Emerging European Real Estate Markets: Trends ... - World Bank Group
Residential Sector in Turkey Worldbank Conference May 30th
Haluk Sur Chairman of Urban Land Institute –Turkey Board Member of Emlak Konut REIT Chairman of TGBC – Turkish Green Building Council Founder Board Member of Konutder (Housing Development and Investment Association) Former Chairman of GYODER (The Association of Real Estate Investment Companies)
Agenda Turkish Residential Market TOKI Lowering Costs through Green Buildings
Housing Finance – Mortgage System, Green Mortgages PPP in Urban Transformation
Conclusion
Residential Market in Turkey Need to meet the pent-up need for low-energy consuming, resourceful energy efficient affordable sustainable housing built up Number of Housing Units Contsructed
Housing construction cost breakdown (excluding the land cost)
Turkey is at a historical conjunction: Urban Transformation with green housing will improve affordability and quality of housing and community development. Need for making adequate earthquake compliant, EE and quality housing available, accessible and affordable to built ~ 8 million homes to fullfill the needs of urban transformation with socio-economic – environmental gains
Residential Market Supply
Housing Market in Turkey is driven by demand fueled by a combination of population
growth, ongoing migration, increasing urbanization, disposable income growth and affordable financing caused demand for new housing to escalate sharply and supply driven market. Annual housing demand of approximately 650.000 dwellings
Residential Market Supply Total Stock
In an effort to lower macroeconomic risks, to ease transactions and eliminate disputes between government bodies and owners/tenantsand to induce further deregulation the government is amending three important laws. 1) Termination of Reciprocity principle to ease foreign transactions 2) Amendment to the pre - forested areas (2B) law to eliminate disputes between owners/tenants and the government 3) Condominium ownership law modification enabling a 2/3s majority of condominium owners to decide whether to demolish and reconstruct expected to unleash considerable housing demand given the 7.7m bad stock out of the total 19 million total housing stock in Turkey.
Urgency of Urban Transformation & Istanbul Earthquake Damages 1976-2005 Country
Number of
Number of
Earthquakes
Deaths
Affected Population (Million)
Economic Damage (US$ Billion)
1. China
82
244.344
20,7
8,0
2. Iran
67
100.852
2,0
10,9
3. Turkey
38
24.371
6,1
16,0
4. Mexico
20
9.738
2,5
4,7
5. Afghanistan
24
9.202
0,6
1,7
6. Indonesia
66
6.496
1,8
0,8
7. Japan
28
5.794
3,2
132,0
8. Italy
20
5.714
0,7
30,0
9. Greece
21
340
0,9
7,2
10. USA
21
45
0,1
25,0
Source: CRED - Centre for Research on the Epidemiology of Disaster
An Istanbul earthquake at 8 Richter scale intensity could claim over 500,000 lives and create economic damage over 60 Billion as Istanbul constitutes 20% of total population and has 50% share in the Turkish Economy Catastrophic risk for Turkey
In Turkey 96% of the total surface area and 98% of the population are situated in zones of varying degrees of seismic risk 76% of industrial centers are located in earthquake prone areas Turkey has met nearly half of its housing need (55%) by unlicensed buildings and majority of the existing buildings is of substandard low quality nature A significant portion of the housing stock (40% of 19 million) of Turkey should be refitted, demolished in terms of age, quality & earthquake risk Need for a planned and well designed urban regeneration in PPP Many municipalities in Istanbul have initiated urban regeneration projects to rehabilitate unlicensed shanty town housing regions
RealEstate Sector (Major Milestones )
1)Termination of Reciprocity principle 2) Amendment to the forested area (2B) law to eliminate disputes between owners/tenants and the government 3) Condominium ownership law modification enabling a 2/3s majority of condominium owners to decide whether to demolish and reconstruct
2005-7
2008
MORTGAGE LAW
FOREIGN INVESTMENT LAW
2004-5 TOKİ is transferred to the Office of the Prime Minister. TOKİ & Greater Ankara Municipality authorized to plan, develop and create social housing, to transform the urban landscape. Bill 5366 is adopted to protect sites of historic and cultural importance
1934
1965
•Establishment of Land Registry Law Common
1984 1987
2011 Establishment of Environment & Urbanization Ministry of Turkey
1996 Habitat 2 was Hosted in Istanbul
1985
Housing and Public Restoration & Partnership Hold & Temporary Land Directorate Expropriation established (TOKI Laws Laws inside) Mass Housing Law Mass Housing Fund
1990
2012
2001 The Mass Housing Fund is brought to an end.
Housing and Public Partnership Directorate, seperated the Public Participation Administration and the Housing Development Administration (TOKI) became stand alone
URBAN REGENERATION LAW
2003 The Emergency Action Plan for Housing and Urban Development five-year goal of 250,000 housing units to be built by the end of 2007.
•
TOKI seeks to be a fair Mediator between the
needs of Social Housing and Private Sector
TOKI’s MISSION • Produce housing for regions in Turkey where the private sector is not active, • Offer low & middle income groups subsidized housing finance, • Offer rural housing opportunities to reduce high urban migration burden • Collaborate with local municipalities to create urban renewal projects, • Create financial opportunities to finance social housing projects through innovative structures such as Revenue Sharing projects under “PPP” • TOKİ offers subsidized housing loans & offer longer terms then the market, coupled with higher quality modern living conditions to people /families who could not afford it by themselves. To fulfill this mission, TOKI has created financial subsidiaries and affiliates like “Emlak Konut REIT”. TOKI is active in: Social Housing, Renovation of Squatter Areas and Urban Renewal Projects, Disaster Housing Applications, Agriculture Village Projects, Migrant Dwellings, Income Sharing Projects based on a Revenue Sharing Model,Restoration of Historical and Cultural Buildings.
TOKI SOCIAL HOUSING FOR LOW & MIDDLE INCOME GROUPS TOKI
LAND INSURANCE
PROJECT DEVELOPMENT DOWNPAYMENT & MONTHLY INSTALLMENTS
SUBCONTRACTOR TENDER PROCESS
CONTRACT SIGNING
SALE
PRICING & SELLING CRITERIA
CONTRACT SIGNING
FINANCIAL INTERMEDIARIES DOWNPAYMENT & MONTHLY INSTALLMENTS
BUYERS/BENEFICIARIES
REVENUE SHARING MODEL EMLAK KONUT REIT TOKI LAND FINANCIAL INTERMEDIARIES /as ESCROW BANKS)
PROGRESS PAYMENT BASED PAYMENTS BASED ON REVENUE SHARING AGREEMENT & UNTIL PROJECT COMPLETION
TENDER PROCESS
CONTRACTOR'S OFFER PROJECT REVENUE : DOWNPAYMENT S& MONTHLY INSTALLMENTS
CONTRACT AWARD (BEST OFFER)
PROJECT DEVELOPMENT TARGET GROUP
FINANCIAL INTERMEDIARIES /as MORTGAGE BANKS)
DOWNPAYMENT & MONTHLY INSTALLMENTS
"HIGH INCOME"
PRICING & SELLING CRITERIA SET BY THE CONTRACTOR
BUYERS/BENEFICIARIES
MARKETTING & SALES SUPPORTED BY FINANCIAL INTERMEDIARIES
TITLE DEED AT PROJECT COMPLETION
ENVIRONMENT & URBANIZATION MINISTRY of the REPUBLIC of TURKEY
Affordable
Green Buildings
ALARMING RAISE IN CO2 EMISSIONS!
• As of 2008 36% of total energy was consumed by households • Turkey amongst top 25 high enery consuming countries • Lack of government investment, financial support & appropriate incentive instruments (like tax & land rebates, cheap financing) for the property owner, businesses, developers and financial institutions for EE green buildings
•
• Weak Monitoring Mechanisms • Need incentives for securing retrofit •
•
financing through Green Loans Public awareness for green buildings is increasing as goverment utilty bill subsidies are reducing.
A green homes certification system is underway by Turkish Green Building Green Buildings ~ 10 billion $ p.a. savings & EE potential Council
Green Buildings Expected Impact by 2023 Certified Buildings & Potential Savings Total Energy & Water Savings (2023)
Number of Certificated Buildings by 2023
Years
Total Total Number Number of Total Number of Residential of Certificated Certificated Buildings Project Building
2012
-
-
433.000
2013
0
-
492.000
2014
3
3.000
608.000
2015
5
5.000
651.000
2016
10
10.000
656.000
2017
15
15.000
662.000
2018
20
20.000
663.000
2019
25
25.000
669.000
2020
30
30.000
676.000
2021
35
35.000
680.000
2022
40
40.000
690.000
2023
45
45.000
680.000
Total
228
228.000
7.560.000
3
100
%
Not Obligated Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Number of Certificated Building
Total Savings by Year ($)
Obligated Years
237.192.608 506.704.763 3.000 839.760.434 8.000 1.196.371.030 18.000 1.555.720.570 33.000 1.918.356.843 53.000 2.281.540.906 78.000 2.648.011.702 108.000 3.018.317.021 143.000 3.390.813.495 183.000 3.768.787.859 228.000 4.141.284.333 TOTAL 25.502.861.564 Source: GYODER / Gülcemal Alhanlıoğlu & PhD M. Emre Çamlıbel 1.643.367 4.382.311 9.860.201 18.077.035 29.032.813 42.727.537 59.161.205 78.333.817 100.245.375 124.895.877 468.359.538
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Number Total Savings by of Certificated Year ($) Building
433.000 925.000 1.533.000 2.184.000 2.840.000 3.502.000 4.165.000 4.834.000 5.510.000 6.190.000 6.880.000 7.560.000 TOTAL TOPLAM
Comparison of Housing Loans Markets Turkish Market Interest Rates Implied LTV at ~ 25% on average between 2007 and 2011 given the underlying still high interest rates and average maturities. Current situation in housing finance:
~ 60% Inheritance or self finance
~ 15% Borrowing from relatives, friends & employees
~ 25% Mortgage Credit LTV to reach 50 by 2030, with still room to grow to the 75% standard set by the BRSA (Banking Regulatory Authority).
Comparison of Median Multiples “The Affordibility Index” Mortgage Loans, ,ML Rates, ML/GDP Affordability is non-existent in Turkey, as evidenced by a high Median Multiple among developed and emerging countries
Mortgage System & Its Effects to the Real Estate Sector Appraisal Companies Appraisal Companies Appraisal Companies
HOUSING PRICES
HOUSING MARKET
PRIMARY MARKET
HOUSING SUPPLY HOUSING DEMAND HOME PRODUCTION
HOUSING DEMAND PURCHASERS
HOUSING FINANCE COMPANIES 1.BANKS 2.LEASING Co’s.. 3.CONSUMER FINANCE Co’s
HOUSING MARKET
CERTIFIED APPRAISAL ASSOCIATION
SECONDARY MARKET
SECURITIZATION
HOUSING DEMAND DEVELOPERS
INVESTORS Domestic Investors Foreign Investors
INVESTOR PROTECTION FUND
PROPOSED HOUSING FINANCE SYSTEM UNDER THE 2007 MORTGAGE LEGISLATION
SECONDARY MARKET STILL PENDING
* Almost everyone enthusiastic about the Mortgage system & waiting for the secondary regulations to be enacted & system to be operational * Mortgages expected to give a strong boost to the real estate sector by helping transformation in squatter housing regions of cities * Mortgage system is destined to target a big portion of the population.
PPP in Urban Transformation Through the new Regenaration law enacted by the Ministry of Environment and Urbanization, Turkey is at a very unique cross road in order to define its Housing Road Map and has the power to develop a detailed implementation plan that will serve as a blue-print for improved sustainibility & affordable housing in collaboration with community and the private sector
Government •Needs technical knowhow on setting implementation policies and new set of monitoring skills •Can take some risks
Private Sector •Has Knowledge & Skills •Needs capital & financing & Secondary Markets
•Needs risk sharing
•Needs to build a self funding incentive system
•Needs incentives to invest into low income and green technologies
•Preserve local quality of life
•land prices expensive need land incentive
•Economic Development
•Need to support a sustainable & environment friendly housing
•Demonstrate Energy Efficiency
Needs of Public •Healthier/durable home ownership •Earthquake compliant higher quality EE housing •Improved community life •Better life standards
•To have a voice in the outcome •Reduced maintenance costs •Lower utility bills •Increased resale value
Conclusive Remarks Increased public sensitivity to better housing quality & developer reliability especially after the 1999 Marmara earthquakes Pent Up Renewal & reinforcement requirements Driven an urgent need for urban regeneration need to raise 700 bn$ to regenare 8 m homes within 20 yrs Turn slums into quality assets Reduced disaster risk & economic-disruption catastrophic risk Greater national economic resilience Higher Energy Efficiency Reduced Current Account Deficit Higher national sovereign credit rating Lower cost of capital on all national sovereign borrowing
Need sound Secondary Market to fuel Mortgage System in Turkey & attract solid direct FDI & mortgage funds in the real estate sector to finance urban transformation and growth
Need Redeemable Subsidy System Lower housing costs Increased affordability
Collabolarion with Private Sector Players & Communities
Q&A
The Historical Peninsula, Blue Mosque and St. Sophia in Istanbul
THANK YOU
Haluk Sur Chairman of Urban Land Institute –Turkey Board Member of Emlak Konut REIT Chairman of TGBC – Turkish Green Building Council Founder Board Member of Konutder (Housing Development and Investment Association) Former Chairman of GYODER (The Association of Real Estate Investment Companies)
Agenda Turkish Residential Market TOKI Lowering Costs through Green Buildings
Housing Finance – Mortgage System, Green Mortgages PPP in Urban Transformation
Conclusion
Residential Market in Turkey Need to meet the pent-up need for low-energy consuming, resourceful energy efficient affordable sustainable housing built up Number of Housing Units Contsructed
Housing construction cost breakdown (excluding the land cost)
Turkey is at a historical conjunction: Urban Transformation with green housing will improve affordability and quality of housing and community development. Need for making adequate earthquake compliant, EE and quality housing available, accessible and affordable to built ~ 8 million homes to fullfill the needs of urban transformation with socio-economic – environmental gains
Residential Market Supply
Housing Market in Turkey is driven by demand fueled by a combination of population
growth, ongoing migration, increasing urbanization, disposable income growth and affordable financing caused demand for new housing to escalate sharply and supply driven market. Annual housing demand of approximately 650.000 dwellings
Residential Market Supply Total Stock
In an effort to lower macroeconomic risks, to ease transactions and eliminate disputes between government bodies and owners/tenantsand to induce further deregulation the government is amending three important laws. 1) Termination of Reciprocity principle to ease foreign transactions 2) Amendment to the pre - forested areas (2B) law to eliminate disputes between owners/tenants and the government 3) Condominium ownership law modification enabling a 2/3s majority of condominium owners to decide whether to demolish and reconstruct expected to unleash considerable housing demand given the 7.7m bad stock out of the total 19 million total housing stock in Turkey.
Urgency of Urban Transformation & Istanbul Earthquake Damages 1976-2005 Country
Number of
Number of
Earthquakes
Deaths
Affected Population (Million)
Economic Damage (US$ Billion)
1. China
82
244.344
20,7
8,0
2. Iran
67
100.852
2,0
10,9
3. Turkey
38
24.371
6,1
16,0
4. Mexico
20
9.738
2,5
4,7
5. Afghanistan
24
9.202
0,6
1,7
6. Indonesia
66
6.496
1,8
0,8
7. Japan
28
5.794
3,2
132,0
8. Italy
20
5.714
0,7
30,0
9. Greece
21
340
0,9
7,2
10. USA
21
45
0,1
25,0
Source: CRED - Centre for Research on the Epidemiology of Disaster
An Istanbul earthquake at 8 Richter scale intensity could claim over 500,000 lives and create economic damage over 60 Billion as Istanbul constitutes 20% of total population and has 50% share in the Turkish Economy Catastrophic risk for Turkey
In Turkey 96% of the total surface area and 98% of the population are situated in zones of varying degrees of seismic risk 76% of industrial centers are located in earthquake prone areas Turkey has met nearly half of its housing need (55%) by unlicensed buildings and majority of the existing buildings is of substandard low quality nature A significant portion of the housing stock (40% of 19 million) of Turkey should be refitted, demolished in terms of age, quality & earthquake risk Need for a planned and well designed urban regeneration in PPP Many municipalities in Istanbul have initiated urban regeneration projects to rehabilitate unlicensed shanty town housing regions
RealEstate Sector (Major Milestones )
1)Termination of Reciprocity principle 2) Amendment to the forested area (2B) law to eliminate disputes between owners/tenants and the government 3) Condominium ownership law modification enabling a 2/3s majority of condominium owners to decide whether to demolish and reconstruct
2005-7
2008
MORTGAGE LAW
FOREIGN INVESTMENT LAW
2004-5 TOKİ is transferred to the Office of the Prime Minister. TOKİ & Greater Ankara Municipality authorized to plan, develop and create social housing, to transform the urban landscape. Bill 5366 is adopted to protect sites of historic and cultural importance
1934
1965
•Establishment of Land Registry Law Common
1984 1987
2011 Establishment of Environment & Urbanization Ministry of Turkey
1996 Habitat 2 was Hosted in Istanbul
1985
Housing and Public Restoration & Partnership Hold & Temporary Land Directorate Expropriation established (TOKI Laws Laws inside) Mass Housing Law Mass Housing Fund
1990
2012
2001 The Mass Housing Fund is brought to an end.
Housing and Public Partnership Directorate, seperated the Public Participation Administration and the Housing Development Administration (TOKI) became stand alone
URBAN REGENERATION LAW
2003 The Emergency Action Plan for Housing and Urban Development five-year goal of 250,000 housing units to be built by the end of 2007.
•
TOKI seeks to be a fair Mediator between the
needs of Social Housing and Private Sector
TOKI’s MISSION • Produce housing for regions in Turkey where the private sector is not active, • Offer low & middle income groups subsidized housing finance, • Offer rural housing opportunities to reduce high urban migration burden • Collaborate with local municipalities to create urban renewal projects, • Create financial opportunities to finance social housing projects through innovative structures such as Revenue Sharing projects under “PPP” • TOKİ offers subsidized housing loans & offer longer terms then the market, coupled with higher quality modern living conditions to people /families who could not afford it by themselves. To fulfill this mission, TOKI has created financial subsidiaries and affiliates like “Emlak Konut REIT”. TOKI is active in: Social Housing, Renovation of Squatter Areas and Urban Renewal Projects, Disaster Housing Applications, Agriculture Village Projects, Migrant Dwellings, Income Sharing Projects based on a Revenue Sharing Model,Restoration of Historical and Cultural Buildings.
TOKI SOCIAL HOUSING FOR LOW & MIDDLE INCOME GROUPS TOKI
LAND INSURANCE
PROJECT DEVELOPMENT DOWNPAYMENT & MONTHLY INSTALLMENTS
SUBCONTRACTOR TENDER PROCESS
CONTRACT SIGNING
SALE
PRICING & SELLING CRITERIA
CONTRACT SIGNING
FINANCIAL INTERMEDIARIES DOWNPAYMENT & MONTHLY INSTALLMENTS
BUYERS/BENEFICIARIES
REVENUE SHARING MODEL EMLAK KONUT REIT TOKI LAND FINANCIAL INTERMEDIARIES /as ESCROW BANKS)
PROGRESS PAYMENT BASED PAYMENTS BASED ON REVENUE SHARING AGREEMENT & UNTIL PROJECT COMPLETION
TENDER PROCESS
CONTRACTOR'S OFFER PROJECT REVENUE : DOWNPAYMENT S& MONTHLY INSTALLMENTS
CONTRACT AWARD (BEST OFFER)
PROJECT DEVELOPMENT TARGET GROUP
FINANCIAL INTERMEDIARIES /as MORTGAGE BANKS)
DOWNPAYMENT & MONTHLY INSTALLMENTS
"HIGH INCOME"
PRICING & SELLING CRITERIA SET BY THE CONTRACTOR
BUYERS/BENEFICIARIES
MARKETTING & SALES SUPPORTED BY FINANCIAL INTERMEDIARIES
TITLE DEED AT PROJECT COMPLETION
ENVIRONMENT & URBANIZATION MINISTRY of the REPUBLIC of TURKEY
Affordable
Green Buildings
ALARMING RAISE IN CO2 EMISSIONS!
• As of 2008 36% of total energy was consumed by households • Turkey amongst top 25 high enery consuming countries • Lack of government investment, financial support & appropriate incentive instruments (like tax & land rebates, cheap financing) for the property owner, businesses, developers and financial institutions for EE green buildings
•
• Weak Monitoring Mechanisms • Need incentives for securing retrofit •
•
financing through Green Loans Public awareness for green buildings is increasing as goverment utilty bill subsidies are reducing.
A green homes certification system is underway by Turkish Green Building Green Buildings ~ 10 billion $ p.a. savings & EE potential Council
Green Buildings Expected Impact by 2023 Certified Buildings & Potential Savings Total Energy & Water Savings (2023)
Number of Certificated Buildings by 2023
Years
Total Total Number Number of Total Number of Residential of Certificated Certificated Buildings Project Building
2012
-
-
433.000
2013
0
-
492.000
2014
3
3.000
608.000
2015
5
5.000
651.000
2016
10
10.000
656.000
2017
15
15.000
662.000
2018
20
20.000
663.000
2019
25
25.000
669.000
2020
30
30.000
676.000
2021
35
35.000
680.000
2022
40
40.000
690.000
2023
45
45.000
680.000
Total
228
228.000
7.560.000
3
100
%
Not Obligated Years 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Number of Certificated Building
Total Savings by Year ($)
Obligated Years
237.192.608 506.704.763 3.000 839.760.434 8.000 1.196.371.030 18.000 1.555.720.570 33.000 1.918.356.843 53.000 2.281.540.906 78.000 2.648.011.702 108.000 3.018.317.021 143.000 3.390.813.495 183.000 3.768.787.859 228.000 4.141.284.333 TOTAL 25.502.861.564 Source: GYODER / Gülcemal Alhanlıoğlu & PhD M. Emre Çamlıbel 1.643.367 4.382.311 9.860.201 18.077.035 29.032.813 42.727.537 59.161.205 78.333.817 100.245.375 124.895.877 468.359.538
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Total Number Total Savings by of Certificated Year ($) Building
433.000 925.000 1.533.000 2.184.000 2.840.000 3.502.000 4.165.000 4.834.000 5.510.000 6.190.000 6.880.000 7.560.000 TOTAL TOPLAM
Comparison of Housing Loans Markets Turkish Market Interest Rates Implied LTV at ~ 25% on average between 2007 and 2011 given the underlying still high interest rates and average maturities. Current situation in housing finance:
~ 60% Inheritance or self finance
~ 15% Borrowing from relatives, friends & employees
~ 25% Mortgage Credit LTV to reach 50 by 2030, with still room to grow to the 75% standard set by the BRSA (Banking Regulatory Authority).
Comparison of Median Multiples “The Affordibility Index” Mortgage Loans, ,ML Rates, ML/GDP Affordability is non-existent in Turkey, as evidenced by a high Median Multiple among developed and emerging countries
Mortgage System & Its Effects to the Real Estate Sector Appraisal Companies Appraisal Companies Appraisal Companies
HOUSING PRICES
HOUSING MARKET
PRIMARY MARKET
HOUSING SUPPLY HOUSING DEMAND HOME PRODUCTION
HOUSING DEMAND PURCHASERS
HOUSING FINANCE COMPANIES 1.BANKS 2.LEASING Co’s.. 3.CONSUMER FINANCE Co’s
HOUSING MARKET
CERTIFIED APPRAISAL ASSOCIATION
SECONDARY MARKET
SECURITIZATION
HOUSING DEMAND DEVELOPERS
INVESTORS Domestic Investors Foreign Investors
INVESTOR PROTECTION FUND
PROPOSED HOUSING FINANCE SYSTEM UNDER THE 2007 MORTGAGE LEGISLATION
SECONDARY MARKET STILL PENDING
* Almost everyone enthusiastic about the Mortgage system & waiting for the secondary regulations to be enacted & system to be operational * Mortgages expected to give a strong boost to the real estate sector by helping transformation in squatter housing regions of cities * Mortgage system is destined to target a big portion of the population.
PPP in Urban Transformation Through the new Regenaration law enacted by the Ministry of Environment and Urbanization, Turkey is at a very unique cross road in order to define its Housing Road Map and has the power to develop a detailed implementation plan that will serve as a blue-print for improved sustainibility & affordable housing in collaboration with community and the private sector
Government •Needs technical knowhow on setting implementation policies and new set of monitoring skills •Can take some risks
Private Sector •Has Knowledge & Skills •Needs capital & financing & Secondary Markets
•Needs risk sharing
•Needs to build a self funding incentive system
•Needs incentives to invest into low income and green technologies
•Preserve local quality of life
•land prices expensive need land incentive
•Economic Development
•Need to support a sustainable & environment friendly housing
•Demonstrate Energy Efficiency
Needs of Public •Healthier/durable home ownership •Earthquake compliant higher quality EE housing •Improved community life •Better life standards
•To have a voice in the outcome •Reduced maintenance costs •Lower utility bills •Increased resale value
Conclusive Remarks Increased public sensitivity to better housing quality & developer reliability especially after the 1999 Marmara earthquakes Pent Up Renewal & reinforcement requirements Driven an urgent need for urban regeneration need to raise 700 bn$ to regenare 8 m homes within 20 yrs Turn slums into quality assets Reduced disaster risk & economic-disruption catastrophic risk Greater national economic resilience Higher Energy Efficiency Reduced Current Account Deficit Higher national sovereign credit rating Lower cost of capital on all national sovereign borrowing
Need sound Secondary Market to fuel Mortgage System in Turkey & attract solid direct FDI & mortgage funds in the real estate sector to finance urban transformation and growth
Need Redeemable Subsidy System Lower housing costs Increased affordability
Collabolarion with Private Sector Players & Communities
Q&A
The Historical Peninsula, Blue Mosque and St. Sophia in Istanbul
THANK YOU
