The economic crisis that the world has been discussing for a long time started to spread through the developed countries with big shock waves and entered a period which affects many sectors.

Those negative financial developments, especially, effective in banking sector called “Mortgage based financial crisis” are affecting our country even if a little.

The lessons learned from 2001 financial crisis, in particular brought the banking sector more solid form and prevented to experience the effects of global crisis in greater size.

For my point of view the recession that we are facing in real estate sector for a while is not related with this global crisis. Of course it is not possible not to be affected by it but it is necessary to know the importance and the volume of the real estate sector and make correct analyses.

Construction sector generates the %50 of the total investments in the country. Again the %75 of the investment in the sector belongs to residential constructions.

Construction sector by providing work for more then 200 related sub-sectors and by generating employment for over 1.000.000 people in total, it is one of the most important locomotive sectors of the country.

If we look at the last three years, real estate and construction sector together recorded the highest rate of growth as well as become most important employment creating sector.

The growth rates were in 2005 %21.5, in 2006 %18.5, in 2007 %5.7.

In last three - four years, if we look at the real estate and construction sector in annual basis, they recorded significant growth. By these rates, again it became the locomotive of the economy.

In 2007, at a period when everybody was saying we are in recession, the growth rate was little but real estate transactions with a number of 1.383.647 marked the peak point for the last 20 years.

Even though, among the 19 millions property tax payers, 17 millions of them are residential property tax payer and the home ownership ratio is % 65, a number that cannot undervalued, with the existence of % 35 gap on home ownership and the increasing need of high-quality houses with adding the home renewals, the need for 400-500 thousands of homes per year represents a seriously important demand.

On the other side, restarting of foreign investor’s buying that postponed due to deficiency in official regulations and delayed amendments, will create a high demand especially at the seashore areas.

Whereas, the share of housing loans in Gross National Product (GNP) said to be around %8 in Turkey. In European countries, it has seen that this rate is realized between %30 - %45. This means that, it is possible that it is going to be huge crediting activities for housing in the following periods.

As such a bulky sector and close relations with other sectors, it is inevitable to be affected by economic crises and to be a sector that gathers its strength slowly.

If we look at to economic crisis that we are facing today in different frame, we shouldn’t see these as negative developments, by the internal dynamics of market and economy; it has pulled it self to a level that ought to and has corrected the bubble price occurred recent years.

We should always look at to real estate for long terms. Even though the sector faces recessions time to time, still it did not loose its character that being the sole investment tool which always gains profit in long term.

The real estate sector, by its internal dynamics every time broke those artificial resistances that appear time to time and no one shall doubt that it is going to do so.

Of course, there are things to do for overcoming the recession;

If we assume that, people exchanged the majority of their foreign currencies which they were keeping under their pillow or in their bank accounts. It should be known that, there is going to be no other alternative but real estate will be the direction of this money’s stream and we shall endeavor our people to earn in this way.

We believe that, in the name of overcoming the recession and bringing movement to the market our government has to take some important steps.

• To reduce the land register transaction fees.

• To bring exemption to fees for credit sales as in encumbrances.

• To bring income tax exemption In house buying and selling for a period of time no matter which year occurred.

• To give some of the rights to the private sector that was given to TOKI.

• To facilitate cheap lands from public domains to private sector in proper conditions for house buildings.

• Instead of TOKI’s one hand marketing policy, to do it by the channel of real estate agencies in wider range will provide more acceleration to the sector.

The other important point is, the stakeholders who give direction to real estate and construction sector, under the knowledge of social responsibility, for producing, marketing and directing the consumers, should put away their personnel satisfactions and interests and should behave correctly, shouldn’t behave irresponsibly, shouldn’t show the recession more than it appears and should be more careful for their public statements.

Beside, analyzing the sector correctly, they should prepare projects to the sector for longer term prospects.

Owning a house for usage or investment was always people’s primary choice until now and it will be from now on.

Today in real estate market, there are various advantageous opportunities for buyers, by the help of our Estate Consultants those opportunities shall assessed.

As a result of moving from this point, we can say that we are in the right period for buying real estates. Who buy today, will be undoubtedly gainer tomorrow.

The President of Board of Directors
Federation of All Real Estate Associations
GMK Bulvarı No:122/11 06570 Maltepe ANKARA   Tel: 90 312 231 87 20-21  90 312 230 18 89   Faks: +90 312 229 59 57     atem@atem.org.tr
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