Turk TOKİ to develop housing projects for foreigners

The Housing Development Administration of Turkey is conducting preliminary studies for a project to develop vacation properties for foreign buyers.

Turk TOKİ to develop housing projects for foreigners
The Housing Development Administration of Turkey (TOKİ) is conducting preliminary studies for a project to develop vacation properties for foreign buyers as the government drafts new legislation following a Constitutional Court decision to halt real estate sales to foreigners.

Finance Minister Kemal Unakıtan approved TOKİ taking over areas allocated for real estate to be constructed for foreign purchasers, calling it the "Spanish model" because it includes building high-end properties of limited height with large gardens and green spaces, as is the case in Spain.

TOKİ plans to launch projects in Antalya (Finike and Didim), Aydın (Kuşadası), Muğla (Bodrum), İzmir (Konak, Mersinli and Çeşme) in the first phase, with profits being shared by TOKİ and the Ministry of Finance.

Finance Ministry and TOKİ officials, speaking to the Anatolia news agency, said these projects will be launched after amendment of the law in question. According to the project the ministry will allocate the sites to TOKİ free of charge, and TOKİ will monitor the construction of villas and holiday villages to be built by private companies.

TOKİ President Erdoğan said: "The allocated sites are ready for construction, but we are awaiting the completion of legal procedures. This is a project from which we expect an income of $20 billion in the long run. First, we will run a test project, and then we will expand it to all of the planned sites." Bayraktar also noted that foreigners could buy properties in cash or with housing loans that carry a repayment period of seven to eight years. During the sales process, one copy of the sales contract, to be drawn up by the subcontractor, will be sent to the National Real Estate General Directorate. According to the protocol, the directorate will determine whether the handover of a particular property to a foreign party can proceed.

Villas and holiday villages will be built in designated areas along the coast between Çanakkale (Turkey's northernmost point on the Aegean Sea) and Mersin (on the eastern edge of the Mediterranean coast). TOKİ, with the assistance of the Finance Ministry, will determine the exact sites where these buildings will be constructed, after which these areas will be allocated to TOKI without charge.

TOKİ will use the profit-sharing method to tender the coastal sites. After the construction phase, these places will be marketed worldwide; the sales will be both direct sales and time-share holiday contracts. They will not be marketed as rentals. Income earned from these sales will first be transferred to TOKİ's account, and after that half of this amount will be disbursed to the Finance Ministry within 15 days.

TOKİ projects will be constructed as high-end properties of limited height, with large gardens and green spaces. Tennis courts, golf areas, jogging areas, medical facilities, shopping centers and other social facilities will also be constructed within these sites.

The private sector will operate these facilities, and their service will have five-star hotel standards. TOKİ will monitor the construction process to prevent damage to the natural environment and to ensure compliance with relevant building codes for coastal areas.

New bill in Parliament

An amendment to the law on land registries regulating property sales to foreign parties, which was recently cancelled by the Constitutional Court following an appeal filed by the Republican People's Party (CHP), has been referred to Parliament. After the cancellation, property sales to foreigners were halted and a tourism fair in Antalya had to be postponed due to the ensuing uncertainties, which are expected to be removed with the fresh legislation.


Last Mod: 28 Nisan 2008, 09:21
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