Ceren Ahmet Köse from Yapım Construction director answers

In our show, HangiEv.com asks, our guest this week is Ceren Ahmet Köse, director of Yapım İnşaat, which was founded in 1988.

HangiEv.com asks: How many Property have you built as Yapım İnşaat so far?

Mr. Ceren: Hello, welcome. To date, we have built over 2000 Property and commercial areas.

HangiEv.com asks: Mr. Ceren, what are your ongoing projects?

Ceren Bey: We currently have 4 projects, all of them. Two of them are in Kyrenia, one in Guzelyurt and one in Nicosia . One Villa project in Kyrenia ; Named Begon Villas. We have the Zeytin Homes project with our foreign partnership. The construction is finished there, it continues to be sold. We have a project next to METU in Guzelyurt. The room is again a Project of 100 houses and our apartment project continues in Nicosia as usual.

HangiEv.com asks: What percent of your sales are North Cyprus citizens and what percent are foreign citizens?

Ceren Bey: In the past, this rate, the rate of Cypriots, was higher than the rate of native North Cyprus citizens in our country. But after the recent developments, the increase in foreign currency, and the shift of our projects to Kyrenia, our foreign rate increases as a percentage. In other words, I can say that 80-85% are foreigners this year.

HangiEv.com asks: Mr. Ceren, what do you pay attention to when creating your projects?

Ceren Bey: While we are creating our projects, we are already an architectural company. Since we are of architectural origin, we make sure that there are no unusable areas in the floor plans. We follow the trends in the world. We create Projects according to where the trends in the world are heading, or are they shifting to life outside the city like this. After that, of course, we get a feed back after the Project is over.

HangiEv.com asks: What do you think are the advantages and disadvantages of the Turkish Republic of Northern North Cyprus for investors?

Ceren Bey: Of course, many of our countries have advantages in this regard. On an investor basis, we currently have the second fastest paying Property sector in the world. 12 years is a really fast rate of return Property in the Property sector. For example, let me give examples, when a friend in China, an investor invests in the Property sector or the real estate sector, he can get his investment back in 100 years, in North Cyprus once in 12 years, in England 30-35 years, in Turkey again after these last increases, 50 years, 40 years. ranges from 50 to 50 years. In other words, getting here in 12 years with a beautiful project in the center provides a great advantage to the investors. In terms of taxation, the withholding tax in Turkey is 20% compared to Turkey. In other words, you pay 2 Lira of the 10 Lira you receive to the state as tax. Here, the withholding tax rates are around 16% in foreign currency and 8% in Turkish Lira in local currency. That's why, when we look at both taxation and return rates, North Cyprus can return much faster because it is an island country, a student country. In addition, of course, people who buy Property in North Cyprus also have the right to obtain a residence permit here. In other words, when foreign people, foreign investors, third country citizens or Turkish citizens buy a Property here, a residence permit is granted for the rest of their life, a temporary residence permit for the first 5 years, and a permanent residence permit at the end of the fifth year if they do not commit any crime after that. they can have a residence permit.

HangiEv.com asks: There has been an increase in construction costs recently. How does this increase affect selling prices in North Cyprus?

Ceren Bey: Yes, of course, there is an increase in raw materials both due to the pandemic, and after the pandemic has passed, due to the war in Ukraine, which is also in Russia. Our country is really affected by this increase. Because we have no heavy industry. We cannot produce one iron or one concrete. Of course, there are some ways to avoid this. City planning, for example, needs to increase the limited number of Land available for development. In other words, the last zoning plan was changed in 2013. Next year will be 10 years. Since 2013, normally it needs to be changed every five years. Since 2013, no Land has been opened for development. What does this mean? In other words, Land prices are constantly increasing, Land that can be developed are constantly decreasing, and the share of Land per Apartment is now based on 20,000 - 25,000. Towards the end of last year, there was a decrease in the purchasing power of our local people in Sterling, since Property prices in our country are always in Sterling, and Sterling is based on the 20s. For this, I think the government should set up a committee and find ways to solve it.

HangiEv.com asks: Well, as Ceren Bey Yapım İnşaat, how do you evaluate the real estate and construction sector as a result of the recent developments?

Ceren Bey: Of course, there have been interesting developments recently. We came out of the pandemic, the planes opened, everyone; When our customers and tourists started to come here, the Russian War started. Now, of course, if you ask how the Russian War will affect us, there is. Hundreds of thousands, millions of people from Ukraine became homeless. They went to Hungary, Poland and other neighboring countries. In fact, the TRNC is a door through which Ukrainian citizens can come. Why? Because the Property prices of Ukrainian citizens in Kiev and the Property prices in North Cyprus are exactly the same. So there, two plus one is again around 50 – 60.000 pounds. It is at the same price level in Nicosia in North Cyprus . There are very few limited Property possibilities at that price. It is necessary for the above-average level to come and receive the positive developments in Ukraine, to the upper-intermediate level, from here to Poland or Hungary, to make contacts and bring customers, which some real estate companies do really well. Apart from this, if we evaluate the conjuncture in Turkey, the price of a Property in Turkey, in Istanbul, is now one plus one plus one in a good project, around 500,000 – 800,000. In the past, Turkish citizens who came to the TRNC for investment could always buy their second and third homes. But what we actually believe right now is that they will come to North Cyprus to buy their first house. In other words, Turkish citizens who will come here will not be upper middle class, but lower middle level Turkish citizens who want to buy their first house.

HangiEv.com asks: What are the factors that our foreign citizens should pay attention to when buying goods in Northern North Cyprus?

Ceren Bey: Yes, of course, foreign elements can own a Property by going through a certain procedure. They are divided into Turkish citizens and other third country citizens. First, let me tell you about Turkish citizens. Turkish citizens come and sign a contract with the relevant construction company. After that, they can stamp that contract and deposit it in the deed. We call this annotation. They can annotate and secure their own property. In addition, if the cover is issued or is in the process of exiting, they apply to the Council of Ministers and the Ministry of Internal Affairs by attaching their residence permit and criminal record along with that contract. And they say; "I want to buy this flat from this project in North Cyprus." This is a circular procedure. It meets once a week to conduct relevant research and give the necessary permission to the relevant purchasing area. This is actually a routine procedure. But of course, since it will go to the Council of Ministers, this procedure changes for Turkish citizens between three months, one month and three months. For foreign nationals, this procedure takes a longer time as they go through the investigation in the relevant country's departments. So for a British, a European Union citizen, a Spanish, a Spanish, a French or a German citizen or a citizen of an African country, the procedure may take six or eight months. So the thing to pay attention to is; if he wants to get the title deed as soon as possible, he has to make these applications in advance. Lawyers are available for these. Lawyers of our relevant bar can also do these or there are business tracking offices, which follow the files, they can do it too.

HangiEv.com asks: Yapım İnşaat is a very experienced company in Land parcellation. What are the necessary elements for our customers who want parcels?

Ceren Bey: One of the important problems in our country is this Land parceling business and everyone's family has a ten donum, fifteen- donum, and a twenty-decare parcel in their family. The field is divided into three to five shares or not. I think it is best to make parcels to evaluate these goods. Parceling is a job that requires expertise. An architect or an engineer draws the project, returns first from the City Planning Department if it is larger than five acres; it determines the green areas and the roads and green areas that must be legal, their location within them, in consultation with them. After that, that parcellation project; The water department, the electricity department, the sewerage department, the environment department receives opinions from all such institutions and then goes to the municipality. After going to the municipality, the municipality issues a permit for this parcel, and at the end of one, one and a half years, and two years of construction, it is divided into parcels. This procedure is generally a longer procedure than construction. Because the relevant Apartments should be asked to all apartments and their approval should be obtained. Even though there is less construction, it is a more laborious job for construction companies. But of course, as I said, it is important. Because there are really very few subdivision projects in recent years, there has just been a little more demand. Even when there are few subdivision projects, Land prices constantly go up. New parcellation, opening of new settlements, realization of the new parcellation project are important both for the construction sectors and for the people of the region who actually live in the region. Things to pay attention; Whoever is doing the parceling Project must be an architect or engineer. So that meaningful parcel sizes and shapes can emerge. Parcel sizes and why are they important? Because if you open a small Land of land in an area where there is no need for a parcel size or a few local restrictions, you will have trouble selling or evaluating it later. Of course, we did a lot of subdivision projects. Therefore, it is important that the expert draws this subdivision and then tenders it himself. In this regard, buyers should pay attention to it.

HangiEv.com: Thank you very much for your time.

Mr. Ceren: Thank you. You can find all the projects of Yapım İnşaat on the website HangiEv.com .