The secondary public offering for Turkey’s state real estate development company has proved every bit as attractive to investors as had been predicted when it was first announced back in February.
It’s a result that apparently justifies both the plan to sell a further 25.86 per cent of the company, and the subsequent decision to postpone the sale taken in June in the wake of widespread civil unrest and calls for the resignation of Turkish Prime Minister Recep Tayyip Erdogan. Continue reading »
Turkish house prices are on a seemingly endless rise. The latest figure, for May 2013, shows an increase of 12.2 per cent annually.
Turkey is used to double digit house price growth rates. Since the Central Bank of Turkey started producing its house price index in 2010, growth rates have almost always been in double digits, and rising. But economic growth has slowed from 8 per cent plus to around 2 per cent. Chart of the week takes a look at what is driving the market. Continue reading »
A surge of Gulf interest in Turkish property has prompted developer Agaoglu to open offices in Dubai to exploit these flourishing commercial links, writes Simeon Kerr.
Ali Agaoglu, president of the developer, says his company has since May sold about 1,300 Istanbul units to investors from Saudi Arabia, the United Arab Emirates and other Gulf states. Continue reading »
It doesn’t take much familiarity with global property markets to work out that the concept of risk-free real estate development is, well, pure fantasy. Investment risk is like death and taxes: unavoidable, isn’t it?
Perhaps not if the interest in a planned secondary offering and capital expansion by Turkey’s Emlak Konut is anything to go by. The sale is worth noting given that Emalk’s’s unusual business model has to a large extent done the seemingly impossible – eliminated most the risk associated with the development of the mega housing projects required to meet the needs of Turkey’s growing population and booming economy, but not at the expense of profitability. Continue reading »