Although bulldozers began demolition work in the historical Beyoğlu neighborhood of Tarlabaşı on Thursday, rumors that the real estate in the poor but central quarter was attracting investment from big holdings seem to have been proven false.
“Nobody is seriously interested in this area,” said one official, speaking to business daily Referans on condition of anonymity. “According to rumors, Koç, Sabancı, Çalık and the Polat groups have carved and shared Tarlabaşı among themselves. But other than Çalık, everything is speculation.”
The official said concerns over security, ownership disputes and premises owned by foundations, including those established by religious minorities, are preventing investors from entering Tarlabaşı.
“Unless the government solves those problems, nobody will invest,” he said. “But the speculation has boosted prices. Even the Çalık Group has faced numerous difficulties, despite collaborating with Beyoğlu Municipality.”
The first part of Tarlabaşı’s planned “urban renewal” began Thursday and will see a total of 278 historical buildings either demolished or restored.
The project was launched March 16, 2007, when the Çalık Group placed the winning tender on a bid offered by Beyoğlu Municipality.
When finally finished, the cost of the whole project is expected to reach 1 billion euros.
The neighborhood is still expected to be a center of attraction for investors, but several sources in Tarlabaşı suggest the boost in property prices is the result of speculative interest.
Moreover, unless problems such as security and land owned by foundations are resolved, investors “will not take even one step” in Tarlabaşı, according to the aforementioned official.
Çalık envisioned a stable façade while building endlessly in the background, “similar to a Hollywood stage,” the official said. “But the Council of Monuments is evaluating every parcel of land by itself. We are talking about only 270 parcels here, while the neighborhood sports a total of over 5,000 parcels.”
Çalık taking the lead
If the Çalık Group performs well, other investors may also start believing in the project, the official said. “There is some recent movement [regarding property projects]. A businessman from the Central Anatolian province of Kayseri purchased over 30 buildings and renovated them, for example.”
According to the project, small historical houses of between 50 and 100 square meters in size will be merged in groups of five and 10. Their façades will be protected as blocks while 278 buildings will be created. Inside the buildings, shopping centers, residences, boutique hotels and pensions will be built, all with underground parking lots.
Halim Şahin, owner of real estate agent Beyoğlu Emlak, said there were still lingering problems in Tarlabaşı.
“All the good places have been sold,” Şahin said. “Now small places are left, plus buildings owned by foundations, minorities and occupants. Nobody wants to deal with these.”
A serious rentier income has emerged in the area, Şahin said. “Buildings that used to sell for 20,000 Turkish Liras are now on sale at 300,000 or even 400,000 liras. Good, serious investors that I know of have all left the area.”
The real estate agent also said Ulusoy Holding had sold the parcels it had previously bought and was now eyeing the Fatih neighborhood of Balat.
Ultimately, investor interest toward Tarlabaşı is exaggerated, said Semih Akgün of Aktif Real Estate.
“This is an area full of problems. In the past six, seven years, the prices of some properties rose from 20,000 liras to 250,000 liras because of rumors. The crime rate is extremely high and there is a security problem [in the neighborhood],”
