by Christian FacileFebruary 25, 2012
More and more International real etstate developers are targeting the Turkish Market, Target for them would be to achive a plus 10% ROI. Is this possible? How to do it ?
BAD TIMES / GREAT TIME FOR LAND INVESTMENT
We like to focus not on retail but Residence/Housing and Hospitality! This two areas are for some locations and in some properties merging into ONE when we look at branded serviced apartments used for short, medium and long-term stay we try to add values.
In locations such as Dubai, close to half of the all accommodations for short stay leisure/business is made up of apartment units! Istanbul who receives more leisure and much more business visitors compered to Dubai have only ONE Property!
The reason for this is lack of long-term investment perspectives and lack of finance in the hands of local developers. Developers do not buy the land! They make a share agreement when sales takes place in the future, a normal share in Istanbul today is 45% landowner, This makes landowner value there lands at 8000-10,000us dollar /m2. In this scenario the developer are taking big risks, while landowners who does not invest only needs to wait!
So the trick for an International Developer is to wait for a period of BAD TIMES
For us, who have been active during 3 periods of BAD TIMES in Istanbul. We always get surprised when cash rich international developers refuse great offers for land in bad times? To be developed on a long-term base. Many of them returns in god times only to pay 3 times more for the same land! We are now entering a new period of BAD TIMES in Istanbul. Will we get the same answers again?
100% Land owning property developer
Currently we have a constructıon cost of 2000-3000USD m2 if we consider a Residence/Housing development in top quality! We currently have a sales price of +5000USD m2 in Istanbul's central areas ! There are many unprofessional developers and construction companies now active in Istanbul, Many Residence/Housing developments are badly planned!
Professional 100% Land owning property developer
In our book Istanbul is a great place to invest in, but wait until we offer you a plot of land with the right price, the right permits in right location! Great ROI !
Property consultant since 1996 in Istanbul.
News Source: http://www.free-press-release.com/news-istanbul-hospitality-residence-commercial-real-estate-investments-1330162280.html
|Company:||Tcomps real estate & business development in Turkey and Sweden.|
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