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Turkey Market Watch JANUARY 2017 MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices. EMERGING MARKETS: TURKEY Sharing characteristics of Europe and Asia, - 90 percent of all assignees. Spread over two continents (Europe Turkey is increasingly being recognized as a and Asia), Istanbul has 17 million residents and serves as the country’s economic and financial hub. Other cities frequented location with the potential for profitable business by international assignees include Ankara (the capital), Izmir and possibilities. It is Europe’s sixth and the world’s Bursa, where expatriate housing is also available. 17th largest economy, and continues to expand May, June, and July are the busiest months in the housing at a rapid pace. Yet Turkey remains a challenging market. The competition for available properties is high, with location for some expatriates, with housing, assignees competing with local residents as well as other transportation and cultural issues currently expatriates. Properties can be secured within hours of being highlighted as key areas of focus. placed on the market and viewings canceled at very short notice. Some landlords also do not accept children or pets, so assignees moving with children or animals should find out a Key Challenge Areas property’s rules before arranging viewings. Input from Cartus’ Destination Services Provider on the ground in Turkey, highlights the following key areas for assignees: Property-types Housing There is a wide variety of properties available in the suburbs Schooling of Istanbul. The vast majority of properties are apartments, Transportation with very few stand alone houses available, especially in the Security metropolitan area. There is however, an extensive range of one Medical Services to four bedroom apartments, with five or more bedrooms less Climate common. Most properties are unfurnished, which in Turkey Language means that there are no appliances or lighting fixtures. Cultural Issues Temporary housing and serviced apartments are becoming Turkey in Brief increasingly available. Due to limited supply and popularity • Capital: Ankara among families there is a shortage of two and three-bedroom • Other Significant Cities: Istanbul, Izmir, Bursa, Antalya units and prices can be expensive. There are very few properties • Government: Unitary parliamentary constitutional republic offering four or more bedroom serviced apartments. • Official Language: Turkish There are more housing choices in expatriate compounds and as • Currency: Turkish lira ( )—TRL such these are becoming more popular. Unlike other countries, • Religion: Islam (official) compounds have not been built for security reasons, but rather • Population: 78, 741, 530 million people to meet a demand for shared facilities (swimming pool, gym, • Climate: Hot, dry summers and mild, wet winters. gardens, car parking) by both locals and expatriates. As Istanbul • Major Industries: Textiles, food processing, autos, electronics, has little green space in public areas, such features are popular mining (coal, chromate, copper, boron), steel, petroleum, amongst assignees. Other compound features typically include construction, lumber, paper, jewellery a car park and gym. • Time Zone: GMT +3 hours • Dialing Code: +90 Rental Rates Due to their low availability, stand alone houses in Istanbul’s HOUSING metropolitan area typically come at a premium rent, starting at There are a wide range of housing options for assignees moving U.S.$8,000 per month. Properties near the sea or the Bosphorus to Turkey. Although Istanbul is not the Turkish capital, the city can also be expensive, sometimes up to 50 percent more than hosts the largest number of expatriates coming into the country the average rental price for Istanbul. (The Bosphorus is a strait CARTUS | MARKET WATCH: TURKEY / JANUARY 2017 | PAGE 1 OF 4 JANUARY 2017 MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices. EMERGING MARKETS: TURKEY SCHOOLING There is a wide variety of private pre-schools and primary schools in the country, especially in Istanbul, but high schools have very limited availability. In Istanbul for example, there are three English-speaking international high schools, all located on the European side of the city. These schools limit enrolments to students with foreign passports. There is also one German and one French private high school. Due to limited availability, school fees can be quite expensive, approximately U.S.$25,000 per year. This does not include the cost of school buses and extra activities such as school trips. International Schools in Istanbul • The British International School follows the British education system and has three campuses, with the main campus located that runs along the Asian-European border.) Once a property has north of the city. been found, the landlord may either request a holding deposit or • Deutsche Schule Istanbul is a German private school that is insist on a quick contract signing and immediate lease start date. linked to the Turkish education system. Deposits can be from one to three months’ rent. • The Istanbul International Community School (IICS) provides a Below is an outline of the average rental prices for unfurnished mix of American and British curriculums and is the most popular properties in Istanbul (other cities in Turkey are typically lower). school among the Istanbul expatriate community. There is an inner city campus for children up to eight years old, but the main Apartment Rental Rates (U.S.$) House Rental Rates (U.S.$) campus is located further away from the city center. 1 Bedroom 1500 – 3000 1 Bedroom Not available • Lycee Francais Pierre Loti d’Istanbul is a French private school 2 Bedroom 2000 – 4500 2 Bedroom Not available that closely follows France’s education system. 3 Bedroom 2500 – 7000 3 Bedroom 3800 – 6000 • MEF International School is the only English language 4 Bedroom 3500 – 9000 4 Bedroom 4500 – 8000 international school with its main campus located in Istanbul’s metropolitan area, sharing a campus with the Turkish MEF School. Properties in compounds vary in price, depending on amenities/ features and whether rent includes utilities. Assignees should Program Advice also be aware that compounds may charge management fees in • Assignees with school-age children should apply for space in addition to monthly rental payments. private or international schools as far in advance as possible, due to the lack of available spaces. Program Advice • Due to the unreliability of properties advertised online, • Nearly all high schools are located outside of Istanbul’s city assignees should avoid property portals and instead work center, which can often be a concern for parents. This should closely with their destination services provider when searching be communicated to assignees as early as possible so that for a property. expectations are set from the beginning. • Given the low availability of good quality expatriate housing, • As high schools are located a distance from the city center, assignees need to act and decide quickly to secure the organizations should ensure allowances cover school bus fees too. property they want, as the rental market is fast moving and landlord-led. This is especially so during the busy months of TRANSPORTATION May, June and July. Driving • As well as rental payments, compounds charge additional In Istanbul, driving is chaotic and unpredictable with accidents a monthly maintenance fees, so organizations should ensure an common occurrence. Rather than driving, many assignees prefer appropriate level of accommodation allowance is provided. to hire a car and driver. An international driving license is required for assignees who would like to drive whilst on assignment. There • Be mindful of extra costs associated with unfurnished are three bridges that link Istanbul’s European and Asian sides, properties. It should be decided before the home search including the newly opened Yavuz Sultan Selim Bridge. The city’s whether the assignee or organization is responsible for subway system has also been expanded to include a rail tunnel, furnishing the property. linking the European and Asian metro lines. Roads can be heavily CARTUS | MARKET WATCH: TURKEY / JANUARY 2017 | PAGE 2 OF 4 JANUARY 2017 MARKETWATCH Information from Cartus on Relocation and International Assignment Trends and Practices. EMERGING MARKETS: TURKEY congested throughout the day, although in the summer, traffic is lighter due to school holidays and residents being on vacation. Public transportation in Istanbul carries five to six million passengers a day. This includes the metro, trams, buses, ferries, and water taxis. The network can be crowded and does not cover the entire city. Taxis are safe, affordable and available throughout Istanbul and as such they are very popular with expatriates. Program Advice • To ensure a smoother settling in process, organizations should consider providing the assignee with a car and driver for the first week of their assignment. This allows the assignee (and MEDICAL SERVICES family) to get used to their surrounding area and road/traffic The care available in Turkish hospitals varies greatly. Generally in conditions. smaller cities and towns, health care standards are not as high as • Consider providing a lump sum allowance so that the assignee the country’s major cities. New, private hospitals in larger cities may purchase a car whilst in Turkey. It is more cost effective have modern facilities and equipment.
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