Government sector projects in Turkey
Government sector projects in Turkey
Government sector projects in Turkey started with the high demand by foreign investors to buy real estate in Turkey, and because the Turkish real estate sector has become one of the pillars of the Turkish economy and an international magnet for investment on its lands, the Turkish government had to emphasize the strength of real estate investment in it and the ability of construction companies to implement projects The required quality and standards and the delivery of projects on time for their delivery by guaranteeing these projects by them and emphasizing the security of investment in them.
What do government sector projects or projects with the guarantee of the Turkish government mean?
Means the projects that are built on the basis of a partnership between the government sector, which is represented by the construction departments and municipalities, and between private construction companies, where government companies provide the land on which the project will be built to the construction companies to start implementing the construction project.
Governmental companies are responsible for ensuring that the project’s marketing catalogs conform to the implemented project specifications, and direct sales are carried out through them. Government companies also verify and supervise construction standards and quality, and ensure that the project’s timeline goes as planned, so that delivery is timed by project and sale contracts.
The advantages of projects guaranteed by the Turkish government
One of the safest and least risky investment opportunities in the real estate sector is the real estate that is guaranteed by the Turkish government due to its many advantages, including:
• Governmental sector projects are of high quality and distinctive with elegant architectural designs.
• The companies responsible for constructing real estate with the guarantee of the Turkish government shall be highly credible and possess the strength and experience necessary to deliver the project with the agreed specifications and deadline.
• The projects guaranteed by the Turkish government are supported by the necessary services from schools, hospitals, transportation and all other services
• These projects provide the person wishing to own a payment method in installments that can reach up to 20 years.
• The contracts are signed directly with the Turkish government represented by the government guarantor company, and it is registered with the Notary Notary.
The difference between projects guaranteed by the government and private projects
Construction companies in the government sector and strong companies in the private sector are similar in many respects, such as the quality of the architectural design, the accuracy in delivering the project on time and delivery according to the stipulated terms and the credibility that distinguishes the government sector companies and strong private sector companies.
However, there are some differences in the Turkish government’s projects and between the private sector projects, which the investor must know before making his decision to invest in one of the two sectors:
• When buying a property in a project guaranteed by the Turkish government, the down payment is low, unlike private sector projects.
• Although there is no significant difference in the quality of finishes in both sectors, the architectural designs in government projects are often similar, unlike private sector projects that have unique designs.
• The two sectors differ in terms of the geographical locations of the projects, and this difference may not be significant, but it may be noticeable. Despite the presence of several government projects in the city center, there are a large number of projects implemented on the outskirts of the cities and relatively far from the city center, unlike private projects that It makes a balance in terms of the number of projects in the city centers and between the projects that are implemented on its outskirts.
• Private projects are of a commercial or investment nature, while government sector projects focus on residential projects.
How does the Turkish government guarantee the rights of foreign investors
The Turkish government guarantees the rights of investors who have purchased a property from government sector projects through several procedures:
1. Sale contract: After closing the purchase process and agreeing on all the details, the investor and the companies representing the Turkish government move to sign contracts and then register the contract for the notary, which guarantees all property rights to the investor in the event of installments.
2. Tapu (title deed): The title deed or tapu is extracted from the Tapu department and registered with the Turkish government. It is the largest government guarantor of the investor’s rights in his property.
3. Bank transfers: When payment is made in installments through bank transfers to a bank operating on Turkish territory, the transfer receipts are a government guarantor to make the payments or even pay the full price of the property.
Through the above, we find that the rights and proof of ownership or installment payments are guaranteed and safe for all investors wishing to own a property with the guarantee of the Turkish government.
Types of contracts in government projects
• Direct Contract: These contracts are signed directly between foreign investors and the government sector guarantor of the project. In this type of contract, long-term installments are not possible because the first owner of the property is a foreign citizen.
• Assignment contract: This type of contract is between the investor and the Turkish citizen who owns the property, where the purchase contract is waived by the Turkish citizen to the investor, and thus the installment plan is transferred to the foreign investor in full, which may reach 10 or 20 years.
The most prominent construction companies that work with the guarantee of the Turkish government
It is a Turkish construction company rooted in history. It was started in 1953 by the Turkish government to keep pace with and meet the accelerating housing needs. Emlak Konut is the largest Turkish construction company and ranked 121 in the world.
Emlak Konut is a joint-stock company where 50.6% of its shares are traded on the Istanbul Stock Exchange, and 49% is owned by Toki Housing Development, a partner of the Ministry of Environment and Urbanization.
Emlak Konut has built 131 housing units to this day, and owns more than 10 million square meters of land, and its assets are approximately 24 billion Turkish liras.
Emlak Konut oversees and audits all stages of planning, the quality of building materials, service infrastructure and environmental regulation. It also follows up any problem that may occur to real estate after delivery and works to correct it and is a guarantor of the implementation of the project in accordance with the contract.
All the properties that Emlak Konut supervises have been handed over to their owners with the stipulated quality and on time for implementation.
Toki is one of the most important construction companies in Turkey, and it was established in 1984, and it handles the General Department of Housing of the Turkish government.
Its main mission lies in the organization and planning of residential complexes, and it works to secure residential complexes at good prices and long-term payment plans, and most of its projects are characterized by good architectural organization, healthy environment and beautiful views.
Toki works on creating and selling real estate, as well as selling land to real estate investors, and establishing tourism projects.
Toki has implemented more than 830,000 apartments since its establishment to this day in Turkey, and has implemented many projects outside Turkey in more than one country to be a global Turkish company.
Gol Bruges Real Estate Investment and Development Company was established more than 35 years ago, and it is one of the most important and largest construction companies in Turkey.
Jules Bruges has implemented many residential and commercial projects, shopping centers and mega malls since its establishment until today.
Gul Bruges is made up of four companies: Gul Construction (a joint stock company), Gul Construction (a limited company), Lev Yapi and Gul Yapi, which are well-established and large companies in the field of construction and implementation of residential and commercial projects in Turkey.
We hope that we have succeeded in clarifying the meaning of public sector projects or projects with the guarantee of the Turkish government and private sector projects. We, that of Real Estate, have our best wishes, and thank you for following us.