9th ERES EDUCATION SEMINAR – Slovak University of Technology, Bratislava 6-7th December 2013 REAL ESTATE EDUCATION AT ISTANBUL TECHNICAL UNIVERSITY: REPORT ON 10TH ANNIVERSARY OF ITU REAL ESTATE MASTERS PROGRAM KEREM YAVUZ ARSLANLI, (PHD)

TURKEY REAL ESTATE MARKET After 2002 economic crisis in Turkey real estate market is evolved with respect to international globalization agenda. Between the years 2002 and 2008, Turkish economy has grown by 7.5%. Consequently, private consumption 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 international investors in commercial real estate’s have also increased (PwC, 2012).

TURKEY REAL ESTATE EDUCATION The Real Estate Masters Program at Istanbul Technical University was started in The program was the first one in Istanbul and Turkey which has given more than 250 graduates in last 10 years. After 2005, the growth of real estate sector in Turkey provides new business opportunities 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 education methods for real estate professionals.

TURKEY

TURKEY General Outline In the last quarter of 2008, after 27 quarters of continuous growth period, a slowdown trend has started to be observed in Turkish economy with the prevailing effects of the global financial turbulence. GDP reached to USD 742 billion with 0.9% annual growth in As end of the second quarter of 2009, GDP growth decreased 10.6%.

Istanbul Real Estate Market Outline Commercial Real Estate Market in Istanbul showed a different behaviour with respect to western markets after 2008 credit crunch. Office space absorptions in İstanbul Asian and European sides reveals that european market gets higher rates that asian market. Office Space Absorption sq meters

Istanbul Real Estate Market Outline The pipeline for Office market, European side of the city will get more of the leaseable space than asian side and vacancy rates of the highly dense market. Office Market in Pipeline for Istanbul (1000 sq meters).

TURKEY REAL ESTATE MARKET In the last quarter of 2008, after 27 quarters of continuous growth period, a slowdown trend has started to be observed in Turkish economy with the prevailing effects of the global financial turbulence. GDP reached to USD 742 billion with 0.9% annual growth in As end of the second quarter of 2009, GDP growth decreased 10.6%. Office Market in Pipeline for Istanbul Sub-Discricts.

TURKEY REAL ESTATE MARKET In the last quarter of 2008, after 27 quarters of continuous growth period, a slowdown trend has started to be observed in Turkish economy with the prevailing effects of the global financial turbulence. GDP reached to USD 742 billion with 0.9% annual growth in As end of the second quarter of 2009, GDP growth decreased 10.6%. Office Market Vacancy Rates Istanbul Sub-Discricts.

Kerem Y. ARSLANLI Istanbul Technical University

Historical Evolution of Istanbul Urban Footprint

Real Estate Education 4 Universities Real Estate Education Masters Programs (2 years with thesis) (ITU/IU/Kultur/Yildiz) 3 Universities Certificate Programs 2-3 months (Bogazici-Bilgi) 1 Undergraduate Program at IU students graduate annually >500 total graduates since 2001

Real Estate Education Certificate Programs

Real Estate Education Msc

Real Estate Education Undergraduate

Real Estate Alumni Survey In order to get the contribution of courses, thesis and networking abilities of student to their future carier planning, questionerries were asked to alumnies. Their feedback is give valuable information for detecting new vision of Master’s program. The outcome of the contribution of courses for their carier development get higher percentage. This might caused by multidisciplineer scheme of student undergraduation programs

Real Estate Alumni Survey The contribution of the thesis gets a hard critic from alumnies that long and demanding workload of thesis is taken little effect on their carier.

Real Estate Alumni Survey Alumnies respond to contribution to their business network gets the higher score where little critic from few where their work on public enterprises. Which might get little help for static structure of government job pursuits.

Real Estate Education ITU first Masters Program in Real Estate Development in Istanbul/Turkey in 2001 First Graduates in 2003 Followed in 2005 by other Universities Mortgage Regulations 2007 expand RE market and Education Sector 2007 Mortgage Regulations lead to Education Sector to short term Certificate base programs rather than 2 or 4 years Bsc or Msc

Real Estate Education Demand Side Real Estate Sector demand on internationally standartized Regulations (Valuation and Forclousure Issues) Construction Sector dominates the market. Demand for short term executive masters international joint programmes

Real Estate Education Supply Side Real Estate Education seperated into different departments Regulations and Laws tightens Cirriculums Few departments run on international standarts International Crisis on Real Estate Pro/Cons Sectors volume shrink / High Qualified Human Resourses on demand Time to loose the old habits Way of making bussiness in real estate will change so the sector professionals

Real Estate Education: Turkey Need for Joint International Programs Regulations to be in International Standarts Highly Qualified but disconnected human resourses Demand on «Asset Market» oriented programs

Thank You…