[THE NEW TURKS-2]
Real estate business prospers thanks to foreigners

How does it feel to leave a country such as the Netherlands, noted for its strong emphasis on the enjoyment of freedoms, and settle down in Alanya? What do expats miss most about their home country? What are their biggest problems here? Do they have problems integrating?

The Dutch who live in Alanya complain most about bureaucracy and red tape. It is only natural for those who, in their home country, do not have even the slightest of bureaucratic problems, to name red tape as the biggest problem they encounter in this country, after spending weeks to secure residence or work permits. But it is a problem peculiar to Turkey. If you want to live here, you have to get used to it, and many already have. For this reason, they no longer see the slow-moving bureaucracy as a big deal. But they do have other problems. In contrast to Sylvia Out, who complained about cultural differences, Ton and Joke Huls say they have no problems with integration or cultural inconsistencies. Their demands are much more exclusive: They want golf courses.   

Joke Huls, who underlines that they are trying to integrate with the community in which they live, articulates the whole issue by saying: “We have to take the steps to integrate, just like we want foreigners in the Netherlands to integrate with Dutch society. And we will do it. I mean, we do not have an integration problem here. We should not expect Turks to integrate with us; we have to integrate with them, and this is what we are trying to do.”

Considering the ongoing debates in the Netherlands on the foreigners living there, we would like to know whether their views on Turks have changed after settling down here. Some say their views have changed and some say they haven’t.  Joke Huls is one of those whose views on the Turks have changed. Recalling that he had no prior intention of settling down in Turkey, Huls explains why: “Because in the past I was thinking, if I wanted to see Turks, there were plenty of them on the streets. There are about 1 million Turks in the Netherlands. But kismet [fate] has dragged us here. I think the most important difference between the Turks here and the Turks there is this: The Turks here are more forthright, while those in the Netherlands are too introverted. For instance, they have their own peer organizations where we [Dutch] are not allowed. Who knows, maybe they act this way because they do not see acceptance by mainstream society.” Ed van de Brul holds just the opposite opinion. For him, the Turks in both countries are all alike. But he also adds: “Maybe I can say this: People are poorer here because of the living conditions; however, those in the Netherlands are much wealthier.”

There are no problems between local businessmen and the foreigners who have started businesses in Antalya. Noting that they have made remarkable contributions to Alanya, local businessman Can Baran says: “I haven’t noticed any problem with regard to acceptance. Sharing is the key. Their presence here has contributed to the expansion of our businesses. I have noticed this. Besides, their contribution to the improvement of social life is undeniable. …We have become neighbors with these people. I think by all measures they enrich our city.”

Recalling that mutual understanding between locals and foreigners improves the quality of communal life in Alanya, Mehmet Kızılkaya, a customer representative who works for the Toros Çekiç construction firm, is of the opinion that these people contribute a great deal to city life: “Most people are able to speak a foreign language here. There is no problem communicating with the foreigners. There are a lot of differences between those who come here as tourists and those who actually live here. First of all, the latter view this as their home. Ask any foreigner, they will say they live in Alanya. Some have even started their own businesses, quite a few, in fact. This hasn’t caused problems between local businesses and the foreigners. Quite the contrary, there is a mutual understanding. The local businessmen have gotten used to it. They have contributed a lot to Alanya. Above all, they have revived the local economy.”

There is a growing interaction between foreigners who have settled down in Turkey and the local people. These people contribute a great deal to Alanya, there’s no argument about that. Alanya now looks more like a European city. Mahmutlar Deputy Mayor Eyüp Tezyüksel holds a similar opinion: “A foreigner’s decision to buy a house and settle down here hasn’t affected the social life of the city. They were spending their vacations here before. So we already knew these people. But after they decided to live here, we simply learned how to cohabitate. …They now have businesses here. We all have to show them our respect.”

Ten or so years ago, real estate agents faced bitter competition to sell the summer houses they had constructed in the tourist resorts near Istanbul, Yalova and Gölcük. Swallowed up by competition, they introduced bold promotion campaigns. One developer was contractor Veli Göçer, jailed in the aftermath of the devastating 1999 quake. He organized tours and ferried potential customers from Istanbul to Yalova and Gölcük free of charge. This method worked very well, resulting in a huge number of sales. We do not know how the buyers of then are doing now; but we do know that this unique campaign has inspired many others.

In consideration of the rising number of foreigners who settle in Turkey, real estate companies are adopting “Veli Göçer” campaigns. Growing interest in Turkey as a permanent living destination has significantly revived real estate businesses. It is even possible to say that this has caused notable competition in the sector, with some sellers marketing their products using promotional activities reminiscent of Veli Göçer years ago.

The sector’s revival is so striking, in famous tourist destinations like Alanya, Fethiye, Didim, Bodrum and Marmaris the number of real estate companies has dramatically increased. Separate residential areas based on nationality -- which may be aptly called Germantown or Dutchtown -- have emerged over time. Concrete data demonstrates how the law promulgated in 2003 revived the sector. While the number of estates foreigners purchased before the adoption of the law was 37,342, the number of property owners since the introduction of this legislation has already reached 20,000.

Even the number of houses sold in Alanya alone is enough to sense the vibrancy. According to official data, nearly 17,000 houses were sold in the city, with 2,000 more purchasers waiting to finalize a deal. Drawing attention to the unexpected boost in connection with the excessive demand of 2005, Alanya Real Estate Commissioners Association Chairman Kerim Balıktay said the present situation was satisfactory when compared to 10 years ago.

Foreigners settling in Turkey contribute a great deal to the country and local economies, Balıktay notes. “For instance, the number of foreigners buying houses in Alanya is about 20,000. If we say three people live in each house, then it becomes 60,000 foreigners living here. This is a huge number and a big potential contribution to local people and the construction business. Life used to stop here in winter in the past because there was no such thing as winter tourism. But now winter is very much alive.”

Marketing director of the Alanya-based Yaparlı construction company, Mehmet Bulut says: “There is a very serious demand. I can tell you that I have been in the business for 15 years. Total sales in the last five years are at least three times larger than those of the last 10 years. There used to be only Germans, but now people from a number of other countries are buying houses to live here.”

This rapid excessive demand caused a rapid price increase. Because of this partially artificial boost, the real estate business has slowed down in the last couple of months. Experts underline that the intensive competition as well as the restrictions the government is considering imposing on the acquisition of title deeds are other reasons behind the slowdown. Celalettin Çekiç from Toros Çekiç also says the bird flu epidemic and the cartoon crisis in Denmark were important factors negatively affecting the real estate business.

Balıktay asserts that the slowdown is mostly associated with a special situation with the Danes: “Real estate sales are very difficult with Denmark. Turkey follows the principle of reciprocity. Danes who want to buy a house in Turkey are required to get approval not only from the relevant local authorities but also from the central authority in Ankara. There is no slowdown in demand from the Germans, Dutch or Irish.” In reference to the concerns voiced by ultranationalists who assert that the homeland is being sold out to foreigners, Balıktay says these concerns are baseless.  

On the principle of reciprocity, Balıktay says: “Turkey denies sales to the citizens of the countries which prohibit sale to Turkish citizens. For instance, in some Middle Eastern countries, foreigners are banned from purchasing real estate. So, the citizens of these countries are denied the ability to buy property in Turkey. To me, accusations implying that Turkish territory is being sold out to foreigners are totally baseless and political. Turkish citizens are able to purchase real estate in Germany or any other European country. So why shouldn’t citizens of these countries be able to buy in Turkey? One buys a house to live in this country.”

But why do foreigners buy in Alanya? Expert see two important motives: to have great vacations and to make a sound investment with higher profit margins. Europeans like to view the houses they purchase in Turkey as a good investment, and Çekiç says that at least half of buyers can be considered to fall into this category. Serious competition in the market has led the players of the sector to seek alternative ways to increase sales. They are now focused on Turks working and living abroad. Noting that expat Turks are reluctant to invest in Turkey because of bad experiences in the past, Bulut however strongly recommends that they buy a house in Turkey and enjoy retirement life here.