Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 06ISTANBUL956, REAL ESTATE BOOM IN ISTANBUL GOING THROUGH THE ROOF

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06ISTANBUL956.
Reference ID Created Released Classification Origin
06ISTANBUL956 2006-06-02 08:09 2011-08-24 01:00 UNCLASSIFIED Consulate Istanbul
null
Dianne Wampler  06/02/2006 11:17:09 AM  From  DB/Inbox:  Dianne Wampler

Cable 
Text:                                                                      
                                                                           
      
UNCLAS        ISTANBUL 00956

SIPDIS
CX:
    ACTION: ECON
    INFO:   CONS PA RAO FAS MGT PMA FCS POL DCM AMB

DISSEMINATION: ECON /1
CHARGE: PROG

VZCZCAYO975
PP RUEHAK
DE RUEHIT #0956/01 1530809
ZNR UUUUU ZZH
P 020809Z JUN 06
FM AMCONSUL ISTANBUL
TO RUEHC/SECSTATE WASHDC PRIORITY 5097
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
INFO RUEHAK/AMEMBASSY ANKARA PRIORITY 5166
RUEHDA/AMCONSUL ADANA PRIORITY 2221
UNCLAS SECTION 01 OF 02 ISTANBUL 000956 
 
SIPDIS 
 
STATE FOR EUR/SE AND EB/IFD 
TREASURY FOR INTERNATIONAL AFFAIRS - CPLANTIER 
 
E.O. 12958: N/A 
TAGS: EFIN ECON EINV TU
SUBJECT: REAL ESTATE BOOM IN ISTANBUL GOING THROUGH THE ROOF 
 
REF: ISTANBUL 00798 
 
1. (U) Summary: Real estate in Istanbul is flourishing, as 
property prices have on average doubled in the past two 
years.  A confluence of demographic, economic, financial, and 
structural forces have come together to make owning housing 
increasingly desirable.  The most important of these is the 
fall in interest rates following the 2001 financial crisis. 
In response to increased demand, the price of real estate in 
Istanbul since 2004 has skyrocketed.  Before the recent 
interest rate increases and concomitant suspension in demand, 
market analysts expected this appreciation to continue at a 
pace of at least 10% per year through 2010, with prices in 
some areas increasing much more dramatically.  End Summary. 
 
---------------------------- 
A Story of Increasing Demand 
---------------------------- 
 
2. (U) After 1999, demand for real estate began to take off 
in Istanbul.  Following the Kocaeli earthquake that killed 
over 17,000, people began looking for earthquake-resistant 
construction.  At the same time, Istanbul,s population also 
continued to grow steadily, increasing the need in housing 
stock.  The Association of Real Estate Investment Companies 
(GYODER) estimates the number of households in Istanbul will 
increase from 2.9 million in 2005 to 4.1 million in 2015, 
resulting in a need for 1.2 million new dwellings simply from 
population growth.  Finally, approximately 200,000 houses 
will be needed to replace naturally ageing structures. 
 
3. (U) Simultaneously, life-style changes are also 
contributing to increasing housing demand -- children are 
moving out of parental dwellings in search of their own 
abode, and car ownership is increasing the distance that 
families can commute.  The Turkish word for home is  Ev;, 
the word for getting married is  Evlenmek.,  This shared 
root reflects how housing is a cultural value for Turkish 
people, and that those who can are jumping into the market. 
 
4. (U) Economic changes, however, are perhaps the most 
significant factor in rising real-estate demand.  First, 
Turkey suffered a severe economic crisis in 2001, depressing 
housing prices and halting new construction.  The ensuing 
economic recovery and reforms instituted by the GOT, however, 
created a virtuous cycle of declining inflation and declining 
interest rates.  Cash investments thus became less lucrative 
and real estate relatively more attractive, leading to a 
resurgence in the market. 
 
5. (U) Second, changes in bank requirements for housing loans 
(reftel) are also giving more Istanbul residents access to 
financing.  By the end of 2005 housing loans averaged $35,000 
and totaled approximately $9 billion, representing 2.5% of 
GDP.  Money is flowing into the sector, spurring heightened 
demand for existing housing and driving new construction. 
 
------------------------ 
Tremors To the Good News 
------------------------ 
 
6. (U) Since mid-May 2006, however, market volatility has 
slightly discolored this rosy picture, leading to an increase 
in interest rates.  Prior to the turbulence, banks charged 
around 1.07% per month (corresponding to an annual compounded 
rate of around 14% ); at the end of May, banks are charging 
around 1.30% per month.  Until this turbulence settles, 
demand may be dampened as higher interest rates discourage 
potential investors. 
 
------------------ 
Still Room to Grow 
------------------ 
 
7. (U) Nevertheless, there remains great upward potential in 
Istanbul,s real estate market.  Current bank-provided 
housing finance can only be used for legal structures.  Yet 
GOYER estimates that 52% of housing in Istanbul was built 
without permits.  This limits the number of properties for 
which a bank housing loan can be used, placing further upward 
pressure on prices.  New construction, however, is now 
generally carried out with permits, thereby qualifying for 
bank housing loans.  This change in practice is also 
contributing to an expanded pool of available housing that 
prospective home-owners can purchase through financing, 
adding to the real estate boom. 
 
8. (U) In addition, financing options are evolving. 
Legislation modernizing the mortgage market is expected to 
soon be passed by Parliament (reftel).  Yasar Buyukcetin, 
Chairman of RealtyWorld in Turkey, predicts a  perfect 
mortgage system, will be in place within one and half years. 
 If this happens, even more prospective home-owners will have 
access to capital and invest in real estate, so long as 
interest rates remain affordable.  Experts see these forces 
causing the upward trend to continue at least through 2010, 
if not 2015. 
 
----------------------- 
The Scaffolding Removed 
----------------------- 
 
9. (U) Looking forward, market experts foresee real estate 
prices continuing to rise, though perhaps with smaller annual 
increases, especially following the recent interest rate 
increases.  Fatima Umut, a city planner by training and head 
of Research and Investment for Remax Inc. in Turkey, 
estimates that growth in property prices and in property 
registrations should be around 10% per annum for the coming 
years.  She cautions, however, that prices in some places 
have already soared as a consequence of the hype and market 
revaluations. 
 
10. (U) Housing remains accessible, however, to only the 
relatively affluent.  Market analysts predict the next stage 
in real estate development will come from housing destined 
for the middle and lower economic echelons.  This will be 
possible once the mortgage market comes in line with 
international standards.  Real estate developers see this 
segment as having the most growth potential, with the market 
for luxurious residences gradually becoming saturated. 
 
11. (SBU) Comment: This is a time of immense change in 
Istanbul,s housing market.  So long as the recent increase 
in interest rates does not dampen the market too much, prices 
are expected to keep rising dramatically.  At the same time, 
such a surge in prices brings with it the risk of greater 
social and economic disparity.  If those at the lower end of 
the economic spectrum are left behind, it could cause growing 
friction between the new housing haves and have-nots.  End 
Comment. 
JONES