nevita int- invest with our best

Invest With Our Best

1

evita INT for Real Estate Services

http://dev.getsocial.com.tr/nevita2/index.html


2

Contents:

1. Presentation ......……………………………………………………………………..………………..3

2. Global Real Estate Market …..……………………………………………..………...............4

3. Turkish Real Estate Market ……………………………….…..………………………………….5

4. Başakşehir & The Key Projects in the Area …………………………….….…….……..…6

5. Fuzul Construction’s Projects & Percentage of Investment Return….………...8

6. Turkish Real Estate Sector from Foreign Investors’ Perspective.……….…..…10

7. Appendix …………………………………………………………………………………………………11

Resources ………………………………………………………………………………………………..11

Real estate taxes………………………………………………………………………………………12


3

1. Presentation:

Nevita International is pleased to share briefly our global and Turkish real estate markets reports. These reports describe the facts and the projections of real estate sector based on market research and expertise. Nevita INT has the opportunity to offer true real estate services, delivered by an experienced team to maximize the value of real estate assets through the investment life cycle. Our services help clients to think more strategically about their properties by providing them with multiple ways to unlock value in their assets while minimizing financial risks. For developers we provide wide services such as property management, consulting, project leasing, investment services, marketing, and advisory. We have also ability to provide tenant representation, and agency leasing. Our first step in any engagement is to fully understand customer’s objectives and requirements to make them reach out their goals profitably. As a nutshell, Nevita INT’s business model is to make an impression, to stand out from the crowd, and most importantly, to make you and your properties look outstanding. Below information will help our clients to have an explicit idea of adapting better decision in their investment property strategy.

Nevita Int,

Your Ultimate

Benefit


4

2. Global Real Estate Market:

The real estate investment industry will find itself at the center of rapid economic and social change, which is transforming the built environment. While most of these trends are already evident, there’s a natural tendency to underestimate their implications over the next six years and beyond. By 2020, real estate industry will have a broader range of opportunities, with greater risks and new value drivers.

The changing real estate landscape will have substantial implications for the real estate investment community, which we highlight below some of implication strategy for real estate.

1) The global investable real estate universe will expand substantially, leading to a huge expansion in opportunity, especially in emerging economies

2) Fast-growing cities will present a wider range of risk and return opportunities 3) Technology innovation and sustainability will be key drivers for value 4) Collaborating with governments will become more important 5) Competition for prime assets will intensify further 6) A broader range of risks will emerge. New risks will emerge. Climate change risk,

accelerating behavioral change and political risk will be key

As real estate is a business with long development cycles – from planning to construction it takes several years – now is the time to plan for these changes. In order to prepare for these implications, the real estate investment organizations will need to make sure they have the right capabilities and qualities.


5

3. Turkish Real Estate Market

In Turkey, the real estate sector has entered into a significant development period. Since 2008, residential, office and commercial properties have outperformed in the Turkish real estate market. Indeed, rental yields and selling prices for retail and residential properties kept growing over the last three years. In future, primary commercial properties in central areas are likely to attract investors’ interest. However, since spring 2013, following the FED’s announcement for “tapering” its QE (“quantitative easing”) and the recent political developments in the region, there have been pressures on the Turkish real estate sector. Now, opportunistic investors and risk-averse investors from emerging markets seek security in more stable regions such as the US and Europe. The Turkish real estate market continues to feel the impact of slow domestic growth which will result in investor demand for only high-quality properties and resultant cap rate compression. The Turkish real estate industry presents many opportunities to local and international investors over the mid to long term. Turkey’s young and large population drives domestic consumption to some level. In addition, the government implemented new schemes in the past years to increase foreign investments to make Turkey a manufacturing and export base in the Eurasia region. Logistics infrastructure projects continue to increase logistics industry performance and given the expected efficiencies are achieved; more foreigners will be willing to re-locate their base to Turkey. These developments will inevitably drive demand for real estate industry in Turkey.


6

4. Başakşehir & the Key Projects in the Area

Başakşehir, is one of the emerging sub regions in terms of real estate investments, located in Istanbul's European side. The area has a population of approximately 400,000 people with B+ socio-economic ranking. The majority of Başakşehir population is between the age of 30-39 and 68% is married. As of 2014, the property prices are still expected to increase with improved transport infrastructure and increasing urbanization in the area. Başakşehir is rich in housing projects, as there are 688 projects and more. In Başakşehir, there are 77 educational institutes and 151 banks. The area is also surrounded by social facilities like 1153 stores, 245 restaurants, 23 sport centers (containing of Atatürk Olympic Stadium) 32 parks and gardens. The district has total 63 different religious institutions.

Başakşehir as one of the top property

districts in 2014


7

Canal Istanbul

Canal Istanbul Project, being first proposed in the 16th century while feasibility studies and early construction started respectively on 2009 and 2013, is an approximately 50km long artificial sea-level canal connecting Black Sea, Marmara Sea. Projected on the European side of Istanbul, the estimated canal depth is 25m to enable a pass way for the world’s largest ships. The main objective of Canal Istanbul project is to provide an alternative gate to shift Bosphorus traffic. Parallel to the projected canals strategic potential, urbanization in the region is expected to emerge.

3rd Bosphorus Bridge

3rd Bosphorus Bridge is projected to be the highest suspension bridge worldwide. (59m width and 1408m main span, more than 322m height) The project started to be realized as of 2013, projected completion is by 2015. The project is located in Odayeri–Paşa köy part of the Northern Marmara Project. 3rd Bosphorus Bridge will also provide passenger transport through Edirne and İzmit by rail system. Being integrated with Marmaray, Istanbul Subway (to connect to Ataturk Airport), Sabiha Gökçen Airport and 3rd projected airport, the 3rd bridge plays a key role in the cities and regions transportation development. The project is expected to provide a significant solution to the traffic problem as well as having a stimulator role in the emergence of new commercial and business zones in Marmara and neighboring Region.

3rd Airport

3rd Airport of İstanbul is projected to be located in Arnavutköy District of İstanbul, at the Northern part of Europe near the Black Sea. The project is estimated to serve for 150M passengers potential.


8

5. Fuzul Construction’s Projects & Percentage of the

Investments Return

Fuzul İnşaat is a leader private well-known construction company founded in 2000, Fuzul’s

offering investment strategy of owning properties for investors and living lifestyle. Since 2000,

Fuzul committed to deliver customer’s value to its buyers by developing best project locations

in different places in Istanbul in respect with profitable investment strategy. Kindly find below

recent projects that had been developed by Fuzul İnşaat in the past five years in Başakşehir:

Kent Neriva: Kent Ariva: Location: Başakşehir Location: Başakşehir Project starting: March-2011 Project starting: Sep-2011 Delivered in: Dec-2012 Delivered in: Jul-2013 Flats number: 83 Flats number: 140 Shops number: 29 Shops number: 16

Evila: Olimpa Park: Location: Başakşehir Location: Başakşehir Project starting: Sep-2012 Project starting: Dec-2013 Delivered in: Aug-2014 Delivering in: Dec-2015 Flats number: 80 Olimpa Park Plus: Row flats number: 12 Project starting: May-2014 Villas number: 26 Delivering in: May-2016 Shops number: 27 Total flats number: 232

Total shops number: 56 Back In 2008, Fuzul İnşaat delivered Fuzulkent project as well. In this project Fuzul entered Başakşehir as the first private construction company. Fuzulkent project consisted of 1000 flats in different levels. During 15 years, Fuzul brand became stronger and bigger to be one of most reputed trusted construction company in Istanbul and in Başakşehir area especially. In the below chart you will find the percentage of investments return regarding the recent projects in Başakşehir, the below facts will be the best indicators for customers to find out their future property investment projections with Fuzul Inşaat according to project’s locations and facilities.


9

The investment return percentage of finished projects calculated according to marketing department of Fuzul Company after six months of delivering its projects. These increment occured due to:

1- Fuzul brand and home qualities 2- Başakşehir as a best investment property

strategy, 3- Key projects in the near future.

The ongoing project Olimpa Park & Olimpa park plus has two phases. First stage will be delivering it to customers at the end of 2015. Next stage Olimpa Park plus will be delivering in May 2016. Olimpa Park project still has ability to be increased at least by 30 % more in the six months after delivering the project, and 41 % for Olimpa Park Plus as well. Future projects Location: Başakşehir Project starting: July-2015 Delivering date: May-2017 Flats number: 384 Shops number: 50 Expectation of investment return: 60 % minimum Fuzul’s home units combine security, cutting edge technology, desired amenities, positive atmosphere, best facilities, and outstanding investment returns.

21%

31%

80%

92%

78%

OLIMPA PARK PLUS / ONGOING

OLIMPA PARK / ONGOING

EVILA / FINISHED KENT ARIVA / FINISHED

KENT NERIVA / FINISHED

Percentage of Investment Return

Percentage of Investment Return

Fuzul Company Offers wider

range of

opportunities to

local and

international

investors


10

6. Turkish Real Estate Sector from Foreign Investors’

Perspective

Foreign investors have shown interest in the Turkish real estate and construction market in the past years. The top three cities that are popular amongst the foreigners to be considered for real estate purchase are Antalya, İstanbul and Aydın. The investors may focus on these rich touristic destinations on the southern and western coast of Turkey for construction and management of properties that are designed for the needs of the foreigners as foreigners may prefer to own their estate rather than staying at a hotel, more affordably for an extended period of time. Rising foreign demand, record levels of tourism and healthy economic conditions throughout 2014 mean Turkey should expect further growth in its real estate market in 2015, it is claimed. House sales to foreigners in the first 10 months of 2014 increased 66% year on year to reach 15,417, according to the Turkish Statistical Agency (Turk Stat). According to turkey reports, the number of foreign purchases in Turkey had already exceeded the total for the whole of 2013. Property prices have shown steady increases during 2014, Meanwhile, Turkey's Reid in-GYODER New House Price index recorded a month on month rise of 1.33% in October and 7.3% rise compared with the same month last year. Revenue generated by tourism in Turkey hit a new record for the January to September period this year, generating $26.6 billion, according to Turk Stat. The country welcomed more than 30 million visitors during this period, a 6.1% increase over the same period last year. These figures would suggest the country is on course to receiving 43 million tourists for the whole of 2014, hitting its revenue target of $36 billion, according to a forecast made by the Association of Turkish Travel Agencies.


11

7. Appendix Resources:

Turk Sat

Colliers International

Fuzul Constructions

PWC

Reid in-GYODER


12

Real Estate Taxes

Municipality Tax

Real Estate (Property) Tax Real Estate Tax is annually levied by the relevant Municipality. It is to be paid in two installments during the year (end of May/November) at the following rates: • Buildings used for housing : 0.1% (0.2% for those located in greater municipalities) • Other Buildings (i.e. those used as factory, office): 0.2% (0.4% for those located in greater municipalities) • Land (“Arazi”): 0.1% (0.2% for those located in greater municipalities) • Plots of land (“Arsa”): 0.3% (0.6% for those located in greater municipalities) These rates are applied twice as much if the relevant real estate is located within the boundaries of large cities like Istanbul, Izmir, Ankara etc.

Municipality Tax for Environment Cleaning: • Levied for the purpose of environment cleaning if buildings are used for housing, as a place of business, as well as other purposes. Tax is levied at certain fixed amounts which change every year based on certain defined categories.

Compulsory Contribution for Protection of Immovable Cultural Monuments: • 10 % of the annually accrued real estate tax (paid to the Municipality together with the real estate tax). • Real Estate Tax base is the taxable value determined according to the Article 29 of Real Estate Tax Law.

Stamp Tax

• If a sales agreement is concluded between buyer and seller which includes a certain monetary amount, the agreement is subject to 0.948% stamp duty. There is cap of YTL 1,487,397.70 TL for stamp duty which sets the maximum amount payable for per original document. • Both parties to the agreement are jointly liable for stamp tax.


13

VAT

• Sale or rental of immovable by a resident company: subject to 18% VAT • The delivery of materials (e.g. Cement, roofing materials etc.) used for construction of buildings is subject to 18% VAT. • Delivery of flats with a net area of up to 150 m2 is subject to 1% VAT. Others subject to 18 % standard VAT. • Construction work delivered to cooperatives established for the purpose of housing is subject to 1% VAT. • Sale of real estate that is not held as inventory is exempt from VAT if the holding period exceeds 2 years. • Tax value of houses calculated between 500 TL and 1,000 TL are subjected to %8 VAT, more than 1,000 TL those are subjected to %18 VAT for the sale of houses in metropolitan municipal.

Deed Charges in Case of Sale

• 2% of the real estate value: Payable by both the seller and buyer. Total Burden: 4% of the Real Estate Value • Base for Title Deed Charge Calculation: Acquisition value of the immovable. • There is also a compulsory contribution to be paid to the Title Deed Office (the amount changes every year depending on geographical location).

Other Information

Sell and Lease Back • The New Law (No. 6361) has enabled financial leasing of the assets not only from third parties but also from the lessee. By this way, sell - lease back system which is a widely preferred financing method in many countries has been adopted. • A cash-strapped company can sell its real estate to a financial company and lease it back afterwards.

• Under the Law transactions (sell, lease and passage of title) are made by lease, factoring and financing companies are exemption from VAT, stamp duty. • Gains on sale of assets is exempted from corporate tax. • In the end of leasing period, transferring ownership to renter is not subject to title of deed fees.

nevita int- invest with our best

Documents