Alan Robertson* is an International Director with Jones Lang LaSalle and, since 2008, has served as the Managing Director of the Turkish business of Jones Lang LaSalle. He has worked with Jones Lang LaSalle for more than 22 years and, prior to relocating to Istanbul, he was Managing Director of Jones Lang LaSalle in Scotland. In addition to his leadership and management responsibilities, he is active in the Turkish property market, specializing in the offices, logistics and development consultancy sectors. His clients include a variety of Turkish and international developers, investors and occupiers

Q: What affect has the bid-asking price gap had on property investments since the downturn?
The lack of investment deals has been partly due to the miss-match in the price expectations of buyers and sellers, and partly due to the general economic recession. For the last two years, investors have viewed yields in Turkey as uncompetitive compared with other markets, but as the more mature markets in Western Europe have recovered, Turkey is beginning to look attractive. In 2010 there has been significantly greater interest from investors than at any time last year. As the economy recovers the price aspirations of sellers will also change, but the ‘bid-asking price gap’ is reducing and we anticipate that there will be more transactions completed in the investment market.

Q: What impact is the lack of the IMF loan likely to have on real estate markets in Turkey?
The general view within the country is that the Turkish economy has proved its strength during the global turmoil and does not need an IMF anchor any longer. So far the lack of an IMF deal has not had any impact on the real estate market. In the longer term it could affect investor perception negatively, but only if the economy fails to grow satisfactorily without IMF help.

Q: Is the continuing uncertainty about EU accession having negative consequences for the property markets?
There are many in Turkey who are questioning whether the country should become a member of the EU, even if invited. What is well recognized is that the accession process itself is valuable to Turkey as it provides a 'road map' for the modernizing of the country and its economy. In our experience, the slow pace of discussions and continuing uncertainty is not having any impact on the property markets. My opinion is that the potential for growth of the Turkish economy, together with its increasingly influential role in the Eastern Europe and Middle East regions, by far outweigh considerations on whether it will or will not one day join the EU.

Q: Not only is Turkey witnessing a resurgence of foreign investor interest, but Turkish retailers are increasingly heading abroad; where are they predominantly heading and why?
A number of Turkish retailers have grown quickly and successfully in their home markets and are now seeking to expand internationally. They are mainly expanding into neighboring countries such as Bulgaria, Romania, Poland and Hungary in CEE, and Iraq, Syria and Dubai in the Middle East. These locations are principally selected for geographic proximity and ease of exporting stock. The availability of local partners is also a factor.


*Alan Robertson, Managing Director, Jones Lang LaSalle, Turkey, is one of dozens of Turkish real estate experts who share their wealth of experience in Real Estate Publishers’ upcoming Turkey Real Estate Yearbook 2011, due for release September 2010. Pre-order your copy today.