Armani apartments in Istanbul attracting the wealthy

Wealthy Turks and foreigners drawn to the idea of living in homes whose interiors are designed by Giorgio Armani have been lining up to pre-buy apartments in Istanbul’s exclusive Maçka neighborhood.

“Seventy percent of the apartments have already been sold. The other 30 percent will be sold by the end of the year,” said Vedat Aşçı, chairman of the Astaş Real Estate Investment and Tourism Incorporation, which is constructing the project in conjunction with Armani/Casa, interior design line of the Armani brand.

The project, “Maçka Residences, Interior Design by Armani/Casa,” is focusing on high-end and exclusive real estate residences.

The project was launched in May and is attracting keen interest from the wealthiest elements of society, desperate to live in a house designed by Armani.

Some 70 percent of the “Maçka Residences Interior Design by Armani/Casa” project has already been sold, with apartment prices varying between $800,000 and $6.5 million.

The project, to be completed by April 2012, will cost a total of $400 million, according to Aşçı.

The project consists of three buildings rising over the last empty land of Maçka, which sold four years ago for $40 million. Aşçı began the project in cooperation with Kempinski, one of the world’s largest hotels and residences group.

Armani, attracted by the historical fabric of the Maçka district, has accepted the invitation to join the project, Aşçı said.

Armani/Casa will add the Istanbul project to a list of already-completed residence projects in cities such as Tokyo, Dubai, Rome and New York.

Penthouses for $6.5 million

The overall project value of the new residences is $400 million, Aşçı said. Apartments will be delivered to customers by April 2012, he said.

The cost of residences will vary from between $10,000 and $16,000 per square meter, Aşçı said. “There are a total of 170 apartments and 28 penthouses in the project. We have sold 25 of a total 28 penthouses, priced up to $6.5 million in the last three months.”

Interest from the UK and Arabic countries

Foreigners have been particularly interested in the project, Aşçı said, adding that people from the United Kingdom and the Arab world will also join Turks in the Maçka Residences.

The sizes of the one-room apartments begin at 77 square meters and expand to 140, 200, 230, 260, 400 and 500 square meters.

“Our targeted group is the upper level of society. We appeal to people who love this area of Istanbul and who have lived in waterside houses before. People who will stay in these residences will have seven-star comfort,” Aşçı said.

“People buy these houses to live here, not as investments,” Aşçı said. “However, when the project is completed, the values of the properties will double. For this reason, there are some people who will buy two houses, one to live in and the other as an investment.”

Armani design attracts

The greatest reason to buy a house at the Maçka Residences is the Armani signature, Aşçı said.

People have been wearing Armani-branded clothes and bags for sometime now, Aşçı said. “Armani will create four different interior designs and the customers will be able to choose one of them.”

The price of an Armani/Casa design is two times more than the price of an apartment, Aşçı said, adding an Armani design covering one square meter costs 2,500 euros. “We attach a great importance to quality.”

“The opening of the Maçka Residences will be celebrated with a party attended by Giorgio Armani,” Aşçı said.

A total of 600 people are currently working on the project, Aşçı said. “However, this figure will increase to nearly 1,500 or 2,000 people in the future.”

When the project is completed the premises will accommodate a spa, fitness facilities, shops and restaurants. The residences will also have exclusive services such as concierge, valet parking and exclusive transportation facilities.

From the Bosphorus: Straight - Caution warranted on ‘housing bubble’

As the old adage says, “If something appears too good to be true, it probably is.” We are optimistic by nature. But prudence still suggests caution.

Which is why we react with caution to the recent and much-touted report by the Global Property Guide that Turkey is the “most attractive property market” in Europe. The report gushes that foreigners can not only sweep up deals in Turkey, but can also benefit from Turkish bank loans.

Yes, Turkey is “under-leveraged” in terms relative to more mature markets. Yes, housing credits in Turkey, at roughly 5 percent of GDP, are far lower than in fully developed economies where they typically run to 100 percent or more of GDP. Perhaps we really are in the sweetest housing and real estate market in the world. The spate of building, the skylines dotted with construction cranes and the advertising for new housing developments certainly support such optimism.

But caution should reign. Thus we think the Banking Regulation and Supervision Agency, or BRSA, made the right decision last week when it put a brake on loans. As of Jan. 1, housing loans from banks will not be allowed to exceed 75 percent of the value of property being purchased. In the case of commercial real estate, this cap is set at 50 percent. BRSA is mulling further measures, including cuts in tax incentives to real estate investment trusts, which dominate large apartment complex construction.

We also note the warning last Friday from the IMF that rapid growth of housing loans poses a risk if “left unchecked.” Turkey’s overall growth this year is expected to be in the range of 8 percent. But housing credits are expected to have risen over the same time by 28 percent.

It is worth remembering that before the world economy effectively imploded in 2007 over a housing bubble in the United States, the U.S. real estate market was full of enthusiastic buyers, sellers and lenders. Now we know better.

It is worth remembering that Spain, the largest of Europe’s deeply troubled economies, is staring at economic wreckage largely blamed on an overheated real estate market. The country’s banking sector has $240 billion in “problematic exposure” out of a total of $580 billion invested in housing and real estate development.

The president of one real estate developers association, Turgay Taneş, may be correct that the sector needs and can sustain further development. And he may also be correct that curtailment of the boom in construction will ultimately harm consumers. Maybe.

But we think the more serious threat to Turkish consumers is a return of the “boom-and-bust” cycles that have characterized Turkey’s economy over the past half century. It may be that the near-miraculous rise of Turkey’s housing sector is a sure thing. But let’s make sure. The caution of BRSA and the IMF is worthy of emulation elsewhere among government regulators.

Turkish-style green certificate to be launched

Energy-hungry Turkey is eager to adopt green building certificates, but the existing international options might not be suitable for the country’s specific conditions, an expert warns. The Environment-Friendly Green Buildings Association is working on creating a Turkey-specific certificate based on the global BREEAM certificate

Sensitivity concerning green buildings in Turkey has increased, encouraging the country to produce its own certificate.

A top executive of the Environment-Friendly Green Buildings Association, or ÇEDBİK, said each country differs by its climate, geography, energy consumption and cultural structure. The association is working to produce a green building certificate suited for Turkey, as it thinks efficiency of global certificates such as BEES, LEED, BREEAM and CASBEE may be limited.

ÇEDBİK, which began studies in October using the British-based Building Research Establishment Environmental Assessment Method, or BREEAM, as an example, aims to prepare Turkey’s own green building certificate within three years.

“The existing certificates in their current conditions can affect Turkey’s construction sector only at minimum levels,” said Duygu Erten, vice chairwoman of ÇEDBİK. “Besides, there are some differences between [current] green building certificates. For this reason, the most appropriate one for Turkey should be chosen. We will take BREEAM as a model, since it is similar to European Union standards.”

BREEAM, a system that measures sustainability of new non-domestic buildings, implements a rating system to certify buildings as passing, good, very good, perfect and top-of-the-line. Until now, some 116 buildings have been certificated among 714 registered buildings.

BREEAM is attempting to adapt its circumstances in the energy industry to European Union’s Energy Performance Certificate, or EPC, Erten said.

Abundance of abbreviations

The most common green building certificates all over the world are the BEES, BREEAM, CASBEE, ECO-QUANTUM, ECOPROFILE, GBC, GREENSTAR, LCAid, LEED and SBtool certificates. These certificates have a large area of use, from cold climates of North America to the Mediterranean countries experiencing four seasons in one year. Many of the countries generate a special model by making some arrangements on a given certificate they deem closest to their country’s specific conditions.

The BREEAM’s adaptation studies are still ongoing in 15 countries. The countries are shaping the certificates in accordance with their own resources and geographic positions.

According to ÇEDBİK’s studies, in Turkey’s special certification process, earthquake parameters will also be added. Noting that such a certificate system will be more valuable for Turkey, Erten said: “Increasing the allocation points of water and energy resources will be necessary. Since green materials are constricted in Turkey, their allocation points will be low. We want to make a Turkish contribution to BREEAM. We plan to include the home office concept by providing credits in the certificate.”

Istanbul Mega-Project Signals Rising Housing Market Confidence

The announcement that the sale of residences has begun at a landmark US$2.5bn mixed-used development project, under construction in the centre of Istanbul, highlights the momentum now building in Turkey's residential construction market. BMI notes that following the economic downturn, the alignment of key factors such as robust economic performance, rising housing loans and a stable banking sector with strong population pressure and tourism growth is fuelling expectations of a housing boom.

The Zorlu Centre mega project is a 102,000m2 mixed use development and the first of its kind in the country. Indeed, the existence of such a flagship project will add to Istanbul's attractiveness to international developers -- particularly those in the Middle East and UAE, where such multi-purpose developments have proliferated in recent years, but where real estate opportunities remain muted.

The demand levels for residences from the project will be a useful bellwether for gauging market sentiment, with foreign investors likely to be watching closely. BMI expects strong demand given both the strategic location and high profile nature of the project. The residential development will consist of 584 luxury residences, ranging from 117m2 to 733m2, with prices starting from US$9,500 per m2. The project will also include a shopping centre with nearly 200 stores as well as a 50,000m2 culture and arts centre, 22,000m2 of office space and a five-star hotel.

Having experienced a deep contraction of nearly 25% year-on-year (y-o-y) in real terms over 2009, we anticipate a strong rebound of 4.5% real growth in Turkey's residential and non-residential construction industry value in 2010. Indeed, we are increasingly upbeat about the prospects for the residential construction sector as the necessary foundations for a strong and sustainable housing market appear to be falling into place.

Underpinned by a strong macroeconomic outlook and a stable, well capitalised banking sector, consumer loans and, notably, housing loan volumes are on the rise, opening up the housing sector to the rising and increasingly affluent population. Indeed, a strengthening middle class should allow banks to be more aggressive in their lending practices as they compete for greater market share, which will further open up the market to those previously unable to access the mortgage market.

Improvements in lending will therefore reduce financial risks for developers who may have previously been deterred by such weaknesses. Indeed, with a depressed European housing market and a Middle East real estate market still in varying stages of recovery, Turkey is a BMI top pick for the region. Our bullish forecasts reflect this attractive outlook, predicting 5.7% y-o-y between 2010 and 2014.

Green Building Middle East Exhibition and Global Summit

Green Building Middle East - The region's only dedicated exhibition and global summit for the sustainable design and construction for the built environment.

Increasing globalization of construction has given greater international influence to leading architects and designers, as well as developers of new technologies. There are architectural companies now operating through-out the world helping to bring new standards into countries. Once a technology has proved itself in one place, it will soon be adopted elsewhere. A lot of these architects are active in the Middle East, which is starting to become a testing ground for many new technologies.

The UAE's Chamber of Commerce and industry has said that the green market will double from US$1.37 trillion a year at present to US$2.74 trillion by 2020.

Green Building Middle East provides the platform for your company to prove that your technologies can meet the regions energy efficiency targets. Exhibiting Companies are taking a multidisciplinary, holistic approach to satisfy the demand from the regions developers for energy-efficient green technologies in these emerging markets. Abu Dhabi plans to generate 7% of its primary energy production via renewable sources by 2020.

Green Build Middle East Summit

The conference will bring together a selection of the worlds top sustainable building experts to discuss in detail the practices, materials and initiatives that can be implemented or utilised on construction sites across the Middle East.

Abu Dhabi has been at the forefront of the regions sustainability industry, with a plethora of construction firms embracing eco-conscious business models, and with projects such as Masdar City demonstrating the emirates commitment to developing and utilising green technologies.

With the world looking at Abu Dhabi's ambitious construction sector to lead the sustainable movement, there is no better place than the Green Building Middle East Summit to discover the technologies and practices that can push the Middle East to the forefront of green construction revolution. Click here for more information.

The Arabian Construction Week Fair was very well organized, and the visitors we received at our booth were quality contacts. The venue, The Abu Dhabi National Exhibition Center is one of the finest venues in the world for Trade Shows and the regional construction market of the G.C.C. is one of the top three global markets for construction related products. Our company will be adding this show as one of our mandatory Trade fairs to attend every year.

TGBC (CEDBIK) celebrated World Green Building Week

Wednesday, 08 December 2010 00:32 TGBC (CEDBIK) celebrated World Green Building Week. The Turkish Green Building Council (CEDBIK) organized a series of events during World Green Building Week. On 30th of September, CEDBIK hosted a VIP reception at Istanbul Congress Center in order to raise awareness about the green building week. Authorities from government and private sector, media representatives, and CEDBIK members attended the reception. During this reception, CEDBIK authorities gave many interviews and CEDBIKs communication firm will release a press release. The reception has coincided with the first day of Buildist - a construction materials fair/conference. As part of the Buildist Conference, CEDBIK organized LEED Associate Exam preparation and BREEAM trainings. Besides this, CEDBIK held a seminar series called CEDBIK-Arena for 3 days. The series consists of panels about green sector including sustainable buildings and technology, innovative system and materials, ecology and media, sustainable architecture and ethics, ecology and wellbeing, sustainability and politics, ecologic crisis etc. Furthermore, CEDBIK members have participated in the World Green Building Week by attending CEDBIK-ARENA (Greenbuild part of the conference).
TGBC (CEDBIK) published the second edition of its magazine EKOYAPI in October. The main subject of this issue is green schools, new standards in schools and FSC (Forest Stewardship Council) certified wood. Details about many international projects, news about CEDBIK and its members took part in this issue.
TGBC (CEDBIK) organised a panel in Green Facilities Conference on October 5-6th. During the Green Facilities Conference, a panel is organized by CEDBIK. In this panel, Vice President of CEDBIK and representatives of two CEDBIK Board members gave presentations. The main subject of the panel was management of green projects. In the panel project phases, project planning and management of LEED projects were discussed.
TGBC (CEDBIK) organised meeting for Certification Committe on October 13th and November 11th. CEDBIK organised two meetings for the certification committee which is formed by professional BREEAM Assessors. The major item was the next step which is BREEAM adaptation meetings of certification committee members with the advisory committee members. The members, target of the meetings, role of the academicians were discussed in the meetings. Members from academia and industry are attending these meetings.
TGBC (CEDBIK) and JOTUN organised meeting for new product launching on October 20th. The focus of the meeting was an ecological dye launching. In this meeting CEDBIK coordinator gave a presentation focusing on CEDBIK mission, vission, organization and activities. Also, he mentioned about green building certification systems. Afterwards CEDBIK member, Jotun representative educated everyone about the properties of ecological dye, manufacturing process, quality tests etc.
TGBC (CEDBIK) organised LEED Associate Exam training for 2 full days on October 23rd and November 6th. CEDBIK ran LEED course focusing on the main evaluation criteria of LEED including sustainable sites, energy and atmosphere, materials and resources, water efficiency and Indoor Air Quality. Each session was delivered by a professional LEED AP. The education was very successful as indicated in the surveys conducted throughout the course. 45 people attended the course and a certificate of attendance was given to those who participated in the course which will also serve as one of the prerequisites required for entering the LEED Green Associate Exam. The TGBC will continue running similar courses in the future and has opened up a pre-registration corner for it in its website.
TGBC (CEDBIK) signed Memorandum of Understanding with Germany GBC (DGNB) on November 25th. CEDBIK and DGNB signed the Memorandum of Understanding to work together about certification systems, trainings etc.
TGBC (CEDBIK) organised Publication Committee meeting on November 29th. CEDBIK organised a meeting for the publication committee to specify the main subjects, content, strategy for the 4th edition of EKOYAPI.
TGBC (CEDBIK) acquired 3 new members. Among the new members, one of them is Designcase Architecture, Planning, Sustainability which is a sustainable architecture company and the other one is UCM Kompozit Yapı Malzemeleri which manufactures composite construction materials. Also, EE İstanbul Proje ve Danışmanlık which is a project consultancy company became a CEDBIK member.