Effects of real estate investment funds to real estate development industry

Turkey's needs generated by demographic and economic structures and a real estate market which is dominated by habit left over from the housing sector is hosting a high inflation environment. After 1990, this equation was also added to the renewal of the earthquake protection. Qualified office projects, shopping malls, logistic warehouses have been developed over the past 20 years to address the development and needs of the country. Especially in the last 15 years, the construction and real estate sector has played an important role in the growth of the country, "real estate development" has brought many new business fields and related legal regulations ranging from project financing to real estate appraisal, asset management to rental companies. Financial resources in Turkey's economy felt from being linked to the presence illiquid instruments which creates discomfort, and left behind the high inflation environment with factors such as the decrease of the motivation to acquire pension for residential purposes, management of the economy has given support participation rate of 25% for the development of the private pension system. Regulations that allow the establishment of real estate investment funds aimed to increase the investment vehicles of individuals by securing the flow of the real estate to the financial markets and securing the transparent and in-registry collective investment vehicle. The real estate sector globally in Turkey constituted an important segment of the macroeconomics in particular; the manufacturing sector and the financial sector are inevitably in mutual relations and it can be assumed that the gears are the three wheels most in contact with each other. Likewise at the micro level, while the real estate sector is vital to every consumer's need for accommodation, eating and drinking, working and so on; every level of commercial and industrial activities and even service sector depodan resauranta, every sub-segment from the port office to the structures, and the real estate sector and therefore the relation with the manufacturing and finance sector. The Capital Markets Board (CMB) issued the Communiqué on Real Estate Investment Funds No. 52, published in 2014, which opened the way for the portfolio management companies licensed by the institution to establish funds that could purchase completed and insured properties without "entering into development activities". These funds, which can not build construction and therefore can acquire existing properties without developing new projects, are aimed at collectively opening financial markets for the assets developed over the last 15 years, allowing developers to turn to new investments with the outcomes they will make, improving the returns of the loans granted by banks. This study examines the legislation that entered into force in 2014, the practices of the world, and the temporal process of the German market, which is funded by real estate investment funds; In the first 3 years of real estate portfolio management company founded in Turkey and by taking the real estate investment fund established under the spotlight; Turkey's real estate market; how to influence the development sector, comparing the expectations of financial / institutional investors with the projections of developers, and to show what kind of effects Real Estate Investment Funds could have in the sector. Historical process of global real estate investment fund, after being examined areas and quantities in which they invest, Turkey also is in the process of harmonization as their first real estate investment funds in the European Union and countries, the most developed in Germany practice is discussed in detail. Different solutions (liquidity etc.) that Germany has experienced in different dates have been researched. Likewise, there has been a survey of fund managers who have been operating this practice for many years. Republic of Turkey Capital Market Board's communiqué issued by, but noted the similarity finalize the arrangements made by Germany, the licensee companies of 2014, the entry into force of the Decree in Turkey to set up a fund in the period following the month of July and the investments made by the fund set up with the funds they established these companies were examined. The real estate development sector negotiates with three representatives of GYODER, KONUTDER, INDER and AYD members from leading pavilions of the real estate development sector to determine whether they make any exit (sales) to real estate investment funds and whether they plan to exit to real estate investment funds in the coming period; it was searched whether there was any effect on the development projects of the real estate mutual funds and the results expected for the real estate mutual funds were searched. On the other hand, 3 of the 41 portfolio management companies licensed to establish and manage liquid funds from the capital market board have their views on real estate investment funds and their expectations from these funds; they were questioned whether they had invested in real estate before. In all these negotiations, real estate investment funds were expected to grow rapidly, expected to grow to 2.5 billion TL in a short period of 3 years, and that the growth of the investors is expected to be furthered. The developers of receivables in the market have relieved the developers of disposing of developers who can not be taken into real estate mutual funds' portfolios. is an anchor; (benchmark) by comparing the rising interest rates of financial investors (benchmark), because the real estate mutual funds are more illiquid and therefore they are expecting a rent increase over these rates and because of the recent movements in foreign exchange rates, foreign currency rented properties are preferred. In the high interest environment, he loses his appeal, the private pension system in which entered into force automatic enrollment system for any funds prefer to do that which guided the participants' resources Standard retirement Fund to invest in real estate funds of at least 10% of the portfolio brought by the Treasury, Turkey Wealth funds instruments and venture capital property of the formation of investment funds requirement as well as asset classes that will lead to an essential flow of investment funds and contribute to growth. The fact that fund managers may be willing to invest in real estate investment funds as long as they cry, the real estate investment funds traded on the Stock Exchange's Qualified Transaction Market are perceived as a more liquid product and the founders / managers of the funds are in fact a real estate development and investment experience and have come to the conclusion that funds are more preferable. As buyer / investor side of real estate investment funds (buy side); how they look at real estate investments; what kinds of investment quests and return expectations they are in, what types of products they expect from the market and the producers, On the other side, questions were raised about the attitudes, expectations, workings and products of the institutional / financial / investor attitudes towards the non-existent level up to now with the company authorities (sell side) developing residential-office / shopping center. Thus, the Real Estate Investment Funds, which are new financial investment instruments managed by portfolio management companies as a non-bank financial institution on the market, have the idea of seeking an investment that will satisfy pension funds and qualified investors and that the developers will be able to invest in institutional / financial investors who exhibit different behavior from conventional individual investors. and how this yen buyer on the market will affect the real estate development industry. As will be detailed in the research results, the most fundamental result is that, unlike the individual investor who makes the emotional investments, the real estate investments can not be considered separately from the market alternatives, the institutional / financial investor must present the competing entities with various alternatives such as interest and stocks. it has been observed that the real estate in illikit is expected to provide a relatively higher return in order to close this disadvantage. Managers who want to keep a certain amount of real estate in their portfolio and / or mutual funds which have decided to invest in real estate have turned to the offices because of the property rented with foreign currency due to the high value losses of the Turkish lira in the recent period; it has been concluded that turkish operation and high inflation-high turkish lira interest environment will not be able to come to prices that will compete with other instruments with turkish lira and will not be preferred by institutional / financial investor. Individual investors are decreasing in retirement and housing acquisition due to resources transferred to the Individual Pension System; developers observed that housing sales declined due to the slowdown in value increases and the opening in the rent / value ratio; it is observed that even though the new buyer profile is a sales forecast for the Real Estate Investment Funds, the annual rental and the increase in the value of the property will not be demanded as an illicit product that is below the deposit interest rate. It can be observed that all activities that threaten the safety of life such as irregular settlement and post-employment manufacturing in the real estate development sector can be prevented and all developers who want to invest in such properties and sell to funds should comply fully with the development plans and license projects. The obligation of developers to develop products that the funds can invest technically, legally and financially will discipline the sector indirectly and make it competitive. an inevitable wheel at the micro and macro economy of each love and long duration of the real estate development sector sees the dynamism of Turkey's economy, with non-bank financial sector, corporate / financial investors relations have entered up to this day, individual investors have the resources, financial by executives with financial license investing in a manner that is compatible with the market and its realities has led to the realization that the real estate development industry will grow more transparent, more competitive and integrated with the rest of the economy. As a result, it is clear that the development sector, which has produced many commercial properties for the last 15 years, and that these properties are obstacles to new investments, the impact of the sale of these commercial properties to real estate investment funds will be affected by the multiplier effect of the country's economy, real estate investment funds that are one of the rare investment vehicles for the private pension system that has the tendency to acquire real estate investment funds and offer interest that price risk premiums such as liquidity when compared to other instruments on the market. Mutual funds and land funds that provide capital growth have been the most attracted funds as of the survey date are observed. Real estate investment funds, reaching TL 2.5 billion in a short period of 3 years, have reached the conclusion that the new portfolio management companies will grow by disciplining the real estate development sector by maintaining the growth rate with new funds and investments.