Services

Professional Advice


M&C - Building for the Future Lee Wilson talks to Money Markets
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Q. Where in Turkey are M&C based and how long have you been operational for?
A. Our main office is in Alanya and has been for the last 8 years. We also have another office over in Antalya; this enables us to cover the whole of the Turkish Riviera. Our construction company, Asta, has been based here in Alanya for 12 years. We, therefore, benefit from their experienced and qualified team. Between us we run a very successful business

“Over the next year I foresee rapid growth. This year alone the company had surpassed last year’s figures within the first three months”

Q. Turkey’s economy, which is surging ahead thanks to soaring exports, an upsurge in consumer spending, and increasing bonds with the EU, grew 9.8% in 2004, the fastest among the OECD’s 30 nations. Can Turkey sustain this kind of growth and to what extent has the real estate market contributed to Turkey’s flourishing economy?
A. I believe that Turkey can defiantly sustain this growth. They have a thriving domestic market and are a very self-sufficient country. They can clearly cope with the high demands. The real estate industry has not had a huge impact on Turkey’s economic growth; however, it has impacted greatly on tourism. The government has started to implement a new system to control the growth of construction. The pace has been immense over the last 2 years. We obviously don’t want things to spiral out of control. The government is doing everything in its power to control this by implementing laws which restrict the amount of land foreign investors can purchase. The current limit has been set at 10,000sq meters. This is to stop people from buying land in bulk, which in the long run will benefit everyone.

“Our aim is to take care of the client and ensure that they have everything they need whilst they are here.”

Q. There has never been a better time to buy property in Turkey. The message at the moment seems to be ‘get it while you can!’ as property prices continue to increase, along with the rest of Europe. To what extent will the market rise over the next 12 months?
A. Over the next year I foresee rapid growth. This year the company surpassed last year’s figures within the first three months. It is important that the government controls what is happening in terms of construction, because this will enable us to continue to offer value.

Q. In 2004 exports were up by 36.7%, imports were up to 40.2% (aprox. $97.2bn) and the automotive sector reached new heights. How does the rea estate market compare in terms of growth?
A. Tourism is by far the biggest sector in the Turkish economy, it actually accounted for a quarter of Turkey’s growth last year, and this year alone it has risen by around 30%. We foresee this growing year on year. The rea estate industry is catching up fast, and at the moment is responsible for 7% of the economy, but we are expecting this figure to double, if not treble, over the next 2 years.

“The real estate industry equates to 7% of Turkeys economy, but we are expecting this figure to double, if not treble over the next 2 years”

Q. Is it fair to say that most of your clients come from overseas?
A. Yes it is.  The Dutch market is very big for us, as is Norway, Germany, Denmark, Sweden and also the UK and Ireland.
Buying in Turkey
Q. Inspection trips are imperative when buying abroad; do you at M&C offer this service and if so, how does it work and what can an investor expect to gain from it?
A. The length of inspection trips vary, the most popular one in my opinion is the four-day trip. This allows us to guide our clients through the entire investment process. It also gives them the opportunity to meet the team, visit a number of our projects and assess build quality. We can help to arrange flights, accommodation, and have clients picked up from the airport. We then plan out a four-day itinerary, including trips to the construction sites, local tours to get a feel for the area, and we take care of any paper work that needs to be done here in the office. We can also provide assistance with setting up bank accounts; this is done so that the investor feels more established. At this time we will arrange a tax number, because this is needed in order to purchase property. Our main aim is to take care of the client and ensure that they have everything they need whilst they are here. Post inspection/ purchase, we can help with everything from, furnishing packages to connecting your water supply. We will even go as far as to pick up a client’s family from the airport if they are coming out to visit. We never just hand over the keys

“Europeans coming here to Turkey expect the highest standards and service from us and I believe that we deliver every time “

Q. How easy is it for foreign investors to navigate their way through the Turkish legal system?
A. Very easy indeed, we take care of this process for our clients. Once the initial deposit has been received, we do the paper work, groundwork, and we apply to the government for the Tapu (title deeds). We also have a legal team, should clients want the legal aspect taken care of.
Q. How does the general cost of living compare to the UK?
A. The cost of living in Turkey is much cheaper than in the UK. An example that I use quite regularly is council tax, assuming the average in the UK to be around P1200 per year. In Turkey you pay 0.03% of the value of the property in your first year, which equates to around 60 euros (P40). In your second year the charge is reduced to 0.01% of the value, which then works out to about P25 - P30, it then stays at this price.  So as you can see, there is a huge difference.

“The number of Europeans who have bought second homes has also risen dramatically. These are people who have decided to move out here on a permanent basis and take up full residency in order to enjoy all that Turkey has to offer.“

Q. Once a client has decided upon a property how much should they allow on top of the purchase price for costs/expenses?
A. We charge 3% of the purchase price; this covers the sale and service, applying for the tapu, and all of the paperwork that is involved. If you purchase through us we will refund the cost of your inspection trip. There are a lot of companies out here that will charge between 5 and 10% for the same service. Where M&C are concerned, the only additional cost consideration the client needs to factor in to the equation is the Tapu. The signing of the Tapu costs around 600 euros. Everything else is included. So, in summary, the investor pays the purchase price of the property, in this we include the 3%, and then 600 euros for the title deeds.
Q. Our research suggests that Alanya is becoming extremely cosmopolitan and that there may be as many as 10,000 European residents. Do you believe this to be an accurate figure?
A. We estimate the figure to be around 15,000; the number is increasing day by day. We have noticed an influx of Europeans over the summer months that have purchased a holiday home, which they come and visit for lengthy periods of time. The number of Europeans who have bought second homes has also risen dramatically. These are people who have decided to move out here on a permanent basis and take up full residency in order to enjoy all that Turkey has to offer.

“M&C together with Asta are at the forefront of all new major developments, we have projects approved by the government, which will take us through the next 3 years “

Q. When buying an M&C property what facilities might one expect to see as standard?
A. Western Europeans who visit Turkey expect the highest standards and service from us and I believe that we deliver every time. When it comes to our complexes, clients and investors can expect many onsite facilities as standard, such as security, landscaped gardens, and swimming pools. We also have a barbeque area within our complexes. We find that this helps to build relationships with other people living in the area, as it gives them a chance to eat, drink and cook together. We also have fitness centres with state-of-the-art gym equipment, weights, running machines etc. There are house managers who live onsite, available 24 hours a day. They take care of the grounds, gardens and cleaning of the pool. All of these services are backed up by a team of fully qualified tradesmen who are there to deal with any issues or problems that may arise after the purchase of the property. We also offer a 10-year building guarantee on any new construction.
Looking to the Future
Q. Where do you see M&C going over the next 12-18 months?
A. To the top! M&C together with Asta are at the forefront of all new major developments. We have projects approved by the government, which will take us through the next 3 years. We are anticipating year on year growth, which will far exceed the record set last year. We work closely with the government, and are currently building with the Mayor of Alanya. I believe the reason for our success, and the reason that we will always be a major player in Alanya is that we have the drive and desire to build, sell and maintain the properties. You get the full package. All in all we are very excited about where M&C is going over the next few years.

This interview was conducted with Lee Wilson, who is the UK Sales Manger for M&C Property in Turkey.