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Increasing pollution in Güvercinlik Bay is causing tourists to leave the area. Struggling with the pollution caused by the dead fish and bilges that trawling boats, Güvercinlik Bay of Bodrum awaits attention and assistance from officials. With the sea becoming impossible to swim in and tourists leaving the area, regional officials have submitted a comprehensive file regarding Güvercinlik's situation to Prime Minister Recep Tayyip Erdoğan. A committee from Bodrum was expected to depart for Ankara to have official talks in the upcoming days. Güvercinlik Bay, famous for its deep blue sea and Aleppo pinewoods, has surrendered to pollution. As drain water pours into the sea and the forest, the boom in the region's population during summer – increasing from 150 to 25,000 in just 25 years – turned the bay into an unlivable “tourism spot.” Due to a lack of supervision, trawlers drained away dozens of dead fish and bilges and turned the four-kilometer-long coastline into a virtual cesspool. Restaurants and cafes became no-go zones, as German, Dutch and Belgian tourists left the area.
Sector depressed:
“The tourism sector is hit badly,” said Oktay Şanlı, executive of Bargilya Hotel. “Tourists that left our facility are demanding compensation. We are trying very hard to keep the last few tourists. The Ministry of Culture and Tourism should pay attention to the issue here and implement the required investments.” Mehmet Gereme, chief of Güvercinlik village, said they submitted a comprehensive file to the prime minister during his visit to Bodrum last week. “While our village provides 5 million euros income annually, one-fifth of this amount can solve the 50-year-long problem of this region,” said Gereme. “We appealed to officials for many years, warning them about the dangers and urgent problems in the area, but nobody listened. The prime minister is the last chance for us. We are sure that he will keep his promise and support us. We are not going to lose Güvercinlik Bay.” |
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05.09.2008 13:28:31 |
The AB Invest-Lafer partnership, which began construction on the White Side Apartments project in December 2007, has completed half of the new project located in Istanbul's Çekmeköy district, on the Asian side of the city. House prices on the project vary between YTL 190,000 and YTL 850,000. The company offers its residents personal payment schedules and differing credit opportunities within the framework of the project, which is comprised of 242 boutique houses. Those wishing to purchase one of the houses can do so through installments beginning at YTL 9,500. The interest rate is determined on the basis of the amount the customer pays in advance. In addition, the company will also provide customers with credit opportunities for up to 180 months as part an agreement with Millenium Bank. Tatsuya Yamamoto/TAGO Arhitecture Office has undertaken has designed the project, which is decorated with large and high windows, has a plain interior design and uses high quality construction materials. In addition, the company also provides its residents with a technical service free of charge for a six month period. |
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30.08.2008 18:18:56 |
Not being a member of the European Union, or EU, has not affected Turkey's real estate market, reported an international property website citing a property expert. Although Turkey is still on the waiting list to become a member of the EU the real estate market of the country has been booming already, said Liam Bailey, Property Wire's global markets expert on propertyshowrooms.com. One of the greatest advantages the market has is that prices remain "relatively low," despite increasing by between 30 and 40 percent in the past two years, he said. An example of this is that a two-bedroom apartment in Dalaman, a small Mediterranean farming town situated between Marmaris and Fethiye, can be bought for as little as 40,000 pounds, he added. Turkey also has excellent rental yields of eight per cent a year and the future prospects are good because the government is taking advantage of the country's size to ensure there is not too much development in any one location, he added. However, Bailey concluded that EU membership will be needed to maintain the current boom in the long term. Turkey is currently one of three candidate states for EU membership, the others being Macedonia and Croatia, said propertyshowrooms.com, which lists over 60,000 properties for sale from around the world and is home to the International Property Investment Network, or IPIN, a free members network for property investment. |
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27.08.2008 17:52:08 |
British mortgage approvals for house purchases remained near a record low in July and the British Bankers' Association said there was no sign yet of a property market recovery. The BBA said mortgage approvals totaled 22,448 last month, 65 percent lower than in the same month last year. That was only fractionally higher than June's series low of 22,369 and almost 12,000 below the average of the previous six months. Total mortgage lending amounted to 4.3 billion pounds ($7.94 billion) in July, unchanged from June but also below the previous six-month average of 4.8 billion. House prices in Britain have shed around 10 percent since last August after a decade in which property values almost trebled. With unemployment also rising and a recession looming, banks have tightened their lending criteria. Many now refuse to offer mortgages to homebuyers with less than a 25 percent deposit. "The monthly numbers of approvals for house purchase, which have fallen by some two-thirds over the last year, leveled off in July. It would, however, be premature to think that the housing market will now start to recover, because overall approval activity continues to be very low," said BBA statistics director David Dooks. In a further sign of the pain inflicted on the housing sector, Britain's Bovis Homes reported a slump in first-half profits yesterday and said trading conditions in recent months had been the toughest it had ever experienced. A report from ratings agency Standard & Poor's showed the number of Britons failing to meet mortgage repayments rose significantly in the second quarter."With no sign of credit conditions easing and house prices continuing to fall, we expect delinquencies to continue rising and losses to increase over the coming quarters," said S&P credit analyst Kate Livesey. |
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27.08.2008 17:51:12 |
Asahi Homes Co.'s biggest shareholder, Sebon Corp., on Monday filed for bankruptcy protection with 62 billion yen ($568 million) in liabilities, Asahi Homes said in a press release. Sebon, a Tokyo-based real estate developer, holds 85.25 percent of Asahi Homes, according to Bloomberg data. Asahi Homes said the parent's bankruptcy won't affect the subsidiary's finances. Sales at Sebon fell after banks tightened screening of real estate loan applications and construction orders fell as the government toughened building codes, Asahi Homes said. Asahi Homes, a Tokyo-based homebuilder, earlier this month said it expects a 90 million yen net loss for the current business year through March 31, compared with its initial forecast of a 100 million yen profit. The company also cut its sales forecast to 2.27 billion yen from 3.4 billion yen. The failure follows the collapse of property developer Urban Corp. on Aug. 13 with $2.4 billion in debt, the biggest bankruptcy of a publicly traded company in Japan in six years. Construction and real estate companies accounted for almost a third of all bankruptcies in Japan in July as banks cut lending and the country's economy shrank to the brink of its first recession in six years. The domino effect: The number of bankruptcies among property companies more than doubled to 60 in July from 27 a year earlier, researcher Tokyo Shoko Research Ltd. said. New lending to the real estate sector declined 18.7 percent at the end of June, the Bank of Japan said on Aug. 8, according to a Credit Suisse report. Lending to investment funds declined for the sixth straight quarter, the same report said. Asahi shares plunged to the lowest in more than five years in Tokyo trading yesterday. The shares fell 14 yen, or 24 percent, to 44 yen at the 11 a.m. break on the Jasdaq exchange. The last time the shares were traded lower was March 20, 2003. “The bankruptcy of a parent tends to harm the credit of a subsidiary,” Masahiro Mochizuki, a real estate analyst at Credit Suisse Group in Tokyo, said by phone yesterday. “Banks may take a stern approach with Asahi Homes, and it no longer has the option of asking the parent for help.” As 18.7 percent drop in new lending in the second quarter and weakening housing demand are hurting the real estate industry, Credit Suisse said in reports. Condominiums put up for sale in the Tokyo region dropped for an 11th month in July, the longest stretch of declines since 1991, as wages fell and prices rose. |
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25.08.2008 12:49:11 |
Luxury villas are being constructed on the outskirts of the Munzur mountains, an area in eastern Anatolia bordered by the provinces of Erzincan and Tunceli. A total of 15 villas have been built in the region as part of the project, said Muammer Oğuz, mayor of Erzincan's Yaylabaşı town and a member of the ruling Justice and Development Party, or AKP. “A total of 42 more villas will be constructed on the outskirts of Munzur mountains for now. “We have first prepared the infrastructure of the project and then started to build these villas. We have removed the painful memories of the terror incidents, which engulfed the region in the previous years via this project,” Oğuz said. Yaylabaşı, which is located 10 kilometers from Erzincan, stands out with its natural beauties. The municipality of the town bought 87,000 square meters of nonarable land two years ago and paid YTL 600 per acre. Afterwards, the municipality completed the infrastructure work of the region including potable water, sewage and road services. Yaylabaşı Municipality has launched the “Villa Kent” project in the region and later zoned the land for construction only for those who would like to build villas on the region. The municipality, which sells per acres of the land for YTL 6,000, has obtained revenue of YTL 135,000 from these sales until now. “Villas rise on the land which was previously remembered with regrettable terrorist incidents. Duplex villas are sold at YTL 200,000, while triplex villas are sold at YTL 300,000,” said Oğuz. “We have managed to provide revenues for our municipality and sought to remove the scars of terror by means of this villa project. These villas have altered the silhouette of our town,” he added. |
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20.08.2008 11:53:36 |
The average asking price for a home in the United Kingdom fell 4.8 percent from a year earlier to 229,816 pounds ($426,929). In the month, home values fell 2.3 percent, the most since December, led by decreases in London. Bank of England Governor Mervyn King said the housing market faces ‘a significant adjustment’ as banks ration loans for homebuyers
SVENJA O LONDON - Bloomberg
Housing prices in the United Kingdom posted the biggest annual decline in August since at least 2002, as reduced mortgage lending deepened the property slump in London, Britain's most popular property Web site said in a statement yesterday.
The average asking price for a home fell 4.8 percent from a year earlier to 229,816 pounds ($426,929), according to Rightmove Plc. In the month, home values fell 2.3 percent, the most since December, led by decreases in London. “The lack of mortgage finance is central to the problem,” Miled Shipside, commercial director of Rightmove, said in the statement. “London, in particular, appears to be having its own special summer sale, with over 21,000 pounds off in a month.” Bank of England Governor Mervyn King said last week that the housing market faces “a significant adjustment” as banks ration loans for homebuyers. Falling prices may exacerbate the economic slowdown as the threat of a recession looms and unemployment rises the most in 16 years. Prices in London fell 5.3 percent on the month and 3.8 percent from a year earlier. Each of the 32 districts in the capital showed a decline, and the biggest drop was in the southwest area of Wandsworth, where values fell 7.9 percent. Hackney, in east London, was the best performer, with a 0.6 percent decline. The stock of unsold property per real estate agent rose for a seventh month to 78, from 77 in July. The number of transactions may reach the lowest since 1959, Rightmove said. Market ‘standstill' Banks have starved the market of loans after more than $500 billion in losses and writedowns worldwide from the U.S. mortgage market collapse. U.K. mortgage approvals fell to the lowest since at least 1999 in June, the Bank of England said July 29. The Royal Institution of Chartered Surveyors said last week that the housing market is at a “virtual standstill.” King said on Aug. 13 that “there is a feeling of chill in the economic air” and that “the British economy is going through a difficult and painful adjustment” that “cannot be avoided.” Weakness in the housing market may “amplify” the impact of the lending squeeze on household spending, the British Central Bank said last week. Retail sales probably fell for a second month in July, dropping 0.2 percent, according to the median forecast of 32 economists in a Bloomberg News survey. The government's statistics office will release that data Aug. 21. Britain's gross domestic product will either stagnate or contract in the next two or three quarters, meaning the economy may fall into a recession, the British Chambers of Commerce said in forecasts released yesterday. Company confidence Confidence on business prospects fell to the lowest level in at least six years, according to a survey of more than 200 companies released by Lloyds TSB Group Plc yesterday. The index of sentiment on the next 12 months fell to 22 in July, the lowest since the survey began in 2002, from 32 in June. The economy probably grew 0.1 percent in the second quarter, less than previously estimated and matching the slowest pace since the aftermath of the last recession in 1992, the median forecast of 34 economists surveyed by Bloomberg News shows. The statistics office will publish the figures on Aug. 22. Britain's central bank kept its benchmark interest rate at 5 percent on Aug. 7 for a fourth month, as policy makers weighed the risk of accelerating inflation against the threat of a recession. Minutes of their meeting, showing how the panel voted, will be released on Aug. 20. |
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14.08.2008 12:24:17 |
Gold ingots yielded the highest monthly real profit in July with the rates of 3.21 percent and 3.9 percent, according to the producer price index and consumer price index respectively, the Turkish Statistical Institute announced Tuesday. According to the consumer price index, the monthly real profit rate of investors of deposit interest was 0.76 percent. ISTANBUL – Turkish Daily News Automatic pricing introduced for gas Turkey will set natural gas prices quarterly through an automatic pricing mechanism set up by the Energy Market Regulatory Agency. The change would bring the country's gas market into line with a similar pricing system for electricity, the Ankara-based regulator said. The regulation was announced in the Turkey's Official Gazette. ISTANBUL – Referans THY may bid for Austrian Airlines Turkish Airlines, or THY, might bid for a stake in Austrian Airlines Group, said Temel Kotil, chief executive officer of THY, according to CNBC-e television. He said THY was “interested in principle” in bidding for the 43 percent of its Vienna-based counterpart on offer by the Austrian government. The board of THY has yet to decide to make an offer, Kotil said. |
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12.08.2008 17:26:50 |
The value of shares in Persian Gulf countries tumbled as foreign investors shifted funds to the United States and other emerging markets where valuations are more attractive. Aldar Properties PJSC led real estate stocks lower after Al-Arabiya reported regulators plan new laws aimed at so-called “property flipping.” Oman Telecommunications Co. SAOG, known as Omantel, slumped to an April low, and Kuwait Invest Co. Holding fell after reporting a second-quarter loss. “Foreign investors are shifting funds,'' Alfred Fayek, who helps manage $2 billion for EFG-Hermes Holding SAE in Dubai, said in a telephone interview. “While some want to book profits to cover for losses incurred elsewhere, others want to take advantage of the attractive valuations in the U.S. and other emerging markets." The Abu Dhabi Securities Exchange General Index retreated 3.4 percent to 4,495.02 at 1:05 p.m. local time. Oman's Muscat Securities Market 30 Index tumbled 5.7 percent to 9,536.73, posting the largest fluctuation among national markets included in global benchmarks. The Kuwait Stock Exchange Index lost 1.4 percent. |
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11.08.2008 13:06:47 |
The Dreamcity residential development, built by A Group in partnership with Turkey's Mass Housing Administration, or TOKİ, is complete. The project features six blocks of 204 houses on 39,000 square meters in Tekirdağ's Çerkezköy district in northwestern Turkey. The size of the normal and duplex houses, with 2+1, 3+1 and 5+1 plans, ranges from 107 square meters to 209 square meters. The prices of the houses with 2+1 plans ranges from YTL 102,000 to 139,000, and the prices of the normal and duplex houses with 3+1 plans range from YTL 129,000 to 221,000. In addition, the prices of the duplex houses with 5+1 plans in the project vary between YTL 220,000 and 240,000. Those who would like to purchase the houses in the project can avail themselves of the housing credit opportunity from Denizbank up to a period of 180 months at interest rates ranging from 1.08 percent to 1.27 percent. Meanwhile, those who make a down payment of 40 percent of the total cost are provided with the opportunity to pay the remaining cost through installments for up to 24 months, with no interest. The construction of the project has been completed and those who move into the houses are immediately given their title deeds. Meanwhile, 52,000 sqare meters of land is allocated for green areas in the project, which will also encompass a 10,000-square-meter shopping center. |
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09.08.2008 10:46:15 |
İzmir real estate should go positive in September, even though sales are down and costs in the construction sector have outpaced inflation so far this year, according to the İzmir Chamber of Commerce, or İZTO. “It is the right time to purchase houses right now,” said Akın Kazançoğlu, deputy chairman of İZTO. “The prices of real estate did not rise despite the increase in cost of construction materials. “The costs of the construction materials have increased by nearly 26 percent from the beginning of January to the end of June thıs year. Meanwhile, employment costs rose almost 8 percent for the same time span,” Kazançoğlu said. “While the yearly inflation rate stands at approximately 12 percent, this level of increase in the construction costs is highly challenging.” The building cost index has increased by almost 11 percent during the second quarter of this year and has witnessed an increase of 21.5 percent for the first six months, said Kazançoğlu. “We have high expectations for the real estate sector and believe that the sector will enter a positive period from September onwards,” said Kazançoğlu. Kazançoğlu said part of the chamber's expectation for an increase in the sale of real estate for the upcoming period came from the Constitutional Court's final decision not to ban the ruling Justice and Development Party, or AKP. The number of buildings that the municipalities granted construction licenses decreased by 11.7 percent in the first quarter of the year compared to the same period of the last year, said Kazançoğlu. Kazançoğlu noted that the surface area of the buildings that the municipalities gave construction licenses to decreased by 1 percent. The number of buildings with construction licenses amounted to 19,256 in the first quarter of 2007, while this number fell by 13.8 percent in the first quarter of 2008 and stood at merely 16,593, said Kazançoğlu.Kazançoğlu noted that contractors in İzmir have high hopes for autumn, although customers are likely to postpone buying houses for a while. “Construction companies cannot increase the sales prices in spite of the rise in their costs,” he added. |
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08.08.2008 14:50:27 |
British house prices are likely to fall 7 percent this year and will probably tumble 20 percent from their highs before they start to recover, a Reuters poll found, in more evidence that a decade-long boom has turned to bust. The poll of 27 analysts at banks, investment firms and research institutions found forecasts for 2008 as a whole ranged from a 20 percent fall to a 2.2 percent rise, with a fall of 8 percent predicted for next year. The poll found economists predicting the market would fall 20 percent from peak to trough, with a few saying the correction would be as much as 35 percent. A Reuters survey in May predicted just a 5 percent fall in house prices this year, while a poll in October forecast a 2.2 percent rise, highlighting the rapidly deteriorating outlook for the once-booming British property market. But the figures may already be understating reality. Data released by the Halifax mortgage lender earlier on Thursday showed house prices fell for the sixth month in a row in July and by a sharp 1.7 percent. Some are now concerned that Britain is heading for a bust similar to the one that is in full gear in the United States, where prices are already falling more than 15 percent on one measure, the worst on record. The Reuters poll found a 50 percent chance of that happening in Britain, up sharply from 30 percent in the May survey. |
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07.08.2008 09:15:27 |
British construction activity fell at a record pace in July, a survey showed Monday, as the credit crunch took an increasing toll on the once-red hot property market and the economy slowed. The Chartered Institute of Purchasing and Supply/Market construction PMI fell to 36.7 last month -- the lowest reading since the survey began in 1997 -- from 38.8 in June. Any reading below 50 signals contraction. The weak figures add to a growing raft of evidence pointing to a sharp economic downturn, with fears growing that Britain is about to enter its first recession -- two consecutive quarters of contraction -- since the early 1990s. "There can therefore be little doubt that the construction sector is now firmly in recession," said Howard Archer, an economist at Global Insight. "The sector looks to be in for an extended, very difficult time. This reinforces our belief that the overall economy is more likely than not to contract in the second half of 2008." However, the Bank of England is not expected to cut interest rates for some time yet because inflation is running at 3.8 percent, its highest rate in more than a decade and almost twice the central bank's 2 percent target. |
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05.08.2008 17:04:24 |
A lack of political consensus is the most serious problem confronting Turkey right now, said a prominent businessman in evaluating the impact of the last seven months on the country's real estate sector. “Economic dynamics reveal that we shouldn't be pessimistic about the future. We have high expectations concerning the forthcoming months,” said Hasan Rahvalı, general manager of the Ağaoğlu Group of Companies. “We will manage to overcome the obstacles that hinder the dynamism of the Turkish nation if the disagreements on our political scene come to an end,” he added. “I can say that those who purchased our houses pay approximately YTL 2,500 in annual installments. There might be a higher potential; however our citizens do not prefer to become indebted by huge sums of money,” Rahvalı said. “People opt to pay back their debts in a relatively shorter time span, which would not surpass six to seven years,” he added. Rahvalı underlined that people generally prefer to pay at least 50 percent of the total cost with their own resources even though there are credit opportunities available that allow them to pay merely 20 percent of the total cost in advance. “This situation could be deemed as the evaluation of the 3,000 housing credits in the last two years,” Rahvalı said. “First, we need to take into account the needs of the real estate sector in order to make a thorough evaluation of the sector. We cannot reach a correct analysis without clarifying the notion of needs. Hence we have to investigate both the amount of production in the sector and the purchasing power of the citizens,” Rahvalı said. He noted that 680,000 couples marry each year in Turkey, while 80,000 get divorced. There are couples who have their own homes, but this still means the country needs 680,000 new houses per year in addition to the need for renovations. “We are actually in need of 1,000,000 houses per year if we add this number to the houses that need to be constructed again,” he added. “However, the number of construction licenses issued during the best times of the sector merely amounts to 650,000. I believe that if we manage to construct houses with available credit and finance opportunities then the number of houses that our citizens are in need of might escalate to 1 million. Yet the annual interest rates should drop to 1 percent and the period of installments should increase to more than 20 years for the achievement of this target,” he added. |
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04.08.2008 09:24:47 |
Former Federal Reserve Chairman Alan Greenspan said falling U.S. home prices are “nowhere near the bottom” and the resulting market turmoil isn't showing signs of abating. While the odds of a recession are 50-50, achieving stable markets will “take a while,” Greenspan said in a CNBC interview. Fannie Mae and Freddie Mac, the largest sources of money for U.S. home loans, are a “major accident waiting to happen,” Greenspan said. The solution is the “nationalization” of the companies, he said. “It's important that we focus on stabilizing the financial system,” Greenspan said. Policy makers also need to reconcile slowing economic growth with rising prices, he said. The U.S. faces “a very substantial change in the balance between growth and inflation.” The Fed had to open up lending to securities firms to curb turmoil in financial markets, he said. “You have to do the backstop because once you get to that point your particular choices are very limited.” Still, Greenspan said he was uncomfortable with aspects of the Bear Stearns rescue. “That is a fiscal policy operation, essentially something which should be set up in the Treasury Department.” |
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02.08.2008 13:11:27 |
The neighborhood of Galata in Istanbul's Beyoğlu district has always been attractive to both domestic and foreign investors due to its central location and historic fabric. However, interest in the area has been boosted in the aftermath of urban transformation projects that have significantly increased the prices of buildings in the area. Galata, situated between the Tophane, Azapkapı and Galata Towers, carries a historical heritage of thousands of years, having been a settlement area even before the Ottoman conquest of Istanbul in 1453. Galata is undergoing a crucial transformation, as dozens of historical buildings are being renovated and turned into luxury living spaces. The minimum prices even of ruined buildings in the area start from YTL 150,000 to 200,000, and the prices of some buildings are much higher, as in the case for a 180-square-meter apartment that was put up for sale at YTL 1.27 billion (700,000 euros). The apartment, which encompasses five bedrooms and a living room, is located on the first floor of the six-story Doğan Apartmanı building. Doğan Apartmanı used to be called Helbig and later took the names of Boton and Doğan respectively, according to representatives of the real estate company that is undertaking the sale of the house. The building boasts a distinctive architecture and atmosphere, as it encompasses a backyard and a view of Istanbul. In addition, the building has also attracted the attention of artists and authors, they noted, adding that it was the first building to have an elevator and that the notable Turkish movies “Muhsin Bey” and “Eşkiya” were shot there. Those who would like to purchase the 180-square-meter apartment in a 114-year-old building can take advantage of the housing credit opportunities offered by different banks. Some investors opted not to invest in the area at the beginning of the 1990s because the region was dominated by dilapidated buildings. However, projects after 1998 aimed at cleaning and renovating the buildings in the area revived and significantly improved the area's profile. In addition, crucial projects such as the UNESCO City Renovation Project paved the way for increasing demand for the purchase of buildings in the area. Galata also boasts an advantageous location given the presence of different types of stores and business offices, as the area is near Galata Bridge, fronting the Golden Horn and Karaköy, encompassing 116 businesses. The majority of these businesses are comprised of restaurants of different sizes. In addition, the area also features coffeehouses, souvenir shops, carpet shops, jewellery shops, shoe sellers and beauty shops. |
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01.08.2008 13:02:38 |
Room prices at the Rixos Hotel located in Antalya's Belek district have increased by 65 percent; however, this price increase has not had an adverse impact on the popularity of the hotel, which primarily attracts rich tourists traveling to Turkey. The number of overnight stays in Rixos Hotels increased by 10 percent in 2007 compared to that of the previous year and surpassed 950,000, said Cemal Bayar, the marketing director of Rixos Hotels. “We also expect an increase in the number of overnight stays in our hotels for 2008. This rise has taken place despite the increase in the prices. The price of the standard rooms in our hotel in Belek was approximately $550 during the high season of last year,” Bayar said. “However, this level escalated to $780 for this year. Meanwhile, the prices of [overnight stays in] some of our villas, which stood at $1,800 in 2007, have increased to $2,000 in 2008,” he added. Around 35 percent of the customers of Rixos Hotels were made up of Russian tourists in 2007, while Europeans constituted 26 percent of the overall customers of the hotels, said Bayar, adding that 18 percent of the hotels' customers were Turks. “The prices of overnight stays in our villas located in Premium Belek and Bodrum complexes vary between $2,800 and $20,000. These villas have reached full occupancy rates during the high season,” Bayar said. “We have been booking these villas one year in advance,” he added. |
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30.07.2008 16:44:04 |
The number of unregistered real estate agents in Didim is now double that of registered ones, according to the head of the seaside resort town's main real estate body. Hoping to purchase residences in Turkey, many British citizens began to move to Didim, located in the province of Aydın, starting in 2003, following the approval of a bill that allowed for property sales to foreigners. This process, in turn, boosted the real estate and construction sectors in the region. The improvements in the real estate and construction sectors also brought about some severe problems, however, including urban sprawl, lack of inspection and rent-seeking tendencies, said Osman Coşkun, head of the Chamber of Didim Real Estate Agents, adding that the number of real estate agents in the district skyrocketed as a direct result of the developments in the sector. Coşkun underlined that there are 2,000 real estate agents in the region, 680 of whom are registered members of the chamber. “Those who took notice of the potential of the sector and profitable rents in the sector started to work in the real estate sector. For instance, those who used to work as waiters in the bars or retired people began to work as real estate agents,” Coşkun said. “These people do not pay taxes as they do not have any institutional basis and this situation in turn paved the way for the rise in lawlessness in the sector and greater tendency to circumvent the necessary rules of registration,” he added. “The acts of these people result in serious disputes between those who sell and purchase real estate. These unregistered real estate agents arrange fake land titles and obtain unlawful profits from these unacceptable acts,” Coşkun said. “These unregistered real estate agents dupe the Brits as they trick them into purchasing the residences prior to going to land registry offices. People residing in Didim lose their confidence in the real estate agents who pay their taxes on a regular basis in the aftermath of all these cases,” he added. “We receive 3 percent legal commission from each sale, while unregistered real estate agents take a lot higher than this value,” said Coşkun, adding that unregistered real estate agents who sell one house sometimes earn more than the registered ones who sell 10 houses. Coşkun noted that unregistered real estate agents grab 60 percent of the real estate revenues in the region due to high commission. “The Brits are also attracted by the highly profitable real estate sector in the region and some of them begin to work as real estate agents in the aftermath of their partnerships with the Turks,” Coşkun said. “Approximately 50 British citizens operate as real estate agents in Didim at the moment. The fact that a British citizen who works as a real estate agent paid the highest income tax in the region in 2005 reveals the scope of the rents in the sector.” Coşkun also underlined that his organization has been working hard to be able to overcome the lack of organization in the sector and set certain legal standards. “Anybody who undertakes the necessary legal responsibilities and pays their taxes regularly can become real estate agents,” said Coşkun of the current situation. |
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28.07.2008 18:09:22 |
A new luxury residence going up in the heart of east Berlin promises airy lofts, a swimming pool, spa and a concierge service – the kind of luxury you would expect to find in London or New York. The "Fehrbelliner" complex is one of a growing number of high-end developments sprouting up in the German capital, injecting new life into a long-suffering real estate market better known for its graffiti-covered squats and prefab Soviet-style cement constructions. Boasting exotic names like "Fellini" and "Oxford," the new developments offer apartments with price tags approaching 10,000 euros ($15,700) per square meter, more than double the cost of the city's top offerings just a couple of years ago. They amount to a high-stakes bet that Berlin, which disappointed so many investors after the fall of the Wall, is finally blossoming into a political and cultural hub capable of luring the affluent from other parts of Germany and abroad. "The whole concept of luxury living in Berlin is new," said Roman Heidrich, leader of a new Berlin-based residential property team at Jones Lang LaSalle that was established earlier this year in response to the emerging market. |
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28.07.2008 18:07:54 |
The names of people that are eligible to receive housing support, or KEY, payments were published in a reprint of the Official Gazette yesterday. The Official Gazette is comprised of a total of 80 volumes. Each of the first 79 volumes has 2,000 pages, while the 80th has 188 pages. The Emlak Konut Real Estate Investment Trust, or REIT, said in the published announcement that those who receive KEY payments will have to submit their identity numbers. The Official Gazette includes the names of 8.5 million citizens who are eligible to benefit from this support payment, while the amount of money that will be distributed to the citizens amounts to YTL 2.8 billion. The Official Gazette is also sent to the Presidency and the Prime Ministry. The lists are sent to Ziraat Bank electronically and they will be published on the www.keyodemeleri.com Web site of Emlak Konut REIT today. Therefore, those who are entitled to receive support payments do not have to read the Official Gazette but can apply directly to Ziraat Bank for the payments. |
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26.07.2008 15:58:49 |
U.S. home sales fell another 2.6 percent in June as inventories rose and prices fell with buyers still hesitant in the face of a horrific market slump, industry data showed Thursday. The National Association of Realtors reported sales of existing homes and apartments fell 2.6 percent to a seasonally adjusted annual rate of 4.86 million. The level is 15.5 percent lower than in June 2007. The report was also weaker than the average Wall Street estimate of a pace of 4.95 million, and a sign that the real estate market is still struggling to find a bottom. NAR President Richard Gaylord said the association's recent surveys showed "nearly a quarter of potential home buyers are waiting on the sidelines," in the face of declining prices. "However, timing the market can be very tricky, which is why home buyers should always have a long-term view to build wealth." The inventory of unsold homes at the end of June rose 0.2 percent to 4.49 million units, an 11.1-month supply at the current sales pace, up from a 10.8-month supply in May. The median existing-home price for all housing types was $215,100 in June, down 6.1 percent from a year ago. The U.S. real estate market is in its worst slump in decades after years of sizzling growth fueled by low interest rates and speculation, including a boom in lending to subprime borrowers with poor credit histories. |
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25.07.2008 15:37:29 |
Construction costs have increased in an unprecedented manner for the second quarter of this year. Data from the Turkish Statistical Institute, or TÜİK, revealed that construction costs in the second quarter of this year increased by 10.8 percent compared to the previous quarter of the same year. In addition, the data disclosed a 21.51 percent increase compared to the last quarter of 2007 and a 22.29 increase compared to the second quarter of 2007. The labor index witnessed a 10.77 percent increase in the second quarter of this year compared to the same period in the previous year, while the costs of building materials increased by 25.65 percent for the same period. The increase in the cost of building materials is seen as the major reason behind this remarkable increase in construction costs rather than labor costs. Meanwhile, construction costs increased by 0.98 percent in the second quarter of 2007 compared to the previous period and by 5.03 percent compared to the last quarter of the previous year. |
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23.07.2008 18:05:28 |
Real estate agents in Muğla say that a recent bill restructuring property sales to foreigners will not help improve conditions in the real estate sector, which has experienced severe stagnation in the Aegean city in the last year. Foreigners, who lost their trust in the Turkish real estate sector in the aftermath of a severe global mortgage crisis and so-called “dupe” cases carried out by people selling real estate without certificates, have not yet regained their confidence, said Yusuf Kenan Akkuş, head of the 197-member Marmaris Real Estate Advisors Association. The process of property sales to foreigners, which was suspended after the Constitutional Court's annulment of the relevant legislation on April 16, began again after a circular on the issue was issued July 17. Foreigners purchased 800 pieces of real property in the district in 2006, said Akkuş, noting that this number decreased to 350 in 2007. The number of pieces of real property purchased by foreigners is expected to decrease by half in 2008, Akkuş said. He noted that more than 1,000 residences were currently waiting to be sold and added that nearly 40 real estate agents and a number of real estate firms went out of business in 2008. “The real estate markets suffer from stagnation, not only in Marmaris but also in the entire country and even in the entire world. One of the major reasons of this adverse situation is the global mortgage crisis. Europeans, the main group that purchase real estate in the country, have lost their confidence in the real estate sector in the aftermath of the mortgage crisis. In addition, this global mortgage crisis also deteriorated the purchasing power of the Europeans,” Akkuş said. “The continuous alterations concerning the bill that regulates the property sales to foreigners have also irked the Europeans. Last but not least, many of them were duped in their trial to purchase real estate.” All these factors, he said, decreased the number of customers wanting to buy real estate in Turkey. “More than 1,000 residences await to be sold in Marmaris. The bleak situation that emerged as a result of all these above-mentioned factors continues to cloud the sector. We are not of the opinion that the circular, which started the process of property sales to foreigners, will help enhance the real estate market in the existence of all these negative factors,” Akkuş said. He said the new bill could offer a significant opportunity for the sector to recover, but that neither real estate agents nor investors should have high expectations. “The price of the residences has declined up to 50 percent compared to its level two years ago. Therefore, those who will build many residences and who will put them up for sale at extremely high prices may be disappointed in the aftermath.”The “dupe” cases and uncertainty around the bill governing property sales to foreigners have shaken the faith of foreigners interested in investing in the real estate market, said Hasan Ateş, former chairman of the Marmaris Real Estate Advisors Association and the owner of Hateş Real Estate, adding that the fact that property sales to foreigners could now start again would not be enough to remedy all the previous problems. |
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22.07.2008 10:43:37 |
The fact that Turkey's Mass Housing Administration, or TOKİ, and its subsidiary companies sell land they own at record prices through methods including open bidding and revenue sharing has provided a model for other companies. Companies, following in the footsteps of TOKİ, either look for a partner that is willing to launch projects on their existing land through newspaper advertisements or put up these lands for sale through auction methods such as sealed-bid tender and open bidding. Sales through open bidding are the ideal method for real estate as this method increases the possibility to determine the exact value of the real estate, said Başak Soner, chairman of Turkish marketing company TURYAP. “Open bidding, which functions under transparent conditions, helps to set the estimated value of the real estate and the offers below this value are not taken into account. In addition, each value offered above the level of the estimated value indicates that the real estate is sold at its exact value,” Soner said. Soner pointed to the fact that it is an appropriate time to purchase real estate nowadays, adding that domestic and foreign investors both would like to benefit from this advantageous environment. Soner noted that the bill, which regulates property sales to foreigners, has been approved by Parliament recently. “Foreign investors have been hesitant to purchase land in Turkey as a result of the uncertainties clouding the purchase of real estate by foreigners. The lands that the foreign investors kept in stock were put up for sale in the aftermath of the re-arrangement of the bill regulating property sales to foreigners,” she said. The recent increase in the notices concerning the sale of large plots of land should not be merely attributed to the developments in the real estate sector, said Önder Çoban, who is in charge of management at Century 21, adding that the overall economic improvements had more of an impact on this increase. Many companies are in need of cash, said Çoban, emphasizing that companies encounter difficulties concerning the collection of their revenues and the level of demand for their products and services. “The companies do not generally prefer to sell small real estate when they are in need of cash. Under these circumstances, selling an already appreciated land emerges as a better solution for the companies,” Çoban said. Large plots of land have added to their values and become one of the most profitable investment methods at the moment, as they are limited in number, said Nabi Cücük, general manager of Reha Medin Real Estate Services. Aslan Uzunalioğlu Motor Vehicles, Industry, Tourism and Trade Company, TİSK Microsurgery and Reconstruction Foundation, Kombassan Holding and Eskişehir Yasin Çakır Flour Plants are the major companies that have put up their large plots of lands for sale through newspaper advertisements recently. |
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21.07.2008 12:02:38 |
Iceland's state-backed Housing Financing Fund will lend commercial banks as much as 30 billion kronur ($380 million), allowing them to refinance mortgages and boost liquidity and helping to avert a property-market collapse. The Reykjavik-based HFF will provide bonds to banks, savings banks and other credit institutions so they can refinance mortgages in Iceland that had been financed by the HFF previously, the fund said in a statement. The measure will be effective as of September, it said. The move will allow commercial lenders to boost liquidity as the HFF bonds can be used as collateral to borrow from the central bank, said Landsbanki Islands head of economic research Edda Ros Karlsdottir. That will help avoid a property-market collapse in the $19 billion economy as smaller banks are now more likely to use sparse liquid funds to lend, she said. “The smaller banks haven't wanted to use any of their liquidity” before the HFF changes, Karlsdottir said. “The real estate market will still decline, but will not plummet as it would have otherwise.” Housing prices dropped an annual 8.4 percent in June, adjusting for inflation, according to data provided by Landsbanki, Iceland's No. 2 lender. Banks' reluctance to lend has led to a decline in the number of transactions and inefficient pricing, the bank also said. A proposal enabling the HFF to lend banks a further 30 billion kronur for new mortgages will be discussed in parliament in September. The size of the HFF loans means they will only be used by small banks, Karlsdottir said. Commercial banks have total mortgages outstanding worth 490 billion kronur. |
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18.07.2008 14:26:41 |
Turkish Kiptaş Company continues the sale of 115-square meter houses in its Arnavutköy Konutları project. The prices of the houses located on the ground floors of the project amount to YTL 95,445, while other houses in the project are sold at YTL 106,000. The company cooperates with Garanti Bank for the provision of housing credits to would be owners after a down payment of 20 percent. The interest rate has been determined as 0.90 percent. Meanwhile, residents are provided with the opportunity to pay the rest of the sum through 120 months installments of YTL 755. The houses in the project have 3+1 floor plans and are equipped with a steel external door, wooden internal doors that match the furniture, laminate parquet, ceramic floor tile, acrylic bath tub and kitchen cabinet. In addition, the houses are also equipped with intercom and satellite TV, generator for common areas and a heat proof insulation system for the exterior fronts of the housing complex. |
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17.07.2008 15:06:16 |
Turkish company MT İnşaat Ltd. has completed the construction of Gardenya Evleri, which sits on an area of 5,000 square meters and is comprised of a total of 47 residences in Ümraniye's Dudullu district. The project boasts an advantageous location situated in the vicinity of the Ikea and Carrefour shopping centers and has direct access to the Bosporus and Fatih Sultan Mehmet bridges by freeway. The price of the houses, which have 2+1 and 3+1 plans and sizes of 90 square meters and 130 square meters respectively, ranges from YTL 230,000 to YTL 250,000. Those who would like to purchase the houses in the project can avail themselves of credit opportunities from a number of different banks. The monthly fee for the residences in the housing complex amounts to YTL 150. The project, 85 percent of which is allocated for green areas, encompasses diverse social amenities, including a swimming pool, ballpark, tennis court, children's playground, fitness center and closed parking garages. |
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16.07.2008 14:49:07 |
Jelmoli Holding, owner of the largest Swiss department store, said first-half sales from its retail businesses rose 30 percent, helped by acquisitions of hotels in the towns of Zermatt and Geneva. Store sales rose to 145.2 million Swiss francs ($143 million) from 111.7 million francs a year earlier, the Zurich-based company said yesterday in an e-mailed statement. Rental income from Jelmoli's real-estate holdings gained 19 percent to 87.4 million francs. Jelmoli, whose main Zurich store carries higher-priced goods from Armani fashions to Zwiesel 1872 crystal, is in the midst of a plan to split into two companies. One branch of the business will own the store, a credit-card unit and Jelmoli's property, while the other will count restaurants, clothes shops, Russian and Algerian shopping centers and a stake in a Swiss hotelier among its assets. The retailer, whose roots go back to 1833, owns real estate worth 3.3 billion francs including the La Praille shopping center in Geneva. A plan to sell the portfolio to Israeli investors collapsed in October after Jelmoli refused to renegotiate the transaction's price. Coop, the second-largest Swiss grocer, agreed to buy Fust and the Netto24 stake in May 2007. |
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16.07.2008 14:47:36 |
Martinsa-Fadesa became the first publicly traded Spanish developer to seek protection from creditors since a decade-long real estate boom ended last year. Martinsa sought bankruptcy protection after failing to secure a loan that banks had demanded as part of a debt refinancing, the Madrid-based company said yesterday in a statement. Martinsa has a market value of 680 million euros ($1.1 billion), less than half of a peak reached in March. A slump in Spanish home sales, combined with rising borrowing costs, has made it harder for property companies to pay their debts. Sixty-five developers and real-estate brokers based in Spain have sought bankruptcy protection this year, according to Credito y Caucion, a Spanish credit insurer. “This decision has been taken due to the grave cash-flow difficulties created by the inability to obtain a 150 million euro loan which the company needed for liquidity and to continue normal development of its projects,” the company said in a statement after a emergency board meeting in Madrid. Trading in Martinsa shares was suspended earlier in Madrid. Before the suspension, the shares fell as much as 29 percent to the lowest ever. Spain's five largest developers have lost 6 billion euros in market value this year. The company has 5.2 billion euros of debt. Its assets, which include houses, holiday resorts, golf courses and shopping malls, are valued at 9.7 billion euros, down from 13 billion in June last year, according to regulatory filings. “There are going to be more companies of this size and type seeking protection in the future,” Paval Gomez del Castillo, a spokesman for Credito y Caucion, said. “The contagion effect on other developers is going to be notable.”Martinsa-Fadesa was created by the 4-billion-euro acquisition of Fadesa Inmobiliaria by Grupo Martinsa last year. Chairman Fernando Martin is the largest shareholder, with a stake of 60 percent. |
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16.07.2008 14:46:21 |
The Manhattan town house that was home to the late art dealer and racehorse owner Alec Wildenstein and his wife Jocelyne, was sold for $42.5 million, according to public documents released yesterday. The five-story townhouse at 11 East 64th St. has a basement swimming pool and a ballroom, the New York Observer reported. The buyer was identified in documents on the Web site of the New York City Department of Finance as Vesta International. No further information about the buyer was immediately available. Alec and Jocelyne Wildenstein shared the mansion with Alec's brother, Guy, president of Wildenstein & Co., an art dealership and gallery; Guy's three sons and a nanny, the Observer said. Gerald McKelvey, a spokesman for Wildenstein & Co., confirmed the purchase but had no further comment.Jocelyne Wildenstein moved out of the mansion in the spring of 1999, two years after her husband allegedly threatened her at gunpoint, according to the Observer. Alec Wildenstein died Feb. 18 at age 67 of prostate cancer. |
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09.07.2008 16:10:13 |
The remarkable increase in the number of people who are leaving big cities and settling into a new life in other places has galvanized real estate agents to take action in order to attract investment from the new residents. Real estate firms are developing new residence projects in the Aegean and Mediterranean regions of Turkey in order to provide residents with a wide range of alternatives and social facilities with the objective of meeting their demands and expectations. In addition to providing comfortable living spaces to their customers, these projects enable residents to feel at ease far from the stress of the big cities through sports such as golf and offer them the opportunity to extend their holidays to 12 months of the year through residence complex services. In addition, the high demand by foreign investors has also played a crucial role in the creation of residence complex projects in the regions. Kayı Gayrimenkul's KA Golf project in Antalya's Belek, Doğa Gayrimenkul's Doğa Hanımeli project in Bodrum's Hebil Bay, Çakırlar Group's Gardens of Babylon project in Bodrum's Kadıkalesi and Regnum's Escada project in Bodrum are the major developments that have been launched in the two regions. The houses in Regnum's Escana project, the sizes of which range from 360 square meters to 420 square meters, will be completed by 2010. The prices of the houses in Regnum's completed Bargylia project vary between YTL 163,000 and YTL 241,500. Meanwhile, the Ağaoğlu Companies Group is preparing to construct a big housing project in the region comprised of five hotels, two golf courses, a shopping center, social amenities and sports grounds. Istanbul-based Soyak Holding also plans to launch a residence project composed of 200 villas with gardens in İzmir's Urla district. Meanwhile, Propa Construction has started to deliver the keys to its Royal Resort and Gümüşlük Gizli Vadi Evleri projects in Bodrum. Besken construction has completed its Terassu Hotel&Residence project in Bodrum. Semerkand Construction has also managed to complete its projects in time for the holidaying season. The company has finished the construction of two projects that started in 2007 and has already delivered the houses to their residents. Profilo Holding, which has started to re-invest in the construction sector through its new projects in Bodrum, has started to deliver the houses in its Turkuaz Koy Evleri project, located in Yalıkavak. The project, which sits on an area of 42,000 square meters, is comprised of a total of 114 residences, including 12 duplex houses. The prices of the houses, which have received particular attention from English investors, range from 190,000 euros to 520,000 euros. In addition, 75 families have moved to their new residences in the Port Alaçatı project, which was developed by Ant Yapı. |
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04.07.2008 16:14:45 |
Banks have started offering credit with low interest rates for environment-friendly housing projects in the aftermath of the successive initiation of these projects by real estate companies. The houses that can benefit from this credit opportunity, dubbed “Environment Friendly New Generation House Credit,” need to embody certain characteristics. İş Bank, which pioneered the practice, carries out an evaluation of the projects based on 50 points. The projects, which manage to obtain a point surpassing 30, are categorized as environment-friendly residences and are granted the right to benefit from the credit opportunity. The interest rates for these projects decrease by 0.12 percent declining to 1.48 percent from its level of 1.60 percent. “The impacts of global warming are being felt on an increasing scale. Consumers begin to pay more attention to environment-friendly residences parallel to the increased sensitivity toward environmental problems,” said Ömer Çelebi, İşbank's director of personal loans. “As a bank that operates with the principle of institutional social responsibility, we aim to facilitate the development and spread of environment-friendly technologies through the initiation of this project that has been implemented for the first time in Turkey,” he added. “The houses will be evaluated on the basis of four major categories including water use efficiency, the type of construction materials, energy consumption and design,” Çelebi said. |
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03.07.2008 13:10:23 |
The Istanbul-based Ağaoğlu conglomerate will deliver the houses in the first stage of My World Starland Project to their owners in Istanbul's Ataşehir district from June 30 to July 21. The company, which presented the fundamental characteristics of the project in January, is delivering the houses two months earlier than scheduled. Those who would like to purchase houses in the project pay 12.5 percent of the total cost in advance and start paying the rest seven months later at no interest. Meanwhile, those who would like to start paying even later than seven months are provided with the opportunity to start the rest of the payments 10 to 13 months later on the condition that they pay a greater percentage of the total cost in advance. The project provides residents with a wide range of facilities including Ağaoğlu's social and sports facility My Club, which exists in all the projects of the company and has squash courts, aerobic centers, beauty parlors, sauna, Turkish bath, physical fitness centers, spa and hair saloons. |
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01.07.2008 16:03:04 |
Kazım Karabekir Temel, chairman of Kayseri Real Estate Agents Chamber, has drawn attention to the stagnation in the real estate sector. “The prices of houses have decreased by 25 percent, but still no increase in the purchase and sale of houses has been observed. We are looking forward to the return of Turkish expatriates for momentum in the sector,” Temel said. “The price of a house valued at 60,000 euros in Kayseri decreased to 45,000 euros,” said Temel, adding that it is an extremely appropriate time to purchase houses for those who have enough wealth. “Turkish expatriates living in Europe could be the sole remedy that would be able to solve this adverse situation in the real estate market. They are our sole hope for a revival in the market,” Temel said. Meanwhile, Temel also said those who buy houses through bank credits should be cautious. “Those who would like to purchase real estate should not start taking bank credits before asking for the advice of real estate agents. Otherwise they will run into a huge amount of debt,” he said. |
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01.07.2008 15:50:42 |
Akın Construction Company is undertaking the construction of 'Gönül Evleri' in Istanbul's Kağıthane district, on an area of 7,300 square meters. The project comprises 105 apartments with 2+1 and 3+1 floor plans and the size of the houses in the project varies between 98 and 201 square meters. The prices of the 98-square meter houses range from YTL 198,000 to YTL 236,000, while the prices of the 113-square meter houses from YTL 238,000 to YTL 266,000. The prices of the 201-square meter houses with terraced gardens are sold at YTL 275,000, while the prices of the 156-square meter houses with terrace roofs are sold at a price of YTL 322,000. The customers of the houses can pay 50 percent of the total price in advance and can pay the rest through loan installments ranging from 12 to 60 months, with interest rates varying between 0 percent to 1.25 percent. The construction of the houses in the project began in August 2006 and the company plans to complete the project this August. |
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28.06.2008 16:12:57 |
Investors in global commercial real estate achieved a lower return last year as a result of falling prices in the U.K., according to researcher Investment Property Databank. The total return, including valuation gains and rental income, fell to 11.5 percent in 2007 from 14.7 percent a year earlier, London-based IPD said in an e-mailed statement Friday. The U.K. was the only country among the 22 developed economies covered in the report where commercial property investors lost money. “IPD's first global index is documenting the complex and far from synchronized process of decline from the 2006 world market peak return,” IPD Director Ian Cullen said in the statement. Returns are set to decline further this year as banks make acquisitions more expensive and harder to finance as they grapple with losses and writedowns totaling almost $400 billion from investments in subprime mortgages, putting pressure on prices. |
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28.06.2008 16:06:56 |
Rising mortgage rates in the U.S. are driving up the cost of buying a house even as prices fall, making property more expensive across the nation, according to a new study by Zillow.com, an online provider of home valuations. Monthly payments on 30-year fixed mortgages are 6 percent to 10 percent higher in 41 of the top U.S. housing markets than they were two months ago. First-quarter prices have declined from a year earlier in 88 percent of those areas, Zillow said. “We're going to need about a 30 percent decline in house prices if you are going to keep payments stable,” said Morris Davis, a former senior economist with the Federal Reserve and now a real estate professor at the University of Wisconsin-Madison's School of Business. Seven Federal Reserve benchmark cuts since September have failed to lower mortgage rates as banks have curtailed lending after taking writedowns or credit losses of more than $400 billion from investments in mortgages. Rates for 30-year fixed-rate home loans were about 6.3 percent when the Fed first reduced its target federal funds rate nine months ago. They're now just under 6.45 percent, data from Bankrate.com show. Zillow based its calculations on almost 25,000 mortgage offers to potential homebuyers with credit ratings of at least 680 out of a possible 850. The would-be buyers sought bids through Zillow's Mortgage Marketplace, a new service that helps consumers shop for home loans. Zillow's main business provides U.S. home valuation estimates based partly on sales data. Unfortunate pickle: The average monthly mortgage payment rose $131, or $1,572 a year, since the beginning of April in the 41 areas surveyed, Zillow said. The figure is controlled for population. “The story here is not so much how much more it will cost you over the life of the loan, but how much less house you can buy,” said Greg Rand, managing partner of Prudential Rand Realty in Westchester County, New York. “It's an unfortunate pickle that we're in.” Prudential Rand has more than 700 sales associates and a mortgage brokerage that arranges financing. Home prices in 20 U.S. metropolitan areas fell in April by the most on record, according to the S&P/Case-Shiller home price index, and new home sales declined 40 percent in May from a year ago, according to the U.S. Census Bureau. Sales of previously owned homes in the U.S. rose in May from the lowest level in at least nine years as a slide in prices lured some buyers into the market, the National Association of Realtors said. U.S. housing was less affordable in April than the previous month even as sales increased in some markets, the Realtors data show. The composite homebuyer index fell to 129.8 in April from 130.6 in March. A value of 100 means that a family with the national median income has exactly enough income to qualify for a mortgage on a median-priced home.Fed rate reductions have historically lowered mortgage rates. From Jan. 3, 2001, to June 25, 2003, the Fed cut rates 13 times. Mortgage costs fell eight times and rose five times, according to North Palm Beach, Florida-based Bankrate.com. |
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24.06.2008 10:28:09 |
Turkey ranked 38th in the “Enabling Trade Index,” featured in the Global Enabling Trade Report 2008, which explores the factors enabling trade in individual economies. Published for the first time and covering 118 economies worldwide, the Global Enabling Trade Report 2008, released by the World Economic Forum, aims to present a global analysis of the large number of measures that can facilitate trade. The index measures factors, policies and services facilitating the free flow of goods across borders. It breaks the enablers down into four areas, namely market access, border administration, transport and communications infrastructure, and the business environment. Turkey ranked eighth among 118 countries in terms of market access. On the other hand, its transport and communications infrastructure is less developed than in most European countries, and its border administration is rated “comparatively inefficient,” with a rank of 55th. According to the report, there is a lack of transparency in the Turkish market, with Turkey ranking 51st in terms of transparency. Moreover, the regulatory environment could be more conducive to the cross-border flow of goods, with more supportive policies encouraging foreign direct investment and less restrictive policies on the hiring of foreign labor. Hong Kong and Singapore occupy the top two positions in the index, followed by Sweden and Norway. Canada, Denmark, Finland, Germany, Switzerland and New Zealand complete the top 10 list. |
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21.06.2008 16:45:25 |
The Four Seasons chain opened the doors of its second Istanbul hotel, situated on the shores of the Bosporus on the city's European side, last weekend. “It is a great joy for us to open our second hotel in this beautiful city. Istanbul is a city that unites different cultures and designs,” said the hotel general director and regional head of the Canadian-owned chain, Marcos Bekhit. “The synergy between the two hotels will provide the opportunity to approach Istanbul with two different perspectives and look at the city through taking into account its diverse dimensions,” Bekhit added. The 166-room Four Seasons Hotel Istanbul at the Bosphorus features a new building, designed in a traditional Turkish architectural style, along with an original Ottoman palace. The hotel features an indoor swimming pool with heating system, Bosporus views, spa, nine care rooms, sauna, a special deluxe suite, three Turkish baths and a fitness area. The inner side of the hotel has a modern, simple design, reflecting the coastal position of the hotel. Meanwhile, the parts of the hotel that feature Turkish architecture and traditional works of arts are reminiscent of the summertime lives on the Bosporus of Ottoman nobles. In its use of the ancient structure, this second hotel differs substantially from the original Four Seasons Hotel Istanbul Sultanahmet. But despite differences between the appearance and design of the two hotels, both facilities resemble each other with respect to the high standards and quality of services rendered to clients. |
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20.06.2008 09:20:55 |
Turkish Real Estate Investment Company Doğa Real Estate Agency completed the construction of a sample apartment in the Hanımeli Evleri project in Bodrum's Hebil Bay, reported Turkish weekly Ekonomist Sunday. The project is a complex consisting of four types of apartments in different sizes, varying from 95 to 195 square meters. Consisting of 59 apartments, 13 of which are duplexes, the apartment prices range from 285,000 euros to 589,000 euros. “We developed a functional plan considering the basic needs of residents,” said a partner of Doğa Real Estate Agency, Ali Duek, noting that the apartments are designed in conformity with Bodrum's traditional architecture. The project provides various facilities, including a massage saloon, a fitness center, a concierge, laundry as well as housekeeping and shopping services. The Hanımeli Evleri project also has two swimming pools and a large parking lot. Golf carts provide transportation as the use of cars is banned within the site. |
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17.06.2008 09:45:59 |
Manhattan apartments costing $1 million or less saw weaker demand as cutbacks by Wall Street firms meant few shoppers and an increase in the number of dwellings for sale, Barron's reported, citing a real-estate appraiser. Miller Samuel, the appraiser, said the number of Manhattan apartments for sale rose to 6,194 in March, up from 5,133 in January, the weekly newspaper reported in its June 16 issue. The Streeteasy.com Web site found that prices had been cut for about 530 apartments by at least 5 percent during the past 30 days, Barron's said. Financing has become more difficult during the credit crisis, Barron's said, and lenders are requiring larger down payments and higher personal credit scores. The weakness in some demand, however, may bode well for the U.S. housing market, since New York tends to experience weakness later than the rest of the nation, Barron's said, citing economist Gregory Heym.Luxury apartments in Manhattan starting at about $8 million will retain their prices and won't register any year-over-year declines until 2009, Barron's said, citing Heym, economist for Terra Holdings. |
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13.06.2008 12:54:44 |
The number of construction projects in the country seeking harmony with nature and offering a sustainable lifestyle with more efficient energy and water usage is gradually increasing. The new projects include the Doğan subsidiary Milpa Group's Milpark Konutları in Istanbul's Esenyurt district; Propa İnşaat's Sarıyer Park; Soyak's Mavişehir project; A-Z Yapı's Meritlife Kent; Doğa Real Estate Agency's Emirgan Evleri, Selenium Country and Doğa Meşepark projects; Teknik Yapı's Dilman Towers; and Sinpaş's Lagün project. Thanks to savings of 250,000 tons of water a day, the Milpark Konutları project could save as much as 50 percent in water consumption annually. Meanwhile, Propa İnşaat has installed solar panels in its Sarıyer Park project to increase energy savings while still creating a luminous atmosphere in the building. Additionally Turkish construction company Soyak has implemented an insulation system and double insulated glass panes in its Mavişehir project. Turkish construction company A-Z Yapı distinguishes domestic solid waste such as paper, plastic, glass, tin from biological waste. Companies are showing concern about the future of natural resources because 30 percent of the country's resources have been exhausted in the last 30 years, posing a threat to the future of construction sector because of the industry's heavy reliance on natural resources. It is, therefore, expected that the issue of environmental sustainability will show up much more frequently in new construction projects. Sustainable housing Sustainable development is a pattern of resource use that aims to meet human needs while preserving the environment, ensuring that these needs can be met not only in the present but also into the future. The sector requires more financing to construct sustainable housing projects due to the higher price of materials, infrastructure costs and the land-use ratio. It is estimated, however, that the high cost of sustainable housing construction will decline in line with a rise in the number of such projects. Many consumers are becoming conscious of the dire situation of the environment, and are showing an increasing preference for purchasing sustainable houses. Sustainable housing reduces costs and water usage, and offers improved security. Meanwhile, housing investors, though willing to launch nature-sensitive projects, are a bit hesitant about the future of the sustainable housing sector given the high costs associated with it. |
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10.06.2008 15:47:05 |
The Levent Loft Bahçe Project offers some of the first apartments in Istanbul designed in the “loft” concept, in which old factories and storage buildings are transformed into modern living spaces The project, launched by the Akfen Real Estate Investment Partnership (REIT) and Turkish company Sağlam İnşaat, consists of 82 apartments in 23 blocs in the Levent district. With prices starting from $510,000, it drew more than 1,000 applications during the pre-application period. The project began when an earlier renovation, the 144-unit Levent Loft Project -- the first such loft-style renovation -- attracted many investors when it was completed and put up for sale. As a result, the company decided to initiate the Levent Loft Bahçe project on a 2,000 square meter area just next to the earlier building. With apartments from 100 to 210 square meters each, the project features 16 different apartment designs. The units were put up for sale last Thursday, and the companies plan to complete the project by September 2009. “People are willing to purchase residences in the surrounding area of their offices. Therefore, we designed our apartments not only for the upper classes but also for middle-income groups,” said the chairman of Akfen Holding, Hamdi Akın, adding, “We offer 100 square meter apartments which are appropriate especially for the people who work in the Levent area.” He emphasized that the Akfen Group will continue to build loft-style apartments if the company can find appropriate buildings in the Levent district, as well as on Büyükdere Street. “The brand equity of the projects held in the surrounding Levent area should be high, and, for this reason, Akfen prefers to work with professionals from different fields at various stages of the project,” said Akın, noting that the company plans to consult with experts regarding further investments. There are, however, urban planning issues on Büyükdere Street, because the municipality has separated the area's business centers from its shopping malls. However, Akın claims the Greater Istanbul Municipality plans to resolve this issue in the near future.“The improvements in infrastructure had fallen behind the fast-growing pace of a region as a commercial center, and we hope that the municipality will manage to redesign the street soon,” he concluded. |
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07.06.2008 12:13:24 |
The government should provide subsidies for the private sector operating in the real estate market, instead of conducting separate construction projects, according to a recent report. The report was prepared by the American Affordable Housing Institute upon the request of the Association of Real Estate Investment Companies (GYODER). The Affordable Housing Institute, which carries out projects in Egypt, Kenya and South Africa to enable people from low-income groups to acquire properties at reasonable prices, also drew up a roadmap for Turkey's real estate sector. “In Turkey, where there is a need for 600,000 houses to be built each year for the next 10 years, it is better for the government to accept the responsibility to provide loans,” said David Smith, head of the Institute. Similar to the enterprises supported by the governments of Mexico and the United States, the Housing Development Administration of Turkey (TOKİ) should also consider the supply part, Smith emphasized. “Mortgage banks should offer loans for making the buildings earthquake-safe,” said Smith and noted the importance of having a house renting association especially when apartments payable by long-term arrangements are considered. |
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05.06.2008 18:19:44 |
Turkish construction company Taksim Yapı recently finished its Pera Evleri project in Istanbul's Ataşehir district. The project was built by Yüksel Tourism İnşaat, which also built the Taksim Hill Hotel and Taksimoda café. It features a central location, just a few minutes from strategic sites such as the Bosporus Bridge. With two apartments per storey, there are three types of apartments ranging from single to quadruple room suites. Project prices range from YTL 240-340,000 ($195,322-$276,706). The company offers apartments from 120 to 170 square meters. Around 80 percent of the project's total construction area is devoted to its outdoor grounds. The apartments are equipped with luxurious facilities, including high-quality tiles, ceramics and appliances. The project includes parking lots, an open-air swimming pool, bicycle paths, basketball courts, sport centers and a children's playground. Pera Evleri is also notable for its high quality security system, as well as its heat and sound isolation systems. |
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31.05.2008 16:32:04 |
A new apartment project in Taşdelen, a developing area on the Anatolian side of Istanbul, will offer 1+1 and 2+1 apartments designed for small families, single people or those looking for a small office. Promising fresh air and a life in the woods and away from traffic jams for those who prefer small residential places, CornerTown, is designed by Koytür İnşa and is part of the Corner Project, comprised of CornerPark, CornerTown and CornerBazaar. The apartments, 94 in total, differ in size between 74 and 232 square meters and are priced from YTL 149,320 ($122,000) to YTL 464,000 ($380,000). Constructed on an area of 12,000 square meters, the project is set to be complete at the end of 2009. Standing out with its proximity to such central parts of the city as the TEM highway, IKEA, REAL Meydan, Boğaziçi and the Fatih Sultan Mehmet Bridge, CornerTown itself includes a covered parking lot, covered swimming pool, sauna, fitness center, cafes, children's playgrounds and sports center. |
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28.05.2008 11:18:22 |
Egypt, the Arab world's most populous nation, expects the value of mortgages to triple to 3 billion Egyptian pounds ($561 million) this fiscal year, Investment Minister Mahmoud Mohieldin said yesterday. Egyptians are using real estate to hedge against inflation, Mohieldin said at a housing conference in Cairo. The number of property units in Egypt is growing at 11 percent a year, he said. The current fiscal year ends June 30. “Our challenge now is increasing demand,” Mohieldin said. Egypt has undergone a boom in real estate in the past two years as builders from the Persian Gulf such as Emaar Properties PJSC and Damac Holding embark on property projects. Real-estate and construction account for 8 percent of the country's gross domestic product, Housing Minister Ahmed El-Maghraby said at the conference. The government has started building 100,000 low-income housing units this year, he said. Egypt's inflation rate rose to a three-year high of 16.4 percent in April, exceeding the government's target range for a fourth consecutive month. |
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British mortgage approvals for house purchase were the second weakest on record in April and nearly 40 percent lower than at the same time last year, a survey showed yesterday. The British Bankers' Association said approvals for home loans made a feeble recovery to 38,704 last month from March's record low of 35,546. That was well below the six-month average of nearly 42,000. "March was the record low and April is the second lowest ever, so you cannot call that a recovery," said Michael Saunders at Citigroup. "The housing market remains extremely weak." Approvals for equity withdrawal and other purposes also remained weak at 33,720, down 26 percent on a year ago. Re-mortgaging activity rose, however, and was more than 20 percent up on a year ago as homeowners shopped around for lower rates. "Pressures on household finances, stalling house prices and tighter lending criteria in response to lower liquidity are all constraining demand for house purchase and equity withdrawal loans, which are both well down on levels last year," said BBA director of statistics David Dooks. "In contrast, there is an active remortgaging market as people switch lenders to obtain better deals."The BBA said underlying net mortgage lending rose 5.4 billion pounds on the month in April after a 5.2 billion pound increase in March. |
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24.05.2008 09:30:06 |
The real estate sector is experiencing a 20 percent decline in demand, however this gives buyers the edge, said real estate agents, evaluating the impacts of the recent crunch. Most people accept that there is ongoing stagnation in the sector. “The construction companies are constructing thousands of houses as they expect that demand will meet this amount of supply and the market will come to an equilibrium soon. But nobody thought that the sector would require cash for the purchases,” said Başak Soner, a member of the executive board of TURYAP, one of the leading Turkish real estate agencies. She added that the customer profile has changed in recent years. Today, people in the 25-35 age group are also potential buyers, she added. “We have to find proper ways to sell the excessive supply of apartments. The constructors have to reduce prices,” said Soner and added, “The market conditions are very favorable for cash holders to buy their favorite apartments at reasonable prices.” There are also great opportunities for tenants to become house owners, added Soner. |
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23.05.2008 10:10:37 |
India's second-largest developer, the Mumbai-based Lokhandwala Infrastructure has made its way to Dubai as Lokhandwala Builders International where it builds, wheels and deals some of the city's most sought after real estate. Dubai's booming real estate industry has attracted investors from the expatriate community and especially Indian and Pakistani natives with British or U.S. citizenship who are rushing to the new hub between Europe and Asia, a short flight between their two homes, Jean Soriano, Lokhandwala Builders International's sales coordinator, told the Turkish Daily News. “Indians go back to Dubai instead of Bombay where real estate is more expensive,” she said. Real estate in Dubai offers an excellent investment choice with premiums of at least 30 percent in three years and the law allows homebuyers to sell their property after their first down payment. The developer has completed and sold out the Lady Ratan Manor located in the International City, and handover of apartments is expected next month. Soriano said homeowners are already re-selling their apartments. Construction on a 25-storey building, Eden Gardens located in Dubai's Sports City just started this month and studios and 1-bedroom apartments are still available for sale. Six months ago construction on 27th Square, a 10-storey residential building was launched also in International City and a fourth 24-storey project with residential and commercial property is underway and will be announced in three months. Property on these two projects will be put up for sale within the next few months, said Soriano. Prices on Lokhandwala Builders International's property range from 700,000 dirhams ($190,000) for studios, 1 million Dhs ($272,000) for one-bedroom flats, 1.2 million Dhs ($326,750) for two-bedroom flats and 2.5 million Dhs ($680,700 ) for three-bedroom flats. |
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23.05.2008 10:09:37 |
Most people prefer to purchase homes differing in price range between YTL 60,000 ($48,000) and YTL 90,000 ($72,000) according to a questionnaire conducted by Kent Konut, an affiliate of Kocaeli Metropolitan Municipality. Some 23 percent of nearly 5,000 participants of the questionnaire opted for the 75 square meter apartments, which are designed as 2+1 and priced at YTL 40,000 ($32,000), while some 17.5 percent of the participants prefer 115 square meters. These apartments are designed as 3+1 and cost YTL 89,000 ($72,000). Some 14,9 percent said they could be interested in an apartment that is 95 square meters, which would be 2+1. The price set for that apartment is YTL 73,000 ($58,000). Meanwhile, the remaining 9 percent said they would prefer 140 square meter apartments, which would be a 3+1, and priced at YTL 112,000 ($90,000). The general preference of the participants is the low cost apartments, according to the results obtained by the questionnaire of Kent Konut. While the 2+1 and 3+1 apartments seem to be popular among the participants, the 1+1 apartments are not opted for due to their small sizes. The participant also said that they would expect the monthly payments of the apartments to be in between YTL 600 ($483) and YTL 1,000 ($805), while the deposits should be around YTL 20,000. |
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22.05.2008 09:44:07 |
The increase in land prices had previously made it difficult to launch affordable housing projects but now the housing sector is under pressure from a drastic increase in the price of basic raw materials needed in the construction sector, namely iron, cement and steel. Moreover, due to overall economic stagnation, contractors are unable to increase their prices, despite these rising costs. The pressure on prices could be alleviated by a decline in interest rates, according to some in the construction industry. Many argue that this is an ideal period for real estate purchases. “There has been a 20 percent fall in the volume of real estate transactions. The construction costs rise, while iron prices double,” said chairman of Altın Real Estate Agency, Nuri Özelmacıklı, adding, “I do not expect any extreme boost in the real estate market this year. There might be only temporary changes.” House and workplace prices may boom at some point, so those who buy this year may ultimately reap huge profits next year, said Özelmacıklı. He added that the real estate sector is similar to the stock exchange. You should buy a property when the price falls and sell when it rises. |
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19.05.2008 15:20:35 |
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.” |
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17.05.2008 15:13:35 |
Shock and anger greeted the announcement from Ankara on May 7 that gave the green light to tourism hotels and developments for building up to five storeys high on Bodrum peninsula coastlines. While speculators and big companies may be rubbing their hands in glee that their lobbying efforts in the capital have paid off and they can now develop the land they have been buying up, the ordinary people of Bodrum who have to live here are dismayed, worse, feel betrayed. Bodrum is unique. As one resident, Antonella, said, “Drive the length of the Turkish coast and which town is different?” Bodrum is the only major town with the height limit and the style of houses and yes, hotels, that make it different. “France, Spain, most of Turkey- wherever you go, there are high-rises. Our visitors constantly comment on how wonderful Bodrum is,” she said. Online forums have been running hot, and that is amongst people not only living here but also homeowners and regular visitors who live in the UK and around the world. Their concern is not about losing their sea views and their access to the beaches, but what it does to the whole ambiance of Bodrum peninsula. It seems that a campaign has developed online to bombard the Culture and Tourism Ministry with e-mails to protest against the decision. So what really has happened? On May 7, the Culture and Tourism Ministry's General Directorate of Investment and Establishments sent a directive dated April 28, 2008 (numbered 75327) to all Bodrum municipalities. The directive is a crucial revision of building height limits for the peninsula allowing “visible basement floors,” thereby permitting the number of floors to be increased up to five. The directive ties in with the overall development plan (the 1/25,000 scale plan) for Bodrum and districts, which is currently under final revision by the ministry following extensive public discussion in Bodrum over the last five years. A low building-height limit has been applied in Bodrum since the first town planning scheme was instituted in1981, reflecting vernacular architecture, and no doubt prompted by the first one or two “large” hotels built that went up to five floors, one of which still stands on the beach of Bodrum town. Basement floors by most rational people's understanding means underground or partially under ground-level floors. However, according to the new revision plan, those “basements” can actually be seen from four sides of the building. The irony is not lost on anyone that one Turkish word for “basement” is “bodrum.” Some recently built hotels and other buildings already transgress the rules of the current Bodrum Building Plan, and there is a general belief that the directive is rubber-stamping illegal buildings as well as opening the way for increased amounts of towering development. The first comment came from Gümüşlük Mayor Mehmet Ülküm. He said, “Five storeys violate Bodrum's traditional building view. Bodrum is known for its two-floor white houses all over the world. We will be appealing against this decision through legal channels.” Filiz Dizdar, spokeswomen for the combined environmental groups, said, “This is the death penalty for Bodrum. But we will turn it back from the scaffold. Bodrum has a unique view and geography with its white two-floor homes. This is the most important feature and makes Bodrum what it is. We are not going to consign Bodrum to the five-star hotels which don't contribute anything unique to tourism.” Bodrum Chamber of Architects head Mahmut Yıldırım and committee member Ayla Figen Narin both commented. Narın said, “If this plan receives final approval as it is, ‘Bodrum' simply won't be ‘Bodrum' anymore. It is outrageous to call a four-sided, clearly visible floor a ‘basement.'” Yıldırım said, “They only want to increase the number of beds in tourism, but never think about the quality of the tourism experience.” When first told of the announcement, Antonella and Vincent were aghast, “Oh my God, that would be the end of it!” “Isn't that what they want?” asks Charlotte. “Is this Bodrum's punishment for being different?” |
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17.05.2008 15:10:30 |
Construction of U.S. single-family houses in April dropped to the lowest level in 17 years, even as building of condominiums and townhouses rebounded. Builders broke ground on 692,000 single-family homes at an annual rate, down 1.7 percent from March and the fewest since January 1991, the Commerce Department said Friday in Washington. Total starts jumped 8.2 percent to a 1.032 million pace that was higher than forecast as construction of multi-family units increased 36 percent following a 35 percent drop in March. Lower prices and bigger incentives have yet to revive demand for houses, indicating builders will need to come up with even more discounts to attract buyers. Stricter lending rules, job losses and growing pessimism about the economy signal sales will not rebound quickly. Building permits, a sign of future construction, rose 4.9 percent to a 978,000 pace, reflecting gains in both single- and multi-family units. Starts increased in three of four regions, led by a 24 percent jump in the Midwest. Construction rose 19 percent in the West and 3.6 percent in the South. Starts dropped 13 percent in the Northeast. |
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16.05.2008 09:14:38 |
The Social Responsibility for Urban Transformation Conference, organized by Altınanahtar Magazine with the support of Urban Land Institute Turkey (ULI Turkey), will be held at Istanbul Grand Cevahir Hotel on May 22. İNDER, an association for constructors, ÇEDBİK, an environmentalist association, the Spinal Cord Paralytics Society of Turkey (SCPST), Turkey Disabled Foundation (TSD) and ecological association Temiz Dünya are also supporting the event. The subject of the conference is “The Nature and People Sensitive Urbanization.” The first session will be devoted to the discussion of sustainable urbanization and nature-friendly structures. In the second panel experts will talk about existing physical obstacles in the structures and how to abolish them. Like all other sectors, housing and construction sector has important responsibilities to the environment. With this concern, the sector intends to design nature-friendly buildings by then. The questions of how to construct nature-friendly buildings and what are the innovations in the construction sector will be discussed during the conference. |
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15.05.2008 16:56:26 |
Real estate agents have been badly affected by the widespread crunch in the construction sector. Many real estate agents, who enjoyed a golden time in 2005 and 2006, are about to go bankrupt. “For weeks, there have been 39 keys sitting in my office, either for rent or sale. Real estate agents have never experienced such trouble before,” said Mesut Güleroğlu, head of the İzmir Real Estate Agents Society (İZEKO). He also noted that the number of keys at his office for properties waiting to be sold usually do not exceed three or five, and most of them would be gone in 10 days at the most. There has also been financial contraction in the second-hand housing sector, as the boom in housing loans as well as stagnation in the market has led consumers to act cautiously, which has, in turn, caused the business of real estate agents to stagnate. “In student districts like Bornova and Buca, houses which were worth YTL 700 ($559.85) last year cannot be let out to tenants even for YTL 500 ($399.89) this year. Meanwhile, second-hand apartments cannot be sold even at half price,” said Güleroğlu. |
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14.05.2008 13:16:30 |
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. |
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09.05.2008 09:26:37 |
Starting its operations in 2001, Türk Barter, one of Turkey's barter system implementers, plans to buy more than 2,500 houses, 4,000 second-hand vehicles and 30,000 mobile phones to remarket this year. Türk Barter, which operates in the fields of credit, factoring and leasing, will also offer the opportunity of zero-interest loans for five years to those who intend to buy houses. All companies with abundant stocks as well as those firms that still keep their goods and houses in their hands in order to make profit, are invited to work with our company, said Sırrı Şimşek, the chairman of Türk Barter, who also announced this year's company targets at a press conference yesterday. �Türk Barter steps in for the completion of some dead construction projects, and purchases the whole project for remarketing. We can call the whole process �barter bondage,' said Şimşek, who further noted, �We also provide zero interest loans for five years as Barter Credit; however, we charge five percent commission for this activity.� |
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07.05.2008 11:48:42 |
Following in the footsteps of real estate firms such as Güneri İnşaat, Mimart Yapı and Soyak, which have launched new payment plans to counter stagnation in the sector, some banks have decreased loan interest rates to 1.14 percent in 1 year-installment periods and to 1.32 percent in 20-year installment periods. The decrease in the interest rates facilitate those who own a house. Launched with the slogan “Big Interest Rebate,” the campaigns encourage those who want to own a house to take bank loans with reasonable payment options. The increase in the interest rates of housing loans and global fluctuations brought property sales to a standstill. With the coming of spring, financially strong real estate firms have begun to develop new payment plans as alternative to the banks to spur the sales, which have been interrupted as a result of rising interest rates. Some construction firms create reasonable interest rates by entering partnerships with the banks while some others prefer to offer the payment options and housing loans themselves. The real estate firms have begun to come up with different campaigns and payment plans depending on the consumer prices index, gradually rising installments and interim payment options. The campaigns mainly aim for the current demand to be directed to the projects at hand. The usual competition in construction projects for social facilities, their price and their architectural design has helped ensure the most reasonable financial model. This, in turn has led to many campaigns regarding the payment options to be applied in the construction projects. Avrupa Residences project in Istanbul's Halkalı district, conducted by the joint partnership of Özsaya and Gün-Er İnşaat, is an example of these campaigns with the slogan, “First move in, then pay.” Mimart Yapı, on the other hand, has issued a new campaign titled “Happy Final Campaign” for the apartments in the last stage of the Armina Houses in Istanbul's Bahçeşehir district. Aiming at the tenants and those who want to buy a house in the first place, the firm facilitates its customers to move in their house by paying a small amount of their deposit. A rebate of 10 percent also awaits potential owners. The second campaign launched by the firm is the initial payment of 25 percent, an installment period for five months and payments every six months with no interest rate. The firm also offers credit options in partnership with some banks for its other projects, which include many facilities from swimming pools to the tennis courts. |
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06.05.2008 17:56:56 |
New restrictions will be placed on property sales to foreigners in Turkey following the Constitutional Court's latest verdict canceling the government's previous legal arrangement. On a district basis, the land appropriated for sale to foreigners must not exceed 10 percent of the overall land included in the development plan for a district. The parliamentary Justice Commission has approved a bill that includes an amendment to article 35 of Turkey's existing Land Registry Law. The Republican People's Party (CHP) criticized the bill during discussions in Parliament. Zeki Adlı, director of the Turkish Land Registry Directorate, said that the amount of land allowed to be sold to foreigners has been decreased by one third since the government took the Constitutional Court's latest verdict into account. In compliance with the new legal amendment accepted in Parliament, foreign nationals will be allowed to purchase immovable property of a maximum of 10 percent of a district's appropriate land. For instance, while the total amount of land to be sold to foreign nationals in Antalya was 10,363 hectares according to the government's previous amendment, it decreased to 3,607 hectares with the new amendment accepted by Parliament. The amount decreased to 2,022 hectares in Muğla district. Meanwhile, Osman Ertuğrul from the Nationalist Movement Party (MHP), in his statement regarding the disadvantages of property sales to foreigners, alluded to the establishment of the state of Israel through land purchases from Palestinians. Halil Ünlütepe from the CHP and Faruk Özak, the public works minister, repeated the fierce discussion they had had in Afyon in 2005. “You keep doing this. You did the same three years ago in Afyon, too,” said Özak, who criticized Ünlütepe's remarks accusing the government of acting heedlessly. However, Özak and Ünlütepe were reconciled after hugging each other at the end of the parliamentary meeting. What will the new bill bring? The cabinet will have the authority to restrict foreign purchases in water, energy, mining, agricultural lands and areas protected due to their historic, religious and cultural characteristics, according to the new bill. In addition, the cabinet will be responsible for restricting foreign purchases of immovable property on sites protected for their special flora and fauna, and lands with strategic importance because of national security interests. Considering a district's status in terms of its infrastructure, economy, energy capacity, environmental condition, culture, agriculture and security condition, the cabinet is to have the authority to determine a different percentage for property sales to foreigners, under the condition of it being no more than the set 10-percent level. The governor's office will report any changes in area size of a district's building scheme to the parliamentary Justice Commission. |
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06.05.2008 17:55:55 |
Constructed by Ertaş Ulusoy İnşaat, a partnership of Ertaş İnşaat and Ulusoy İnşaat, in Gebze's Çayırova district, the Akse Yaşam Houses project offers apartments priced between YTL 92,000 ($73,000) and YTL 385,000 ($305,000) excluding VAT. The apartments, which can be purchased over a 14-month installments period upon the condition of paying at least 20 percent in cash, are to be delivered in May 2010. Located on an area of 15,500 square meters, Akse Yaşam Houses includes a total of 400 apartments in seven blocks. The project offers both standard and duplex apartments varying in size from 59 to 246 square meters. The number of rooms differs from 1+1 to 4+1 apartments. Standing out due to its social facilities, Akse Yaşam Houses offers an open swimming pool, recreational and sunbathing terraces, children's playgrounds, walking and running paths, a multi-purpose sports ground, a sauna, a Turkish bath and a fitness center. The project also includes a covered parking lot and a mini grocery shop. Akse Yaşam Houses, built in Gebze's Çayırova Güzeltepe district, is located 5 kilometers from the city center, 10 kilometers from Istanbul Park, 15 kilometers from Sabiha Gökçen Airport, 10 kilometers from the Darıca Eskihisar Ferry Wharf and 5 kilometers from the Gebze Industrial Zone. |
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03.05.2008 09:17:24 |
Property prices, which as a result of the global crisis have not risen for some time, mark a good opportunity for those who want to buy a home. Prices have come to a standstill despite the rising costs as companies have experienced difficulties in selling their projects for some time. Construction companies, which cannot see their future clearly, constantly launch new campaigns to overcome the sales problems. The companies offer many opportunities to their customers, such as low deposits and interest rates, installment deferrals and rebates in cash purchases, besides the low house prices. However, the question remains, how long will the construction companies hold out? The top managers of construction companies expect prices to rise from June onwards parallel to the rising costs, and to peak in September. Many other companies, meanwhile, warn customers to make a thorough assessment of the recent campaigns. Many companies have begun deceiving customers by first increasing prices and then offering rebates on the already increased prices, according to the companies. Some other companies make up for the rebates offered in interest rates in the overall price of the property, or they apply high installment rates to the lowered prices. “The construction sector has entered a revival period since 2003, which is a good opportunity for the companies that produce construction materials. They attempted to increase prices by two or even three times the inflation rate. Material prices increased by 50 to 60 percent while inflation was 9 to 20 percent. Low and middle-income groups had difficulties in buying homes, while the high-income groups preferred to wait. Moreover, the housing loan interest rates, which had dropped to 0.95 percent, have now increased to 1.5 percent again,” said Erdoğan Bayraktar, chairman of the Mass Housing Administration(TOKİ), who also noted that there was an excess of housing as a result of the fact that those who had no experience in the construction sector entered this business, giving rise to a period of stagnation. “We all expect that there will be an increase in house prices as a result of the rising costs. Now is a good time to buy a house. However, people should be selective in their purchases instead of making quick decisions. The mortgage crisis originating in the United States has also affected Turkey to some extent. However, there is still a rising supply and demand for houses in Turkey. People are waiting for prices to go down. This, however, does not seem to be possible while the demand is this high,” said Feyzullah Yetgin, CEO of the Real Estate Investment Partnership (GYO). |
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29.04.2008 13:48:42 |
Constructing the “Bizim Evler” project, which includes 724 apartments in 17 blocks in coordination with the Mass Housing Administration (TOKİ) in Istanbul's Bahçeşehir district, İhlas Holding has started delivering the title deeds to customers who have completed their payments. “The Bizim Evler project is a part of an extensive group of projects such as Ispartakule, which will include 18,000 apartments on seven million square meters of land. This will be an exceptional district of Istanbul by merging with the nearby districts,” said Erdoğan Bayraktar, chairman of TOKİ, adding that Istanbul will become more and more beautiful with these kinds of visionary projects. “Bizim Evler” project is a candidate to become the most classy residential area in Istanbul with both its access to easy means of transportation and the decent environment,” said Yavuz Özgün, vice chairman of the board of directors of İhlas Holding, who further added that İhlas Holding has added one more link to the chain with this project. About 90 percent of the project has been allocated to green spaces. Set to be delivered in 2009, the project offers many priorities such as special relations among neighbors, said Özgün. Bizim Evler project includes a covered swimming pool, fitness center, cafes, restaurant, tennis court, basketball and volleyball courts, walking paths and round the clock security. |
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28.04.2008 11:03:51 |
An affiliate of the Greater Istanbul Municipality, KİPTAŞ company will put 2,020 flats up for sale in Istanbul's Silivri district. The second stage of Silivri Houses will be completed and up for sale from April 25 to May 16. The flats are reasonably priced and can be bought with monthly installments starting at YTL 337 ($262). Thr projects targets families. The 75 square meter flats have two bedrooms plus one lounge. Constructed within the public housing project, the flats offer monthly installment periods of up to 120 months. Buyers have the option of not making any payment for the first 18 months, which grants housing credit with the interest rates of 0.95 percent. The first stage of the Silivri Houses with 1,230 flats attracted much attention and it is expected that the second stage, which includes 2,020 flats of 75 square meters each, will also be sold out soon. Having green areas, a primary school and children's playgrounds Silivri Houses will also include PVC windows with insulating glass, laminated parquet, TV satellite system, exterior covering with heat insulation and French balcony. |
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25.04.2008 16:51:00 |
With a panoramic view of Bodrum, Ottoman Life Konak Residences have been put up for sale at prices starting from $105,000. Constructed by Ottoman Life, an affiliate of Pet Holding, in Muğla's Bodrum Turgutreis on the Turkish Riviera, Ottoman Life Konak Residences await their owners. Designed by modernizing the Ottoman architectural style, the residences address both the domestic and international investors. The residences are comprised of three-storey blocks, with one apartment on each floor. Including a total of 57 apartments, the project was completed in the summer of 2007. In the project whose 70 percent have already been sold out, the prices start from $105,000. The flats offer white goods, air conditioner, water heater, television and many other “life-easing” facilities as standard. The terraces and gardens of the apartments are suitable for barbecue parties. Konak Residences also grant professional support for the interior decoration of the apartments upon request. The project stands out with its sports ground, sauna, deep and shallow swimming pools, cafes, restaurants and the “summer houses plus hotel” concept.
http://www.turkishdailynews.com.tr/article.php?enewsid=102657 |
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21.04.2008 13:09:32 |
The Bank of England will unveil today a plan to swap government bonds for commercial banks' mortgage debt in an effort to unblock the home loan market and ease the effects of the credit crunch on consumers. "The Bank will be making money available to the British banking system ... the idea behind it is it will open up the market and it will begin the process of opening up the mortgage market, " Finance Minister Alistair Darling said yesterday. Pressure has been growing on the British government and the Bank of England to do more to resolve a mortgage debt crisis threatening to slam the brakes on the economy and which is contributing to a slump in support for Prime Minister Gordon Brown. Darling told the BBC that he would make an announcement to the British parliament on Monday afternoon.The BBC reported on Friday that the package involved swapping 50 billion pounds ($99.80 billion) of government bonds for mortgage-backed securities. |
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18.04.2008 11:05:26 |
Property sales in Turkey increased at a mere rate of 0.46 percent last year when compared to 2006, according to data from the Turkish Land Registry Directorate.
The increase in the financial value of total sales, on the other hand, was 23.4 percent. Last year, a total of 1,383,847 homes were sold with prices amounting to more than YTL 46 billion ($35 billion). Sales increased by 10.16 percent in 2003; 19.5 percent in 2004; 12 percent in 2005; and 1.05 percent in 2006.
42.3 percent increase in monetary terms in Istanbul
The data from the Turkish Land Registry Directorate showed that Istanbul was the city, which hosted properties highest in value. The mega city witnessed the sales of 202,027 homes in 2007, which cost YTL 17.6 billion ($13 billion). Accordingly, sales increased by 7.13 percent and the total sales costs by 42.3 percent when compared to the previous year.
Ankara experienced a different situation; sales in the city decreased by 0.13 percent with 134,562 homes sold. However, the total sales cost increased by 19.48 percent amounting to YTL 4.76 billion ($3.6 billion). İzmir, in western Turkey, also witnessed a decrease in property sales to 72,929 in 2007 while the number was 78,028 the previous year. Both the number of properties sold and the total sales cost in Antalya, a hot spot for international as well as domestic tourists in the south, on the other hand, increased to 52,325 in 2007 while the number was 50,707 in 2006. The total sales cost also increased from YTL 1.72 billion ($1.3 billion) to YTL 2.02 billion (1.5 billion).
Hakkari, the least popular place to buy property
Hakkari, in eastern Turkey, witnessed the least property sales again. Both the number of properties sold and the total cost of sales dropped from 549 to 431, and from YTL 10.39 million ($8 million) to YTL 4.85 million ($3.7 million) respectively. Moreover, cities like Denizli, Eskisehir, Kayseri, Konya, Balikesir, Erzurum, Diyarbakır, Malatya, Muğla, Sinop, Rize, Giresun, Tekirdağ, Yozgat and Karaman also experienced a decrease in the rate of property sales.
2003-2007 Property Sales Rates
Year Number of sales Increase in percentage
2003 1,017,805 10.15
2004 1,216,492 19.52
2005 1,362,672 12.01
2006 1,377,007 1.05
2007 1,383,847 0.46
(ISK-MTN)
http://www.turkishdailynews.com.tr/article.php?enewsid=101971 |
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17.04.2008 10:37:43 |
The "Investate '08 – Turkey Coasts Real Estate Investment" conference will be held this year on May 24-25 at the popular resort town of Bodrum on the Turkish Riviera. Home sales to foreign nationals in Turkey are not declining; they have been brought to a halt, Ali Güreli, Ikon Events chairman, told a press conference. The conference will be organized by Ikon Events and Akin Nalça Modular Spaces Noting that Ikon Events is trying to complete construction projects targeting Turks and foreigners alike, Gürel said, “With this conference we aim both to evaluate these difficulties and their possible solutions, and to introduce our projects on the coastlines to sector professionals and consumers. We expect a total of 2,500-3,000 people to attend the conference on the first day, when topics such as the environment, nature and historic values will be discussed while the second day we will talk about the problems on the agenda by the investors, architects and mayors." With regard to questions about any decrease in the foreign interest to homes in Turkey, Güreli said “There was an excess of construction projects targeted to the foreign people initially; however their architectural plans were not well-planned. Many foreign people bought houses from these projects in the first stage, and then they told the people around what kind of problems they faced. The people began to talk about these problems in these countries. The second stage saw the formation of more selective customers.” The core of the problem is that it is necessary to leave restrictions behind once the permission for a given project is given. The rules in Turkey begin to change when the construction firms are in the middle of a project. You start a project thinking that you have the permit, however, this permit can suddenly be annulled while you are going on with it. This ambiguity deters both the investors and the customers, said Güreli, regarding the regulations that restrict the ownership of houses by foreigners in Turkey. Güreli also said “it can take years to take a permit for an investment in Turkey. For instance, there is an investment worth $2 billion by the Kazakhstan and Russian investors in the Güllük Gulf on a land of 5 million square meters; however it cannot progress since there are fish farms on the 6 bays in the land, which has seven bays in total. It is compulsory to show that Turkey is a reliable and established country, and offers good opportunities for the foreign investors, to gain those investments back.” |
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12.04.2008 15:41:41 |
HSBC, Europe's biggest bank, unveiled a bold plan to grab a bigger slice of the UK's mortgage market on Wednesday, exploiting rivals' weakness in the global credit squeeze and offering some respite to homeowners. HSBC has an underweight position in UK mortgages, with just 3.6 percent of the market, and is targeting some of the 1.4 million customers who come off cheap fixed-rate deals this year and face sharp rises in mortgage repayments. "For the size and stature of HSBC, it's absolutely punching below its weight," said Louise Cuming, head of mortgages at price comparison site, www.moneysupermarket.com. "This will buy them market share very quickly ... It's a bit of news that I don't think any other lender can afford to follow." Borrowers will need a deposit of at least 20 percent of the value of the property, however, so many higher-risk customers will not be able to take advantage of HSBC's offer when their current fixed-rate deals expire. Lenders have withdrawn thousands of products and raised rates as their funding costs have jumped and as the housing market and economy have slowed. A survey by number one lender HBOS on Tuesday said house prices fell last month at their sharpest rate since the recession of the early 1990s. |
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11.04.2008 14:07:55 |
Spanish building firm Sacyr Vallehermoso said it would sell its 33.3 percent stake in France's Eiffage but will first have to tie up any legal problems remaining from a long and bitter dispute. Sacyr said it agreed with Eiffage to sell the shares to French institutional investors at 63 euros per share, a deal, which will give it a capital gain of around 30 million euros but, more importantly, give it some relief from its huge debt. Sacyr's shares rose 4 percent in early trade in reaction to the deal but later settled back to stand a net 2.4 percent higher at 23.13 euros by 0825 GMT. Eiffage was 1 percent higher at 60.43 euros. "The market isn't looking at the capital gains for Sacyr at all but is valuing the fact that it has finally managed to extract itself from the French company after its investment got involved in legal complications," one trader said. The sale ends a long and often bitter saga, which culminated last week with a French court ruling that Sacyr did not have to make a full bid for the French public works company. Sacyr first announced a 5 percent stake in Eiffage in February 2006 but Eiffage chairman Jean-Francois Roverato rejected any merger with Sacyr in colourful style "Cooperation yes, copulation no," he said. |
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10.04.2008 09:14:31 |
The 242 flats of White Side Apartments are for sale at prices ranging from $150,000 to $600,000. The White Side Apartments were constructed on a 13,000 square meter site in Istanbul's Çekmeköy district. The project, light and functionally designed, includes flats with floor plans from 1 +1 to 3 +1 as well as 70 to 136 square meter lofts. The construction of the project, with partners being TAGO Real Estate Office, ABINVEST, LAREF and the Northern European Real Estate Fund, was undertaken by Hazinedaroğlu-Özkan İnşaat. The White Side Apartments include social and recreational facilities, such as the W Lounge, Fit Club, open-air activities areas, a café, a billiard room, a multimedia room, table tennis facilities, a swimming pool, sauna and massage rooms. Located near the Dudulu- Bostancı and Çekmeköy-Üsküdar metro stations, which will open in 2011, the project also stands out with its proximity to the bridges, easy means of transportation and central location. The owners are protected against fire, gas leaks, floods and theft via “smart home security sensors.” Heating controls in the flats can be managed by remote control. Also, customers have the opportunity to inspect the house with the technical team, which also offers service for six months after a home is sold, to determine what remains to be completed. This program aims to deliver the apartments fully completed. |
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10.04.2008 09:13:20 |
Turkey is expected to face a substantial housing deficit in coming years as a result of several factors, including a population increase, migration, the need for renovations and urban transformation projects. Turkey needs an average housing supply of 300,000 to 350,000 houses annually, although the rate of home ownership is 65 percent, according to data obtained from the Istanbul Trade Chamber. Fifty-five percent of the total housing supply in Turkey consists of houses without housing permits or certificates, while 60 percent are houses over 20 years old, and 40 percent require some kind of maintenance work. The renovation of houses, together with the exchange of current homes for higher-quality homes, are also contributing to the country's potential housing deficit. The data reveals that Turkey will face a housing deficit of up to 5,542,000 houses in the coming eight-year period through 2015. The population increase is considered to be the factor leading to a deficit of 2,880,000 houses. Migration will create a deficit of 760,000 houses and the remaining deficit of 652,000 houses will come from the need for renovations. It is also predicted that 1,250,000 more houses will be needed as a result of urban transformation projects. |
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07.04.2008 13:54:02 |
Constructed in İzmit's Sapanca district in northwestern Turkey, Sapanca Country offers skiing and trekking opportunities in the Kartepe district and water-skiing in Lake Sapanca. Sapanca Country, which Lineer İnşaat has constructed on an 11,000-square-meter area, comprises a total of 15 villas, each measuring 185 square meters and containing four bedrooms and a lounge on one or two floors. Located in the outskirts of Kartepe, an increasingly popular ski resort, the villas start at YTL 270,000 ($209,000). Each residence has a 22-square-meter terrace, as well as a winter garden, a cellar, a storage room and a balcony. Sapanca Country, whose construction is still underway, is set to be delivered late this year. The project, which offers the beauty of four seasons far from noise and congestion, amid nature, fresh air and an assortment of activities of Sapanca, is being constructed in accordance with the latest earthquake regulations. Facilities include a swimming pool, a Jacuzzi, a garden and recreational and sunbathing facilities, as well as parking space for two vehicles. The project, 100 kilometers from Istanbul, and 15 kilometers from İzmit, also offers convenient transportation to big shopping centers nearby. |
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07.04.2008 13:52:32 |
A board member of the Real Estate Consultants' Federation voiced the opinion that the relationship between sellers and customers gained a new dimension with e-trade applications, as a result of the developments in information technology related to the spread of the Internet, while also noting that this resulted in increased growth in some sectors while seriously damaging real estate agencies' business. “Both the different marketing opportunities that the technology offers, and the contracting business by the state cause real estate dealing to lose its popularity as a professional occupation,” said Burhan Coşkun, board member of the Real Estate Consultants' Federation and chairman of the Adana Real Estate Agencies' Occupational Chamber. Adding that real estate agencies, which act as an intermediary between the seller and the buyer in return for a commission, were going through the hardest period in their history, Coşkun also said, “the primary reason for this is that e-real estate agencies offer service 24 hours, seven days a week. Many Web sites also bring potential buyers and sellers together without any need for professional service by a real estate agency via their free advertisement services. As a result, real estate agencies are having financial difficulties although they agree to minimum charges to sustain themselves.” “Real estate agencies lose customers with each project conducted by the Mass Housing Administration of Turkey (TOKİ), which constructs thousands of building projects and offers these houses to customers via direct sales. Customers tend to buy houses from TOKİ without asking a real estate agency for professional service,” Coşkun also said. |
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05.04.2008 09:48:40 |
It is expected that the paint sector of $1.2 billion, which is dominated by water-based paints and light colors, will expand by 10 percent this year, compensating last year's growth rate of 8 percent. The sector income derives by 80 percent from renovation and by 20 percent from usage in new houses. The paint sector, which experiences different rates of demand and transactions depending on the season, starts its new season in April or May. There are 20 big companies operating in the sector in Turkey, and the total number including smaller companies amounts to approximately 1,000. As a result of the hegemony of bright colors in furniture, curtains and accessories, the preference in wall paints is also shifting toward light colors, white and its different tones. It is expected that the lightest colors, perceived as tranquil, elegant and peaceful, will make their marks on this year's trend. Noting that the annual consumption rate in Turkey's decorative paint segment was 300,000 tons, with a growth rate of 10 percent every year, Erol Mizrahi, CEO of Polisan, also added, “there has been an increase in the consumption of water-based paints as a result of the change in consumer preferences. Given the period of accordance with the EU, water-based paints are expected to rise further in consumer preference as a result of the limitations on the production of solvent paints from 2010 onward. The vitality of the construction sector together with the rising demand also leads to an expansion in the paint sector, increasing the number of paint companies.” |
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05.04.2008 09:46:10 |
The Levent Auto Industrial Estate and the Atatürk Industrial Estate in Istanbul's Maslak neighborhood have become the most valuable lands in Istanbul after the sale of 96,505 square meters of land owned by the Highways Administration in Zincirlikuyu to the Zorlu Group for YTL $800 million. The repair yards located in these two industrial estates have also gained in value with a price of $10,000 per square meter. The price of these repair yards, which were unknown 10 years ago, now starts from $1 million. Saying that they received offers from six real estate agencies for the land, Mustafa Keskin, chairman of the Maslak Atatürk Auto Industrial Estate Trade Corporation Chamber, added, “the international firms which are interested in our land enter their proposals via various real estate consultancy companies, while the Turkish firms come to the meetings via their own land associations. One of these firms is Taşyapı, which carried out the Mashattan project.” Pointing out that Nurol and a Canadian firm also entered proposals for the land of the auto industrial estate, Keskin also added, “after the sales of the land owned by the Highways Administration in Zincirlikuyu, the industrial estates entered the list of the most expensive lands, leading to a substantial increase in prices. The repair yards, which were formerly sold for YTL 250,000 ($195,000), now cost $1 million. Everybody is of the opinion that the district needs a change of mission. There are thousands of sharers of this land, who have their deeds. They have to be informed about the sales first, we do not have the right to speak for them.” |
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04.04.2008 11:11:00 |
Life insurance is important while deciding to but a house, according to the Insurance and Reassurance Companies Union (TSRŞB). “This ensures the continuity of the system. In the event of the death of the loan holder, the debt is compensated by the insurance company, and the heirs can own the property without any difficulty,” the union said. TSRŞB said life insurances covering the risk of death and made at the time of the housing loan prevent the grievance and protect the loan holder. In the event of no life insurance, the heirs confront a substantial amount of loan debt, and if they cannot pay this debt, they are dispossessed. There are also insurances that cover the overall payment of the loan by the insurance company if the debtor falls out of work, or quits work temporarily as a result of an emergency. Reminding that the insurance system is common in the countries where the housing finance has been used for years, TSRŞB said “the system aims to prevent the injury of the general structure of the system, of the secondary-market investors, of credit institutions and consumers in the event of any risk. The public institutions, sector organizations and the media corporations have important tasks to ensure the reinforcement of the system. " |
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04.04.2008 11:09:39 |
The 'RealEstate Eurasia' Fair, which is the only real estate and investment fair supported by the Istanbul Real Estate Commissioners Trade Corporation, International Real Estate Committee (FIABCI) and the Central Europe Real Estate Unions Network (CEREAN) will take place at the TÜYAP Fair Center from June 12-15. Held by İpekyolu Fuarcılık to enable the creation of a coordination point for firms operating in the real estate and investment sector across the world, RealEstate Eurasia will host around 250 projects and products from countries like Turkey, United Arab Emirates, Kuwait, Qatar, Bahrain, Kazakhstan, Ukraine, Spain and Italy. It is expected that 15,000 professional visitors from more than 60 countries will meet the participant firms. Moreover, thousands of international investors, project owners, engineers, architects and elite real estate agencies will make use of the new investment opportunities during these four days. Being a candidate to become the biggest fair of Europe and Asia, and one of the few important fairs in the world, RealEstate Eurasia includes international property investors, A and B class housing projects, smart houses, villa and luxury construction projects, shopping centers, plazas, business centers, residences, mass housing, land offices, landscape firms, recreational and social facilities builders, management and consultancy firms, banks, finance and insurance associations, property construction and sales companies and domestic and international real estate associations. |
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HSBC unit halts home lending First Direct, the online and telephone banking unit of HSBC Holdings Plc, has suspended mortgage lending to new customers after receiving five times the normal volume of applications. The unit of Europe's biggest bank by market value received more applications after other lenders increased the cost of loans, said First Direct spokesman Rob Skinner yesterday. LONDON – Bloomberg Spain suspends Colonial property stock The Spanish markets authority suspended trading yesterday in shares in property group Colonial, which faces financial difficulties. Colonial is struggling under a pile of debt, which totaled 8.9 billion euros at the end of 2007, and is in the process of selling assets in an attempt to raise funds. The company said late Monday that it was prepared to sell its interest of 84 percent in its French subsidiary SFL. MADRID- Agence France - Presse Toyota, Honda post declines Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., Asia's three largest automakers, posted U.S. sales declines in March as tightening credit and record gasoline prices damped demand. Toyota tumbled 10.3 percent, the fourth monthly drop in a row, while Honda slipped 3.2 percent and Nissan fell 3.8 percent, the companies said in separate statements TuesdayNEW YORK – Bloomberg Chinas Shougang drops Mount Gibson bid Chinese steel maker Shougang said yesterday it has given up its bid for a stake in iron ore developer Mount Gibson after the Australian government ruled against the takeover. Shougang is one of many Chinese companies attempting to secure resources overseas and the decision Monday by Australia's Takeovers Panel was a blow to that effort.SHANGHAI – The Associated Press Petroplus to shut Coryton unit Petroplus Holdings, Europe's biggest independent refiner by capacity, is planning to carry out work this month on a unit that produces diesel, jet fuel and gasoline at its plant in Coryton, southeast England, two people with knowledge of the plans said. Heather Zorge, spokeswoman for Zug, Switzerland-based Petroplus, declined to comment on the shutdown. LONDON - Bloomberg Oando revises plan to pay Shell Oando Plc, Nigeria's biggest retailer of petroleum products, will revise its offer to pay about $626 million to Royal Dutch Shell Plc for stakes in two Nigeria fields. Oando agreed on Feb. 25 to buy Shell Nigeria Exploration & Production's 49.8 percent stake in offshore licenses 125 and 134. Some “principal” conditions of the deal “will not be satisfied,” the Nigerian company said yesterday. LONDON - Bloomberg |
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03.04.2008 14:23:07 |
Erdal Eren, chairman of the Turkish Contractors Association (TMB), said in a statement that the global crisis in the real estate sector recently started affecting the economy. He added that contractors had an excess of houses on hand and this oversupply would greatly damage the real estate sector. He reminded that contractors offered housing loans at rates not even provided by the banks in their advertisements. Eren said: “These contractors are trying to resist, however, some of them will encounter financial difficulties soon. This will lead them to sell the properties on hand either for prices lower than their real market value or by losing money, thus scaling down their profit margins. Some others will go bankrupt as a result of the negative affect on the cash flow.” Noting that the association did not expect last year's growth in the construction sector to carry on to this year, Eren said that there was not any increase in the allowance in the public sector when compared to last year. According to Eren, the real estate sector will experience vitality if the Ministry of Communication implements the “build-operate-transfer” model this year. |
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01.04.2008 09:59:39 |
The recent movement in the global markets and the increase in housing loan interests have led the real estate sector to experience a period of constriction, causing a decrease in prices. Sabri Ateş, chairman of the Istanbul Real Estate Commission Agents Chamber, said the crisis of mortgage loans, which began in America as a result of the delay in back payments, and spread to European countries, has also spread to Turkey. Noting that the talks on the close of a political party in addition to this crisis have led to congestion in the sector, Ateş added that the sector had constricted by 50 percent since there have been almost no transactions for a long time. Noting that construction firms were undertaking many projects, however could not sell them, and many firms apart from the big institutionalized ones had even gone into bankruptcy, Ateş said: “The construction firms cannot start their projects because of financial difficulties. Despite saying that the construction projects would be concluded in two years, now they try to lengthen this period to six to seven years when talking to their customers. Moreover, the interest rates are quite high, and we think they will keep rising in 2009, aggravating the current crisis in the real estate sector”. |
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31.03.2008 11:06:05 |
British house prices fell for the fifth consecutive month in March, bringing the annual rate of increase to its lowest in 12 years, a key survey showed on Friday. The Nationwide Building Society said house prices fell 0.6 percent this month after a 0.5 percent drop in February - a clear sign the property market is weakening fast. Average house prices rose 1.1 percent from a year earlier, the weakest annual increase since March 1996. The pound fell to an all-time low versus the euro on the back of the weak housing data and a survey that showed British consumer morale fell to its lowest level in more than 15 years. The euro rose as high as 79.14 pence while short sterling interest rate futures rose. "The Nationwide data indicate that house prices are continuing to buckle under the substantial pressure emanating from increased affordability constraints and markedly tighter lending conditions," said Howard Archer, economist at Global Insight. "The current escalation of the credit crunch means that there is an increased risk that a significantly sharper housing market correction could occur," he said. Separately, a Friday survey showed British consumer morale fell to its lowest level in more than 15 years in March as households grew more gloomy about the economic outlook than at any time since the downturn of the early 1990s. Research firm GfK NOP's consumer confidence barometer slid to -19 in March, the lowest reading since February 1993, from -17 in February. |
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29.03.2008 09:39:22 |
The real estate sector is considered a big opportunity like every other developing sector in Turkey. Although the sector has gone through a stagnation period, the need for housing keeps rising. Being the two most important actors of the sector, besides potential buyers, construction firms and banks also say housing is of great importance to the economy, and will be so in the future, listing such reasons as the deficiency of high quality houses, risk of earthquakes, annual need for thousands of homes, deferred demand and so on. However, it is forgotten or overlooked that the determining factor in housing is income level. Firms engage in many projects, and prepare for thousands of new ones. Banks, on the one hand, try to maintain demand with new packages of housing loans, and on the other hand, keep increasing interest on loans. The best alternative for consumers however, comes from organizations such as TOKİ, KİPTAŞ and Kent Konut, which not only sell the houses they construct at reasonable prices, taking advantage of their position, but also grant housing credits at much lower interest rates than banks do. These firms generally construct houses in the suburbs, but at least sell at cheaper prices. Construction firms, on the other hand try to sell houses, which will be delivered in two years, at incredibly high prices. This actually decreases the investment value of the houses because the firms take all the profit for themselves, leaving nothing to the customers but just the right to dwell in them. This situation also drives investors, the invisible elements of the sector, away from the sector. |
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29.03.2008 09:38:24 |
As the U.S. economy enters recession, social tensions due to financial distress are on the rise. Protesters opposed to the U.S. Federal Reserve's help in the buyout of Bear Stearns Cos. by JPMorgan Chase entered the lobby of the investment bank's Manhattan headquarters Wednesday, demanding assistance for struggling homeowners. Two weeks ago, the Fed created a new program to give emergency loans directly to the 20 largest so-called "primary dealers." These are investment banks that do business directly with the Fed and which purchase the majority of Treasury securities. Furthermore, the Fed extended a $30 billion credit line to JPMorgan Chase to help it buy Bear Stearns. The Fed's decision is regarded as an unprecedented move. Main Street vs. Wall Street: Carrying “Help Main Street, not Wall Street” banners, protesters complained about the federal government leaving homeowners alone. Activists blamed investment banks for the ongoing mortgage crisis. Demand for mortgage debt from investment banks including Bear Stearns encouraged lenders to drop standards to create new loans, said the protesters. After leaving Bear Stearns, the crowd moved to JPMorgan. While the group was protesting, cameras also caught worried looks in the eyes of many Bear Stearns employees. Analysts say that a great many of the 14,000 employees of Bear Stearns are expected to lose their jobs. Citigroup is also in the process of cutting 10 percent of the workforce in its investment bank, or 6,000 people. Goldman Sachs said in January that it would reduce its global workforce by 5 percent. Lehman Brothers announced 1,400 layoffs two weeks ago. Specter of joblessness: The last time Wall Street had a similar contraction, after the technology bubble burst seven years ago, financial firms cut 60,000 jobs on Wall Street. One in every 10 finance positions was cut off. Analysts are predicting that so far about 25,000 job losses have occurred just in the New York area. “Last week, after the Bear Stearns announcement, business school and college students called their institutions from spring break to ask if their finance jobs would be canceled. It remains unclear what will happen with many internships and job offers,” reported the New York Times. Analysts also warn new graduates about their prospects at the academy as well as on Wall Street. During the dot-com bubble burst, some Wall Street analysts who lost their jobs waited for the economy to pick up while attending master or PhD programs. It might be very challenging to compete with those cut off Wall Street guys, analysts said. |
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28.03.2008 09:25:10 |
Turkey's first luxury Real Estate and Financial Services Fair being held by JNR Fair Services will bring together 50 real estate firms, banks and financial companies with 140 projects on May 3-4 at the Hilton Convention Center. Saadet Ada, the coordinator of JNR Fair Services, said that a high increase in the number of investors coming from the United States, Holland, Germany, Dubai and the Gulf countries was expected this year, and added, “Istanbul ranks 27th on the list of the most expensive cities in the world prepared by the Swiss UBS Bank. It is possible to buy houses for $60,000 to $70,000 in Florida. Whereas, prices of houses in Istanbul's Beylikdüzü or Halkalı neighborhoods start from YTL 70,000 ($56,000). This clearly indicates that the real estate sector has not been affected by the crisis in the U.S.” Yaşar Aşçıoğlu, chairman of Aşçıoğlu İnşaat and Istanbul İnşaatçılar Chamber, said, “some people are trying to create a depression period, saying there is an excess of luxury houses, to choke Turkey's future and to slow the sector's development. I have gone through many crises. However, there is no crisis in the construction sector today. The sector is full of firms, which are looking for new projects and have billions of dollars. If there was a crisis in Turkey, what would the coward foreign money be doing in Turkey?” |
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27.03.2008 17:14:08 |
Emre Çamlıbel, chief executive officer of Soyak, speaking on the conference held by the Turkish-American Business Council within Foreign Economic Affairs Association (DEİK) in New York, said, “housing needs arise as a result of the increase in the population, migration from rural areas, desire to renew homes every year. However, only 20 percent of the people who feel this need have the financial resources to buy a new house.” Çamlıbel said the law on mortgages may have an effect on the sector and consumers with the new regulations supporting the law, the decrease in interest rates and the entry of secondary sectors in the market, and added, “the interest rates of housing credits are around 17 percent in Turkey where the inflation rate is around 8 percent. There will be an increasing demand for housing loans when this rate retreats to 12 percent and installment periods are extended. However, we think that this rate will be reached in 2009 at the earliest given the current economic and political situation of Turkey.” High potential in shopping centers Çamlıbel said Turkey has a dynamic population, and the population with a rising income level creates big potential for the shopping center sector. He further added that Turkey ranked second on the list of popular locations to construct shopping centers, according to a report by ULI – PWC. The shopping center area per 1,000 people in Turkey increased from 10 to 70 square meters from 2004-2007. The international funds investing in Turkey are an indicator of this high interest. |
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27.03.2008 17:09:40 |
Glitnir, a Nordic-based bank, expects notably good buying opportunities in emerging markets later in the spring. "We are currently in an adjustment phase where the rest of the world tries toassess the spill-over effects of the U.S. recession, which is now a fact. The emerging world will remain relatively unscathed by the American flu, but obviously problems in the U.S. will have some impact on it," Raoul Konnos, director of emerging markets at Glitnir'sHelsinki office, told the Turkish Daily News yesterday. "There will be extremely good buying opportunities in the emerging markets including Turkey later in the spring. But first the markets must stabilize and find solid ground," he added. Cooling global economy Although valuations in most markets at present are more favorable than they have been for three years, they are not enough to turn markets up, Konnos said. "We expect analysts to downgrade their estimates for 2008 and 2009. Once they start to do that, it is time to buy thestocks," said Konnos. Many country indexes and single stocks have already lost half or more of their value, he added. "This is a clear indication that the global economy is indeed cooling." Sound February performance FIM Emerging Europe, one of the funds Glitnir manages in Helsinki, gained 5.9 percent, while its benchmark index fell by 0.3 percent in February. The 68.7 million euros fund is long-only mutual equity fund, which is invested in a large geographical area from the Baltic States to Turkey. Although at present less than 10 percent of the fund is invested in the Istanbul Stock Exchange (IMKB) the fund's exposure to Turkey is likely to increase later this year."The healthy returns of February were mainly attributable to successful stock picks," said Konnos. "In Turkey, there has been heated speculation surrounding the insurance sector, and in February, rumors regarding the possible acquisition of Yapı Kredi Sigorta intensified. Although no actual bid has been announced, the owners of the company did state they had hired two investment banks to find a buyer or a partner," said Konnos. Retail chain Eurocash, copper company KGHM, food and bio-diesel producer Elstar Oils and agricultural company Trigon Agri also contributed positively to the fund's healthy February performance. "Another notable feature on the macro front were the changes in interest rates that were implemented,in Romania to 9 percent, Poland to 5.5 percent and Turkey to 15.25 percent," Konnos added. Telecoms, consumer sectors as priority picks Glitnir currently favors telecom and consumer sectors in emerging Europe. "Telecoms is a typical safe haven during difficult times. But we still believe in the consumer stocks as well." In the near future the fund will also cautiously start to consider taking exposure in real estate and construction sectors. "Banks, on the other hand, are a difficult call - the next six months are likely to continue to be difficult for the whole banking sector," Konnos said.In Turkey Glitnir follows a pure stock picking strategy. "We have been happy holders of Yapı Kredi Sigorta and Enka Inşaat for a long time and expect to maintain this exposure," said Konnos. Glitnir's total assets stood at 24.24 billion euros in the end of 2007. |
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26.03.2008 11:43:54 |
The Mass Housing Administration (TOKİ), which slowed down its construction projects during the winter, is now ready to implement more than 100 bids for 22,000 houses in four months. The new projects are expected to vitalize the real estate sector as well as the construction sector. TOKİ, which is currently evaluating proposals for new projects involving more than 1,400 houses in seven cities, will sign a contract for bids for 1,300 houses. Thus, TOKİ will have concluded the projects for the construction of 25,000 houses in the first half of the year. The bids, which amount to billions of Turkish liras, will both positively affect the construction sector and contribute to the growth of the Turkish economy. Another important point is that a substantial amount of houses to be constructed will be in the form of public housing. The cities where TOKİ plans to undertake new construction projects include Istanbul, Ankara, Sivas, Çankırı, Konya in central Anatolia, Isparta in the southwest, Sakarya, Bursa in the northwest, Eskişehir, Kütahya in the Aegean region, and Erzurum in the east. The Real Estate Investment Partnership will also participate in the bids for the project involving 500 houses in Istanbul's Ataşehir. |
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25.03.2008 15:10:24 |
Those who want to maintain their status in this competitive advertisement sector should secure their permanency and stability by never interrupting their investments, according to the Turkish Association Of Advertising Agencies (RD). “The Turkish advertising sector grew by 20 percent last year. This year, we are expecting a growth range between 15 and 18 percent, unless there is a political crisis or major financial fluctuation,” said RD Chairman Cem Topçuoğlu during a press meeting the agency held in Istanbul. “Total investment in the media sector added up to YTL 3.3 billion in 2007. Meanwhile, total investment in advertising was worth YTL 4.1 billion during the same period,” Topçuoğlu said. “The sector grew by 20 percent last year compared to the previous year.” Per capita advertising investments and the share of advertising in the Gross National Product (GNP), which is 0.46 percent, should be increased by generating new brands, Topçuoğlu said. “Television advertising, with a 53 percent share, constitutes the largest portion of the sector's market. TV advertisement's share in the sector increased by 22 percent last year compared to the previous year,” Topçuoğlu said, and added, “newspaper advertising follows with a 30 percent growth rate. Internet advertising holds 1.5 percent of market share with a potential of YTL 53 million. The aggregate income of advertising agencies was YTL 700 million last year.” The sectors of finance, communication, retail, drinks and house cleaning products have increased their investments during the past year, while some others such as the automotive and textile sectors lowered their investments. RD comprises 94 agencies constituting 85 percent of the sector. |
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25.03.2008 15:06:57 |
Foreigners who wanted to settle in Turkey by buying a house on its Aegean coast have now started selling their property. Kenan Akkuş, chairman of Marmaris Real Estate Consultants Chamber, said 800 immovable properties were sold out to foreign nationals in 2006; this number was 350 last year, and more and more foreigners want to sell their houses today. Akkuş said the stagnation in the real estate sector that affects disricts on the Turkish Riviera such as Antalya, Bodrum and Fethiye stems from the changing behaviors of foreigners as an increasing number want to sell their houses rather than buy a new one. Akkuş, also the manager of Ak Emlak, said around 3,500 foreigners, mostly British, owned a house in Marmaris. “The stagnation in the real estate sector may even deteriorate more, decreasing the number of properties sold to the foreigners below 200 this year. This has also been reflected in the prices, which dropped up to 40 percent, even more than that in some districts. A house which cost YTL 150,000 ($120,000) last year, is on sale for YTL 100,000 ($80,000) to YTL 110,000 ($88,000) this year. Other holiday resorts such as Antalya, Bodrum, Fethiye also experience the same situation.” Felit Akman, chairman of Marmaris Real Estate Agents Chamber said that more than 700 foreigners were waiting to sell their houses. This situation, which negatively affected the overall income of the sector, mostly derived from the fact that the foreign people were deceived while buying a house. |
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24.03.2008 18:41:06 |
A new sales pitch, the “Happy Final Campaign,” is underway for newly finished flats at the Armina Houses project, constructed by Mimart Yapı in Istanbul's Bahçeşehir district. Mimart Yapı, which caters to homebuyers, launched the promotion to lure customers able to come up with only a modest deposit; the program enables them to own their own homes while paying a fairly low mortgage, just as if they were paying rent. Candidates are required to make a down payment, reducing the balance on a 90-square-meter home from YTL 172,000 ($140,000) to YTL 154,800 ($127,000), and that on a 120-square-meter home from YTL 220,000 ($180,000) to YTL 198,000 ($162,000). The campaign also enables customers to pay the deposit in five installments every six-months with no extra interest. The campaign also offers special housing loans from certain banks to cover the balance. New residents are already moving into the nearly 110,000-square-meter Armina Homes development, which hosts only flats in four-story buildings and includes sports facilities ranging from swimming pools to tennis courts. |
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24.03.2008 18:39:57 |
Milpa, one of Doğan Group's companies, has put Milpark project that has 196 residences on an area of 33,180 square meters in Istanbul's Esenyurt up for sale. Milpark, a new residential center in Istanbul, plans to be “the investment of the future, not today” through its location, original design and attention to detail. The project is being undertaken by Dome Architecture between Carrefour in Istanbul's Beylikdüzü and Taksit Shopping Center. Milpark, which offers different payment options, is comprised of 196 residences in 19 blocks. The houses are designed in four different types: From one bedroom and one lounge to four bedrooms and one lounge, and their size ranges from 65 to 186 square meters. The project started in February and is scheduled for completion in June 2010. The residences have been put for sale between YTL 63,000 - 360,000 ($50,500 - 289,000). Milpark Residences will include many kinds of comfort including a 24-hour surveillance system, security services, open and covered parking lots, two elevators per building, generator, Internet access and free telephone conversations between flats. Moreover, the project includes a mechanism, which reduces water wastage by 50 percent by collecting and refining it to be reused in the bathroom installations. |
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24.03.2008 10:18:45 |
A Japanese property investor has filed for court protection from creditors, the first listed company in Japan to collapse from tighter lending in the wake of the U.S. subprime crisis. Reicof Co Ltd said it had failed with debt of 42.6 billion yen ($430 million) as investments in hotels went sour. "Financial and real estate markets have deteriorated in the wake of the subprime crisis and we were not able to sell properties or secure loans as expected," Masaki Nogami, a Reicof lawyer, said at a news conference on Friday. Japanese banks are getting cold feet on property, analysts say, only giving 60-70 percent of a building's value compared to 80-90 percent a couple of years ago. Industry officials also say investors are pulling back from Japanese properties as they eye better opportunities in the United States and Europe to pick up distressed assets. Japanese real estate stocks have been halved in value since mid-2007, also hit by troubles in the residential sector after tighter building codes were introduced. Credit Suisse analyst Yoji Otani said many real estate firms had already revised down their earnings outlooks and more failures may be yet to come. "Many real estate investment funds were struggling even before the the subprime crisis, and the tighter lending conditions are delivering the final blow," he said. |
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24.03.2008 10:17:18 |
The U.S.-based credit crunch might spread to the “real economy” if precautions are not taken, warned Adnan Büyükdeniz, chief executive officer (CEO) of Albaraka Türk, at a press conference yesterday. Briefing journalists on the 2007 results and 2008 expectations of Albaraka Türk, a leading participation bank, Büyükdeniz said the global turmoil shows that “advanced economies are not as established as they were considered to be.” “Emerging markets, such as Turkey, are simpler and less sophisticated,” he said. “This brings the advantage of preparation for such crises.” “Turkey's banking system became well-supervised and well-capitalized after the 2001 financial crisis,” he continued. “In the case of a hypothetical crisis in Turkey, the banking system will not be the source of that.” Albaraka Türk, whose total assets turnover has been YTL 3.7 billion in 2007, grew 48 percent after opening to the public in June 2007. The first participation bank of Turkey, founded in 1985, Albaraka Türk's 2007 net profit was YTL 85 million. The bank aims to grow 32 percent and raise its net profit 59 percent this year. “Our capital adequacy, which is $460 million, is quite higher than legal edges,” said Büyükdeniz. “We increased Albaraka Türk's number of branches from 43 to 80 within two years. We aim to attain 100 branches this year.” Corporate and commercial loans constitute 90 percent of the bank's total credit portfolio and 70 percent of these are used by Small and Medium Size Enterprises (SMEs). Participation banks rely on the principle of sharing profit and loss, and do not collect or pay interest. Responding to a question on whether domestic markets will be affected negatively by the lawsuit launched against the governing Justice and Development Party, Fahrettin Yahşi, the Vice Chairman, said the lawsuit “will certainly affect the markets.” “Financial stability depends on political stability. We are cautious and are following the developments closely, but we have not yet taken specific precautions,” Yahşi said. |
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20.03.2008 13:11:17 |
Asian stock markets rose yesterday as investors welcomed a hefty U.S. interest rate cut and a rally on Wall Street overnight. Sentiment was also lifted by better-than-expected earnings from major U.S. investment banks Goldman Sachs and Lehman Brothers, easing concerns about fallout from the global credit crisis. Japans benchmark Nikkei 225 index climbed 2.5 percent to close at 12260.44 after rising more than 3 percent earlier. Hong Kongs Hang Seng index was up 2.4 percent at 21,895.27. Australias main index jumped 4 percent, and markets in South Korea, China and India were also sharply higher. But analysts warned that the advance doesnt mean the turmoil is over. "Were just back to where we were at the beginning of the week," said David Cohen, a regional economist with Action Economics in Singapore. "The roller coaster will continue. Theres still a lot of uncertainty continuing for the world and U.S. economies." Tokyos Nikkei index has tumbled about 20 percent since the start of the year. In a bid to shore up sagging U.S. growth and bring relief to the struggling financial sector, the Federal Reserve Tuesday slashed its key interest rate by three-quarters of a percentage point to 2.25 percent, its lowest since December 2004. While many investors were expecting the Fed to cut rates a full percentage point, they quickly overcame some initial disappointment, especially since a 0.75 point cut is still substantial. The Fed began lowering rates exactly six months ago, after the credit markets seized up due to soaring defaults in subprime mortgages. The Dow Jones industrial average soared 420 points, or 3.51, to 12,392.66 Tuesday. That was its biggest one-day point gain in more than five years. Investors were also heartened by better-than-expected earnings from Goldman Sachs Group and Lehman Brothers Holdings, which came out just a day after markets worldwide were shocked by Mondays news that JP Morgan Chase had bought rival investment bank Bear Stearns for US$2 per share, or less than $250 million. That sparked concerns about the full extent of the credit crisis. On the Chinese mainland, the Shanghai Composite index rebounded after five days of losses, climbing 3.6 percent to 3,799.01. Investors seemed to be unfazed by the central banks move to increase credit requirements for commercial banks by half a percentage point to a record high 15.5 percent. Japanese financial markets will be closed today for a national holiday.BOX BOX BOX BOX Dollar falls on speculation TOKYO – Bloomberg The dollar fell against the euro, losing most of yesterday's gains, on speculation the worst U.S. housing slump in a quarter of a century will swell credit-market losses. The currency weakened against the Japanese yen and the Swiss franc after Bank of America Corp. predicted the Federal Reserve will lower its benchmark by another 75 basis points this year following a reduction to 2.25 percent yesterday. Reports this week on U.S. mortgage demand and manufacturing will probably show the economy is slowing. “The worst is not over,” said Tetsuhisa Hayashi, chief currency manager of foreign-exchange trading in Tokyo at Bank of Tokyo-Mitsubishi UFJ Ltd., a unit of Japan's largest publicly traded lender. “Japanese investors think now is a good opportunity to sell the dollar, taking advantage of its big rally yesterday.” The U.S. currency fell to $1.5717 per euro at 7:22 a.m. in London from $1.5625 yesterday, when it rose 0.7 percent, the most since Feb. 7. The dollar declined to 98.96 yen from 99.85 yesterday, when it surged by 2.6 percent, the biggest gain since January 1999. The yen traded at 155.53 per euro compared with 155.95 yesterday. The dollar may fall to 92 yen and $1.60 a euro in one month, Hayashi said. The dollar declined to 0.9947 Swiss franc from 1.0024. The Swiss franc is favored in times of crisis and climbed almost 3 percent in a day after the Sept. 11, 2001, terrorist attacks. It has gained 14 percent this year. The U.S. currency fell 0.4 percent to 93.09 U.S. cents per Australian dollar and slumped 0.6 percent against the New Zealand dollar to 81.17 cents. |
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20.03.2008 13:07:40 |
About 450 flats in the European Residences on the TEM motorway in Istanbul's Gaziosmanpaşa district, with prices ranging from YTL 137,000-353,000, were sold in one hour. During the auction, some people even tried to sell their priority number to those who came later for YTL 1,000. Despite the current stagnation in the real estate sector, the second phase of European Residences attracted high attention. Those interested in buying a house in the project said they were waiting from the previous night. European Residences, for which the Mass Housing Administration (TOKİ) opened bids using the income distribution method, have been constructed in partnership with Artaş, Öztaş and Doğu İnşaat. The project, construction of which is ongoing, offers five types of residences from one bedroom and one lounge to four bedrooms and one lounge. The size of the flats range from 64 to 165 square meters. ‘Reasonable prices' Süleyman Çetinsaya, chairman of Öztaş İnşaat, explained the reasons behind this high interest in European Residences. “The initial reason for this attention is the TOKİ assurance. The second reason is the name of the project. The third is the location of the project, which offers easy transportation opportunities. Moreover, one square meter of the residences sold costs around YTL 2,100 – our prices are still at a reasonable level.” |
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19.03.2008 15:11:45 |
The Mass Housing Administration (TOKİ) offers loans with an annual interest rate of 4 percent and 10-year installments for the restoration of immobile cultural properties. TOKİ provides a loan of at least 10 percent of the total amount needed for the maintenance, repair and decoration of immobile cultural properties in accordance with the law on the Protection of Cultural and Natural Heritage according to a statement by TOKİ. The loan to be taken for each project can reach a maximum of YTL 80,000 ($63,000) or the 70 percent of the cost estimate. The deadline for the applications is May 2. TOKİ has granted a total of YTL 7.66 million for 103 projects, 16 of which were used in 2005, 51 in 2006 and 36 in 2007. These loans have facilitated many historical houses and facilities to be renovated across Turkey. To apply for the loan, owners of the immobile cultural properties need to submit the building surveys and restoration projects confirmed by the Cultural and Natural Heritage Region Committee, restoration and estimate reports prepared according to the confirmed project, work program, a site plan depicting the condition of the land and the building by the scale of 1/200 or 1/500, an example deed and savings certificate. |
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19.03.2008 15:10:26 |
A real estate project after the “Spanish model” will be realized in Turkey, upon the request of Finance Minister Kemal Unakıtan, who did extensive research in Spain. The Ministry of Finance and the Mass Housing Administration (TOKİ) will undertake the project together. A number of villas and holiday resorts will be constructed for foreign citizens on immovable property, according to the protocol signed by Unakıtan and TOKİ Chairman Erdoğan Bayraktar. The National Real Estate Head Office handed this immovable property over to TOKİ free of charge through the “income distribution in return for land” method. The project includes coastline areas from Çanakkale, in northwestern Turkey, to Mersin, in the south, and districts with thermal baths. TOKİ will start to market the villas abroad when construction begins. The villas will be sold as direct property or timeshares and owners will not be allowed to rent them out. Sales revenue from these villas will be given to TOKİ, together with the finance share of 50 percent, which will enter the TOKİ account within 15 days. The villa cities and the holiday resorts to be constructed in Antalya, Muğla, Aydın, Fethiye and Mersin on the Turkish Riviera will be a few storeys tall. The project includes the construction of tennis and golf courts, green spaces, walking paths, medical centers, shopping centers and other social facilities. Titleholders will be offered the 5-star hotel included in the project, the management of which will rest in the private sector. |
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19.03.2008 15:09:14 |
A total of 400 houses in the second stage of Korupark Residences, which will host 1,200 residences on an area of 124,000 square meters in the northwestern city of Bursa have been put up for sale. The project, which also includes a shopping center, is expected to finish in April 2009. Derya Acar, marketing consultant of Korupark Residences, said they offered reasonable payment options for the different types of residences in the project that includes from one bedroom plus one lounge flats to five bedrooms plus one lounge villas. Acar added that Korupark Residences appeal to those who wish to be a neighbor to internationally known brands, to visit a shopping mall open 24 hours a day, to enjoy the most delicious restaurant and to walk to the most special café or cinema. The project, which has already started to offer a high quality life to its residents in the first stage, also attracts the attention of those who want to buy a house seeing not only a rough model. Acar said Korupark Residences were designed as a covered site on an area of 124,000 square meters and added that the open and covered swimming pools of 4,500 square meters, fitness club, playing ground, Korucafe within Koruclub, and Korupark shopping center, the biggest shopping center of Bursa with 196 stores, were among the reasons of the attractiveness of Korupark, which also offers green land of 25 square meters per resident. |
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18.03.2008 15:23:23 |
Esenbahçe Residences, which vary in size from 82 to 161 square meters, have gone on sale with monthly installments of YTL 750 ($605). The project, construction of which is ongoing in the Esenyurt district of Istanbul's Beylikdüzü by Önay Group, includes 451 residences. The flats with two bedrooms plus one lounge are 82 square meters, while the flats with three bedrooms plus one lounge are 115 to 161 square meters. The 82 square meter flats are being sold at YTL 85,000 ($69,000) while the 115 square meters apartments are priced at YTL 100,000 ($81,000). The first phase in the Esenbahçe Residences project, being delivered in two phases, will be completed in September, while the second will be ready in September 2009. Esenbahçe Residences, which offer a comfortable life with specially designed gardens, playgrounds, sports facilities, fitness center, cafeteria, walking areas and ponds, are located close to the center of Beylikdüzü, a new residential area of Istanbul. The other facilities available to residents include a health center, dry cleaning, hairdresser, pharmacy, shops, green grocer, butcher, janitor and water cistern. Subject to paying 25 percent of the total value in cash, it is possible to own a house by paying YTL 750 in 18 months with intermediate payments of 10 percent every six months, and the last installment after the Esenbahçe Residences are ready. |
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18.03.2008 15:22:19 |
The first residence project of Krea Group and Merrill Lynch will be constructed in the İstinye neighborhood of Istanbul's Sarıyer district. The project, which will be built on an area of 28,000 square meters, will be comprised of 150 units including a spa, a fitness center, concierge service, restaurant and café. The investment cost will be around 50 million euro besides the land cost. Although the land, owned by Seren İnşaat, was bought by the Boshporus Real Estate Fund, an extra bonus will be paid depending on the revenue. Bosphorus Real Estate Fund, founded by the partnership of Krea Group and Merrill Lynch, has undertaken six projects, whose total investment cost reaches $900 million so far. The project, which will be put up for sale in April or May 2008, will be completed at the end of 2009. The portfolio includes four AVM projects in a rental area of 190,000 square meters, and two housing projects over an area of 200,000 square meters for sale. |
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18.03.2008 15:21:16 |
Banks have yet again increased the interest on housing loans by 10 points following an increase in February as a result of rising costs of international loans. The interest rates reaching 1.50 percent surprised potential buyers. Banks that have increased interest rates include Akbank, Garanti Bank, İş Bank, HSBC and Yapı Kredi. Interest rates, which were at 1.20 percent at the beginning of the year, have reached 1.40-1.50 percent after the latest increase. YTL 1,600 ($1,300) was paid per month for YTL 100,000 ($81,000) at a rate of 1.20 percent in 10-year installments. If YTL 100,000 was taken with an interest rate of 1.45 percent in 10-year installments, the monthly payments would reach YTL 1,750 ($1,400). The difference in the total back payments is YTL 20,000 ($16,000). Prices expected to fall: The expectation that the real estate sector, experiencing stagnation for a while, will become revitalized in the coming spring has thus faded away. The drop in house sales has also led to a decrease in house prices, which are likely to decrease even further due to the high interest rates in the coming term. However, the experts, who agree that the interest rates may still be a good opportunity for potential buyers, also say that it may be advantageous to buy a house in this stagnant period for the sector. Prices should drop for the sector to regain pace. |
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12.03.2008 18:03:04 |
She was only eight when she began visiting the family’s bank during school holidays. Today, Suzan Sabanci Dincer is its managing director and will one day take over an empire employing thousands of people in dozens of companies all over the world.
Meet the billionaires of the Bosphorus. Technically, Sabanci Dincer, 42, does not make it into this exclusive club at the crossroads of Europe and Asia. She is, after all, worth only $950m.
It is only a matter of time, however, before she joins several other members of her family on the Forbes list of billionaires.
Once known for its shanty towns and sardine fishermen, Istanbul has emerged as one of the world’s richest cities, home to the fourth highest number of billionaires, behind Moscow, New York and London.
Extraordinary wealth may not always be what springs to mind in connection with Turkey. Just north of the border with Syria are settlements where people still live in conical mud huts that seem to date back to the dawn of history.
Yet according to figures published by Forbes magazine last week, the opulent villas and wooden waterfront mansions lining the Bosphorus – Sabanci Dincer lives in one with her husband Haluk and two children – are home to 35 billionaires, up from 25 in 2007.
Sebanci Dincer remembers learning the ropes of banking from the former chief executive of Akbank, the family concern she now runs.
“He would tell me that a good banker has to know very good mathematics and would give me all these maths questions,” she recalled. “I’d carry his files and do the homework he gave me and he’d reward me with chocolates.”
She was evidently a good pupil: she is being groomed to succeed her father Erol, 69, when he retires. She must also have listened to her uncle, Sakip Sabanci, who built the second largest conglomerate in Turkey and once explained the secret of becoming extremely wealthy thus: “Having help from God, then luck and then you have to work really hard.”
The number of Turkish billionaires is a testament to a remarkable change only seven years after a currency meltdown left the country’s economy teetering on the point of collapse. Istanbul is again enjoying the commercial importance that made it the centre of empires for centuries.
A capitalist boom in recent years has attracted a flood of foreign investment. Property prices have doubled, and in some areas tripled, in dollar terms over the past five years.
Glitzy shopping malls selling luxury goods have proliferated. The business district has been transformed by shiny new skyscrapers.
The new-found wealth has yet to trickle down to the mass of the population. For most of Istanbul’s 14m inhabitants, simply making ends meet remains a constant struggle. Yet there is little sign of resentment at the huge fortunes being accumulated along the Bosphorus, the waterway that winds through the heart of the city. Instead, the wealth has turned Istanbul into a city of dreams.
Most of those on the Forbes list belong to just a handful of families, such as the Sabanci, who have made their fortunes over the past 50 years in industry, banking and construction. Good political connections have helped them to flourish.
The Koc family has enjoyed such a close relationship with the state that at one time its various companies employed more than 100 retired military officers to facilitate relationships with the otherwise onerous state bureaucracy.
Ahmet Calik, one of the newest members of the Bosphorus billionaires’ club with a personal fortune of about $1.5 billion, is a close friend of Tayyip Erdogan, the prime minister who came to power in 2002.
Last year Calik appointed Berat Albayrak, the prime minister’s 26-year-old son-in-law, as his company’s general manager. It is possibly no coincidence that the company has recently secured a number of lucrative state contracts and privatisation deals.
Aydin Dogan, a Turkish media mogul whose wife and four daughters are all included on the billionaires’ list, is always treated with considerable caution by the political party in power.
Other billionaires were following the example of the American Bill Gates, founder of Microsoft, and using their money to bolster their standing. Husnu Ozyegin, whose $4 billion makes him the third richest man in Turkey, has spent $50m of his own money on building 36 primary schools.
There have been occasional reminders that wealth does not necessarily bring happiness. Ali Nuri Colakoglu, the brother of Hasan Colakoglu, 26th on the Forbes list, shot himself in January on the shores of the Bosphorus and died.
Billionaire cities
1 Moscow, 74 billionaires, average net worth $5.9bn
2 New York, 71, $3.3bn
3 London, 36, $4.1bn
4 Istanbul, 34, $1.7bn
5 Hong Kong, 30, $5bn
6 Los Angeles, 24, $3bn
7 Mumbai, 20, $7.6bn
8 San Francisco, 19, $3.1bn
9 Dallas, 15, $2.6bn
10 Tokyo, 15, $2.8bn
Moscow, 74 billionaires, average net worth $5.9bn New York, 71, $3.3bn London, 36, $4.1bn Istanbul, 34, $1.7bn Hong Kong, 30, $5bn Los Angeles, 24, $3bn Mumbai, 20, $7.6bn San Francisco, 19, $3.1bn Dallas, 15, $2.6bn Tokyo, 15, $2.8bn
Sources: The Sunday Times & Forbes |
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12.03.2008 12:51:56 |
Within the framework of a project by Vakifbank, 1,179 houses with sea and lake views in Istanbul's Tepecik district have been put up for sale by the KİPTAŞ construction firm. Monthly installments start from YTL 336 ($269) at a loan ratio of 0.88 and there are 120-month payment options. The project includes houses of 80 square meters sold for YTL 62,000 ($50,000), houses of 90 square meters for YTL 70,000 ($56,000), houses of 98 square meters for YTL 95,000 ($76,000) and houses of 126 square meters for YTL 128,000 ($103,000). Potential buyers have to pay 25 percent of the total amount in cash to apply for the project. The application for the houses, whose sales will continue until March 28, can be submitted at the Greater Istanbul Municipality's Saraçhane building and Hadımköy Municipality. Tepecik houses, which can also be bought without paying the installment for the first 18 months, will include two types of houses: Two bed rooms plus one lounge or three bed rooms plus one lounge. Small pools, environmental layout, sports, social and prayer facilities, walking paths, trade center and a primary school are also included in the project. |
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12.03.2008 12:50:55 |
Around 984 houses with prices ranging from YTL 50-88,000 ($40-70,000) were put up for sale yesterday. Potential buyers need to have lived on the Anatolian side for five years, worked there for two, or be registered at the birth records there. The payment plan encompasses paying an initial amount of YTL 4,000 ($3,204) in cash at the time of the sale and the remaining amount in 180 months. The first installment will have to be paid as soon as the house is ready. The Mass Housing Administration (TOKİ) determined the other conditions as “to be a Turkish citizen over 30 years old, not to have bought property or taken a loan from TOKİ before, not to own a property and not to have over YTL 2,000 ($1,602) as the total monthly income of the household.” Widowed women with children will be exempt from the age clause, whereas single women whose father or both parents have passed away have to be at least 25 years old to apply for a house in this project. If the number of applications exceeds the number of houses, those who qualify to own a house will be determined by a lottery on April 14. |
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12.03.2008 12:49:49 |
The head of a construction group has said the problem in the real estate market stems from a lack of purchasing power. “The problem is not excessive supply in the real estate sector, but that the purchasing power of people is not enough”, said Ali Ağaoğlu, chairman of Ağaoğlu Group, indicating the importance of accessibility to property by people. Ağaoğlu, who said that they were planning to undertake a project in Istanbul's Seyrantepe area, including offices, residences and a hotel in the second half of this year, also noted that they were currently undertaking three projects including Seyrantepe on the European side, whose total investment value was expected to be around $1.5-2 billion. Upon a question about the price range of houses in Istanbul, Ağaoğlu said, “we will see where the prices are going in three or four years. I am of the opinion that the prices in Istanbul are still at the lowest level when compared to prices in European cities or other world cities equivalent to Istanbul. 70 percent of houses in Istanbul problematic “You can always find a customer when you produce the right project in the right place at the right price and with the right payment options,” said Ağaoğlu, noting that the time of “I sell whatever I produce” is over. Ağaoğlu further added that 70 percent of housing in Istanbul was not fit for living, and the other 30 percent was quite costly, something that reflected on house prices by 50 percent, even 70 percent in some projects. |
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11.03.2008 19:13:09 |
The International Monetary Fund said it would be a “step backward” if Turkey implements plans to set up an off-budget fund to finance road-building, reversing efforts to improve fiscal transparency and curb spending. The government plans to divert income from the sale of operating rights of highways and bridges, expected to raise about $6 billion, into an off-budget fund that would be used to build new highways, Transport Minister Binali Yıldırım said March 5. Turkey shut 69 such funds in the first half of 2001 at the start of its latest series of IMF agreements. Establishing new extra-budgetary funds would be “a step backward for fiscal transparency and budget discipline,'' Hossein Samiei, the fund's representative in Ankara, said in an interview Friday. “We are confident the government will stick to budgeted spending plans.” Turkey's $10 billion loan agreement with the fund is three months away from expiry and the government hasn't yet said how it wants to continue relations with the lender. The IMF is also withholding a payment of about $1.8 billion until the country passes measures to end losses in the pensions system. Under the IMF accord, Turkey has curbed spending to reduce debt and slow inflation. Consumer-price growth has eased to 9.1 percent in February from about 70 percent in 2002. Budget deficits: Turkey has posted budget deficits equal to less than 3 percent of economic output in the past two years. That compares with a deficit of 16.5 percent in 2001, a year in which interest payments on debt exceeded tax revenue. A parliamentary committee last night approved draft legislation designed to reduce losses in the pensions system, which consumes more than 4 percent of gross domestic product every year. The law may be debated in the main assembly next week, according to Sait Acba, chairman of the committee. Approval of the pensions measure would allow Turkey to complete the latest review of its performance under the IMF agreement and win the $1.8 billion payment. The review began in October and has lasted longer than any other under the loan agreement. One further review is planned. Turkey plans to sell operating rights for two bridges and four highways this year. Officials expect to raise between $5 billion and $6 billion from the auctions, daily Hürriyet newspaper reported Feb. 28. |
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10.03.2008 15:37:20 |
The 5th Roof and Side Systems Fair, which will be held Mar 13-16 at CNR, will be exhibiting an unprecedented product this year. The new product called “Grass Siding” produced by Nurteks Halı ensures heat, sound and water insulation when it is used to cover the exterior of a house. It has been approved by university research. Grass siding, similar to the artificial turf on synthetic pitches, can easily be attached to the exteriors of houses with a special adhesive substance. One square meter of the system, which was first used on the F1 houses in Istanbul's Kurtköy, costs between 20 euros and 30 euros. Nurteks Halı Sanayi, operating since 1972, has made use of the technology formerly used in floor carpeting in this new product. Nurteks, which pioneered the launch of the first artificial swards in 1983, produced the artificial grass carpet for the sports facilities like football fields, golf courses and tennis courts. Grass siding, which was first used on sports surfaces, is unprecedented in its production technique. Nurteks Halı gives houses a new character and is the first decorative exterior covering material glued with a special material [şalama]. Grass siding looks like real grass when used to cover housing exteriors. |
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Laura Howard seeks out the new hotspots, from Europe's southern borders to Cape Verde and even Thailand
Sunday, 2 March 2008 Independent on Sunday
Our property prices may be stagnating but for Britons looking to turn bricks and mortar into profits, there is hope on the horizon – the far horizon.
Record numbers of investors are looking at a new raft of property hotspots around the globe – and Turkey is top of the list.
Overseas mortgage broker Conti Financial Services recently reported a 147 per cent increase in enquiries about Turkey year-on-year. For Spain, by contrast, enquiries fell by more than 28 per cent.
Property prices in Turkey rose between 15 and 20 per cent in 2007, reports estate agent Knight Frank, after a change in the country's mortgage law made finance available to overseas buyers. Yet prices are still cheap by UK standards. Julian Walker, managing director at Spot Blue, a UK agent operating in Turkey, says one-bed flats can go for £25,000, two-beds for £50,000 and villas for £90,000.
While no bank or building society on British soil will lend against a property abroad, finance for Turkish homes can be secured, through specialist brokers such as Conti, with a lender in the country. Foreign buyers will need a 25 per cent deposit, and sterling mortgages are available only over 15 years. Unusually, though, British investors living in the UK at the time of applying for finance may be able to borrow up to 100 per cent of the home's value in Turkey if the loan is in euros.
Large advances like this are confined to property in certain parts of the country such as the capital Istanbul, or Alanya on the Turkish Riviera. And as they are based on the "execution", or preliminary valuation), they may also be lower than the final purchase price, warns Conti.
Simon Conn, Conti's sales and marketing director, says: "While Turkey is being hailed as the 'new Spain', it is also undergoing some of the same problems, such as corruption and bad planning – although it is learning a lot quicker."
On a par in terms of risk and potential return, is Cape Verde, a collection of 10 islands just south of the Canaries. "Cape Verde is a good bet because, as an ex-Portuguese colony, it is politically and economically stable," says Mr Conn.
While the very cheapest properties were snapped up three to four years ago when the smallest apartment on the developed island of Sal would have cost just €€30,000 (£23,000), there are still bargains to be had. Now a two-bed home costs around €105,000, according to Mr Conn.
Foreign buyers will need to stump up a 15 per cent deposit for a mortgage with a Cape Verde lender but the loan, which must be taken in euros, can stretch up to a 35-year term. "In my opinion, the Cape Verde islands will overtake the Canaries during the next five to 10 years as one of the most popular holiday destinations," says Mr Conn. "The islands are an average 3.5 degrees warmer than the Canaries and only one hour further away by air."
Investors who can afford to gamble may consider looking as far as Thailand. Some areas, such as Phuket, Bangkok, Koh Samui, Chiang Mai and Pang Nang, have already been "discovered" but cheaper property – for as little as £45,000 – can be found in coastal regions such as Hua Hin.
However, quite apart from the recent political unrest, Thai property carries wealth warnings. If you are buying a freehold or "landed" property, you will have to do so with a local resident, who must also own a majority share. The rules on buying a leasehold home aren't nearly as strict, although there is a rule that over 50 per cent of the properties in a block must be owned by Thai nationals.
Egypt – where stamp duty is low and there is no capital gains tax on the sale of a property – has also piqued investors' interest in recent months. And as many of the developers have moved across from Dubai, the quality of new-builds is very good, says Mr Conn. However, although mortgage laws are changing, it remains difficult to raise finance there.
Buying anywhere abroad – but especially in emerging countries – requires caution and local knowledge, says Linda Travella, spokeswoman for the National Association of Estate Agents International. "Do not expect the buying process to be the same as the UK, where you can be gazumped by a higher bidder after the survey – initial contracts are binding. And you must seek independent advice from an English-speaking lawyer, either from that country or with a good knowledge of its conveyancing process."
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01.03.2008 11:21:20 |
Young swimmers in Bodrum and from the Greek island of Kos will swim a “Crawl for Peace” next April. The swimmers will meet in the Aegean Sea in international waters to hand each other flowers and flags.
The swimmers have begun training, supervised by Turkish National Swim Team Coach Cengiz Altaylı. Six swimmers from the Bodrum Municipality Bodrumspor Swim Team and the swimmers from İstanköy Maritime Club on Kos Island, five miles from Bodrum, are training for the swim.
The activity is very important for peace and friendship, said Bodrum Mayor Mazlum Ağan of the Republican People's Party (CHP).
“We are holding various events in the fields of tourism, art and sports to contribute to and promote friendship and peace with our neighbor Greece. We want the Aegean Sea to be a sea of friendship. We aim to turn this into a traditional activity," Ağan said.
The swimmers attend training practice two hours a day, swimming seven or six kilometers, said Altaylı. “Following this event, we aim to hold competitions and collective training programs between the swimmers of the two countries. Peace in the Aegean will set an example for the whole world,” Altaylı said.
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22.02.2008 16:30:20 |
Turkish forces have launched a ground offensive backed by fighter jets into northern Iraq against the outlawed Kurdistan Workers' Party (PKK) based there.
According to a statement released today by the General Staff, the offensive began on Thursday evening, following shelling and aerial assaults against PKK targets in the region. "After the successful bombing, a cross-border ground incursion backed by the Air Force started at 1900 (1700 GMT)," the statement said.
The private NTV television station said that 10,000 troops had been sent into northern Iraq as part of the land operation. The military said the troops would return in the shortest time possible after the "planned goals have been achieved." It also said the assault is targeted only at the PKK and that troops would act with caution to make sure civilians and "local elements that do not resort to hostile acts against the Turkish Armed Forces (TSK)" will not be harmed, referring to the Kurdish peshmerga forces in charge of security in northern Iraq.
"The executed operation will prevent the region from being a permanent and safe base for the terrorists and will contribute to Iraq's stability and internal peace," the statement said.
Jabbar Yawar, a spokesman for Iraqi Kurdish security forces, said sporadic bombing was taking place in border areas, but that no casualties had been reported. Fouad Hussein, a spokesman for the Kurdish regional administration in northern Iraq, said the peshmerga forces had been put on alert. He added that Iraqi Kurdish forces had also tightened security around bases housing Turkish military monitors operating in northern Iraq with permission from local authorities under a 1996 agreement.
"The government of Kurdistan ordered the peshmerga forces to be on alert in fear of any Turkish incursion on Iraqi territory," he was quoted as saying by The Associated Press, claiming that Turkish military monitors had tried to leave their bases in violation of the terms of the 1996 agreement. "Those troops tried to move out, but the peshmerga forces forced them to return to their camps within half an hour."
The operation was widely expected to take place in the spring. Earlier this week Foreign Minister Ali Babacan said a land operation was on the table as an option and added that the timing would be determined according to weather conditions.
In Ankara on Thursday, Turkey's civilian and military leaders issued a statement after a meeting on national security, saying cross-border attacks by the military would continue as long they were "deemed necessary."
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20.02.2008 18:45:13 |
Temperatures are expected to rise today, after ice and snow have closed roads and schools across the country since Saturday.
Thirty-five soldiers were injured when their bus flipped over on slippery roads in the eastern province of Elazığ Monday, according to CNN-Türk.
The snowfall in Istanbul began to decrease yesterday and the temperature is expected to reach 10 degrees Celsius today, said Istanbul Mayor Muammer Güler in a written statement. However, roads were still covered with ice yesterday, causing traffic accidents that resulted in injuries to two people. The governor's office and municipality warned drivers and people against frozen, icy roads in Istanbul.
Many schools were suspended across the country yesterday due to the snow and ice. Schools in Istanbul will reopen today.
A total of 4,266 village roads were blocked across Turkey yesterday. In Turkey's eastern provinces, where 2,118 roads were blocked, are under the influence of a low-pressure area coming from Siberia, the Anatolia news agency reported yesterday. Snowfall was expected in the region yesterday and today, according to officials.
Officials warned against ice on roads in the Black Sea region yesterday. Many schools in the region were suspended yesterday, and whether they open today depends on the weather conditions. Officials started to open 2,338 of the village roads in the central Black Sea region yesterday, the Doğan news agency reported.
Homeless people, who are especially vulnerable in the cold weather, are being hosted in hotels and guesthouses in Istanbul. The Greater Istanbul Municipality has saved 159 homeless people from the cold since Saturday, Anatolia reported.
Snowfall also disrupted emergency services. An ambulance trying to reach a patient in the eastern Anatolian province of Muş got stuck in snow on the road. Talip Sancı, 52, the disabled patient, arrived at the hospital when the road was opened three hours later.
“Fresh fruit and vegetables entering Istanbul decreased by 10 percent, but there is no shortage in the city,” said Mustafa Şanlıer, director of Greater Istanbul Municipality's store where fruit and vegetables are stored and sold to smaller shops. |
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20.02.2008 18:43:40 |
Turkey called on newly independent Kosovo and enraged Serbia to stay calm yesterday, one day after recognizing Kosovo's independence.
“Hereafter we expect both Kosovo and its neighbors to implement peaceful policies,” Prime Minister Recep Tayyip Erdoğan said in Parliament yesterday.
“Our sincere wish is the success of the Republic of Kosovo for peace and comfort in the Balkans, with which we have close historical and cultural ties,” he said, reminding Kosovar officials of their responsibility to treat all citizens of Kosovo equally.
Turkey recognized Kosovo's independence and pledged assistance to support its development Monday, hours after its close ally the United States acknowledged the birth of Europe's 49th state.
“The Republic of Turkey welcomes the content and elements of the independence declaration adopted by the Kosovo parliament and has made a decision to recognize the Republic of Kosovo,” Foreign Minister Ali Babacan said in a written statement late Monday. Kosovo's independence will strengthen the climate of security and confidence among countries in the region,” the statement also said, adding, “Turkey will continue to contribute to and assist the newborn country's development.”
Ankara is also determined to maintain good relations with Belgrade, the statement said. “Serbia has an important role and responsibility in the future of the Balkans. Turkey places importance on improving relations and cooperation with Serbia, both on a bilateral and regional basis,” it said.
However, an infuriated Serbia decided to withdraw its ambassador to Ankara as a sign of strong protest against Ankara. Meanwhile, Turkey asked Serbia to increase security at the Turkish Embassy in Belgrade. Protesters pelted rocks at the embassy. Ankara has also requested more protection for Turkish companies and citizens in Serbia.
First letter from Turkey
Turkey has traditionally had close relations with Kosovo, which has been home to a Turkish minority since the days of the Ottoman Empire, which ruled the region for five centuries. It showed its special position Monday by being the first to exchange letters of recognition with President Fatmir Sejdiu and Prime Minister Hashim Thaci. Turkey's representative to Kosovo, Mustafa Sarnıç, led British and French representatives, Agence France-Presse reported Monday.
Babacan sent a special envoy to Kosovo to give the original copy of Turkey's letter of recognition to Kosovar officials, he said at a press conference yesterday before his departure to Russia. “I cannot say Turkey was the first nation that recognized Kosovo, but it was among the very first ones,” he said.
No change in policy
Ankara will not change its policies toward the region and will continue to support NATO's peacekeeping force of 750 troops, Turkish diplomatic sources told the Turkish Daily News. Turkey has no plan to lift its veto against the Greek Cypriots who wish to take part in the Kosovo Force (KFOR) that plans to turn the mission over to the European Union in the coming months, sources also said. |
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12.02.2008 15:08:27 |
The location of the third bridge to be built across the Bosporus has been determined, but is being kept confidential to deter property speculators, said the transportation minister over the weekend.
“The third bridge and its location will certainly be to the north of the other two bridges,” said Binali Yıldırım.
Yıldırım visited the Black Sea coastal province of Trabzon for the opening ceremony of a vehicle inspection station established by the Doğuş Otomotiv-Akfen-TÜV SÜD consortium TÜVTURK and spoke to a group of journalists. When he was reminded that the motorway project to be built on the build-operate-transfer model to connect İzmit Bay, Bursa, Balıkesir and İzmir provinces was approved by the supreme planning council, Yıldırım said the infrastructure investment costs were high and would take a long time to yield returns. Yıldırım said it was not possible to realize infrastructure investments by relying merely on public resources, therefore the capital and experience of the private sector should also be used.
“Therefore, we encourage public and private sectors' cooperation in basic infrastructure projects. In view of that we expanded the scope of build-operate-transfer law with additional new dimensions. The topic will be discussed in Parliament next week. When the law passes, all obstacles will be removed. And the law will be first applied to the Istanbul-İzmit Bay-Bursa-İzmir motorway as approved by the supreme planning council,” Yıldırim said.
“There are other similar infrastructure projects in line, such as the third Bosporus Bridge and the Dardanelle Pass, and Ankara-İzmir, Eskişehir-Bursa, Denizli-Antalya and Ankara-Adana motorways. We have important railway projects. And we aim to realize them as soon as possible to increase Turkey's competitive capacity and improve the public's life standards.”
When asked whether the location of the third bridge to be built across the Bosporus had been determined, Yıldırım said every option was evaluated and environmental assessments were made. “One option has been decided on. But let's not reveal that. Let's not give a chance to speculators. The third bridge and its location will certainly be to the north of the other two bridges. But it is no use to pinpoint its destination,” said Yıldırım.
In regard to the state railways project covering Haydarpaşa train station and port being left in limbo due to a judicial verdict Yıldırım said, “nothing is left in limbo. The project will of course be realized by the Turkish privatization administration. Some areas are officially registered as protected areas, and projects covering such places are prepared in this respect. The municipality has already approved these projects. From now on, work will be done step by step.”
ISTANBUL - Hürriyet
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01.02.2008 13:37:26 |
An explosion at a factory building in İstanbul on Thursday killed 20 people and injured at least 110 others after it brought down several floors of the multi-storey structure.
Authorities said an explosion struck the factory at around 9:45 a.m. yesterday in the industrial Davutpaşa district. The blast, triggered by an explosion in the factory's unlicensed fireworks production, caused part of the five-storey building to collapse and started a fire on the top floor. Police said businesses in the building included textile producers and an unlicensed fireworks manufacturer, adding that nearby buildings were also damaged in the blast.
Sources said the blast was caused by an explosion in the factory's furnace room, but witnesses said the reason for the blast was the fireworks production in the building.
"The blast was caused by the fireworks," said İstanbul Governor Muammer Güler, ruling out terrorism as a cause. "An investigation is under way. Right now, there is nothing linked to terror," he noted.
Upon a question over whether the cause of the blast could be an explosion in the factory's furnace room, Muammer said a boiler exploded due to the blast, as well. "But the real cause of the blast was an explosion in the fireworks manufacturer. There had been a small fire on the fourth floor of the building before the explosion occurred. A blast just minutes after the fire killed eight people who were watching the fire along with 12 workers in the factory," he said.
Mehmet Bakar, head of İstanbul's health authority, confirmed that the death toll was 20. "Eight of the injured are in serious condition," he said.
Firefighters and ambulance crews rushed to the scene of the blast soon after the explosion, and the injured were immediately taken to nearby hospitals as rescue workers searched the rubble for any survivors and police sealed off the area.
A witness who identified himself as Ali told reporters that he heard two explosions five minutes apart from each other as he was working at a nearby factory. "White smoke was rising into the sky from the factory as we came to the front of the building. People were running around. I helped carry out six injured people," he said, adding that falling debris from the building smashed several vehicles outside.
Officials from İGDAŞ, İstanbul's leading natural gas distribution company, said the reason for the blast was not gas leakage. A written statement released by the utility noted that an investigation was conducted at the scene of the explosion. "A natural gas pipeline does not exist in the neighborhood where the blast occurred," read the statement.
Sources said the injured were rushed to nearby Bezmialem Valide Sultan Vakıf Gureba Training and Research Hospital, the Haseki Education and Research Hospital, the İstanbul Medical Faculty Hospital, the Bayrampaşa State Hospital, the Bağcılar State Hospital and the Cerrahpaşa Medical Faculty Hospital.
A man, indentified as Ahmet Akdaş, was pulled out of the rubble with slight injuries nine hours after the blast. Akdaş, who was rushed to a nearby hospital, said he was watching the fire on the fourth floor of the building when he heard the explosion.
Meanwhile, İstanbul Mayor Kadir Topbaş called on residents to be vigilant about reporting unlicensed businesses. "Our citizens should inform the police about unlicensed business places. Fireworks manufacturers are obliged to obtain a production permit from the related municipalities. But, unfortunately there are some manufacturers who fail to obtain licenses. Thus, heavy responsibility falls on the shoulders of our citizens. They should inform the police if they know about such unlicensed manufacturers," he noted.
Haydar Tanlıoğlu, a 40-year-old man who escaped the blast with injuries, claimed that he had warned the owner of the building to be cautious about the unlicensed fireworks manufacturer. "Resul K., the owner of the factory building, was aware that there was an unlicensed fireworks manufacturer in his building. I warned him that it is not safe to keep this manufacturer in the building. Resul K. is responsible for the deaths of so many people," he said.
Municipal and General Workers Union President Nihat Yurdakul noted that 601 workers were killed in several work accidents throughout 2006. "There are many business places which do not have operating licenses. Indeed, 49 out of every 100 business places do not have a license," he said.
President Abdullah Gül released a message soon after the explosion and offered his condolences to the families of those who were killed and injured in the blast. "I was deeply saddened by the explosion in which 20 people were killed and several others were wounded. I offer my condolences to the families of those who lost their lives, and I hope those who escaped the blast with injuries will recover soon," he said.
Yesterday's blast was Turkey's second major fireworks explosion in less than three years.
In 2005, six people were killed in a blast caused by an explosion in another unlicensed fireworks manufacturer in İstanbul's Ümraniye district. |
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01.02.2008 13:33:54 |
The competition between İzmir and Milan to host Expo 2015 is heating up as the date of host city selection approaches.
The İzmir Municipality on Wednesday hosted a dinner in Paris for the members of the Bureau of International Exhibitions (BIE), who will vote for the candidate cities on March 31. Some 140 BIE delegates and guests attended the dinner given on a boat tour on the Seine River. Speaking at the dinner, İzmir Mayor Aziz Kocaoğlu invited the BIE delegates to a symposium to be held in İzmir on Feb. 14-16. Kocaoğlu told reporters that they have been focusing on lobbying activities to promote İzmir's candidacy for the event. "We recently sent seven-member delegations to 58 countries," he said. With a view to hosting Expo, Turkey became a member of the 98-member BIE in 2004 and after a year became an executive board member. The Expo held in 2005 in Japan and the one held in Seville, Spain, were visited by more than 22 million and 40 million people, respectively. Analysts say if İzmir hosts the Expo in 2015, more than 50 million people might visit the city. |
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31.01.2008 16:27:37 |
Carrefour SA, Europe's biggest retailer, sold land in Istanbul to a real estate joint venture that plans to develop one of Turkey's largest shopping centers. Apollo Real Estate and Multi Turkmall jointly bought the land for 257 million euros ($380 million), the Paris-based retailer said on Tuesday in an e-mailed statement.
The investors will develop one of the country's largest shopping centers that will include a Carrefour superstore by 2010, the retailer said. The sale will add about 150 million euros to pretax profit, Carrefour said. |
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31.01.2008 16:22:12 |
Turkey's new fire safety legislation, which came into force in the beginning of January, has motivated several United Kingdom-based fire safety engineering firms to plan expansion into Turkey.
Graham Lowe, U.K. sales manager of Hochiki fire detection firm, told the Turkish Daily News that the new law that tightens the fire safety regulations of new buildings offers notable business opportunities for players in the fire safety equipment industry. Lowe was in Turkey along with representatives of U.K.-based fire safety engineering firms Tenos and Advanced Electronics last week, researching business opportunities and meeting with industry experts.
“We decided to visit Istanbul to assess potential in the market. The new legislation has created notable opportunities for us to start marketing European Union standard fire safety equipment here,” he said.
Hochiki Europe is at present one of the major manufacturers of quality fire detectors for commercial and industrial applications, with a production volume of approximately 500,000 detectors and ancillaries a year. The firm plans to double its business in the next five years, said Lowe.
Window of opportunity:
Steve Carroll, export sales manager at Advanced Electronics, said the next step of the three firms is to get approval for their fire safety equipment from local authorities. “Our products already have the EN54 approval, which is the European standard with which fire alarm systems have to comply. Turkey's EU process and the new regulations that are part of the process are a new window of opportunity for us,” Carroll said.
Advanced Electronics is a leading manufacturer of analogue addressable fire and emergency lighting control panels in the U.K. The firm also exports products to more than 25 countries around the world.
The firms aim to offer as a joint venture a complete fire safety package including workmanship and maintenance service to local clientele, said Lowe. “Our initial target clientele in Turkey will be government buildings and institutional properties, to whom we will offer a full-service package. Our initial start up investment will be between 500,000 to 1 million euros, which also means new jobs in the sector for locals.”
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30.01.2008 16:02:04 |
SunExpress airline will launch 17 new routes, start flights from Istanbul and expand its fleet with four new Boeing 737-800s investing approximately 3.9 million euros this year.
Paul Schwaiger, managing director of SunExpress told reporters yesterday the new routes include Zweibrücken from Antalya, and Oslo, Paris and Stockholm from İzmir. The firm will also start flights to eight cities in Anatolia and three in Germany from Sabiha Gökçen Airport on the Asian side of Istanbul from March 30. “For 2008 the very simple plan is to keep climbing. We will do everything to grow together with the Turkish tourism industry,” Schwaiger said.
The new locations from Istanbul are Nürnberg, Hannover and Köln in Germany, and Trabzon, Kars, Erzurum, Sivas, Van, Diyarbakır, Adana and Antalya domestically. The total investment in the project stands at approximately 1 million euros. Hacı Say, deputy managing director of SunExpress, told reporters the launch of flights from Istanbul's Sabiha Gökçen Airport will code share in cooperation with Turkish Airlines. “The new routes from Istanbul will be served by two new planes and will create some 75 new jobs,” he added.
Over 2007 business in İzmir outperformed earlier expectations, said Schwaiger. Revenue from the company's İzmir flights increased by 93 percent in comparison to 2006. Passenger numbers, on the other hand, increased by 85 percent and stood at 1 million at the end of last year. “Our target in İzmir is also to keep climbing. We estimate the new routes and the new fleet to create 66 new jobs in İzmir. One of our top priorities will be to promote the Aegean region's tourism to grow a different style of tourism from the one we already have in Antalya.”
In 2007 SunExpress' revenue increased by 23 percent from 244.4 million euros at the end of 2006 to 302.8 million euros. Passenger numbers increased from 2.35 million to three million. “Our steep growth in the last years makes us confident we can do the same in 2008. Our plan is to expand our fleet, carry at least four million passengers, earn revenue of 365 million euros, and continue growing in İzmir and Antalya. We are also looking for a successful start at Istanbul Sabiha Gökçen,” Schwaiger concluded. |
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30.01.2008 15:58:10 |
The new wave of cold weather coming from Black Sea region and affecting most parts of the country is expected to last until Friday, according to news reports yesterday.
Heavy storms hit the Aegean and Black Sea regions as well central and southern Anatolia and Marmaris.
Strong winds swept across the popular holiday town Bodrum on Turkey's western coast uprooted trees, damaging electricity lines and causing several fishing boast to sink. The storm is expected to continue through today.
Giant waves in Black Sea coastal province of Zonguldak crashed through breakwaters. Strong winds of 92 kilometers per hour in the Aegean province of İzmir tore off rooftops and damaged electricity cables around the city.
Avalanche in Tunceli
An avalanche occurred Monday night on the road connecting the eastern province of Tunceli to Erzincan, the Anatolia news agency reported. Some 41 people were unable to move while 25 bus passengers were sent to Tunceli once the road opened where they spent the night at a nearby boarding school. Another 16 people stayed in a gendarmerie station until the roads were cleaned up.
Heavy snowfall affected the entire country, especially the central and eastern Anatolia regions. The expected snowfall for Istanbul came at late Monday night and is expected to affect the Anatolian side of the city mostly.
The road between central Anatolian province of Kayseri and Sivas was closed down due to snowfall, while the road connecting Ankara to Kayseri was partly closed down too Monday night. Trucks transporting newspapers could not reach Kayseri and flights from Kayseri to Istanbul and İzmir were canceled as well.
Close to 4500 roads leading to villages across the country have been blocked.
Regional meteorology officials said that the snowfall is expected to continue to the end of this week.
Snowfall hits Greece:
Sudden heavy snowfall across much of Greece yesterday and gale-force winds in the Aegean sea grounded dozens of flights, forced ships to remain docked in ports and cut power in many areas, officials said.
Snow flakes even made a brief appearance over the Acropolis in central Athens with heavier snowfall causing traffic disruptions in the capital's northern suburbs.
"There is a ban on sailing at least until this afternoon from the port of Piraeus to all Aegean islands," a Merchant Marine official who requested anonymity told Reuters. "All ships including passenger ferries for the islands have been ordered to stay in the port for the second day."
The other nearby ports of Lavrio and Rafina had also banned ships from leaving apart from a ferry to the nearby island of Evia, she said.
Dozens of domestic flights from Athens to the islands including Crete, Samos and Milos were cancelled due to the strong winds.
Meteorologists said the weather would improve by Wednesday but temperatures would remain below freezing.
"The winds will continue to be strong until tonight and temperatures will drop to minus 9 Celsius mainly in northern Greece," metereologist Theodore Kolydas told broadcaster Mega TV.
Greece's power utility PPC said the winds and falling trees had caused power outages, including in the northern city of Thessaloniki.
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29.01.2008 12:50:42 |
'This conference did not intend to make a statement. We are not suggesting that all Native Americans are of Turkish descent,' says Ali Çınar. 'However what came out of the conference is that the link between the groups needs to be studied in a more serious way'
On a quest to determine whether kinship exists between Turks and Native Americans, a New York-based Turkish group organized a conference last weekend searching for similarities between the two peoples.
The main question at the conference last weekend titled “Commonalities between Turks and Native Americans” dealt with the possibility of American Indians coming from a Turkish bloodline.
The Istanbul University Alumni Association (IUMEZUSA) organized the conference. Although the question might seem absurd to many, participation in the conference was very high.
Over 400 people, including the director of the Eastern Region Bureau of Indian Affairs of the U.S. Department of the Interior attended the conference. The panelists were Brian Paterson, United South and Eastern Tribes & Bear Clan representative to the Oneida Indian Nation's Men's Council and Clan Mothers, Professor Timur Kocaoğlu, visiting scholar at Michigan State University, Professor Türker Özdoğan, George Washington University, Professor Marjorie Mandelstam Balzer, Georgetown University's Anthropology and Archeology of Eurasia Department and Associate Professor Carol Chiago Lujan, Arizona State University's founding director of the American Indian Studies Program.
“This conference was an attempt both to strengthen our relations (as Turkish Americans) with the American Indians and also to call for furthering serious academic studies in the related area,” said Ali Çınar, the president of IUMEZUSA.
For many years, there were occasional stories related to the commonalities between Turks and Native Americans in the Turkish media. For example language similarities were always portrayed as the strongest link between the two groups' association. It is widely known in Turkey that French linguist Dumesnil found more than 300 Turkish words in native Indian languages: Türe and Töre (Tradition), Yanunda and Yanında (Near), Atış and Ateş (Fire) to name a few.
For some groups, the commonalities of Native Indian languages and Turkish are normal because some regard all human languages as descendants of one Central Asian primal language. One group supporting the Sun Language Theory are the ultranationalists. The theory further proposes that the only language remaining more or less the same as this primal language is Turkish. For others, the connection between Native Americans and Turks is far-fetched and they argue that these kinds of stories are stretching the imagination.
Although many Turks know these kinds of stories, they were quite surprising to many American Indians attending the conference. The Native American academics at the panel claimed that although there are several cultural and linguistic similarities between Turks and Native Americans it is not scientifically possible yet to say that Native Americans are of Turkish descent. The panelists also drew attention to a study that was undertaken by a leading Russian geneticist, Ilya Zakharov, who in his 1998 study claimed that he had taken a giant step toward identifying the precise origin of Native Americans, based on his genetic studies of the Tuvan people in Siberia. Zakharov, deputy director of Moscow's Vavilov Institute of General Genetics, said he found a DNA link between American Indians and the Tuvan people. He also pointed out that the Tuvans are mainly Turkic speaking nomadic farmers who herd camels, yak, sheep, goats, and reindeer. Academics said more work is needed in this area.
Paterson, on the other hand, claimed that maybe Turks are of Native Indian descent.
“This conference did not intend to make a statement. We are not suggesting that all Native Americans are of Turkish descent,” said Çınar. “However what came out of the conference is that the link between the groups needs to be studied in a more serious way.”
Çınar also mentioned the main purpose of the conference was to strengthen relations between Turkish Americans and Native Americans. “In the U.S. Senate there are 15 Native American senators. Therefore I see this conference also as an important element in strengthening the Turkish lobby and increasing its supporters in the U.S. Senate.”
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26.01.2008 18:00:06 |
In an effort to strengthen Greek-Turkish business relations, the Turkish and Greek prime ministers hosted a business forum in Istanbul attended by Greek and Turkish business delegations covering all sectors.
The strengthening of economic ties and collaborations is crucial to the improvement of political relations between Greece and Turkey, said Turkish Prime Minister Recep Tayyip Erdoğan at the Turkish-Greek business forum held in Istanbul Friday on the occasion of the visit of Greek Prime Minister Kostas Karamanlis.
The forum was held on the third day of the Greek prime minister's official visit to Turkey, the first official visit from a Greek premier since Karamanlis' uncle Constantine visited 49 years ago. Both leaders addressed business delegations from Greece and Turkey at a forum and encouraged them to press forward with investments and business collaborations.
“The cooperation of businesses, institutions and NGO's are pushing politicians forward to cooperate and create common policies,” said Erdoğan. “The contribution of the business world is especially vital in this partnership.”
The common goal of the two countries is the further strengthening of cooperation between Turkey and Greece, said Karamanlis for his part, but the development of economic and commercial relations and promotion of investments are not limited to financial outcomes but form the groundwork for broader, mutually beneficial cooperation between the two countries.
"I believe our economic collaborations pave the way for greater rapprochement between us and highlight in the most expository way the lost gain that tension and friction have cost us. In that sense, they lay the groundwork for constant deepening of our bilateral relations," Karamanlis said.
Erdoğan welcomed Karamanlis' announcement at the forum that Greece will support İzmir's bid to host EXPO 2015.
The dialogue on advancing economic relations between the two countries must be continuous, both prime ministers said, and to that effect Karamanlis noted that the Greek side has proposed that the 11th conference of the Greek-Turkish Cooperation Group on Trade and Economic Cooperation be convened in Athens in early February. Erdoğan, on the other hand, said the fourth conference of the Greek-Turkish interministerial economic committee was due to be held in Turkey in the first quarter of 2008.
The trade volume between Greece and Turkey is nearly $3 billion, and Erdoğan said both sides expect it to reach $5 billion soon.
In terms of investments, Greece has shown more activity, having invested nearly $5.5 billion in Turkey. Karamanlis made specific note of the investments by Greek banks in Turkish banks, and described the investment initiative of Turkey's Ziraat Bank to operate branches in Greece as interesting. Erdoğan also said he hopes investments from Turkey to Greece as well as collaborations of the two countries as they try to compete in a global market will increase. He and Karamanlis noted the cooperation between Greek and Turkish construction firms in Amman and said similar actions could follow in sectors such as tourism and renewable energy sources.
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Ferry tours from Bodrum to Greece's Samos Island will become operational in May in an effort to boost relations and commercial ties between Greece and Turkey, said the chairman of the Bodrum Trade Chamber.
Speaking during a promotional visit to Kos Island in Greece, Mahmut Serdar Kocadon said the volume of trade between Turkey and Greece had increased from $700 million to $5 billion in the past five years. He said they aimed to make use of this growth in commercial relations to aid the provinces along the Aegean Sea.
“We thus prepared a common tourism package in order to promote the historical and cultural values of both countries,” he said. “We will launch the ferry tours between the Aegean costal town of Bodrum and Greece's Samos Island this May.”
Kos purchases fish from Bodrum:
Georgios Kristis, Kos Trade Chamber chairman, said works were underway to promote commercial and cultural relations between Kos Island and Bodrum.
Commercial trade showed an increase of 90 percent per year with neighbor Bodrum in the past 10 years in terms of tourism, yacht tourism in particular, souvenirs and construction materials. Turkish and Greek businessmen have made business agreements of around $60 million for this year.
“We still have potentially encouraging commercial relations with Bodrum. Many Greek companies and businessmen have already ventured into joint business together with their partners from Bodrum. We will expand this collaboration to other fields including sport and culture-related areas as well.”
The restaurants based in the Greek islands of Leros, Kalymnos and Kos purchase their fish (sea bass and gilthead bream) from Bodrum fishermen. We want to further increase this potential, according to him.
Samos Island:
Samos is one of the principal and most fertile of the islands in the Aegean Sea that closely adjoin Anatolia, from which it is separated by a one-mile strait.
Among notable personalities from the island are the philosopher Epicurus. The astronomer Aristarchus of Samos, whom history credits with the first recorded heliocentric model of the solar system, also lived in Samos. The historian Herodotus resided in Samos for a while too.
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Bodrum Peninsula Promotion Foundation (BOYTAV) Chairman Mehmet Kocadon has said they will promote Bodrum at a tourism fair to be held in the Netherlands from Jan. 8-15. Kocadon said they will introduce the history, culture and nature of Bodrum as well as its blue cruises which draw tourists the most. Noting that the Netherlands is an important market in the aspect of tourism, Kocadon said that 30-40,000 Dutch tourists visit Bodrum each year. |
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A Camel fight will be organized for the fourth time in the district Yalıkavak, Bodrum this Sunday. Income from the event will go toward supporting the establishment of a kindergarten. “We had exciting moments during last year's fights and this year we will witness colorful scenes as well. Our children will get an education center with the income earned from the fights.” Yalıkavak Mayor Mustafa Saruhan said.
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