Global crisis ends down payments era

Developers are rolling up their sleeves to revamp the market with new campaigns and are now targeting customers who want to buy houses with no down payment, just the same as paying rent.

At least nine projects are offering no down payment necessary on a 120-month payment plan. The projects include the Kiler GYO (Kiler real estate investment trust Ğ REIT) Çınarevler project in Beylikdüzü, Aqua City 2010 in Çekmeköy by Sinpaş GYO, Realistanbul in Merter by Türköz Construction Co., Ergene Valley in Çorlu by Makro Construction Co., Dragos Royal Towers by Dap Yapı, Astrum Towers in Beylikdüzü by Regnum, Casa Mare in Büyükçekmece by EnYapı, Ovalbahçe in Sarıgazi by Om.

Some other companies, such as Kuzu Group, Mimart Construction Co. and Fi-Yapı, have lowered down payments to less than 10,000 Turkish Liras.

As spring comes, the real estate sector is rejuvenating as well and sales are at full speed. Interest rate at zero percent, long-term payment plans, delayed payments and discounts are just a few measures developers are taking to resist the global financial crunch. And now the trend is sales with no down payment. Construction companies are offering plans with no down payment to grab more customers who prefer smaller units or studio apartments.

Low-cost apartment complexes
Several major construction materials, such as iron and pre-packed concrete, have reduced prices and this has helped companies build low-cost apartment complexes.

Kiler Real Estate Investment Partnership, or GYO, does not require a down payment for units at its Çınarevler project at Beylikdüzü. With a 120-month payment plan, a one-bedroom, 68-square-meter unit is selling for 100,000 liras, while a 111-square-meter, two-bedroom apartment goes for 163,500 liras and a 134-square-meter, three-bedroom flat goes for 198,400 liras. Monthly payments vary between 1,198 and 2,377 liras. Buyers will pay 20 percent of the total amount when they move in, which is planned for August.

Aqua City 2010 by Sinpaş at Çekmeköy consists of 1,118 units and was introduced to potential buyers through its "No down payment revolution" campaign. Sales started last week. Buyers pay 5 percent of the total amount three months later after the sale, 10 percent 12 months later and 15 percent 24 months later. The company offers various credit options varying between 0.72 percent and 1.04 percent interest rate in 36-month and 72-month payment plans. Apartment prices range are from 115,000 to 208,000 liras for one-bedroom units, from 195,000 to 304,000 liras for two-bedroom units, 254,000 to 526,000 liras for three-bedroom units and 432,000 to 798,000 liras for four-bedroom units.

In Merter where Türköz is building Realistanbul in partnership with Oliv Construction Co. a zero down payment and 120-month payment plan is offered. The 74-square-meter, one-bedroom apartments are sold at 215,000 liras, 94- to 101-square-meter, two-bedroom apartments from 235,000 to 260,000 liras, 132-square-meter, three-bedroom units at 375,000 liras and 213-square-meter, four-bedroom apartments are sold at 595,000 liras.

The Makro İnşaat-TOKİ-Emlak Housing partnership is offering apartment sales at Ergene Valley in Çorlu with no down payment and zero interest. Flats vary in size between 60 and 176 square meters, from one-bedroom to five-bedroom and are priced from 68,500 to 169,000 liras.

The Astrum Towers by Regnum will be completed in May. The zero down payment plan is offered in this Beylikdüzü apartment complex that consists of 1,285 housing units. Monthly payments for two-bedroom apartments are 800 liras and for three bedrooms 825 liras. Additionally, a 30 percent down payment will be paid in 2010, a year after the closing. Prices vary between 192,000 and 388,000 liras.

The Dragos Royal Towers in Kartal by Dap Yapı offers a 48-month payment plan with zero interest rate and down payment. The price range starts at 400,000 liras and sizes vary between one-bedroom and four-bedroom units.

Casa Mare in Büyükçekmece by EnYapı launched the "Move in now; pay in 2011" campaign to boost sales. Casa Mare’s zero down payment and zero interest up to 60 months payment plan is offered for its 70- to 240-square-meter flats, which are 135,000 to 440,000 liras.

The Ovalbahçe in Sarıgazi by Om also offers 60-month payment plans with zero down payment and zero interest. Prices vary between 177,000 and 353,000 liras for 110- to 206-square-meter apartments. The Orion Park Project by Topkapı Construction Co. offers zero down payment plans and prices begin at 89,000 liras.