There is no doubt that anyone who wants to buy a property in Turkey hears the government guarantee for real estate, but some may not know the meaning of the government guarantee for real estate in Turkey. Today, we will get to know the meaning of the government’s guarantee of real estate in Turkey and is it really a matter worthy of favoring one project over another.
As we all know that the Turkish government has construction companies that establish projects in modern urban areas that are often on the outskirts of cities so that the land belongs to the government and that it establishes projects on it and markets it at the beginning.
project guaranteed by the Turkish government
Upon the arrival of construction workers in these areas, the state begins to put forward investments for private construction companies in order for them to construct on this land belonging to the state, so the government guarantee for real estate shall be in the following forms:
- Projects with full government investment
Here, the government or the government construction company is the owner of the land and the construction company and the marketing company so that it is considered to be the real estate developer for this project and it does not have any partner from private companies often, as we mentioned that these projects are in the areas on the outskirts of cities
- Projects with the participation of the Turkish state
In this case, the state is the owner of the land and a private company participates in the construction process, so that it is a contribution to the project and the project is guaranteed by the government
- State ownership of land
Here the state is the only owner of the land and proposes the project to the private construction companies to carry out the construction and marketing process for these projects by the private company.
In these three forms, the investments offered by the state are.
Most of the projects that are bought by foreign investors are projects with the participation of the state or the state that only owns the land.
Now that we know the forms of investments, we come to explain the meaning of the government guarantee of real estate:
- The state guarantees to investors that the project or real estate will be delivered on time
- Not to manipulate prices and to over-increase
- Ensuring the rights of investors in terms of installments and purchases
- Ensure that the real property price is recorded in the title deed
- That the price offered to the foreign investor is the same as the price at which the Turkish buys
- Ensure that the apartment is delivered with the finishes seen in the show apartment and that they have not been tampered with
Of course, we have to mention that not only the government guarantee of real estate has advantages, but also there are some flaws in government projects, and we come to mention the most important of them:
- Delay in delivery
Yes, there are some government projects that are delayed for several reasons. Some government projects have been delayed for a year or a year and a half, because the government construction company may delay the financial support until it is disbursed and thus the delivery of the project is delayed
- Stereotypes in architecture
Most government construction companies follow the same architectural approach with classic design and finishing with materials that are considered less expensive. Yes, the price of the property is lower, but the rate of increase in the price of the property is also lower.
So is buying a property in a project with the Turkish government’s guarantee it is worth it?
The answer here is yes, but the state is the only guarantor so that the ownership of the land is only for the state, and this project has been invested by a private construction company, with this the investor guarantees the modern design of the architecture, high-quality finishes, a guarantee not to buy at exaggerated prices and also, and most importantly, a guarantee of timely delivery. Specified without delay.
With this article, we tried to explain the meaning of the government guarantee of real estate in Turkey, which we often hear but do not know its true meaning, its advantages and disadvantages.
Of course, we must also mention that there are some private construction companies that are considered one of the giant companies in the field of construction and real estate development. Some of these companies are companies on the market. Anyone can view their financial record and status with the government, which gives a great guarantee of the delivery and finishes of the project.
We also advise, before purchasing any property from a private company, to ask about the company’s previous projects and search for if the project is delivered on time and with the quality of finishes.
Always if you have any inquiries, you can contact us, we will be happy to answer your inquiries through the real estate experts at Advance Group.