Real estate development or property development in Turkey is a specialty that deals with comprehensive consideration of all the new projects’ details before starting them. It intends to realize the weaknesses and strengths, and the areas of success and creativity in them, then marketing and selling them.
You read in this article:
- Who is the real estate developer and what are his responsibilities?
- Areas of real estate development in Turkey
- The real estate development process’ parties
- How to contract with real estate development companies in Turkey
- Elements and sections of real estate development
The real estate developer is able, through his experience, to notice details that the investor or the contractor may not notice. And he sets up feasible studies to obtain the best possible results.
Who is the real estate developer and what are his responsibilities?
The real estate developer can be a person or a company alike. And is neither a contractor nor a real estate consultant, but rather a development manager who spends his time searching for suitable places to establish developed real estate projects and deals with the financier, construction offices, consultants, and contractors.
The responsibilities of the real estate developer in Turkey are summarized as follows:
- Searching for lands of important and distinctive locations to carry out real estate development projects.
- Knowing the Turkish real estate market accurately and providing the best idea for the establishment of the project.
- Transforming the creative idea from paper into a tangible reality on the ground.
- building a detailed feasibility study, and selecting the most suitable real estate consultant and contractor.
- Pre-planning to know the outcome of the project and the goal of developing it after its completion period.
- Coordinating between the various activities of the development process and studying its application accurately.
- Developing the project’s marketing plan and selling strategy, away from the risks of market fluctuations.
Areas of real estate development in Turkey
Real estate development includes modification activities such as the partial or total overhaul of old properties and the renewal and modernization of existing buildings.
It also includes buying vacant lands in specific locations after a thorough study of feasibility and profits and then setting up investment projects on them.
- Real estate development might be establishing pioneering real estate projects, within the newly emerging areas in Turkey. Those projects will turn into high-end residential complexes, which today are considered one of the most successful projects. Although this type of project needs a large capital (companies or a group of investors), it is strongly favored by Turks and foreigners if appropriate frameworks are available for investment, given its usually high profits.
- Real estate development might be constructions in areas within cities, whether on empty land or after demolishing old buildings and creating new ones in place of them. The Turkish government encourages this type of real estate development which leads to real estate corrections and is called (urbanization) or ( Free development). One of its most important features is the fast capital circulation.
The real estate development process’ parties
- The financier of the real estate development project: it may be a person, company, or several companies or institutions.
- Real Estate Agency: It is responsible for making agreements with construction companies for the management and supervision of the project. It also contributes to presenting development ideas, economic feasibility studies, and marketing the project exclusively to achieve a large turnover.
- The Contracting and Construction Company: It is the company that should implement the project according to the plan provided by the real estate agency.
How to contract with real estate development companies in Turkey
The real estate developer is the supervisor of the project. His plan determines the future of the project, so it is imperative to know some important matters when contracting with him, intending to ascertain the extent of his ability and experience and enhancing mutual trust between the parties.
This is achieved by:
- Obtaining as much information as possible, looking for detailed information about the project, and not being satisfied with the data available in the media or promotional advertisements.
- Knowing the real estate developer’s history and his experience in his field, as his previous works and projects talk about his successes.
- Knowing the time period specified for the completion and delivery of the project.
- Review the project plan, alternative plans, and the feasibility study related to it.
- Set penal conditions to obtain sufficient guarantees to complete the project according to the agreed time.
- Getting to know the engineering consultant supervising the project, and the contractor contracted with him.
- Knowing the future plans for marketing the project after its completion.
Compliance with the previous clauses is greatly beneficial in evaluating the level of the real estate developer before contracting with him, which helps in making the right decision to choose the right real estate developer, and greatly contributes to the success of the project and achieving the highest possible profit.
Elements and sections of real estate development
- The research and studies department in the real estate company, to keep an eye on the market and update the data.
- The Department of Investment Management and Capital Management employed in the various projects.
- The scientific advisory staff, which is a team specialized in preparing economic feasibility studies for investment projects.
In conclusion, it should be noted that real estate development does not end with selling the housing unit and delivering it to customers only. Rather, it is necessary to focus after that on evaluating the services provided after the sale, managing complexes, and knowing the opinions of the beneficiaries and experts in the quality of the service provided.
Edited by: Extra Property ©