1st International Real Estate Markets Workshop hosted by Borsa İstanbul

The 1^st International Real Estate Markets Workshop organized jointly by Özyeğin University and Alp Alkaş Retail and Real Estate Center (aA PGMM) was held at Borsa İstanbul Conference Hall on June 19, 2014. 

The 1st International Real Estate Markets Workshop organized jointly by Özyeğin University and Alp Alkaş Retail and Real Estate Center (aA PGMM) and sponsored by Borsa İstanbul was held at Borsa İstanbul on June 19, 2014. Held with the support of the Council of Shopping Centers-Turkey, World Green Building Council (ÇEDBİK) and Valuation Experts Association of Turkey (TDUB) under Borsa İstanbul’s sponsorship, the meeting brought together the real estate sector experts and academicians of a global scale and tabled the dynamics of the Turkish real estate sector, within the context of the latest developments in the international real estate sector.

The keynote speeches of the workshop were delivered by OzU aA Retail Real Estate Center Academic Director Associate Professor Işıl Erol, Özyeğin University Chairman of the Board of Trustees Hüsnü Özyeğin, and Borsa İstanbul Research and Business Development Department Director Dr. Murat Mazıbaş.

Prof. Dr. David Geltner of the Massachusetts Institute of Technology spoke at the first panel entitled “International Real Estate Markets”, pointing out to the importance of transparency in the real estate sector. Geltner said that if those companies holding the data share such information for public benefit, the sector will further improve.

Prof. Abdullah Yavaş of Wisconsin University talked about whether there is a bubble in the Turkish real estate sector, and if yes, the expected consequent damages if it bursts, and the actions that investors should take in such a case. Yavaş pointed out that, during the mortgage crisis in the US a few years ago, had the acquisitions been paid in cash, there would have been no crises, and Turkey is comparable to neither Europe nor the US in this respect. Yavaş pointed out to the default problem in Turkey, and said that a significant problem of the sector is that the base values of the assets in Turkey are unknown, and the observed prices are higher than the base value.

Yavaş said that in order to find out whether there is a bubble in the real estate sector, each region must be analyzed separately and real estate supply and demand must be examined correctly. Pointing out to the importance of land acquisition in İstanbul, Yavaş added that construction costs have increased.

In the speech he delivered at the second panel of the 1^st International Real Estate Markets Workshop, entitled “Retail Real Estate Markets”, Emaar CEO Ozan Balaban said that foreign investors must attach importance to the relevant domestic market they work in. Indicating that Turkey is a large market, Balaban said that the Turkish real estate sector is moving forward and longer term investors come to Turkey. Balaban said that the law of reciprocity contributes to the improvement of the real estate sector, adding that international sales boomed in the previous year. Balaban said that there is not a bubble in the Turkish real estate sector, and went on to say, “We do everything in excess in Turkey; we buy excessively, we sell excessively, and do not save money. However, the Turkish banking sector is strong. Interest rates are at unacceptable levels. The banking sector must give more assurance.”