Investment Support and Promotion Agency of Turkey REAL ESTATE

101 Pages·2014·4.64 MB·English

The Real Estate Sector in Turkey
Presented by

The Real Estate Sector in Turkey

Preface
“The Real Estate Sector in Turkey”, written in trillion. More than half of the world’s trade takes place
collaboration with JLL, aims to assist individuals and within a four-hour flight radius of Turkey – a key reason
companies wishing to invest in Turkey by providing why multinational companies have chosen Turkey as a
information on the real estate sector in the country. This strategic regional hub for their operations.
report consists of information on a variety of topics that
investors take into consideration during the real-estate Furthermore, the real estate investment environment in
investment process. These topics include the economic Turkey has progressed in an investor-friendly fashion in
outlook, an overview of Turkey’s residential, office, retail recent years thanks to the reforms that have been
and logistics markets, mega projects, the property implemented. With the “Abolishment of Reciprocity Law”
acquisition framework in Turkey, as well as building and that entered into force in 2012, persons with foreign
occupancy permits. nationality can buy any kind of property (house, business
place, land, and field) in Turkey within the legal
Turkey is a dynamic and growing G20 economy that links restrictions. Moreover, some fiscal measures, such as
east and west in a unique way. In addition to being one decreasing the value added tax and an annulment of
of the world’s fastest growing economies, Turkey also stamp duty taxes, were taken in the housing market.
supports international investors’ growth via a
business-friendly agenda and through access to a large I would also like to take this opportunity to remind you
domestic market and neighboring international that the Investment Support and Promotion Agency of
markets. Turkey (ISPAT) is not only the official organi(cid:55)ation for
promoting Turkey’s investment opportunities to the
Strong market fundamentals, such as a young and global business community, but also a top-notch resource
dynamic population with an average age of 30, a well- center featuring the most in-depth and up-to-date
educated work force, an increasing employment rate, information on every issue related to Turkey. It goes
a growing middle-class, and a unique geographical without saying that our dedicated teams are more than
location, have all helped transform Turkey into the willing to do the utmost to provide you customi(cid:55)ed
fastest growing OECD member country. As of the end of guidance on a fully confidential basis.
2017, Turkey is the 13th largest economy (GDP at PPP) in
the world, with an average annual growth rate of 5.6 Finally, I would like to extend a special thanks to the team
percent since 2003. from JLL for sharing their expertise and market insight
with us in contributing to this report.
Turkey’s location at the crossroads of Europe, Central
Asia, and the Middle East, provides easy access to the We hope this report will benefit all those corporations,
European, Middle Eastern, North African, Central Asian, individuals, and business executives who are interested in
and Gulf markets. These markets comprise more than real estate investment in Turkey. Please feel free to get in
1.6 billion people and account for a total GDP of USD 28 touch with us about any of your business-related queries.
Arda Ermut
ISPAT President
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shared
AMBITION
JLL (NYSE: JLL) is a leading professional
services firm that specializes in real estate and
investment management. A Fortune 500
company, JLL helps real estate owners,
occupiers and investors achieve their business
ambitions. JLL had nearly 300 corporate offices,
operations in over 80 countries and a global
workforce of more than 77,000.
This report is exclusively prepared for ISPAT
by JLL Turkey.
jll.com.tr
Contents
1. Economic Outlook 5
a. GDP 6
b. Inflation 7
c. Socioeconomic Indicators 8
d. Foreign Direct Investment in Turkey 9
i. Foreign Direct Investment in the Real Estate Sector 10
2. Residential Market 13
a. Market Overview 14
b. Demand & Supply 14
c. Mortgage Interest Rates 15
d. Sales Numbers & Prices 16
e. Trends & Forecasts 18
f. Urban Transformation Projects 18
(cid:472)(cid:509)(cid:3)O(cid:411)ice(cid:3)(cid:16)arket(cid:3) (cid:471)(cid:470)
a. Market Overview 22
b. Demand & Supply 23
c. Major Completed & Pipeline Projects 24
d. Vacancy Rate & Prime Rent 24
e. Take-Up & Major Leasing Transactions 25
4. Retail Market 27
a. Market Overview 28
i. Retail Demand 28
ii. Retail Supply 29
iii. Retail Density 29
iv. Prime Rent 30
v. Major Completed & Pipeline Shopping Centre Projects 30
b. Istanbul High Streets Retail Market Overview 32
i. Supply & Demand 32
ii. Prime Rent 33
c. High Streets in Ankara & Izmir 34
5. Logistics Market 35
a. Market Overview 36
b. Demand & Supply 37
c. Take-Up & Major Leasing Transactions 39
d. Prime Rent 40
6. Hotel Market 41
a. Market Overview 42
i. Tourism 42
ii. Demand 42
iii. Supply 42
iv. Performance 42
v. Investment 43
b. Recent Openings & Pipeline Projects 43
c. Health/Medical Tourism 44
d. Halal Tourism 44
7. Mega Projects 45
a. Vision 2023 46
b. Completed & Ongoing Projects 46
8. REICs & REIFs & Real Estate Certificates 52
a. REICs 52
b. REIFs 54
c. Real Estate Certificate 54
9. How To Buy Property In Turkey 55
a. Legal Structure 55
i. Abolishment of Reciprocity Law in 2012 55
ii. Acquisition by non-Turkish Nationals 56
1. Legal Structure for Foreign Real Persons 56
2. Legal Structure for Foreign Legal Persons 56
a. Acquisitions by Foreign Companies 56
b. Acquisitions by Companies with Foreign Capital 57
b. Taxation on Acquisition, Utilization and Sales of a Property 57
c. Ownership Models for Developers 59
10. Building Permits & Occupancy Permits 60
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5th
The largest economy of C EE and the largest
oo economy in Europe overall
USD 26,500
Almost GDP per C apita on P P P
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USD 130 billion
F DI over the last 10 years
oo 80.8 million 31.8 million
population and
workforce
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EE
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k

o
o
a. GDP
l
t According to the World Bank GDP (PPP) Ranking, Turkey is the largest economy
of Central and Eastern Europe (CEE) and the fi(cid:414)h largest economy in Europe
overall. According to I(cid:16)(cid:9) figures, Turkey’s PPP-ad(cid:39)usted (cid:10)(cid:7)P actuali(cid:55)ed at US(cid:7)
u 1,908 billion as of 2015 and reached USD 1,988 billion as of 2016 year-end. The
table below shows that Turkey’s GDP figures are higher than many CEE
countries’ GDP figures. The Ministry of Development’s 2018–20 Medium-Term
Program (MTP) projects that the growth rate will be maintained at 5.5% for
2017, while the IMF projection indicates a growth rate of 5.1%.
O
PPP Adjusted GDP (bn USD)
PPP GDP (bio USD) 2014 2017* 2020*
Russia 3,891 4,000 4,451
Turkey 1,780 2,133 2,513
Poland 963 1,111 1,292
Romania 396 474 564
c C(cid:55)ech Republic 320 373 425
Bulgaria 132 152 177
Serbia 96 107 126
i
Croatia 89 100 115
Lithuania 81 91 106
m
Latvia 47 53 63
Source: World Economic Outlook Report, October 2017, (*) Forecast
In recent years, the Turkish economy showed a better growth performance
compared to Advanced Europe, Euro Area, and Emerging European countries.
o According to IMF forecasts for the next three years, the Turkish economy will
maintain a higher growth rate than Advanced Europe and Euro Area country
groups.
n
GDP Growth Comparison
5%
4%
o
3%
2016
c
2%
2017*
2018*
1%
2019*
E
2020*
0%
Advanced Europe Euro Area Emerging Europe Turkey
Source: World Economic Outlook Report, October 2017, (*) Forecast
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