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Investing in projects implemented by Turkish public or private construction companies: which is better?

19/10/2023 Investment in Turkey 406 Investing in projects implemented by Turkish public or private construction companies: which is better?

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Construction companies in Turkey are divided into two main sections. The first section is construction companies in the government sector , and the second section is construction companies in the private sector , and it is similar to many countries in the world, but the content and substance in the projects is completely different in Turkey. What is the difference, I wonder? ? 

There are several main points that separate construction companies in the government sector and the private sector. These points may be positive for some and may also be negative for others, so the consulting team at Damas Turk Real Estate decided to detail this for you in order for the picture to be clear and clear exactly as you desire . See it, dear investor. 

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In our article today, we have adopted titles for each turning point between government sector projects and the private sector . Therefore, we will begin the article by identifying the quality of each of the construction companies in the private and government sectors . Then we will talk about the advantages that accompany the projects of each of these companies, then we will move on to the negatives, and finally We will leave you our opinion regarding which is better, and finally the judgment will be yours after all. 

Construction companies in Türkiye between the government sector and the private sector 

First: Construction companies in the government sector

First, we tell you that the number of construction companies in the government sector is somewhat limited, but their influence is great and extends to the whole of Turkey and more than that. Pay attention! We are talking about construction companies concerned with providing residential projects, but other than that, they are many and have a powerful influence even globally! 

Government sector companies adopt the principle of submitting projects based on three forms, which are as follows: 

  • Providing the land to certain construction companies and supervising it completely from A to Z. 
  • The establishment of entire projects by these companies for a specific segment of people, specifically those with limited income, and with long-term future installments.
  • Creating luxury projects in charming locations for all segments and in long installments as well.

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The first and second forms are limited only to these government companies, while the third is certainly shared with the private sector, which builds luxury, medium and ordinary projects as it wants, and the ones whose name shines among these companies are two companies whose projects extend from the farthest part of Turkey to the lowest! We will mention these companies to you in the following paragraphs. 

Second: Construction companies in the private sector 

There are many private construction companies in Turkey, and they have recently begun to compete in many points offered by companies in the government sector. These companies present their projects based on lands and tenders that they were able to obtain in pivotal places in the cities, and they are the ones that build from scratch and deliver and follow up on all existing properties. In its projects. 

Private sector companies adopt the principle of submitting projects based on the following two forms:

  • Establishing luxury or regular projects in specific locations for all segments and in medium installments.
  • Establishing luxury or ordinary projects in specific locations for all segments, but paying directly in cash.

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Installments are rarely long-term in private company projects, so most of these companies have adopted the principle of installments until they start delivering the projects, which means the maximum period is approximately 3 years, and we will come to all the details in our next paragraphs. 

Construction projects in Türkiye between the government sector and the private sector 

Construction projects in the government sector 

  • We believe that you have come across a very resonant phrase when searching for real estate in Turkey in many projects and others, for example, apartments for sale in Istanbul with government guarantee! Yes, this term “government guarantee” means that all real estate marketing companies mean that these projects are established by the government sector, and it is considered a feature that companies use to attract customers to them. 
  • The truth is that it is indeed a pivotal advantage for the government sector, so the concept of government guarantee is a participatory idea to create housing units provided to those wishing to buy a property in Istanbul, and all the logistical and administrative work is done and the decision maker is the Turkish government, and the subject of supervision is also what is most unique to the projects established before. The Turkish government, which we will discuss in detail as well. 

Construction projects in the private sector

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  • Construction projects in the private sector may be accompanied by the phrase “government guarantee” if these companies build projects on lands owned by the government sector, and anything less than that is not associated with the government sector, and are merely private projects established by real estate development companies. 
  • But this does not mean that these construction projects in the private sector are not desirable! In fact, some of them may be far superior to what construction projects in the public sector offer, and you will see that when talking about the pros and cons of each of them. Construction companies are now establishing their projects outside Turkey, and with great intensity as well! 

Advantages of construction projects in Türkiye in the government and private sectors 

Advantages of construction projects in Türkiye in the government sector 

First: Legal guarantee for establishing projects 

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Government guarantee companies, after handing over the lands to construction companies, assign a full team of legal advisors concerned with official and legal matters. The function of this team is to audit and comprehensively follow up on the process of obtaining licenses and other routine matters from municipalities, the land registration department, and others. This means that all projects in which it has a hand It is 100% legal and there are no scams or anything like that.

Second: Follow up on the construction process and materials used

After all papers and other legal matters are completed, there will be a team of engineers with all specialties to follow up on construction matters in all their cases, in order to ensure that projects are constructed based on all previously imposed and agreed-upon standards and conditions. Their mission is also concerned with complete supervision and guidance for the use of conditional materials and tools as well. All of this is within contracts concluded with the construction company that undertook the project. 

Third: Periodic follow-up of projects

Construction projects in the government sector are characterized by the procedures that take place upon delivery of apartments and after delivery as well. The delivery of apartments is highly professional and guarantees to any client that all matters meet the conditions and duties upon which they were previously based. Also, the process does not end here, but rather with supervision of the projects after completion and periodic visits. To ensure that all matters and others continue to be in the correct order.  

Fourth: Documenting official contracts and ensuring their validity

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This feature is no less important than what we mentioned previously, which is ensuring that sales contracts are authenticated by a notary public and in the presence of representatives of government insurance companies. There are contracts whose installments extend to 20 years and the only guarantor is these companies based on contracts submitted in the presence of the notary public, so they are the guarantor in replacing these. Contracts after the end of payment of installments or construction projects to the official title deed document in front of government institutions. 

Fifth: Long installments and reasonable prices 

Everyone seeks to buy apartments for sale in Türkiye with government guarantee, why? Certainly because government insurance companies offer flexible and easy installment plans to their customers, some of which last up to 20 years and in reasonable installments. In addition, the prices in these projects are reasonable and are presented based on the market prices present in each region, and this is what enhances purchasing by these companies that It really seeks to be a model for managing the affairs of citizens and others wishing to buy real estate. 

Sixth: Vital places and areas with an investment future 

Government guarantee companies have a correct vision proven through their previous experiences that they choose the right places with future investment. Certainly all of this is based on plans in partnership with the Turkish government to direct housing to certain new areas, or rehabilitate a specific area. We have seen areas that government guarantee companies were able to transform from From flat land to high-rise towers, such as Bahçeşehir and Başakşehir , so the future investment here is definitely in these projects. 

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Advantages of construction projects in Türkiye in the private sector

First: Choosing central places in the heart of Turkish cities

This advantage is attributed to projects established by companies in the private sector, because they always seek to make a difference and distinguish themselves from projects in the government sector, where they buy lands in the heart of cities such as Istanbul and build luxury projects on them, so that some private companies dominate a large percentage of entire areas. By establishing its own projects next to each other, it has made a significant impact in some areas of Istanbul. 

Second: Luxurious finishes in projects and high quality 

This is also another point that is unique to the projects of private construction companies. In general, these companies seek to provide the best finishes and the latest technologies in their projects, in order to make a difference between their projects and what is available in the real estate market in terms of government projects, because government projects usually offer average quality and normal finishes, in The target segment remained generally in Turkey. 

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Third: The prestigious services associated with special construction projects 

Private construction projects always seek to provide services with high luxury compared to what government companies provide, and if you go on real estate tours, you will see the real difference between the two, because government projects provide average services, and private projects in which we find the latest technologies in terms of gyms, swimming pools, and other services. Featured. 

Fourth: Unified content in private construction company projects 

What we mean by this is that private companies always adopt specific content for their projects, whether residential, commercial, commercial centers, and so on, while government companies provide all content, and specialization is always somewhat better. We find, for example, private companies that rely on investing in office apartments in all their projects. Therefore, it always focuses on investment sites, and it succeeds because it specializes in this content only

Disadvantages of construction projects in Türkiye in the government sector and the private sector 

Disadvantages of construction projects in Türkiye in the government sector 

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Through the positives we have mentioned to you, the negatives have automatically become clear for each type of company, whether private or government, let us enumerate for you the most important points that may be negative for some and may not be for others regarding construction projects in the government sector, and they are as follows: 

  • Finishes in apartments and cladding are generally average in government projects. 
  • Services accompanying projects are average and sometimes limited. 
  • Not specializing in specific project content makes it somewhat less professional. 
  • Transactions and related papers are somewhat prolonged due to the pressure of demand on government projects. 

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Disadvantages of construction projects in Türkiye in the private sector 

The private sector also has some negatives that some may find positive as well, which are the following:

  • Payment plans and installments are not as flexible as what is found in government projects, and extend to a maximum of 4 years. 
  • There is a significant weakness in timeliness and project delivery for private companies. 
  • Real estate prices in private projects are somewhat high compared to government projects. 

The most important construction project companies in Türkiye in the government and private sectors 

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Some construction project companies in Türkiye are in the government sector 

First: the famous EMLAK KONUT company

  • Emlak Konut Company was established in 1953 to meet housing needs and with the help of the modern Turkish government. It is a public joint stock company, and is considered one of the largest real estate investment funds in Turkey, as it owns a 50.6 percent share structure in the city of Istanbul! It is a large and good number for citizens of the Turkish state who want to buy real estate.  
  • The company's capabilities are never underestimated, as it has contributed to the construction of more than 130,000 independent properties to this day, which is a large number that international construction companies have not been able to do. This company has created modern areas in the city of Istanbul, namely Başakşehir in Kayaşehir, and also Ispartakule in  Bahçeşehir . "Garden City" 

Second: TOKİ Housing Company

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  • In Arabic, it means the General Administration of Housing, which is an abbreviation of Toplu Konut İdaresi. It was established in 1984 on the instructions of President Turgut Ozal. The budget of this company is considered completely separate from the state treasury, but officially it certainly belongs to the Turkish government. 
  • The principle and idea of ​​this company is to realize residential projects and buildings for citizens with limited income, but it has expanded greatly and now offers major projects in the city of Istanbul as well. The most valuable feature of this company is the long-term installments that extend for more than ten years. 

Some construction project companies in Türkiye are in the private sector 

First: Al-Ikhlas İHLAS YAPI Company

  • One of the largest companies that provides family content to customers. Most of the apartments created in this company’s projects are entirely family-based with professional services, and the spaces in them were very large, some of which were many times what other construction companies offer, and its projects have expanded in Bahcesehir and  Belek . Dozo . 

Second: BABACAN HOLDİNG Company

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  • Babacan is considered one of the best construction companies in Turkey, which was founded in 2002 AD. It relies on the construction of residential and commercial projects, and it also has interests in energy and logistics. Its name rose to fame recently when establishing a series of various Babacan projects throughout the city of Istanbul, and it relies more on hotel apartments and offices. Commercial areas next to main roads in city centers. 

Third: ARTAŞ Construction Company

  • It is a luxurious company and has a long history extending for more than thirty years in the Turkish construction market. It has many projects in Istanbul on both European and Asian sides. Its content has a family connotation par excellence and is full of wide green spaces. Its apartments are large and have spacious areas as well, and contain large three-room apartment types. And a salon, four rooms and a living room.
  • Before concluding, and after a comprehensive and complete detail about construction projects in Turkey, in the government sector or the private sector... which is better for investment, in your opinion? We leave the answer and evaluation to you, but as for us, each of them certainly has advantages and positives, and each is not without negatives, but based on your request and goal, we can achieve for you the best investment between both, due to the long experience that we have in the Turkish real estate market. 

In conclusion

In conclusion, this article was a comprehensive and comprehensive explanation of the construction projects in the private and government sectors in Turkey. Through it, we were able to talk about all the positives and negatives in it. We also defined each of them in terms of their common content in Turkey, and we mentioned to you in the end the most important prestigious construction companies from both parties. In Turkey, and to help you more in choosing the best projects, contact us directly. 

If you are really interested in real estate investment in Turkey or want to buy real estate in Turkey, or would like to obtain Turkish citizenship through its various methods, Damas Turk Real Estate Company is your best choice to obtain the best opportunities, real estate offers and distinguished services. Contact us to receive a team ready to serve you around the clock. 

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