What’s going on in Istanbul this fall?

Wondering what you can do in Istanbul during the last warm days of an Indian summer? Well, if the hundreds of trendy new cafes and restaurants that have sprouted up throughout the city don’t keep you busy enough, why not take in one of the many festivals that enrich the city’s cultural life so much?

In October there is a jazz festival, it’s not huge with little commercialism, but very low key and delivering great jazz. Archie Shepp and Cecil Taylor have turned out in the past so dont miss it as they’ll be some laid back legends jamming around. For more info: 0212 334 010. http://www.pozitif.info/tr/festival/2012/akbank-22-caz-festivali/228/

Social Inclusion Band

If you are one of the growing legions who enjoy documentary films check out this festival which runs in November. Most of the venues are located around Beyoglu, so you can just give me a ring when the film is finished! http://www.1001belgesel.net/en/Default.aspx  Admission is free.

Also in November is the popular Istanbul International Short Film Festival (Uluslararası Istanbul Kısa Film Festivali), which has showings in Beyoglu and at the wonderful Istanbul Modern (which is a venue worth whiling away a half day or so in its own right). Admission is free. Who said you need to have millions to enjoy Istanbul?
0212 252 5700  http://www.istanbulfilmfestival.com/

Istanbul Modern

Drop me a line if you know of any other great events coming up and I will be sure to add it to our space. Enjoy, folks!

Turkish Vs Foreigners part 2

In last week’s blog we discussed client purchasing habits A La Turca and saw how cool our Turkish brethren can be while making important investments.

On the other hand, foreign buyers seem to come to the battle field with significantly more information and much higher expectations from their realtors. In this, they could be said to be the opposite from Turkish buyers, though variations exist from nation to nation, with Germans, as if by some genetic pre-disposition, are at the top when it comes to preparedness and fastidiousness,  and the İtalians, apart from their insistence on square meter pricing, closer to the Turkish end of the spectrum.

As a general rule, foreigners typically do not make an offer on a property until they have had a good survey of the market. They tend to ask the realtor many questions and are quite prepared to offer a free lunch to get them! At least that is my excuse for my chronic battle to keep trim.

The issues that they most focus on are: legal issues, local planning and renovation codes, prices of course, rental laws, and down the road projections for re-sale, just to mention a few. They are also very fond of local tales of the past that give them insight into the neighborhoods. So, I always try to have a few of these on hand while we wait for a sleepy relative of some property owner to fumble for misplaced keys.

İn general, I like working with foreign clients for the reason that they do come to appreciate any knowledge or expertise I may have in the area.

The main task is to try and demonstrate the parallel lines in what often seems a jumbled and bewildering real estate market. And they do exist, and there are some wonderful opportunities in Istanbul, but at times, if one focuses too much on the details, they can often miss the bigger picture. Istanbul is, at present, an Alpha economy and things are developing at break neck speed. Neighborhoods and streets are changing rapidly. What was considered expensive last year, is now the norm.  Bosphorous property has become a global commodity and people from every corner want their piece nearly as much as they want property in Knightsbridge. These are some of the issues that foreigners, who are often not here on a day to day basis, have a hard time adjusting to. Finding value is best achieved through doing homework and working with someone who knows the scene and is patient to explain it to you. I can put you in touch with one such fellow if you leave your mobile number!

Just a few humorous (er..) anecdotes, on the nationalities and their real estate quirks.

The French:  always the most dramatic, prone to using ooh la la in excess. But don’t be fooled. They are ferocious bargainers.

The English: most prone to scoffing at cheap prices. They can hardly reveal their delight at a good, low price. I pre-coach them not to do this in seller’s ear shot. Luckily for us they have been conditioned by sky high London prices.

Russians: most likely to crush bones in a handshake. Is this an ‘in’ joke of theirs? Meeting with Russian clients…note to self…remove all rings.

Italians: still most likely to be very late and almost make up for it by giving you a sly wink and a wide grin.

Americans: true to form, seem to have an almost primordial obsession with the availability of parking. I usually lightly jibe that instead of buying one flat, they should just buy the whole building and turn the entrance floor into a garage. İt becomes a kind of Eureka moment for them and I am sure they never look at another building in the same way again.

Asians: masters of the great disappearing act. Nowhere to be found on İstanbul real estate scene. I suspect they are en route, backtracking the Spice Route. Though I did hear some rumours lately about Singaporean giants lurking the waters. How exciting!

Big Buildings in Beyoglu

Now that I’m back (and recovered) from my marathon Ankara squash tourno the search has been back on for a large building for the European fund I mentioned a couple of weeks ago.

Big buildings for investment can be relatively expensive per sqm compared to the smaller single units on offer in Beyoglu, Istanbul. This is because they are in demand from large investors and funds. Funds and large investors are not interested in the smaller units such as 2/3 bed apartments that I normally deal with as they are too fragmented and admin costs can be relatively high as you may need to buy 15 properties to equal the investment of one large property. Centralized renovations are easier in one block building as you only need one good overseer/ renovation team and additionally rent from a big building can be easier to collect as opposed to numerous tenants in different properties. All of these factors add a good few euros per sqm on to the price tag.

However, in general I find that smaller, well sourced units (residential apartments and small buildings) make relatively more profit per sqm from both rentals and capital growth, especially if the sourcing has been done well.

Big returns can be made by finding a problematic large building that investor funds won’t buy as it’s not oven ready. Then get the relative permission, sort any other problems, etc  and then sell on to a fund when you’ve done all the dirty work. It also requires true facility with the market and current trends. The small player can also take advantage because he or she may be more willing to take on this kind of management role. People who have flexible work schedules often relish the opportunity for some additional work and challenge…. the returns can be tremendous, however, this sort of game plan is not for the faint hearted!

Back to the job in hand – here’s a few hopefuls I’ve found:

   

It’s still pretty hot out here, with temperatures regularly topping 30 degrees, shops have sold out of fans and locals are running off to the beaches at the weekends.

A cool breeze can be found sipping a Margarita on the rooftop bar at the Pera Marmara Hotel, pretty pricey but add in the tremendous view and it starts to make sense!