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.
22.9.08
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!
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.
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.”
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.”
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.
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.”
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.
“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.”
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.
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.
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.
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.”
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.
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.”
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."
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.
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.”
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.”
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.”
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