posted @ 12:00am, Wednesday 11 December 2013.
Exclusive interview with Mr. Fatih Tosun, Deputy General Manager of TSKB Real Estate Appraisal Company.
Mr. Fatih Tosun, Deputy General Manager of TSKB Real Estate Appraisal Company.
REImonitor: The Commercial Real Estate segments (Hotel, Office, SC/Retail ...) in Turkey are all in different stages. Could you briefly describe the current situation in Turkey and give an outlook.
Mr. Tosun: 'The Commercial Real Estate segment is continuing to grow in Turkey. In the Hotel Market , hotel investments are not only in progress in Istanbul, but also in the other cities. During the January-September 2013, the number of visitors coming to our country has increased by 6.60% as compared to the same period last year. Especially the number of those visiting Istanbul has increased considerably above the average in Turkey. We might note that the Gezi park protests have prevented this ratio from increasing even further, but also that it will not have any negative impacts on the coming period. When we look at the hotel room prices and occupancy ratios, especially in Istanbul, we observe that there is constant increase as compared to 2012, with the exception of June. We are also observing that new supplies are arriving in line with these statistics.
Specifically, the projects of brands such as Radisson, Wyndham, Shangri-La, Marriott, Hilton and Raffles have been striking in 2013.
The office stock in our 3 major cities, which pose as the locomotive of the Office Market , continues to increase, especially in Istanbul aiming to take firm steps to evolve into a finance center. By the end of 2015, the A type office stock is expected to reach 4.5 million sqm. These circumstances are causing the vacancy ratios to increase, as the office buildings are completed. The supply has started to be concentrated on the Asian side recently. In parallel with this, leasing transactions have also become more intense on the Asian side. No one can deny that the activation of the new transportation projects and the Atasehir Finance Center have made a significant impact.
On the other hand, the increase in the leasable area in the Retail Market continues to increase, although it is not as high as that during the 2007-2011 periods. As we approach the end of 2013, the supply has reached 9 million sqm and almost 40% of this supply is in the Istanbul Retail Market. The leasable area per 1,000 persons throughout Turkey has reached 120 sqm. This is an increase by nearly 2-fold over the past 5 years. Apart from Istanbul, it is observed that there is a strong incoming retail supply to the Ankara, Izmir, Bursa, Antalya, Mugla, Konya and Kocaeli provinces.'
REImonitor: How about the Residential market?
Mr. Tosun: 'Turkey continues to grow rapidly in the residential market. While a total of 607,098 residential units have been sold in 2010; 708,275 have been sold in 2011 and 701,621 in 2012; now it is expected that an all-times record will be broken in 2013 and over 1 million residential units will be sold. The residential unit prices have displayed a continued increasing trend since 2009. Starting with the 2nd quarter of 2011, the annual increase during the 2012-2013 years has always been above the annual inflation rate. One of the major causes for this has been the decline of the housing loan ratios from 1.20% down to 0.70%. In line with all of these, the housing loan volume, which was 73 billion TL in July 2012, has now reached 107 billion TL. The ratio of the mortgaged housing sales to the total housing sales has continued in the range of 40-45% over the last 3 years. And this demonstrates that the reflection of the country's economic status on the interest rate is the most determinant factor now. Therefore, low growth not only poses as an economic risk, it also stands as a risk in housing sales for us.
In the coming term, it appears that both the private sector and the public sector will concentrate on public transformation in real property investments. With the VAT ratio changes made in residential units at the beginning of 2013, the urban transformation projects were already expected to be attractive. The housing stock especially in the growth axes of Istanbul has already triggered real property investors to focus on urban transformation projects at urban centers.'
REImonitor: It is often heard that Turkey is a risky and a non-transparent market. As an appraisal company your daily work is to evaluate the market/regions, assets, land plots, investments etc. Is Turkey a nontransparent and risky market? What should/could be changed?
Mr. Tosun: 'The inadequacy in the market indicators emerge as an obstacle for global investments. Although the transactions recently made in the market have been provided to us as an indicator, the Turkish Market still needs further transparency. The statistics in the housing market provided by TUIK, Central Bank and the REIDIN.company, plus the statistics published in the Commercial segment by the related public institutions and associations are more reliable now. As a Real Property Appraisal company, we are still constrained by a market where Non-institutional companies, Individual purchases-sales are abundant. However, the ability to build their own databases and the availability of technical equipment for analyses will especially help the real Property Appraisal companies in overcoming these problems. We believe that a serious approach to this issue by both the state institutions and the private entrepreneurs will shift the market further towards transparency.'
REImonitor: Many international investors, operators, developers etc. have Turkey on their radar. What can be expected in 2014?
Mr. Tosun: 'We believe that the preference of Turkey by many international investors in all segments of real property in 2014 will be continued. We believe that the hotel, office and logistics segments will emerge with respect to investments, and the retail and the housing sectors will emerge with respect to purchasing.'
REImonitor: Green and sustainable developments in Turkey are ...
Mr. Tosun: 'There is awareness in Turkey which has started over the past 5 years. Although the 'Regulation of Energy Performance in Buildings' issued in December 2008 is a progress with respect to legislation, any steps have not yet been taken in practice. On the other hand, a green building certification system is still not available in Turkey; however, the guideline study prepared for 'Green Home Certification' by the Environment Friendly Green Buildings Association is about to be completed.
Meanwhile, this awareness influences the market in the world, thanks to the 'Green Building Certification Systems' initiating the awareness. For example, the 2011 Fannie Mae Selling Guide states: 'In order to reflect the total contribution of the energy active characteristics of the subject real property to the market value, the valuation experts definitely should compare the energy active properties of the subject real property with comparable real properties, in the sales comparison analysis grid (in the Fannie Mae valuation from).' The availability of the (Fannie Mae Selling Guide, 2011)' article poses as an indicator that the impact on market value can be measured at a place where sustainability awareness has developed.
As it has started to be demanded over the past 2 years, we will observe a rapid increase in buildings holding 'Green Building Certification' in the coming period of 5 years, upon observing the demand by contractors, developers and investors due to the environmental, social and economic factors of the market in Turkey. This circumstance will lead to changes in both the market values of the buildings and different products and services will emerge in financial services, such as mortgages, etc. This will also pose as a major factor in the activation of the economy, and especially in adding new products, especially to the construction sector and the sub-sectors. Among Green Building examples in Turkey, there are LEED, BREEAM and DGNB certified buildings.'
posted @ 12:00am, Monday 2 December 2013.
Doğuş Group, continuing to grow in the internet sector through its new investments, became partners with the global real estate information company REIDIN
According to the statement made by Doğuş Group, Doğuş is aiming for bringing a new perspective to the real estate sector, making the sector more transparent, and increasing the efficiency of the sector players with its new investment.
Doğuş Group has been lately giving acceleration to its investments in the internet sector: Partnership with the South Korean SK Group, one of the leading global information technology companies on the online shopping site N11.com; Related Group that comprises Turkey's biggest digital marketing platform Euromessage within itself; Markafoni Group through the vertical e-commerce site enmoda.com; and bonubon.com, e-commerce platform that offers premium services.
As part of its ongoing internet investments, Doğuş Group has recently become partners with REIDIN, a global real estate information company focusing real estate markets in the emerging countries. Highly preferred by real estate professionals from all segments such as international investment funds, local banks, financial institutions, real estate companies, agents and brokers, governmental institutions, developers etc., REIDIN is aiming to become the most reliable real estate information reference point and grow stronger in Turkey and other international markets through its partnership with Doğuş Group.
Established in 2007 and based in Dubai, REIDIN is the first company in the sector providing up-to-date data, information and analysis about the real estate markets in the emerging countries.
REIDIN covers 35 emerging economies on the whole, including Turkey, United Arab Emirates, China, Russia, India and Brazil.
REIDIN is specially acknowledged in Turkey for its proprietary "Secondary Real Estate Market Indices" sponsored by Garanti Mortgage, and the "New Homes Real Estate Indices" published in collaboration with REITs Association of Turkey (GYODER). REIDIN serves its clients the most extensive and in-depth analysis, indices and property/project information about the real estate sectors in Turkey.
Doğuş Group's CEO Hüsnü Akhan has stated: "Our aim is to enable REIDIN to become the most reliable reference point in its own field of activity."
Doğuş Group's CEO Hüsnü Akhan has said in his statement with regard to the partnership with REIDIN: "As Doğuş Group, our aim is to grow consistently in all our business lines and to continue to invest in the sectors that we are currently active. Both in Turkey and abroad, we continue to evaluate opportunities in the sectors that we currently operate. In this sense, our partnership with REIDIN, a global real estate information technology company focusing on emerging markets, means a lot to us, as part of our increasing investments lately in the field of information technology. Our aim is to let this partnership develop and get stronger in a short span of time and to see REIDIN as the most reliable reference point in its own field of activity."
Ahmet Kayhan, Co-Founder and CEO at REIDIN.com has stated: "We are honored and utterly happy that we have made a partnership with Doğuş Group, such a reputable and strong corporation, whilst working hard to bring a new perspective to the real estate sectors and to increase transparency, professionalism and efficiency in the sector. Doğuş Group's interest and trust in our company has showed us that we are doing the right job. It has also proved how promising this line of business is.
Now we will accelerate our operations even more with the help of this partnership with Doğuş Group. In this sense, we will increase the number of cities in Turkey that we provide index services, from 7 to 20 by the year-end and number of countries from 2 to 12. Also we are still working on several different projects such as Intelligent Mapping platforms, brand new reporting and industry-specific analysis tools and various other database systems."
About Doğuş Group:
Founded in 1951, Doğuş Group is one of the largest conglomerates in Turkey and has the vision of being a regional leader in the services sector.
The Group is active in eight core businesses: financial services, automotive, construction, media, tourism and services, real estate, energy and entertainment.
Doğuş Group has over 200 companies and a workforce of nearly 35 thousand people. The Group seeks to maximize the value of its brands, not only in Turkey but also in the regional and global context. Doğuş Group has created reputable brands with global standards and has been representing Turkey worldwide. Its name is a source of attraction for the international investors who are interested in Turkey. The Group has contributed to this process by creating a synergy with global giants including BBVA, Volkswagen AG, TÜVSÜD, CNBC, MSNBC, Condé Nast, Hyatt International, HMS International Hotel GmbH (Maritim), IMG Worldwide, South Korean SK Group, İstanbul Doors Group, International Azumi Group (Owner of ZUMA restaurants), Latsis Group, Kiriacoulis Group and the Adriatic Croatia International (ACI) Group.
Behind the success of Doğuş Group there lies a customer-focused and productivity-centered management style. This style is not only formed through material gains, but it also embodies a strong corporate citizenship approach from which the whole society can benefit. The Group implements several corporate social responsibility and sponsorship projects, with a special focus on child development, education, environment, culture & arts and sports.
About REIDIN - Real Estate Information Company:
Established in 2007 in Dubai, REIDIN is the leading real estate information company focusing on emerging markets. With offices in Istanbul and Dubai, REIDIN offers intelligent and user-friendly online information solutions helping professionals access relevant data and information in a timely and cost effective basis. REIDIN "Data & Research Team" together with a global network of Information Partners endeavors to provide high-end analysis and research support.
REIDIN Clients enjoy:
Latest real estate data and information available from emerging countries
Access to price trends and analysis, indices, listings, valuations and transactions, building and project level data in selected countries, company profiles, latest news and research from local and global information sources
Advanced search, analysis, comparables and mapping tools
Fully archived data sets
Special discounts on networking events/conferences.
posted @ 12:00am, Friday 29 November 2013.
Dubai Residential Property Price Indices: Sales Price Indices
Residential property prices in Dubai housing market performed well in October 2013. The Dubai Residential Property Sales Index for all residential increased by 7.1 points, from 232.4 to 239.5, which represents an increase of 3.05% mom. On the other hand, prices increased 21.3% yoy.
Apartment sales prices registered an increase in October 2013. Prices increased 3.16% mom and 23.1% yoy.
Villa sales prices registered an increase on a mom basis in October 2013. Prices increased 2.62% mom and 15.1% yoy.
Dubai Residential Property Price Indices: Rental Price Indices
Residential property prices in Dubai rental market increased by 1.90 points, from 87.20 to 89.10, which represents an increase of 2.22% mom in October 2013. On the other hand, rental prices increase 16.4% yoy.
Apartment rental prices show an increase on a mom basis in October 2013. Prices increased 2.36% mom and 17.3% yoy.
Villa rental prices registered an increase in October 2013. Prices increased 1.56% mom and 13.1% yoy.
Abu Dhabi Residential Property Price Indices: Sales Price Indices
The Abu Dhabi Residential Property Price Index for all residential increased by 1.40 points, from 73.60 to 75.00, which represents an increase of 1.92% mom in October 2013. On the other hand, prices increased 18.20% yoy.
Apartment sales prices registered an increase in October 2013. Prices increased 1.61% mom and 20.0% yoy.
Villa sales prices registered an increase in October 2013. Prices increased 2.04% mom but increased 14.70% yoy.
Abu Dhabi Residential Property Price Indices: Rental Price Indices
Residential property prices in Abu Dhabi rental market decreased by 0.10 points, from 62.20 to 62.10, which represents a decrease of 0.18% mom in October 2013. On the other hand, prices increased 2.60% yoy.
Apartment rental prices increased 1.46% in October 2013 compared to September 2013 and increased 7.70% compared to October 2012.
Villa rental prices decreased 0.62% in October 2013 compared to September 2013 but also increased 3.10% compared to October 2012.
Read the full report here
- December 2013
- November 2013
- October 2013
- September 2013