1. 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009 Real Estate & RE Education Sector in Turkey Real Estate & RE Education Sector in Turkey Kerem Yavuz ARSLANLI Istanbul Technical University Real Estate Development Msc Program arslanli@itu.edu.tr

2. Outline Turkey Country Profile Turkey Country Profile Where we came from? Where we came from? Where do we go from here? Where do we go from here? General Indexes General Indexes İstanbul Profile İstanbul Profile Office Market Office Market Retail Market Retail Market Housing Market Housing Market Real Estate Sector Demand Side Real Estate Sector Demand Side Real Estate Education Supply Side Real Estate Education Supply Side Latest Economic Crises Pros/Cons!? Latest Economic Crises Pros/Cons!? Conclusion Conclusion

3. TURKEY 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

4. TURKEY REAL ESTATE MARKET In the last quarter of 2008, after 27 quarters of continuous growth period, a slowdown trend has started to be observed in Turkish economy with the prevailing effects of the global financial turbulence. GDP reached to USD 742 billion with 0.9% annual growth in 2008. As end of the second quarter of 2009, GDP growth decreased 10.6%.

6. Since 2002, labour market trends remained remarkably stable and the unemployment rate has fluctuated around 10%. However, it has started to increase with economic slowdown and reached to 12.8% as end of July 2009.

9. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

10. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

11. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

12. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

13. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

14. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

15. Shopping Centers

16. 4th European Real Estate Society Education Seminar The Bucharest Academy of Economic Studies ROMANIA 5-6 December 2008 Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr

17. 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

18. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

19. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

20. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

21. Kerem Y. ARSLANLI Istanbul Technical University arslanli@itu.edu.tr 5th ERES EDUCATION SEMINAR - Vienna University of Technology, December 4-5 2009

22. Historical Evolution of Istanbul Urban Footprint

26. Real Estate Education 4 Universities Real Estate Education Masters Programs (2 years with thesis) (ITU/IU/Kultur/Yildiz) 4 Universities Real Estate Education Masters Programs (2 years with thesis) (ITU/IU/Kultur/Yildiz) 3 Universities Certificate Programs 2-3 months (Bogazici-Bilgi) 3 Universities Certificate Programs 2-3 months (Bogazici-Bilgi) 1 Undergraduate Program at IU 1 Undergraduate Program at IU 10-15 students graduate annually 10-15 students graduate annually >500 total graduates since 2001 >500 total graduates since 2001

27. Real Estate Education Certificate Programs

28. Real Estate Education Msc

29. Real Estate Education Undergraduate

30. Real Estate Education ITU first Masters Program in Real Estate Development in Istanbul/Turkey in 2001 ITU first Masters Program in Real Estate Development in Istanbul/Turkey in 2001 First Graduates in 2003 First Graduates in 2003 Followed in 2005 by other Universities Followed in 2005 by other Universities Mortgage Regulations 2007 expand RE market and Education Sector Mortgage Regulations 2007 expand RE market and Education Sector

31. Real Estate Education 2007 Mortgage Regulations lead to Education Sector to short term Certificate base programs rather than 2 or 4 years Bsc or Msc 2007 Mortgage Regulations lead to Education Sector to short term Certificate base programs rather than 2 or 4 years Bsc or Msc

32. Real Estate Education Demand Side Real Estate Sector demand on internationally standartized Regulations (Valuation and Forclousure Issues) Real Estate Sector demand on internationally standartized Regulations (Valuation and Forclousure Issues) Finance and Construction Sector dominetes as an market player and on many cases they interfier with each other… Finance and Construction Sector dominetes as an market player and on many cases they interfier with each other… Demand for 1 year executive masters international joint programmes Demand for 1 year executive masters international joint programmes

33. Real Estate Education Supply Side Real Estate Education seperated into different departments Real Estate Education seperated into different departments Regulations and Laws tightens Cirriculums Few departments run on international standarts Regulations and Laws tightens Cirriculums Few departments run on international standarts International Crisis on Real Estate Pro/Cons International Crisis on Real Estate Pro/Cons Sectors volume shrink / High Qualified Human Resourses on demand Sectors volume shrink / High Qualified Human Resourses on demand Time to loose the old habits Time to loose the old habits Way of making bussiness in real estate will change so the sector professionals Way of making bussiness in real estate will change so the sector professionals

34. Real Estate Education Istanbul Need for Joint International Programs Need for Joint International Programs Regulations to be in International Standarts Regulations to be in International Standarts Highly Qualified but disconnected human resourses Highly Qualified but disconnected human resourses Demand on interdisciplineer Finance Departments oriented programs Demand on interdisciplineer Finance Departments oriented programs

35. Thank You… Thank You…