Real estate sector will be more ‘attractive’ in 2013

ANKARA - Anatolia News Agency

TOKİ’s apartments are seen in this photo.A sector leader says 2013 will be more attractive for the real estate sector. DAILY NEWS photo

The Turkish real estate sector is expected to revive itself in 2013 due to the increases in urban transformation and real estate sales to foreigners, according to a sector leader.

The growth seen in the real estate sector did not meet expectations this year, Işık Gökkaya, head of the Association of Real Estate Investment Companies (GYODER), told Anatolia news agency, adding the sector will end this year with growth rate around 1.5 percent.

The Turkish real estate sector was unable to meet its originally presumed growth this year as new regulations on real estate sales to foreigners and urban transformation were not fully implemented, according to Gökkaya.

800,000 estates to be sold

Following the global crisis, 2010 was the year of normalization and recovery for the Turkish real estate sector, while 2011 became the year of re-growth, Gökkaya said, adding that the sector reached the values of 2007 before the crisis and a “cautious optimism” prevailed in the third and fourth quarters of 2012.

Gökkaya said about 800,000 estates are waiting to be sold, and the sales in the third quarter reduced by 20-25 percent. If there is a dramatic increase in value-added-tax rates, the sales will decline, which will lead the stocks to increase. Basic assumptions in forecasts related to the increase in home credits were economic growth scenarios as well as interest rates of home loans and secondary market’s work activities in the housing finance system, Gökkaya said.

Turkey provides many opportunities for investors in the real estate sector thanks to increasing demand in housing and offices, urbanization activities, its geopolitical position and advantaged demographic qualities, Gökkaya said.

About 6.5 million residences are expected to be renewed within the scope of urban transformation activities, according to Gökkaya. “The real estate sales to foreigners equaled 557 million Turkish Liras within the first quarter of the year. With the reciprocity law, foreign capital inflow is expected to reach $10 billion.

The activities to turn Istanbul into a financial capital, such as the construction of the third Bosphorus Bridge and a third airport in the city, revive and accelerate the sector,” Gökkaya said.