Turkey Financial News

Posted by meb at July 19th, 2009

The process involved in sale of homes to foreigners in Turkey is still full of problems for all sides. Various bureaucratic barriers and security investigations that take a long time are turning out to be quite expensive for Turkey in the end.

In Antalya alone, the spot in Turkey that sees the most real estate sold to foreigners, there are 2.5 billion euros of sales that are blocked annually for various reasons. The fact that permission often takes six months to come from the Aegean Army Command headquarters means that many foreigners simply give up on their plans to buy homes in the end. According to information provided by sector representatives, around seven out of 10 sales wind up being cancelled due to these factors. It appears that the wounds have still not healed from the experience of having the Turkish Constitutional Court render decisions on two different occasions to cancel permission for the sales of homes to foreigners. Now real estate agents are calling for the bureaucratic barriers blocking the sales of homes to foreigners in Turkey to be finally lifted, with hopes that this will help enliven the housing sales sector. (more…)

Posted by meb at April 14th, 2009

A reduction of the value-added tax (KDV) in the real estate sector, part of government’s efforts to fend off the ongoing global financial crisis, has led to an increase in the sale of residences in Turkey’s prominent tourism destinations.

After experiencing a 70 percent contraction in sales amid global financial turmoil, real estate agents in Alanya and Bodrum said sales had increased by 40 percent in just the last few weeks compared to the period prior to the KDV cut. Upon hearing of the tax break, parties interested in buying property here came from Norway, Denmark, Germany, the Netherlands and Ireland. (more…)

Posted by meb at February 5th, 2009

The boom in Turkey’s construction industry has gone bust, affected by the global economic crisis, as industry players find themselves with many properties and no buyers.

Thinking that the housing demand they experienced in 2004 and 2005 would continue, many companies operating in the construction industry accelerated their home-building speed. Now the crisis has caught them unprepared, as construction companies have housing in their hands to sell than they can find buyers.

The construction industry has been hit hard by the global economic crisis, said Erhan Boysanoğlu, chairman of Mesa Mesken Inşaat. “We expect the market to be revived by the last quarter of the year, which will hopefully enable us to get rid of our housing stock by the spring of 2010.” (more…)

Posted by meb at January 2nd, 2009

As Turkish construction companies seek ways to stay afloat under the strain of the financial crisis, which continues to batter global markets, the weakest links will not escape elimination in 2009.

Since the most destructive effects of the crisis are hitting the construction sector, Turkish companies are also feeling the heat. Having seen a drop of 4.3 percent in the third quarter of 2008, the sector shrank by 1.1 percent in the first nine-month period of the year. Four years ago no construction company would have imagined such a downfall in the sector. Beginning in 2004, the construction sector entered a new era. Due to economic stability, real estate interest rates fell dramatically and the sector experienced in its heyday. Numerous new mass building projects were introduced, people flocked to the sales offices of construction companies to buy apartments, paying large sums of money. This trend grew, turning big cities into giant construction sites. The breathtaking increase in demand encouraged many companies that had never worked in construction before to enter the construction sector. However, it seems companies that entered the sector without enough capital and experience will have to leave the stage soon. (more…)

Posted by meb at December 12th, 2008

Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum has bought a 40 percent stake in private developer Damac Properties that plans to invest $6 billion in a Turkish coastal project, Vatan daily reported on Friday.

The project includes construction of hotels, houses, shopping malls and marinas on the southwest coast of Turkey, which attracts millions of tourists every summer.

“Dubai’s Sheikh al-Maktoum will gain a right in the project by buying 40 percent in the group,” said Cenk Fis Unlucerci, an official at Debba, a subsidiary of Damac Properties in Turkey, was quoted as telling Vatan newspaper. (more…)

Posted by meb at November 17th, 2008

The government is taking steps to make it easier for the citizens of Gulf states and Turkic republics to buy real estate in Turkey by taking into consideration whether or not Turkish citizens are allowed to invest in real estate in those countries.

After making it possible for Turkish citizens abroad to bring money back into Turkey under the Varlık Barışı tax regulation, the government is now looking for ways to make it easier for citizens of the Gulf states and Turkic republics to buy real estate in Turkey.

The Varlık Barışı code made it easier for Turkish citizens abroad to invest in Turkish assets by lowering and under certain circumstances eliminating the heavy taxes levied on foreign holdings coming into the country. (more…)

Posted by meb at November 3rd, 2008

Turkey’s trade deficit shrank unexpectedly in September as a weaker Turkish lira, or YTL, helped boost exports to neighboring countries and reduce demand for imported goods.

The gap narrowed to $5 billion from $5.4 billion a year earlier, Turkish Statistical Institute, or TÜİK, in Ankara said on its Web site late Friday. The deficit, which narrowed for the first time since April 2007, was forecast at $5.8 billion, according to the median estimate of 12 economists surveyed by Bloomberg.

“Our exports are growing and at the same time capital goods and consumption imports are losing momentum,” said Ozan Gazitürk, an economist at Şekerbank in Istanbul. “Turkish companies have less tendency to invest and buy imports.” (more…)

Posted by meb at October 30th, 2008

Representatives of the International Monetary Fund met with Turkey’s Mass Housing Administration, or TOKİ, for the first time Monday, to find out the challenges faced by Turkey’s housing industry.

The IMF committee, which included Rachel Van Elkan, who will become IMF chief to Turkey, and IMF representative Davide Lombardo, met withTOKİ chief Erdoğan Bayraktar and other TOKİ officers for 1.5 hours.

“Does Turkey confront problems in the financing of the houses?” asked the IMF committee during the meeting. They also wanted to know whether the provision of mass housing could provide a model for other countries.

The IMF committee was informed about the institutional structure and major activities of TOKİ, while TOKİ officers gave a visual presentation on the administration’s areas of operation. (more…)