Foreign-based real estate agencies dominate Turkish market
Turkish real estate agents, who were late to institutionalization, are losing the lion's share of commissions earned from second-hand real estate sales - nearly TL 380 billion ($137 billion) a year - to foreign agents.
The real estate sector in Turkey has gained momentum in recent years thanks to urban transformation. Real estate agents that earn commissions from the sale of flats and offices started to increase their turnover after the Reciprocity Law, which opened the way for foreigners to buy houses in Turkey, was approved, while agents doing business in the old way couldn't match the same development.
Big companies say that they don't have any corporate Turkish competitors and foreign-based real estate companies providing services via franchises meet the needs of big companies. Nizameddin Aşa, president of the Istanbul Chamber of Real Estate Commissioners and Consultants, spoke to an Anadolu Agency reporter that they are trying to develop the Turkish-style chain real estate model and big companies didn't take local agents seriously.
Emphasizing that money flows abroad should be cut to develop the Turkish-style chain real estate model, Aşa said that the total volume of annual transactions made in the real estate market equals Turkey's budget. Aşa said: "This year's budget is around TL 473 billion, with 80 percent of this - around TL 385 billion - comprised of second-hand real estates. In particular, branded housing projects and sales having high prices are conducted by corporate real estate companies in the Turkish real estate market. Foreign-origin real estate companies are at the forefront among those corporate companies."
Hamza Yılmaz, who established the City44 Real Estate Consulting Company, said that if the government realizes the tax problem in the real estate sector and makes the necessary regulations, Turkish real estate companies could keep the income in the country. Pointing out that Turkish real estate agents that couldn't become institutionalized because of legislative regulations are competing with giant companies under unfair conditions, Yılmaz said that the sales of big projects were mostly carried out by foreign companies. The reason why foreign companies have many branches is because of foreign investment and capital. While there is such a big gap in Turkish real estate consulting sector, brands being backed by foreign investments can open new branches speedily with huge promotions and advertisements."
The real estate sector in Turkey has gained momentum in recent years thanks to urban transformation. Real estate agents that earn commissions from the sale of flats and offices started to increase their turnover after the Reciprocity Law, which opened the way for foreigners to buy houses in Turkey, was approved, while agents doing business in the old way couldn't match the same development.
Big companies say that they don't have any corporate Turkish competitors and foreign-based real estate companies providing services via franchises meet the needs of big companies. Nizameddin Aşa, president of the Istanbul Chamber of Real Estate Commissioners and Consultants, spoke to an Anadolu Agency reporter that they are trying to develop the Turkish-style chain real estate model and big companies didn't take local agents seriously.
Emphasizing that money flows abroad should be cut to develop the Turkish-style chain real estate model, Aşa said that the total volume of annual transactions made in the real estate market equals Turkey's budget. Aşa said: "This year's budget is around TL 473 billion, with 80 percent of this - around TL 385 billion - comprised of second-hand real estates. In particular, branded housing projects and sales having high prices are conducted by corporate real estate companies in the Turkish real estate market. Foreign-origin real estate companies are at the forefront among those corporate companies."
Hamza Yılmaz, who established the City44 Real Estate Consulting Company, said that if the government realizes the tax problem in the real estate sector and makes the necessary regulations, Turkish real estate companies could keep the income in the country. Pointing out that Turkish real estate agents that couldn't become institutionalized because of legislative regulations are competing with giant companies under unfair conditions, Yılmaz said that the sales of big projects were mostly carried out by foreign companies. The reason why foreign companies have many branches is because of foreign investment and capital. While there is such a big gap in Turkish real estate consulting sector, brands being backed by foreign investments can open new branches speedily with huge promotions and advertisements."
Last Update: August 04, 2015 20:54