Real estate securities to further revitalize sector

The real estate securitization system set to be implemented for the first time in Turkey at Makro İnşaat's Park Mavera 3 project, under the auspices of the Prime Ministry's Housing Development Administration of Turkey (TOKİ), is expected to bring further mobility to the sector. Real estate is one of the country's main economic sectors, and it continues to grow aided by new regulations and practices. The real estate security, which was included in the government's 2016 action plan and published in the official gazette, is a new financial instrument that provides opportunities to domestic and foreign investors, as well as citizens, who want to invest or acquire housing with little savings. The first step was taken through the issuance of a real estate security within the framework of the Capital Markets Law, and the aim was that all income groups would come together in the same investment environment. Investors will be able to buy real estate securities at the end of this month. The real estate security is expected be an important tool to accommodate faster and easier urban transformation projects.

'Housing sector to be affected positively'

Speaking to the Anadolu Agency (AA) on the possible impact of the real estate security system on the sector, Hamit Demir, chairman of Demir İnşaat said: "Real estate, one of Turkey's thriving sectors, has been rated as 'the safest investment haven' in recent years. Pointing out that with this law, the real estate sector will be able to address the wider masses and that TOKİ's move in this direction was a very exciting one, Demir said, "I think that the housing sector will be affected positively if real estate securities become more effective." Demir highlighted that practices like these, which can propel the real estate sector in a positive direction, will make the sector a leading investment tool compared to others. In his opinion, the housing sector will be much more stable and secure than other investment tools, such as stock exchanges, foreign exchanges and gold.

Capital Markets Board supervises securitization

Makro İnşaat Chairman Ercan Uyan said the real estate security entered the real estate market as a transparent, efficient and reliable tool that will enable people to make investments even with small budgets. Noting that they do not sell apartments, but take partners for new real estate projects under the guarantee of TOKİ, the Capital Market Board's (CMB) supervision and in the transparency of the stock market, Uyan said the purpose of the security is to protect the rights of all income groups in a reliable and transparent environment, make them a partner in real estate investment, and make use of the increase in value.

New scheme highly important securitization tool

General manager of Piyalepaşa Gayrimenkul, Kaan Yücel, added to the positive declarations by businesspeople on the new form of buying, saying that more than 1 million houses are sold in Turkey each year and the regulations put into effect over the last few years have significantly accelerated the sector.

Saying that securitization of the real estate sector was a matter of great importance, Yücel declared the "Real estate security is a really positive development for our industry. There are many ways to ensure the securitization of real estate, such as the Real Estate Investment Trust issuing bonds and sukuk. The real estate security is a very important securitization tool, which actually contains all of them." Yücel added that the spread of securitization among wider masses, regardless of the method, is a very promising development for the sector.

Suggesting that real estate can be a very valuable investment tool as it can bring a better income compared to other forms of investment, Yücel called it one of the safest investments in Turkey.