Cityscape: Five minutes with Turkey's Nurol
Since 2003, Turkish developer Nurol has presence in the Gulf region with Nurol Construction and Trading Company in Abu Dhabi
1. Being a Turkish construction company, how feasible it is to penetrate the GCC market?
Nurol Holding has been carrying out business both in Turkey and abroad for the past 50 years, with almost 40 subsidiaries, affiliations, branches and project partners. Since 2003, the company has presence in the Gulf region with Nurol Construction and Trading Company in Abu Dhabi. It holds an “A class” contracting license and has displayed a record of growth and concluded more than $2bn worth of projects. In accordance through its experiences in the region, Nurol has great knowledge and understanding of the market. Additionally, Turkey’s strategic geographical location, being close to the region and the similarities in culture are among advantages to invite investors form the region to invest in Nurol REIT projects in Turkey.
2. What are the projects that you are working on currently?
Currently Nurol REIT is developing three mixed use projects in Istanbul, Turkey. These projects are; Nurol Tower, Nurol Life and Nurol Park.
Nurol Tower is located in Mecidiyekoy which is one of the main business districts in Istanbul. The project will be completed in the third quarter of 2015.
Nurol Park, project located in Gunesli, Istanbul is designed for mixed use, but predominantly focuses on residential units. At Nurol Park, there will be a total of 1.186 houses available at various sizes suitable for different needs and in three different concepts of low-floor ‘lofts’, ‘residences’ and ‘towers’. The project will also include about 85 cafes and shops in the open-air life valley and will be completed during the first quarter of 2016.
Nurol Life, project located in Seyrantepe, Istanbul has been designed by one of the most well-known architects Hakan K?ran, who is mainly known for his contemporary projects. This mixed use project consists of residences and offices along with leisure facility areas for the convenience of its residents. In total, the project will have 466 units with different square meters, along with 50 offices. Nurol Life will be a tower of 50 stories offering various types of units ranging from 62 m² up to 1200 m². The project will be completed by the first quarter in 2017.
3. What are the projects in the GCC that you are targeting?
In the case of Nurol REIT, we are not developing any projects in GCC. For our company’s investments, we haven’t yet partnered with any Turkish or foreign companies for the development or contracting side of the business neither in Turkey nor abroad. However this doesn’t mean we are not supporting partnership with external parties, on the contrary due to Nurol Holding’s presence in GCC we have developed a very strong clientele portfolio which we have intentions of developing partnerships with them in the near future.
4. How has been the year 2014 for you? What challenges did you face?
We can say it was a very good year. Not just for Nurol REIT, but for the Turkish market in general. Having a great number of youth population and being in trend of economic expansion, Turkish property market will continue to attract investors in the upcoming years. According to the Turkish Statistics Institute, property sales are increased by 0.7% in 2014, whereas the general economic view of the world is still unstable. The stability of the continuous expansion has a positive impact on the investors and affects the consumers purchasing behaviour. It would be accurate to say with the urban transformation policy, the property market will continue to be an investment magnet in parallel to the economic development. 2014 was a year of great successes, and we hope to achieve more success in the years to come.
5. What are the company strategies for 2015?
We would like to maintain our position in the growing trend in 2015, just like 2014. This year is particularly a very important year for Nurol REIT as we will start delivering our project to its customers from third quarter onwards. Our project will come to life with its new owners.
6. What are you expansion plans in the GCC?
As I have stated earlier, we currently don’t have presence as Nurol REIT but we are looking forward for future coloration.
7. Who are your competitors? How do you differentiate yourself from them?
Turkey is a great place to invest, in relation Nurol REIT offers attractive projects to invest with various payment plans for GCC investor’s convenience. It is always a good opportunity to be a part of the trending market, however the right organization and the quality of service received makes a great difference in the investors’ experience. For our projects, we can clearly state it’s both.
However, besides these there are also different parameters that affect the buyer’s choice to either to invest or to live in a property.
In accordance, as Nurol, we identify our project locations taking into consideration various elements.
We believe each project should provide a balance of investors and end users for a healthy atmosphere of the development. If the project is full of investors, it indicates that you have basically taken into consideration only certain elements of the decision making process while selecting your project type and location; this will affect the ROI of the property.