys. The project will hopefully save the sandbar sharks, which are no danger to humans, and it is a blow to the long-established tourism business in the region.

The next phase will also include the education of the people. Visitors, local people and especially fishermen will be educated by volunteers and SAD (Underwater Research Society) members in order to increase their awareness and environmental consciousness regarding sandbar sharks. A variety of marketing material including brochures, presentations, small books and VCD and DVD films will be prepared and used for this purpose.

Unfortunately, some Russian journalists misunderstood and mangled all these scientific efforts and they announced to their people “shark attacks” instead of “shark protection”! This greatly affected many people in Russia, Ukraine and other neighboring countries. Moreover, several Web sites in Germany and the UK quoted the discussions and carried the topic on their forum pages.

But it is likely the panic mood will be over in a few days after the explanations of local and national authorities. Ali Acar, mayor of Marmaris, summarized the truth in a very clear way when talking to a Ukranian TV channel about the misunderstanding on sharks, “Since my birth in Marmaris, I have never seen or heard of any sharks in our bays, except the sandbar sharks in Boncuk Bay. It would be nice to see some of them in other bays, because they really are harmless and very sensitive animals.”

The words of a British diver on a forum page prove how the Russian journalists made a big mistake by saying “sharks attacks:” “I think someone is pulling someone's chain! Although sharks are present in that part of the world, they are few and far between. I've been diving in Turkey for years and would love to come across a shark in those waters, but have failed miserably! … The waters around Marmaris don't offer the right habitat characteristics for most shark species, not ones you'd be concerned with anyway… It would be useful if they reported on species, if indeed they even know what they were. The authorities are right to be cautious, but journalism like this doesn't do anyone any good and will only harm the tourist industry.”

Turkish economy

As the global economy enters a tumultuous period, Turkey offers an optimistic picture to those abroad because of its current stability and the strong fundamentals of its economy, according to a European Union representative.
Despite political uncertainty in the country, both the International Monetary Fund (IMF) and the EU remain optimistic about Turkey's growth stability. “Global and domestic challenges have increased. Clearly, it is going to be more difficult to achieve the growth rate we saw between 2002 and 2007, which was 7 percent on average,” Ulrike Hauer, head of the trade, economy and agriculture section of the Delegation of the European Commission to Turkey, told the Turkish Daily News.

Speaking on the sidelines of the European Finance Convention in Istanbul yesterday, Hauer said that today “the fundamentals of the Turkish economy are so much better.”

“I think this is the view of not only my colleagues, but possibly also of the commission in Brussels,” she said. “We would probably say a 4 percent growth is realistic for Turkey this year. Turkey needs to raise its sustained growth rate significantly. But today it is in a much better position than it was five years ago.”

Despite high unemployment, Turkey presents a reassuring picture to the EU in terms of economic stability, she noted, adding, “We no longer see a risk that Turkey will collapse into some kind of financial crisis. Turkey's economy has been much more stable and resilient to these kind of shocks.”

The IMF representative at the conference, meanwhile, noted that the current slowdown in the Turkish economy is linked to external factors.

“We expect Turkey to grow in a range between 2 and 4.5 percent this year,” said Hossein Samiei, the permanent representative of the IMF to Turkey. “Growth is slowing down while inflation rises. But obviously, what brought this slowdown was the shock of rising energy and commodity prices.”

Turkish banks are “less dependent on external resources,” Samiei noted. “This fact clearly shows that Turkey's banking sector is safe and sound.”

Title deeds law in turkey

The New Regulations



The Government has changed the parts of the law abolished by the Constitutional Court. In the new law, foreigners are allowed to buy property accounting for up to 10% of the city boundaries within the development or future development plan. Each city title deed office will announce the qouta every year in January.



Military Checks Finishing



The Ministry of Defence will give the military plans to each title deed office. As a result of this, foreigners who would normally have to apply for military clearance will now not be required to do so . The clearance checks, which in some cases were taking 6-8 months to complete, should now be dealt with in 1 day at the local title deed office.



Sources claim the new law will be passed through parliament within 2 weeks.

Hassle ban in Altinkum

Police investigators are using covert methods to catch businesses hassling holidaymakers, after warning them they face tough sanctions if they continue to offend.

Yalcin Akalinli, the Chief of the Police, said: "Didim is to have a peaceful season this year.” The hassling inspections, which were the duty of the municipal police (zabita) until this year, will be carried out by the city Police. Chief Akalinli, stating that hassling abuses are being noted by undercover police officers using hidden recording equipment said: “This is only the beginning; we are empowered by law, to impose sanctions of up to 30 days of closure. Businesses engaging in hassling may get a five day closure for a first offence, but this penalty will be increased substantially for any subsequent violations. If necessary, we may close them for the rest of the season. Peacefulness in Didim is our first priority. The Governor has stated clearly that this year this matter will be closely monitored and hassling will not be tolerated.”



Thirteen businesses in Altinkum have so far, received five-day closure sanctions, imposed by the police under the scope of the campaign against hassling that started two weeks ago.

The Didim police, who have assigned different teams on day and night shifts against hassling particularly along the Altinkum beach, claimed that following the imposition of sanctions, the seriousness of the matter will be better understood by every business.

Residents of Didim agreed that in recent years, the fight against hassling has been inadequate, due to the closures being imposed towards the end of the season and added that the sanctions should be imposed during the season.

Commenting on the matter, Police Chief Akalinli said “These sanctions will be imposed during the height of the season” and warned businesses to be more careful.

Deniz Atabay, Chairman of Didim Tourism Enterprises Association, congratulated the police on their initial success, adding: “I believe that this year will be a very successful one in the fight against hassling. We will get the first results towards the end of June. Didim must change its image. This must start with businesses. We must understand that Didim is on its way to becoming an important tourism centre of Turkey and the Mediterranean Sea. Those who harm the city for financial reward must be penalised.”

22.5.08

All inclusive hotels in Turkey

A recent poll, carried out by Öger Tours, reveals that the all-inclusive system is the main reason why German tourists prefer to spend their holiday in Turkey. The result of the poll confirms that a younger generation in Germany sees Turkey as a holiday destination. 'This fact will make Germany an important potential market for Turkish tourism in the long term,' says Öger Tours General Manager Recep Yavuz

ANTALYA - Anatolia News Agency


A recent poll of over 90,000 German tourists to Turkey has revealed that 85 percent chose Turkey as their travel destination because of its “all-inclusive” model, in which a variety of services are included in the price.

“The all-inclusive system is the main reason that German tourists cited for coming to Turkey. Around 85 percent of poll participants gave the same answer to the question ‘Why do you prefer Turkey?'” said Recep Yavuz, the general manager of Öger Tours, the company that conducted the poll. He added, “Roughly 44 percent of participants mentioned opportunities for children in reply to a question about what Turkish hotels have that is unlike other hotels in the world.”

Noting that the poll results will help create strategies to attract tourists, Yavuz said 55,000 of those surveyed chose Turkey as a holiday destination on more than one occasion. He said hotels in Turkey offer rich activities for children, rooms for families with children, and an “all-inclusive” method of pricing. “This feature makes Turkey different from all countries in the Mediterranean,” he said.

According to poll results, the age of German tourists to Turkey is lower than in past years. Yavuz said this result confirms that a younger generation in Germany now sees Turkey as a holiday destination.

“This fact will make Germany an important potential market for Turkish tourism in the long term,” he said, adding that Germans polled about their experiences in Turkey have consistently cited interesting cultural sites and almost 100 percent satisfaction, demonstrating that Turkey has an important place in the field of cultural tourism.



Hotel and service satisfaction

The poll asked questions about hotel, personnel, and service satisfaction, with around 90 percent of participants expressing their satisfaction. Yavuz said 20 percent of German tourists said they felt at home in Turkey, adding that the all-inclusive system is the main reason participants in the survey listed for coming to Turkey, demonstrating its importance to Turkish tourism.

Yavus argued that, though the all-inclusive system is sometimes criticized, it cannot be abandoned until the industry has found a new and better system to replace it. “It should be discussed how a consistent system can be developed rather than saying ‘Tourists do not go out,'” he said, adding that the only way Turkey can currently offer natural beauty and comfortable holiday resorts at a very low price is because of the all-inclusive system.



Expectations from the new season

Stating that hoteliers have even higher expectations for growth in the tourism sector this year than in previous years, Yavuz said the Cappadocia and Aegean regions are likely to benefit from a boom in tourism this summer.

He said Europeans have had a chance to become familiar with the İzmir and Aegean regions thanks to the western city's EXPO bid, adding, “This tourism season is better than last year, but we have even more expectations. We foresee that holiday resorts other than just those in Mediterranean Antalya will host more tourists. Europeans are showing greater interest in the Aegean region this year.”

Outlet centre Altinkum

Turkey surpasses European countries with its investments in outlet centers, in which manufacturers sell their products directly to the public through their own stores.

Turkey ranks second among European countries right after the United Kingdom, with 19 outlet centers with 382,781 square meters leasable area. In the U.K. there are some 29 outlet centers with 474,881 square meters leasable area. Italy ranks third with 12 outlet centers, while France ranks fourth with 11.

The total number of outlet centers in Europe is 113, with more than 3.13 million square meters leasable area. Meanwhile, the United States is home to 222 outlet centers with 5.57 million square meters leasable area.

In the meantime, world-renowned brands continue to increase their investments in the outlet centers. One-third of stores run by Mudo, a concept clothing and home accessory brand, are outlet stores. Boyner, another clothing giant, is also planning to open three new outlet stores this year.

Park Bravo Group currently owns five outlet centers scattered all over the country. These outlet centers, which are spread over a total of 1,500 square meters, constitute 13 percent of all Park Bravo Stores as well as 10 percent of the company's total turnover. The group has plans to invest further in outlet centers.

Some 11.1 million people visited Olivium last year. Total turnover excluding the value added tax, or VAT, added up to $125 million, said Murat İzci, the general manager of Olivium, a major outlet center in Istanbul. “We are expecting 11.3 million visitors this year and a turnover of $150 million,” he added.

Olivium Shopping Mall is 100 percent full, said İzci and added that 400 brand names are waiting in line. “We are planning an investment in Ümraniye, in the Anatolian part of Istanbul. The five-storey center will be built on a 35,000 square meter plot. The new shopping center, which will require an investment of $60 million, will open its doors to customers within the first quarter of 2010.”

“Outlet centers provide a great alternative for people who are looking to dress in brand name clothing, but have a limited budget,” said İzci. “As opposed to the markets, outlet centers currently are not experiencing stagnation.”

Property in Turkey

Turkey is considered as having a developing real estate market despite a crisis in global markets.

There are different standpoints regarding the direction of the crises. The chief executive officer (CEO) of Krea Group, Hakan Kodal, assessed the recent credit crunch in global markets as well as the conditions of the real estate sector in Turkey and their investment strategy at press conference in Istanbul yesterday.

Krea Group cooperated with Merrill Lynch GPI, one of the world's leading wealth management, capital markets and advisory companies, in 2006. The operating partner of Merrill Lynch is also responsible from the management and marketing of 14 shopping centers in Turkey, including Adapazarı and Eskişehir.

“Pricing and liquidity are two important factors that fed the credit crunch. The crisis that emerged due to liquidity risks is about to cease; however, we have not come to an end in the pricing crises yet. This is also because of the market-to-market pricing system of the United States, which is the leading actor of the global economy” Kodal said. “The total deficit will be approximately $800 million after the assets are being re-evaluated,” he said.

“There is a problem of growth and development in global markets. Therefore, it will take at least one or two years to defeat the circumstances of the prevalent crunch,” Kodal said, who also noted that the Turkish real estate market is in a 'digestion' period after experiencing drastic rises in property prices.

Most of the investors in the real estate sector have to be cautious enough for their future investment plans given the uncertainties and risks in global markets, said Kodal. “This year does not offer predictable economic conditions. Only those companies with strong capital structure will survive under these volatile conditions,” added Kodal. He also said that in a conference regarding the evaluation of real estate market held recently 80 percent of 350 participants believed the crunch is almost at its depth. "Turkey preserves its charm for investment and 95 percent of all participant companies in the real estate conference were somehow interested in Turkish real estate sector,” said Kodal. “The mortgage crisis is about to end. With a $30 billion mortgage volume, which is 6 percent of total GNP, Turkey is likely to attract more foreign investment in the long-run,” said Kodal.

3.5.08

Hotel ownership in Turkey

With 54 years of experience in the construction sector, FDB Yapı prepares to launch the Ak Club Residences project in Antalya, a city on the Turkish Riviera. The project represents the first “home-hotel” concept in Turkey, and brings a new understanding of management to the city.

The project is expected both to meet the needs of the foreign investors who want to invest in property in Antalya, and to contribute to the economy with professional management of the facilities that offer the comfort of a five-star hotel. A first in Turkey, the Ak Club Residences project offers a profitable means of investment.

The owners will be able to make continuous profits by renting out their apartments at luxury-hotel standards day by day. In other words, the homeowners will be shareholders in a luxury hotel in Antalya. Turkey's first home-hotel project, the first stage of which is set to be completed by the end of 2009, will be comprised of four stages. The project will include a total of 1,200 apartments of different sizes.

“We will form a modern, comfortable and secure building system thanks to the technological structure that will be equipped with a self-sustaining smart house automation system,” said Fatih Deniz Bıçakçı, chairman of FDB Yapı.

The Ak Club Residences project has been developed to remove the difficulties faced by the owners of secondary homes, said Bıçakçı and added, “the secondary homes have fixed costs such as security, maintenance and repair, although they are only used for a short period of time. These costs will be removed with this home-hotel project.”

Housing shortages in Turkey

The Association of Real Estate Investment Companies (GYODER), which was established in 1999 by the representatives of existing and founding Real Estate Investment Companies (REICs), organizes the Eigth Turkish Real Estate Summit on June 4-5 at the Swissotel Istanbul. Selecting the theme of “Turkey's Real Estate Potential for 100 Years,” members of Turkey's real estate sector will focus on the investment opportunities and the problems of the sector in participation with leading figures from the world's real estate sector during two days in seven sessions of the summit.The economic outlook of the sector, investment environment, shopping mall investments, Turkey's affordable housing project report concerning the need of housing of people with low income, real estate opportunities in tourism, office, logistics and Turkey's cities with real estate potential will be the main focuses of the summit.“We will additionally organize an international real estate fair, which Istanbul lacks considering it is a city having one of the world's greater real estate potentials, within the framework of the next year's real estate summit,” Turgay Tanes, board member of GYODER, told a press conference in Istanbul Monday.“Turkey will face a housing deficit nearly of 700,000 houses within the next 10 years and 20 percent of the families will be able to afford the prices to buy a house. We investigated independently that what kind of financing models should be implemented and how the structural changes can be made in order to help low income people to purchase houses in ‘Affordable Housing: The Need of Housing of Low Income People and the Suggestion of Solutions' report, which will be presented during the real estate summit,” said Emre Çamlıbel, GYODER board member and Soyak General Directorate.

“Turkey's real estate sector has developed within the last three years and it is continuing to grow. We see nothing to fear about concerning the growth of the sector. Istanbul will keep to be the star of the real estate. And also Turkey have a great real estate potential which guarantees the next 100 years,” said Nurhan Azizoğlu, GYODER's vice chairman.

Bodrum Tombs

A villa with a swimming pool built on top of the tombs of the King of Caria in Turgutreis in southwestern Turkey causes outrage among locals and historians

YAŞAR ANTER
MUĞLA – Doğan News Agency


A new chapter was added to the story of destruction of nature and history near the tourist resort of Bodrum on the Aegean coast with a contractor building a villa with a swimming pool over 3,500 year-old world-renowned tombs.

The huge tombs belonging to the kings of Caria, a pre-Hellenic seafaring people who founded a kingdom in the southwest of Anatolia in today's Muğla province, who existed from the 11th century B.C. until they became a Persian satrapy in 545 B.C.

According to Wikipedia, the Iliad records that at the time of the Trojan War the city of Miletus belonged to the Carians and was allied to the Trojan cause. They are seen as being an offshoot of the Minoan civilization based in Crete.

The matter came to light after Professor Fahri Işık from Akdeniz University's Department of History and Archaeology went on a tour of the Carian civilization remains in the region with his assistant Özay Kartal. Having just held a seminar on Mysians in Bodrum last Saturday, Işık was shocked to see that villas were built over the tombs of Carian kings. The tombs were registered by the Muğla Culture and Nature Protection Board two years ago after they were discovered by Bodrum Museum archaeologists.

He noted that construction machinery was used to break the stairs of the tombs while tombs were broken to pass water pipes. Işık also said that barbed wire fence and solid walls were erected around some tombs.

Işık said the Bodrum Peninsula was a very important historical region with the remains of the Mycian, Caria and Leleg civilizations. “The peninsula is rich in history and civilization. The recent construction boom in the region resulted in serious destruction of culture in the region. This should be stopped. Such historical remains of immense value being located on the private lands of people does not mean they have the right to destroy them.”



‘The tombs are ours'

The contractor, İsa Şahinkaya, said he was not the only one to build over the tombs, noting that the land was legally his.

“We purchased the villas after construction began. These tombs are on our land. Many villas were built on tombs before and no one said anything. The tombs may be damaged a bit during construction but we got all the necessary permits.”



Inquiry:

Bodrum Administrator Abdullah Kalkan, speaking to the Doğan News Agency, said he had asked Bodrum Underwater Museum Director Yaşar Yıldız to study the area as soon as he heard of the matter. “What is done is an insult to thousands of years of history and culture. We are having a hard time protecting our historical sites. I've started an inquiry and will file both an administrative and criminal complaint based on experts' reports. We will protect the area,” he said.

Turgutreis municipal officials also conducted an inquiry at the site yesterday, finding out that only one swimming pool of the six villas was built illegally.

It was said that the building licenses for the villas were issued in 2002, before the tombs were registered as a cultural treasure.



Local anger:

One local, Hatice Erbil, 65, said despite their constant warnings, nothing was done to stop the contractors from destroying the tombs. “They broke the tombs with construction equipment. The plots were sold several times and we could not find anyone to complain,” she said.
http://www.turkishdailynews.com.tr/article.php?enewsid=104311

Real estate market

Contrary to what has been expected, the increase in interest rates for home equity loans did not have a negative impact on demand for housing in the first quarter of this year, reported Turkey's monthly business and economy magazine Capital. Turkey has an annual housing deficit of 700,000 units. Therefore, the country's real estate sector cannot stall, said Avni Çelik, chairman of Sinpaş Group, one of Turkey's residential and commercial construction firms. In this respect, the government has a very important role in the implementation of the necessary and much needed regulations in the sector. “The existence of the Mass Housing Administration (TOKİ) under the rule of Prime Ministry harms the competitiveness in the real estate sector as they have several financial privileges,” Çelik had told daily Milliyet on April 17 last year. The real estate sector, which has a direct and indirect impact on more than 100 sectors including media and construction, continues to be the key sector of the Turkish economy with its 15 percent growth rate, reported Capital. All the big projects and infrastructure investments planned in the sector continue at a fast pace, said Atalay Şahinoğlu, board chairman of Nuh Çimento, one of Turkey's largest companies operating in the cement sector. Noting that he agrees with Çelik he said, “I presume that the number of investors is likely to rise.”

Hotels in Turkey

Astute property investors are well aware that a country that is leading the way in tourism will follow with an increased value in property. This can be seen clearly in Turkey where major tour operators and some of the world’s top hoteliers are clambering to be a part of this new era.

Thomas Cook has chosen the Xanadu Resort Hotel in the Mediterranean resort of Antalya as the “world’s best hotel in select hotel category.” This was based on customer satisfaction covering more than 10,000 hotels, worldwide.

This particular hotel topped the list of 100 select hotels in the world and with 19 million tourists travelling with Thomas Cook annually, the company is well placed to understand where people want to visit and the calibre of hotel they require.

Many visitors become home owners and property investors are aware that by buying now, whilst prices offer exceptional value compared to other more established holiday resort locations such as Spain, they should reap excellent capital growth rewards and good rental returns.

Hilton ‘expanding’

According to the Anatolia News Agency, two Turkish hotels have been listed among the world’s 10 best hotels chosen by TUI the world’s largest tour operator. These are the Delphin Deluxe Resort and Barut Hotel Lara Resort Spa and Suites. In addition the Hilton Empire is to expand into Turkey with 15 new hotels over the next five years in locations across Turkey.

“These factors are of enormous importance to buyers of property whether as an investment or family holiday home”, says Robert Nixon, Director of UK Operations for Nirvana International.

“With such large companies committing to major financing it gives buyers a feeling of stability borne from a realisation that Turkey has every intention of turning itself into a major force on the world’s property market.

With new airports scheduled to open, major championship golf courses available and superb planning laws aimed at protecting coastal resorts, Turkey is without a doubt a superb place in which to invest particularly bearing in mind that on average a home costs three times less than an equivalent property in Spain.

With property values rising at around 20% per annum it is not surprising that there are already over 62,000 foreign owned properties in Turkey of which over half are believed to be British”.

Anatolian real estate

Hotel and shopping center investments cluttered in Istanbul, Ankara and İzmir, the three biggest cities of Turkey, have been gliding toward Anatolian cities where the population exceeds one million, said Turkey branch officials of Euro Hypo Bank and Aareal Bank, both German banks, which specialize in commercial real estate.

“The commercial activity in Istanbul, Ankara and İzmir has spread to the Anatolian cities,” said Cenk Arson, Turkey representative of Euro Hypo Bank, adding that foreign investors discovered Anatolia well before Turkish ones. “Foreign investors have begun to undertake various projects in Eskişehir, Konya, Manisa, Gaziantep and Erzurum. A Dutch company is building a shopping center in Erzurum. We, as Euro Hypo Bank, are preparing to grant loans for three shopping center projects in the southeastern city of Gaziantep, the eastern city of Erzurum and Ankara,” said Arson.

”The investors have been investing in cities like Konya in central Anatolia, Gaziantep, Adana and Antakya in the south for some time since the prices are too high in Istanbul. Istanbul also suffers from the lack of land,” said Şenay Azak Matt, Turkey CEO of Aareal Bank in her statement.

Queen Elizabeth II to visit Turkey

Queen Elizabeth II to visit Turkey

Queen Elizabeth II will visit Turkey with Prince Phillip, the Duke of Edinburgh, for an official visit on May 13-16 upon the invitation of President Abdullah Gül. The Bursa Chamber of Commerce and Industry (BTSO) said in a statement released yesterday that the queen will also be visiting Bursa on the May 14 as a special guest for the “Women and Enterprise” titled National Enterprise Congress.

BURSA – Anatolia News Agency

Foreign Ministry celebrates 88th anniversary

A Foreign Ministry delegation mission headed by Undersecratary Ertuğrul Apakan visited the Cebeci Asri Cemetary yesterday in honor of the ministry's 88th anniversary. The delegation held a a moment of silence and a wreath was laid for foreign affairs diplomats and officials who had died in the line of duty.ANK – Anatolia News Agency

26.4.08

Alanya property

A total of 41,182 houses in Turkey have been sold to foreigners. Alanya distrtrict in Antalya, in the south, is the location of 12,331 of those homes, or 29.9 percent of the total number of sales, according to research conducted by the Alanya Chamber of Commerce and Industry (ALTSO).

Antalya also ranks first in the total number of foreigners who have bought property with 17,871 people, or 24.4 percent.

The research also shows that Alanya is the district of Antalya foreigners prefer the most. Antalya has witnessed the sale of 17,850 houses to the foreigners, 12,331 of which are located in Alanya. However, the district is not so popular for land sales; the number of land sales to foreigners is 20,903, only 501 of which were in Alanya. This comprises only 2.4 percent of the total number of land sales.

“The results of the research by ALTSO show that Alanya is the most favorite place for foreigners to purchase houses in Turkey, while the district is not as much preferred for the purchase of land,” said Kerim Taç, chairman of the Alanya Chamber of Commerce and Industry, who noted that there is no need to worry about property sales to foreigners. “Foreign people preferring Antalya and Alanya to invest in will contribute to the further development of the district. We hope that the new regulations will facilitate us to make good use of this opportunity,” added Taç.

Some 10 percent of the residential areas will be open to foreign purchases according to the new regulations, said Taç, noting that this would contribute greatly to the growth of the real estate sector.

“Alanya has 11,599 hectares that are residential, only 146 hectare of which have been sold to foreigners so far. This comprises 1.3 percent of the total number. Only 8.7 percent of land zoned residential is permitted to be sold to foreigners. Some 17,871 foreign people have bought 146.13 hectares of land so far, according to the February 2008 data. The immovable properties bought so far comprises 0.8 per thousand of the district's total area. We do not expect this case to cause any difficulty for the future of the district in the event that the new legislation is passed,” said Taç.

Property in Altinkum

Finance Minister Kemal Unakıtan has approved the decision to hand over land on which housing estates sold to foreigners will be constructed to the Mass Housing Administration (TOKİ). The sales revenue from these projects will be distributed evenly between the Finance Ministry and TOKİ.

TOKİ will undertake the construction of property sold to foreigners in Antalya's Finike, Aydın's Didim and Kuşadası, Bodrum in Muğla, Konak and Çeşme in İzmir and Mersin on the Turkish Riviera.

“The income distribution method will mostly be used in the projects. Initially, we will construct pilot projects in Finike, Didim and Kuşadası, Bodrum, Konak, Çeşme and Mersin. The lands are ready... we are only waiting for the legal regulations to be completed. The project is expected to bring in revenue worth $20 billion. We also plan to extend the project in the future,” said TOKİ Chairman Erdoğan Bayraktar. He said the houses can be paid for in seven to year year installments.

The housing project is based on the “Spanish Model.” It will include holiday villages on the coast of Antalya, Muğla, Aydın, Fethiye and Mersin. These housing estates include tennis courts and golf courses, green areas, walking paths, medical centers, shopping centers and other social facilities. Set to be managed by the private sector, these premises will provide property owners with high-quality services.



Spain's 'mini-cities'

Foreigners tend to prefer houses close to the airport, said authorities from the Finance Ministry, basing the results on recent research. The authorities also noted that the holiday villages had the potential to become "hot spots" in the future.

“Spain's Malaga district has been allocated for construction of houses mainly for the foreigners. Houses of 50 square meters are on sale for 300,000 euros, while those of 70 to 80 square meters sell for 400,000 to 450,000 euros. Spain has mini-cities that include many facilities, from hospitals to shopping centers, designed for foreigners on a total area of 1.5 to 2 million square meters. The sales take place based on the scale models,” authorities said.

The project on the Turkish coast has already begun to attract the attention of many international firms, including those from Spain.

Bodrums piers

As part of the 'Urban Design Project,' which was launched in January, ports in Bodrum's Göltürkbükü district were demolished but the ones where upper-class tourists spend their holiday were not touched. Hoteliers in the poorer parts of the district raise their voices to stop this unfair treatment

Bodrum - Doğan News Agency


A project launched by the mayor of a popular resort town in the Aegean city of Muğla has drawn harsh criticism from locals as nearly 30 piers in the region have been demolished since the project came into effect in January.

Through the “Urban Design Project,” initiated by Göltürkbükü Mayor Halil İbrahim Kaynar in, nearly 30 piers were demolished in the region's “Anatolian side,” a popular holiday destination for mostly mid-income tourists.

However, Bodrum District Administrator Abdullah Kalkan terminated the project because it was unlicensed and the deluxe piers on the “European side,” where upper-class tourists choose to spend their vacation, were not touched.

Moreover, the construction of bars and restaurants had started on new unlicensed piers before the start of the tourism season.

Following these developments a group of entrepreneurs presented the municipality a petition with 100 signatures and demanded that this unfair treatment is stopped.



'Piers of the poor' demolished

“This was the show of Mayor Kaynar before the opening of the season, said Taşkın Bıçak, who has been operating a hotel in the region for 22 years, voicing similar concerns as many hoteliers in the region.

“The unlicensed project demolished the piers of the poor but the ones where high society spends its holidays were not touched and also new unlicensed ones were constructed. They will anchor their jet-skis in these piers to sunbathe and nobody will touch them. It is impossible for ordinary people to walk and swim in this part of the region. Kaynar's power was only enough for the poor. If such a project is implemented, all piers should have been demolished at the same time,” he said.

Bıçak said they had presented a petition about the issue to the municipality and the district administration. “Because while one side continues making money over the ports, the other side will not be able to take advantage of them.”



'High society wants exclusive piers'

“Prices here are seven to eight times more expensive than in the section where piers were demolished. The rich and high-society people prefer this section. They feel ill-at-ease to see the low-income people, who can't afford to eat and drink here in the same place,” said Yelda Gören, the manager of Fidele Restaurant Beach Club, which is the first facility that has opened the season in the district.

Noting that he has been operating a hotel in Göltürkbükü for 12 years, Gören said Göltürkbükü owes its tourism to those ports.

Gören said, “Our customers are A-plus people. We are the first one that have opened the season here. If the project is in favor of Bodrum, we are ready to demolish our pier. But we want to do it at the end of the season because customers are coming.”



'Nobody will be deprived a privilege'

Kaynar said the “Urban Design Project” had been waiting for 16 months for the approval of the Public Works Ministry, but because of political reasons it was not approved.

He said, “Let nobody think that the piers of the high-society won't be demolished. This project is valid for nearly 7 kilometers along the Göltürkbükü coast. The beauty of the coast has appeared with the removal of the ports. We don't fill the sea but rearrange the coast here. We want the coast to get its natural appearance. The piers in the high-society section turned the sea into a wood cemetery. We could not demolish the other ports because the project was halted by the district administration. But the piers 90 percent of which are unlicensed, will be demolished within three to five months.”

He said nobody would be deprived a privilege and the “European side” would be open to the public. “When the project is finished in two years, Göltürkbükü will be one of the most modern holiday resorts of our country and Europe,” he said.

More housing required

The Mass Housing Administration (TOKİ) is planning to complete the construction of 500,000 flats by the end of 2011, according to TOKİ Chairman Erdoğan Bayraktar.

While some claim TOKİ has reduced flat prices, Bayraktar said that, in fact, prices have been increasing for some time. Bayraktar traveled to Denizli, in the southwest, to supervise TOKİ's investments.

“Labor costs in the construction sector increased by 50 percent while inflation increased by 8 percent. We have made a small reduction for flats within the urban transformation project in Denizli since there are no land costs or social facilities in that project," Bayraktar said. "They just set the price according to the construction cost. It is impossible to decrease the prices further."

He noted that there has been no opportunity to buy a house for YTL 50,000 ($39,000) in Turkey. Both contractors and the state are losing money and those with low incomes do not have enough sources, he said. "We do our best and everyone should know this," Bayraktar said.

“We aim to reach 330,000 flats by the end of 2008; 400,000 flats by the end of 2009 and 500,000 flats by the end of 2011," said Bayraktar in response to a question about TOKİ's future targets. Bayraktar added that TOKİ had constantly differing responsibilities. On the one hand, TOKİ offers high-quality, secure and affordable flats their customers deserve and, on the other hand, they try to create a different understanding of dwelling and urbanization with their projects

Cost of living in Altinkum

Expats feel the pinch

FOR those of us living in Turkey, the Lira has gained in value against the pound during the winter period, but as always the pound is now gaining ground as we enter the tourist season once again. Living costs here in Turkey have increased in the past few months but nothing like the UK and the related costs of living in European countries using the Euro as currency.

Interest rates have remained largely the same on Lira accounts held in Turkish banks for some time and combined with the lower cost of living most of us consider we have done the right thing moving to make Turkey our home.

France has seen prices increase on many things and the Brits there are starting to gather at weekends in the small cobbled market square of Valbonne, just up the road from Cannes, reminiscing about the bad old days as they enjoy the mellow evening sunshine over a glass of the local grape.

But there is an air of gloom hanging over the cafés and bars that has nothing to do with the unseasonal cold and rain. For the army of Britons who have retired to this tranquil Provençal town, prices have in effect soared by 17.6 per cent over the past 12 months, as the pound's value has slid steadily against the euro. Last week, the exchange rate dipped to £1.25 to the pound for the first time.

Retail prices are close to what they were this time last year: a three-course lunch with a carafe of decent vin de pays is £21, just over half a euro more than it was a year ago; a café au lait on the terrace of the local bar still costs £2.50, a glass of Pastis £3 and a British daily paper about £4.

But, because of the weak pound, the same popular fixed-menu meal now eats £16 out of their British pensions and savings, compared with less than £14 last spring.

In April last year, £100 was worth £147, but today the same sum converts to just £125 - creating a painful cash squeeze for many of the estimated million British expatriates living in the eurozone. A Mediterranean lifestyle that took about £100 a day to maintain would cost almost £4,500 more per year.

Britons, of whom a record 250,000 emigrated last year, are reining in on the rosé and long lunches as the fallout from the global credit crunch hits their once-charmed overseas existences.

Sitting in Valbonne's Café des Arcades, David Dobson, 59, who retired to the Côte d'Azur with his wife, Karen, six years ago, said he and his circle of expat friends felt "helpless".

"There is nothing we can do about it," he said. "Everything we buy, from food and drink to petrol, clothes or even paying the cleaner, costs a lot more.”

Shopkeepers and tradesmen in Valbonne are also worried that the weakness of the pound could hit their takings, especially in summer. Not only have the sterling costs of food shopping, meals out and petrol shot up, but so have more major expenses like utility and telephone bills, local taxes and mortgage repayments.

Gwilym Rhys-Jones, the secretary of the Costa del Sol Action Group, a consumer protection organisation representing expats in southern Spain, said it was the worst situation he had ever known.

"The pound has sunk so low against the euro that we are really getting a hammering," he said. "Those people who live off earnings gained in the UK are facing a significant drop in the amount they have to spend here. It is just about the worst it has ever been."

It's not just expats who are suffering from the buoyant euro. Among those hit are also foreign exchange students in rented accommodation, struggling to eke out their British bank loans and grants to survive their year abroad.

Sterling expats are hoping that pressure will grow for lower European interest rates, which would cause the single currency to weaken.

In the meantime, there is still one advantage to a strong euro. Britons who have bought homes abroad have seen their properties in effect grow in value by almost a fifth. If they could only give up the sunshine and sell up, they could return to Britain better off than when they left.

25.4.08

Easy Cruise to Turkey

Accommodation-only specialist youtravel.com has teamed up with easyCruise to take 20 top-selling agents on the inaugural cruise of the line’s second ship easyCruise Life.

The ship will leave Piraeus (Athens) on April 19 for the voyage - a week-long cruise around the Greek islands.

Ports of call include Syros and Samos, Kalymnos, Kos and Paros, and a 24-hour-stay in Mykonos. easyCruise Life will visit Turkey for the first time with a full day and night in Bodrum.

Youtravel.com has an exclusive deal with easyCruise meaning that agents can earn 15% commission on every booking they make at youtravel.com.

To celebrate the launch of easyCruise Life, youtravel.com is also offering a trade incentive of £10 per booking made before February 29.

Youtravel.com sales director Paul Riches said: “Not only will the winners have a chance to be the among the first to sail on the line’s new ship, they’ll also have the chance to meet easyCruise founder Stelios Haji-Ioannou who’ll be onboard for the first two days as the ship sails from Athens to Bodrum.”

Source - travelweekly.co.uk/

Raki

Unfortunately the traditional rakı tables of great food and sweet conversations are becoming rare and rakı, an aniseed-based spirit, seems to be losing its crown to other alcoholic drinks due to the high taxes. The producers of rakı, will lobby Brussels in order for the drink to be accepted as a national drink to avoid the overhaul to harmonize the taxation of rakı

ISTANBUL Turkish Daily News


Friends meet around a table, usually covered with a white tablecloth that has delicious mezes (traditional appetizers) on it. Rakı has always been the king of these tables. Especially if it is spring or summer and the table is out in a nice garden, sweet conversations usually last for hours. Unfortunately these tables are becoming rare and rakı, an aniseed-based spirit, seems to be losing its crown to other alcoholic drinks due to the high taxes – which are part and parcel of Turkey's joining the European customs union – that leave rakı unable to compete in the market. Rakı producers now have to fight to save rakı's throne and have started the battle in Brussels.

The producers of rakı, will lobby Brussels in order for the drink to be accepted as a national drink to avoid the overhaul to harmonize the taxation of rakı with the European Union taxation of distilled drinks,The newly founded Traditional Alcoholic Drink Producers' Association (GİSDER) released the results yesterday of a research on “The Economic and Social Role of Rakı in Turkey.” “We have applied to the European Alcoholic Drinks Producers Union for membership. In other words, we are trying to be in the enemy camp,” said Galip Yorgancıoğlu, the president of GİSDER.Yorgancıoğlu spoke at a press conference of the newly founded Traditional Alcoholic Drink Producers' Association (GİSDER), which released the results of a research on “The Economic and Social Role of Rakı in Turkey.” The Scotch whisky lobby groups pressure the Turkish government to urge an increase in taxes on rakı, according to Yongancıoğlu. A similar request came for Greek ouzo, however the taxation rates for ouzo was arranged in accordance with domestic norms, since it was recognized as the national drink of Greece. "In case of ouzo the European Union agreed to register ouzo as the national drink of Greece and exempt it from the harmonized tax on distilled alcoholic drinks like whisky. This is also what we would like to see happening with Turkish rakı,” he said.Yorgancıoğlu estimated that the price of rakı, which today costs approximately YTL 25-26 a bottle, might rise up to YTL 50 with the increased tax rate. "When rakı is placed on an equal standing with whisky, its price can go up to YTL 50. The additional taxes will be directly reflected on the consumer. Even now value added tax and private consumer tax make up 65 percent of the cost of a bottle of rakı.”

The GİSDER president said they conducted such a research to be able to provide some concrete information to the government and the lobby groups in Brussels, while they try to convince the EU and finance ministers to exclude rakı from harmonized tax.The report, which puts forward the social and economic condition of rakı in Turkey in detail, shows clearly that the meaning of rakı to Turks is exactly what ouzo means to Greeks. “We have to see rakı not only as an ordinary beverage produced in Turkey but as one of the basic elements of our economy and lifestyle. It has an important role in our identity and social interactions,” read the report.Other than its unique place in Turkey's cultural and social structure, making rakı is a business that contributes significantly to the economy of the country. In Turkey, 278,000 people are directly involved in the sector and when their families and other dependants are included the number rises to 1.3 million. This number is 1.8 percent of the country's population.

The income from the sector reaches YTL 1.2 billion, which is 1 percent of the total tax revenue of the country. The sector provides an income of over $30 million through exports. Only the income derived from duty-free sales in 2007 is almost $20 million, revealed the report prepared by IBS Research and Consultancy and presented by its manager, David Tonge.Some four million people are employed in the Turkish distilled alcoholic drinks industry directly and through the distribution chain. “I want to remind that rakı is the means of living for people in the chain from the farmers to the owners of outlets selling alcoholic beverages. The increase in rakı sales will affect all of them and change the sociological demography of our neighborhoods,” said Yorgancıoğlu.

19.4.08

Land in Turkey

Tending their flock or farms is no longer the major occupation of villagers around Ceyhan, set to be Turkey’s and the surrounding region’s energy hub with investments in refineries at this junction of oil pipelines. Villagers, already rich after selling their land to investors, nowadays spend their time at the tea house to contemplate their own investment strategies

MEHMET NAYIR
ADANA - Referans


Turkey's efforts to create a regional energy hub in the Mediterranean town of Ceyhan, at the end of the Baku-Tbilisi-Ceyhan oil pipeline (BTC), have already created riches beyond measure for local villagers, who have so much money that they are at a loss about how to spend it.

Investors are trying to capitalize on the fact that despite the huge amount of oil flowing into the region, and with even more planned, there is no oil refinery in the area.

Ceyhan is a bustling town in the province of Adana, the fourth-largest province in the country. Turkey has aspirations to become a regional energy hub through Ceyhan. The Baku-Tbilisi-Ceyhan (BTC) oil pipeline, the Iraq-Kirkuk-Yumurtalık pipeline, the Delta Petroleum Storage Terminal, the Sugözü Thermal Power Plant and the Toros Fertilizer Industry are of key importance to Ceyhan's economy.

With the BTC, a huge volume of refinery, storage facility, petrochemical, shipyard, port, and iron and steel investments are expected to flow into Ceyhan. And efforts by international consortiums to establish three petroleum refineries in the region are still ongoing.

Since 2000, land prices have increased 40-fold in the surrounding area, with villagers, who own around half the land and share ownership of the rest with the state, getting used to haggling with oil conglomerates over millions of dollars.

Lands that could not fetch YTL 2,000 per 1,000 square meters a decade ago are now going for YTL 80,000 per 1,000 square-meters.

One local, Celil Kırgız, 81, from the village of Sugözü, said he recently sold a stretch of land for YTL 1.6 million, which his son corrects to YTL 3.1 million.

“I still have lands to sell,” said Kırgız.

Kırgız's neighbor, Erol Seyhan, recently rejected an offer of YTL 3 million for his land, noting, “It's not a big amount of money these days.”

Seyhan believes he can get YTL 4 or 5 million for his 60,000-square-meter plot.

Celil Gırgır, the “muhtar” (village headman) of Ceyhan's Sugözü village, said a total of YTL 25 million was spent on land in recent times, including the sales in surrounding villages.



Locals both happy and a bit uneasy:

Ceyhan is on its way to become the world's energy investment center thanks to recent investments in petroleum refineries, pipelines and storage facilities in the area.

Currently, an average of two million barrels of oil flow into the area. With the completion of yet another pipeline project connecting the Black Sea province of Samsun to Ceyhan and the increase in the capacity of the BTC, the amount of oil transported to the region is expected to reach five million barrels by 2015.

Strolling through every corner of the area, energy companies are now looking for land to purchase. Estimates show Ceyhan owns a potential of 10 million square meters of land suitable for refinery establishment. Half of this land is owned by the villagers. For the rest, ownership is shared between villagers and the Treasury.

A short tour of the villages around Ceyhan provides a good chance to see the present excitement among the villagers.

Land prices and the money earned through sales are often the main topic of conversation at village tea houses.

Locals are now experts on energy issues, following all developments in newspapers, television and other mediums. The most up-to-date stories are shared by all, while they are very tight-lipped when it comes to bargains and deals they make with investors.

As a matter of fact, villagers in Ceyhan have already become genuine experts on the issue. They even have a broad knowledge of its legal aspects. Nationalization, land rights, loans, land registry and all other issues are often the main points of their chats at village tea houses.

Winning land deeds at court more difficult:

A group of locals interviewed in a village tea house in Ceyhan said, our eyes are wide open. We are following what is going on around us minute by minute so that we can have tough bargains with investors looking for land in the area.

Villagers say everyday a different company representative knocks their door. But, while earning such high amounts of profit leaves a big smile on their faces, it has also created an uneasy feeling among these villagers.

Just like the lucky guys who hit the jackpot in the national lottery, they refrain from speaking much about what they have sold, how much they have earned, and how much money is left. This is why they have not made remarkable changes in their life standards. And living frugally all their lives, they just don't have the mentality for spending a lot of money.

Kırgız said he still has a lot of money left over from the sale. He only purchased a car for YTL 45,000.

Another local of Sugözü village, Musa Başak, said, “I sold a part of my land at YTL 2,000 per 1,000 square meters to İsdemir, a company that made a couple of investments here in 1999.”

Başak now seeks to sell his 20,000-square-meter share in the area. But first he needs to win a legal war to get the full possession of those lands. “In the past, refinery investments were not on the agenda and it was easy to win the title deeds of lands at the court. But it is difficult now. The court actions I have been involved since 2004 are still continuing. They are currently at appeal,” said Başak.



‘Red land' the favorite:

The rapid increase in land prices has also forced investors to look elsewhere.

Situated near the sea and at close distance to the port, a 3,500-square-meter area owned by the Turkish State Railroads (TCDD) is seen as the most appropriate plot for a petroleum refinery investment.

Called “Kızıl (Red) Land” by the locals, this land was purchased by the Kızıl Group, owned by Mehmet Öz of Kızıltepe (Red Hill), from the State Railroads in a tender opened in 2005. But the tender was later canceled due to the group's ties with Massoud Barzani, leader of the Kurdistan Democratic Party (KDP).



Largest oil depot in the Mediterranean:

The Delta Petroleum Company, one of the biggest investors in Ceyhan, has been operating in the region for 20 years.

The latest investment it has made in Ceyhan is an oil storage depot that cost $100 million.

Delta's Chief Executive Officer Mehmet Habbab said they had established the largest oil storage in the entire Mediterranean region. “We have spent $100 million for that storage depot that will have a capacity of 650,000 tons in the second half of this year. In 2010, the capacity will be increased to 1,000,000 tons. $45 million of the expenditure is financed by the loan that the IFC Credit Corporation supplied. The rest came from our own resources. When the project is completed, Turkey will be the owner of the biggest independent oil product storage terminal in the whole Mediterranean region,” said Habbab.

With this latest investment by Delta, the fuel trade volume in Ceyhan will increase 23-fold. The company's current storage capacity is 300,000 tons. Once the trade volume increases, employment will increase, said Habbab. “We strongly believe that Ceyhan will be an energy center. About 300 million tons of oil will flow to the region in 2012. Ceyhan's future is very bright.”

For Habbab, two refineries would suffice for Ceyhan. “This area can only support two refineries. No need for any more. They will not be able to find enough oil for more than two refineries.” He also noted that the villagers' lands were not large enough for refineries, noting that the state would have to allocate more land for the projects.



Investments to be made in Ceyhan

Investments in the region were largely triggered by the construction of the BTC pipeline.

Construction work has begun in the Black Sea region for the Samsun-Ceyhan pipeline project that will cost $1.5 billion.

Although the OMV-POAŞ and SOCAR-Turcas consortiums separately applied to the Energy Market Regulatory Authority (EPDK) to establish a petroleum refinery in Ceyhan and reached the final stage of obtaining a license, another investor, the Çalık Group, appeared, and through a consortium with the Indian Oil Corporation, it obtained the license for establishing a refinery in the region.

The Zorlu Holding Energy Group is preparing to make its first wind energy investment in two districts of the neighboring Osmaniye province. Composed of 54 windmills, Zorlu's investment will be completed within 18 months. The cost will be 300 million euros. The total power generated will be 135 MV.

Hay Navigation rented about 500,000 square meters of land in the region to build a shipyard.

The Istanbul-based Akdeniz Naval Construction Company that signed a contract to establish a shipyard on a 80,000-square-meter area in the Adana-Yumurtalık free zone has started earth-moving works.

Large-scale energy and refinery investments have reached $20 billion in total in the Ceyhan region.

If these projects become reality:

Ceyhan may become a global energy center if all these projects come to fruition. By the time the 555-kilometer Samsun-Ceyhan pipeline project, which will carry oil from the Caspian Sea, Kazakhstan and Russia, is completed, one in every 16 barrels of oil sold in the world in 2010 will be passing through Turkey. Therefore, Turkey will be a key country in the Eurasian energy corridor.

With the shift of residual oil and tanker traffic to the region, the burden on the Bosporus and the Dardanelles will be eased.

The petroleum resources of the Caspian Basin will provide a welcome alternative to Middle Eastern oil for European consumers. It will allow European Union countries to diversify their energy imports.
http://www.turkishdailynews.com.tr/article.php?enewsid=102221