What does government guarantee in projects in Turkey mean?
Some real estate projects in Turkey (Turkish projects) are established based on the partnership between public and private sector companies, as the land is owned by the government, while the private company, which is the construction company, builds and implements the project under the supervision of the government to ensure the quality of materials, accuracy of standards, specifications and complete reliability in addition to the safety of procedures Legal and financial.
In Turkey, construction is carried out through one of the construction companies of the Presidency of the Turkish Council of Ministers such as Toki – Emlak Konut.
Emlak Konut is one of the very remarkable construction companies in Turkey and is known for its credibility and quality of services. It is an administratively and financially independent company. It is a well-established company founded in 1953 to meet Turkey’s need for modern housing by the state. Emlak Konut is the largest real estate investment fund in Turkey. This company has a partnership structure of which 50.6 percent is traded on the Istanbul Stock Exchange.
Emlak Konut oversees construction at all stages, from planning to quality materials, from infrastructure to landscaping. It monitors problems that may arise after the real estate handover, sends an expert delegation to solve problems if necessary and ensures that the project is carried out in accordance with the contract. All projects are undertaken by Emlak Konut so far have been delivered to the property owners on time.
TOKİ is a government-backed housing agency it is suborfinated by the Ministry of Environment, Urbanization and Climate Change of the Republic of Turkey, created specifically for the production of social housing. In 1984, the Department of Collective Housing and General Partnership was created. The organization was established to serve the needs of the state in building healthy public housing under the principle of the social state, and it continued its activities in this direction. This company is keen on creating projects for housing and infrastructure strengthening places where natural disasters occur, completing credit projects for developing village architecture, transforming slum areas, and preserving and renovating the historical buildings.
Why to choose projects guaranteed by the Turkish government?
If you are one of the people interested in buying a property in Turkey, government guarantee projects are the best and safest option for you because the government guarantee on projects protects them from the risk of bankruptcy and some problems such as licensing problems.
When the term government guarantee is mentioned, we mean a set of procedures and steps provided by the Turkish government, which are as follows:
The governmental company supervises all documents and project licenses to ensure the application of laws and legislative regulations, and of course, the most important point for them is the comfort and well-being of the residents, so it aims for the highest standards of quality and sophistication, and of course, the governmental company supervises the process of promoting and marketing the project and the promotion catalogues And typical apartments and matching them with specifications. It also prepares contracts and price lists.
The stage during the sales process:
Before transferring the money incurred to the account of the governmental company (and of course here we mean that it is transferred to the government’s accounts directly) the sales contract must be signed by the notary public, and then all the necessary documents and papers. This ensures that the buying and selling process is completely legal.
At this stage, the construction company verifies the quality of the construction and its compliance with the agreed standards. It also extracts the initial ownership contract, the housing permit and all the required documents. It is also keen on supervising the appointment of the housing complex management and receiving residents’ complaints with their resolution. After a year, a delegation of experts from the governmental company visits the project to make sure that there are no problems.
What are the types of Turkish projects guaranteed by the Turkish government:
Full government guarantee: where government construction companies are unique in building the entire real estate project, starting from the stage of purchasing the land on which the project will be built, passing through the process of construction and finishing, to the marketing, sale and delivery process.
Partial government guarantee: where government companies have the authority to supervise the construction and finishing process carried out by the private construction company on the land owned by the governmental company, or the two government and private companies jointly participate in the construction and finishing process.
And through our experience in the field of real estate, we advise our valued customers to choose the second type, which is the partial government guarantee, and the reason is that this type of real estate has the advantages of the public and private sectors, this type combined the high quality of construction and finishing from the reliability and durability of construction to beauty and modernity In exterior and interior design, we will not forget to mention the appropriate prices. And of course, with great care for the safety of legal procedures, you will not face any problem in receiving.
Among the most suitable real estate projects with the guarantee of the Turkish government in Istanbul:
OG113 is one of the most important and most beautiful projects in Bahçeşehir (Garden City) with views of the new Istanbul Canal. It is also characterized by being suitable for families due to its proximity to all services such as schools and hospitals…etc.
OG123 project with a charming view of the Gölet garden This project offers a dynamic and calm life in both its low-rise and high-rise buildings on the other hand.
OG169 The project is located in the Tuzla area in the eastern part of Istanbul, Asia. The Tuzla area is distinguished by its Special location on the Marmara coast, as it overlooks the Marmara Sea and the Princess Islands.
OG170 project is located directly on the sea on the coastal road of Zeytinburnu and the features of the project are its central location, which ensures easy access to the main areas of Istanbul such as Fatih, Şişli, Taksim, Besiktas. Surrounded by a wide network of transportation.
OG235 project on the European side of Istanbul in the Eyup Sultan area – the project is surrounded by many services such as markets, schools, hospitals, and banks – and is characterized by its wide green spaces.
Advantages of purchasing a project with a government guarantee:
• The government guarantee is keen to secure the process of building the project and its complete completion until the delivery of the title deed (Tabu).
• When buying a property from the government guarantee projects, a contract is signed with one of the construction companies and it is registered with the notary public (noter). Of course, the Turkish government is a party to the sale, which means that you own it directly from the government.
• If the property was purchased by installments, the monthly installments are paid to government accounts directly by sending a bank transfer. These projects are distinguished by the long-term installment system.
• The prices in government guarantee projects are considered since the government is a well-thought-out, moderate and appropriate party to the market, and even these projects are the ones that balance prices in the real estate market in Turkey, which attracts investors strongly, especially that these projects prove the purchase price in Turkish lira even if Inflation occurs. The price at which you purchased the property will not rise, and you can complete your installments at the fixed price.
• Most of the projects that are guaranteed by the government are provided in their area with all the necessary services and facilities such as shopping centers, schools, transportation, mosques, etc…
Thus, we see that there are many experiences of government projects contracting with private companies so that the project benefits from the advantages of both the private sector and the government sector and is far from the disadvantages of both, for example, it benefits from modern and elaborate designs and finishes for the private sector, safe investment and appropriate return prices for the public sector.
We at OG Real Estate and Investments have partnerships with major construction companies in Turkey in general and Istanbul in particular, and of course, we have a professional team ready to answer all your inquiries and provide consultations for free and inform you of the potential investment return for any property you wish to invest in. Also when you choose, we will be with you during the legal procedures following the stage of sale, such as extracting the title deed and registering it via webtapu. Do not hesitate to contact us through the available means of communication.