Construction & Real Estate Sector
In Turkey
March 2010
1. About market
・What sort of varieties are there in Turkish homes. (Outside appearance/material, how many stories
high, typical layout, etc.)
There are numerous styles and varieties present in the housing sector in Turkey, ranging from
slums to high-rise residences. Therefore, there isn’t any typical appearance, structure or layout.
From flats in urban centers to villas in suburbs, there are a multitude of options to choose from
when looking for housing in Turkey. Major metropolitan areas have the most modern and
complete environment for an extravagant life in the city, where luxurious residence complexes
offer all the daily amenities such as private security, kindergartens, sports complexes, social
facilities, parking lots and shopping malls for their residents.
The introduction of the Mortgage Law in 2007 enabled even easier financing and took the Turkish
realty sector to new levels.
Source: Turkish Statistical Institute & YEM (The Building Information Centre)
Reinforced concrete is the construction system most favored in Turkey, for 93% of the buildings for which
licenses were issued in 2007 were of the reinforced concrete type.
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Source: Turkish Statistical Institute & YEM (The Building Information Centre)
Source: Turkish Statistical Institute, State Planning Organization & YEM (The Building Information Centre)
Source: YEM (The Building Information Centre)
http://www.invest.gov.tr
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Source: The Association of Real Estate Investment Companies & YEM (The Building Information Centre)
For more on the construction & real estate sector in Turkey, please see the files “Real Estate Industry
Report”, “Turkish Construction Sector Report”, “0903 R - Construction Industry – HD”, “Turkey’s Rising
Stars-JJL Report” and “Colliers Report”.
・ If homes built on “unit base” (homes built by inserting prefabricated toilets, etc.) are being sold
already or not.
There are numerous companies in Turkey providing production and sales services of prefabricated
buildings, as seen in the link below:
http://www.alibaba.com/countrysearch/TR-suppliers/Prefabricated_Building.html
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2. About companies in the market
・ The outline (name, revenue, businesses, etc.) of 5 biggest companies that provide residential homes
in Turkey.
Main construction companies in Turkey are:
Company
Acarlar
Agaoglu
Akfen
Alarko
Dogus
Eczacibasi
Enka
Eston
Gama
Guris
IC Ictas
Is Koray
KKG
Limak
Maya
Mesa
Nurol
Oyak
Sinpas
Soyak
Tepe
Tekfen
Yuksel
Website
http://www.acarlarinsaat.com.tr/index.asp
http://www.agaoglu.com.tr/en/
http://www.akfen.com.tr/en/index.php
http://www.alsimalarko.com.tr/
http://www.dogusinsaat.com.tr/index.asp?sirket_ID=1&dil_ID=2
http://www.eczacibasi.com/channels/1.asp?id=843
http://www.enka.com/Default.aspx
http://www.eston.com/
http://www.gama.com.tr/en
http://www.guris.com.tr/en/index.php
http://www.ictas.com.tr/index.php?action=CLang&NLang=en
http://www.is-koray.com/default.asp?menuID=&hLinkGo=&Lang=EN
http://www.pelicanhillevleri.com/english/index2.html
http://www.limak.com.tr/index.php?lang=en&pid=210
http://www.maya.com.tr/maya_ingilizce/eng_index_fl.htm
http://www.mesagrup.com/en
http://www.nurolinsaat.com.tr/index.php?lang=EN
http://www.oyakinsaat.com.tr
http://www.sinpas.com.tr/eng/index.asp
http://www.soyak.com.tr/web/185-1258-1-1/soyak__en/common/home/home
http://www.tepeconstruction.com/tepe.html
http://www.tekfeninsaat.com.tr/
http://www.yuksel.net/www.yuksel.net/index1.htm
Phone (+90)
216 538 90 00
216 687 11 11
312 441 42 11
262 648 22 00
216 538 15 00
212 371 70 00
212 376 10 00
212 251 51 88
312 455 42 62
312 484 05 70
312.419 29 50
216 435 84 35
212 886 54 95
312 446 88 00
212 351 00 22
312 291 50 00
312 455 15 00
216 359 53 01
212 310 27 00
212 315 50 00
312 266 58 00
212 359 35 00
312 284 25 45
For a complete list of construction companies in Turkey, please visit the website of the Turkish
Contractors’ Association: http://www.tmb.org.tr/firma.php
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・ The different roles played by developers, builders, etc. and their respective positions in the market
(who are the decision makers, etc.)
REAL ESTATE DEVELOPERS IN TURKEY
HOUSING DEVELOPMENT ADMINISTRATION OF TURKEY – HDA (TOKI)
For more than 20 years TOKI maintained its activities for the production and implementation of the
housing and urbanization policies in Turkey. It can be accepted as the biggest developer of Turkey working
dependent on Turkish government. The projects for producing housing units for low-income groups under
favorable terms and conditions have precedence among TOKI's applications. Within the framework of the
housing campaign launched under the "planned urbanization and house production" program, TOKI
intends to provide 5-10% of the emergency housing requirement which was estimated to be 2,5 million by
the TURKSTAT and the SPO with a view to contributing to regular urbanization by:
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Imposing discipline in the housing sector by ensuring that house production follows a certain
model through alternative applications,
Producing housing units in regions where the private sector fails,
Ensuring that low income groups acquire houses under favorable terms and conditions,
Ensuring slums conversions in cooperation with municipalities.
Partnerships of TOKI
1 - Emlak Real Estate Investment Company
2 - Real Estate Marketing, Project Management and Service Company
3 - TOBAS Company
4 - Real Estate Expertise Company
5 - Vakıf Real Estate Investment Company
6 - Vakıf Construction, Restoration and Trade Company
KIPTAS: EXAMPLE OF MUNICIPALITIES
KIPTAS is a participation of Istanbul Metropolitan Municipality. KIPTAS builds low cost- small size housing
units in order to avoid premature growth of the city and to provide secure and cozy places to people with
low income.
COOPERATIVES IN TURKEY: EXAMPLE OF BATIKENT PROJECT
Using cooperative institutions is also a common system for developing new housing units. In this type of
development cooperatives are established with their future residents. They pay monthly payments to
these institutions to finance their project. This means the marketing procedure of a project is done before
beginning of the construction.
The Project of Batikent has been the biggest mass housing project accomplished through cooperatives in
Turkey. A whole city has been developed through the project. Having commenced in 1979, with the
foundation of Kent-Koop which has been a union of housing cooperatives, the Batikent Project has
sheltered 200,000 persons in 45,000 housing units since 1983, in which the first settlement had begun
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with only 516 housing units. For more information about “Turkish Urban Cooperatives” please refer to
Central Union Of Turkish Urban Cooperatives - www.turkkent.org.tr/eng/
REICs (GYOs)
REICs (Real Estate Investment Companies) are the institutions that can invest on real estate, real estate
development projects and establish partnership structures, in order to undertake large-scale, distinctive
real estate projects. Investing to the REICs is the only investment opportunity to the sector in Turkey
except for direct purchase of housing units.
REIC’s are exempt from corporate & income taxes and they are required to float at least 49% of shares to
public. Turkish REIC’s are mostly affiliated to large established groups.
There are 14 REICs listed in the Istanbul Stock Exchange (ISE) with a net asset value of US$ 2.8 billion as of
Dec. 31, 2008: Akmerkez REIC, Alarko REIC, Atakule REIC, Dogus – GE REIC, EGS REIC, Is REIC, Nurol REIC,
Ozderici REIC, Pera REIC, Saglam REIC, Sinpas REIC, Vakif REIC, Yapı Kredi Koray REIC, Y&Y REIC.
In addition to the 14 public REICs, there are 13 more REICs that have been established and have started
operations, forming their portfolios and preparing for the initial public offerings. With the quotation of
Agaoglu, Akfen, Albayrak, Buyukhanlı, Dedeman, Emlak Konut, Han Yapı, Idealist, Kiler, Marti, Maya,
Torunlar and TSKB REICs to the ISE, there will be 27 REICs.
The interest of foreign investors in Turkish REICs was first revealed when Dutch real estate group Corio
purchased 46.9% of Akmerkez REIC. Later, foreign investment funds such as Credit Suisse, JP Morgan
Chase & Co, NCH New Europe Property, East Capital Asset Management and Turkish Investment took up
positions in REIC stocks, with the total shares of foreigners in REICs increasing to 30%. US-based fund
manager Rudolph Younes purchased 13.35% of Y&Y (Ihlas) REIC and GE Capital Corporation purchased
25.5% of the Dogus GE (Garanti) REIC from its previous owners. Foreign investors also have shown great
interest in the existing real estate portfolio of REICs, such as the Eskisehir Neo Shopping Mall of Yapi Kredi
Koray REIC and the Kanyon Project of Is REIC. In the coming period, mergers and acquisitions in REICs are
expected to continue. Furthermore, foreigner investors are expected to start founding their own REICs in
Turkey. REICs can be classified in “Asset Management” and “Financial Services” companies in Turkey.
FOREIGN DEVELOPERS
Institutional investors and real estate developers in Turkey:
Emaar Turkiye was formed in June 2006 by real estate agency Emaar Properties PJSC to make real estate
investments in Turkey.
German capital investment company Union Investment Real Estate announced plans to invest 130m euros
in a shopping centre in Kayseri, linking up with Multi Turkmall - the Turkish subsidiary of Multi
Corporation, the Netherlands-based shopping developer and operator - for the mixed-use project.
The Bosphorus Estate Fund - a partnership between Merrill Lynch Global Principle Investors and Turkey's
Krea Real Estate - has committed $1bn for investment in Turkey's real estate sector over the next three
years, with residential real estate, shopping malls and hotel projects on the cards. In keeping with its
investment aims, the fund bought the Neo Shopping Mall in Eskisehir for approximately $94m this year.
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The founder of UK-based homebuilding company Redrow, Steve Morgan, announced plans for $1.5bn
worth of development in Turkey. Morgan and UK-based international real estate investments group
Salamanca are providing financing for local developer Yesil Insaat for the construction of a mixed-use
urban development in Istanbul with 12,000 homes and 500,000 sq feet for offices and shops.
One of the biggest deals was the complete acquisition of Istanbul's Cevahir shopping mall by UK-based St
Martins Property Group back in March 2007. In November 2006 St Martins acquired a 50% stake of the
mall from Istanbul's Metropolitan Municipality for $421m, following which it acquired the remaining stake
from Cevahir Holding, a construction heavyweight in Turkey.
PROJECT FINANCE COMPANIES IN TURKEY
Aareal Bank AG - Istanbul Representative Office
Ebulula Mardin Caddesi, Maya Meridyen Is Merkezi D:2 Blok, Kat 11 Akatlar / Istanbul / Turkey
Tel: +90 212 349 02 00
Fax: +90 212 349 02 99
www.aareal-bank.com
EUROHYPO AG - Istanbul Representative Office
Kanyon Ofis Blogu Kat:3 Buyukdere Caddesi No:185 34394 Levent-Istanbul / TURKEY
Tel: +90 212 317 22 00
Fax: +90 212 317 22 10
www.eurohypo.com
CONSULTING SERVICE COMPANIES IN TURKEY
At present, various foreign origin real estate companies including Jones Lang LaSalle, Colliers Resco, CB
Richard Ellis, DTZ provide both consulting and brokerage services in Turkey, like their local counterparts
Kuzeybati, NAI Pega, Turel & Turel. The extent of their consulting services include market research,
feasibility and investment analysis, property valuation, real estate development consulting and real estate
portfolio management.
CONSTRUCTION COMPANIES
Finally construction companies are the other players of the sector. They can sign contracts as contractors
or sub-contractors, realize new development projects, construct companionships with other developers or
construct cooperative institutions. In addition to innumerable small construction companies, there are
dozens of larger firms capable of undertaking major contracts and/or specialist work. Some large and wellknown construction companies are included in partnership structures with banks establishing REIC.
Some large construction companies are: Acarlar, Agaoglu, Akfen, Alarko, Dogus, Eczacibasi, Enka, Eston,
Gama, Guris, IC Ictas,Is Koray, KKG, Limak, Maya, Mesa, Nurol, Oyak, Sinpaş, Soyak, Tepe, Tekfen and
Yuksel. For a complete list of construction companies in Turkey, please visit the website of the Turkish
Contractors’ Association: http://www.tmb.org.tr/firma.php
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3. Decision of purchase by individual customers
How do typical Turkish customers decide to buy a house? (Example: They recognize certain product
through TV, newspaper, etc., then visit model house and then contact local builder, home company,
etc.)
Turkish customers usually contact real estate dealers or sales offices of the residences. Real estate
advertisements in newspapers and web portals are also widely used.
4. Local availability of unit parts for “unit based” homes
Steel frame used for structure, toilets, kitchen, bathroom, air-con, etc., outside material (cement
plate, ALC, windows, etc.)
For constructional steel, please contact the companies in the list below. For other suppliers, please
visit the website of IMSAD (The Association of Turkish Building Material Producers), and contact the
members of this association: http://www.imsad.org/eng/index.asp?sid=4 . There are numerous
companies in Turkey providing high quality building materials.
Company
Website
Phone (+90)
Agir Haddecilik Makine Sanayi
http://www.agirhaddecilik.com/site/eng/default.asp
216 317 13 91
Bogac Profil Sanayi
http://www.bogacprofil.com/en_main.aspx
216 472 36 46
Borcelik Celik Sanayi
http://www.borcelik.com/english/index.aspx
224 280 40 00
Borusan Mannnesmann Boru
Sanayi
http://www.borusanmannesmann.com/default.aspx
212 393 58 00
Cepa Celebcioglu Ithalat ve
Mumessillik
http://www.cepa.com.tr/eng/index.asp?ID=23
216 306 58 50
Coskun Haddecilik
www.coskunhaddecilik.com
216 420 95 27
Demirsan Haddecilik Sanayi
http://www.demirsan.org/Anasayfa_ENG.htm
216 345 24 95
Eregli Demir Çelik Fabrikaları
http://en.erdemir.com.tr/
372 329 46 61
Kroman Celik Sanayi
http://www.kromancelik.com.tr/en/home.html
262 679 20 00
Tosyali Demir Celik Sanayi
http://www.tosyaliholding.com.tr/en/
216 544 36 16
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