13th ERES Education Seminar in ALICANTE, SPAIN 1st-2nd Dec 2017 Academy vs Industry. A case of Real Estate Education in Emerging Market Perspective Dr. Kerem Yavuz Arslanlı, İTÜ arslanli@itu.edu.tr
TURKEY REAL ESTATE MARKET Then & Now... Infla%on rates in single digit a0er 25 years(9-8) Now staring to rise again ~%10... Interest Rates drop down from %80 to %8-9 Around %13... Economic Crises in 2001 s, near miss 2008 s Mortgage System introduced 2007 (Act. 5216) %40 Foreign Banks (For%s,HSBC...) Minor Problems with Na%onal Banks... GDP to Mortgage Loans less than 6 percent!! Real estate market booming, a0er 2015 star%ng to Bust?!
Then... A0er 2002 economic crisis in Turkey real estate market is evolved with respect to interna%onal globaliza%on agenda. Between the years 2002 and 2008, Turkish economy has grown by 7.5%. Consequently, private consump%on expenditure have increased by 8% annually, by 6% per capita and private sector investments in fixed assets have increased by 23%. In parallel, the housing and commercial real estate sectors have also demonstrated a considerable growth. Foreign capital investments and the shares of interna%onal investors in commercial real estate s have also increased (PwC, 2012).
GDP per Capita Turkey vs Istanbul
GDP per Capita Turkey vs Istanbul
House Sales 2016-17
Real Estate Sales to Foreigners
Housing Projects & Sales Ratios to Foreigners
Banks & Mortgage Loan Shares
REITs
Inflation & Dollar
Mortgage Interest Rates 2002-2017
House Price Changes YoY
TURKEY REAL ESTATE EDUCATION The Real Estate Masters Program at Istanbul Technical University was started in 2002. The program was the first one in Istanbul and Turkey which has given more than 250 graduates in last 10 years. A0er 2005, the growth of real estate sector in Turkey provides new business opportuni%es to the educated young professionals. Alumni survey reviews the Real Estate Masters program at Istanbul Technical University and its graduates with respect to changing business environment of real estate sector. Findings of the survey reveal the need for more flexible and short-term lifelong educa%on methods for real estate professionals.
Real Estate Education 4 Universi%es Real Estate Educa%on Masters Programs (2 years with thesis) (ITU/IU/Kultur/Yildiz) 3 Universi%es Cer%ficate Programs 2-3 months (Bogazici-Bilgi) 1 Undergraduate Program at IU 10-15 students graduate annually >500 total graduates since 2001
Real Estate Education in Turkey Real Estate Education Certificate Programs (3 Programmes) Real Estate Education Msc (4 Programmes) Real Estate Education Undergraduate (8 Programmes)
Real Estate Alumni Survey In order to get the contribu%on of courses, thesis and networking abili%es of student to their future career planning, ques%onnaires were asked to alumnus. Their feedback is give valuable informa%on for detec%ng new vision of Master s program. The outcome of the contribu%on of courses for their career development get higher percentage. This might caused by mul%disciplinary scheme of student undergraduate programs
Real Estate Alumni Survey The contribu%on of the thesis gets a hard cri%c from alumnus that long and demanding workload of thesis is taken lihle effect on their career.
Real Estate Alumni Survey Alumnus respond to contribu%on to their business network gets the higher score where lihle cri%c from few where their work on public enterprises. Which might get lihle help for sta%c structure of government job pursuits.
Real Estate Education ITU Masters Program in Real Estate Development in Istanbul/Turkey in 2001 First Graduates in 2003 Followed in 2008 by other Universi%es Mortgage Regula%ons 2007 expand RE market and Educa%on Sector 2007 Mortgage Regula%ons lead to Educa%on Sector to short term Cer%ficate base programs rather than 2 or 4 years Bsc or Msc
Real Estate Education Demand Side Real Estate Sector demand on interna%onally standardized Regula%ons (Valua%on and Foreclosure Issues) Construc%on Sector dominates the market. Demand for short term execu%ve masters interna%onal joint programmes
Real Estate Education Supply Side Real Estate Educa%on separated into different departments Regula%ons and Laws affect Curriculums, Few departments run on interna%onal standards Sectors volume shrink / High Qualified Human Resources demand Way of making business in real estate is changing so the sector professionals
Real Estate Education: Turkey Joint Interna%onal Programs Regula%ons for Interna%onal Standards Highly Qualified but disconnected human resources Demand on «Asset Market» oriented programs
Q & A... Thank you Kerem Yavuz Arslanli PhD. arslanli@itu.edu.tr