Real Estate Investment Trusts in Turkey

Real Estate Investment Trusts (REIT) in Turkey
Real Estate Investment Trusts (REIT) in Turkey

Real Estate Investment Trusts (REIT) in Turkey

What is a REIT? 

Real estate investment trusts (REITs) are legal entities that invest in various kinds of real estate, stocks, securities and other investment instruments. Their purpose is to provide investors with an opportunity to partake in the real estate market’s growth potential without the need for direct property ownership.

What are Turkish REIT regulations? 

Real Estate Investment Trusts in Turkey represent a significant component of the investment sector, offering mechanisms for investing in a diverse range of real estate assets. This requires oversight to ensure transparency, reliability, and investor protection. This is why Turkish REITs are subject to stringent regulatory oversight by the Capital Markets Board (CMB) of Turkey. 

Real Estate Investment Trust in Turkish Law

The operation and government of real estate investment Trust in Turkish law is subject to a comprehensive framework. According to the Capital Markets Law and subsequent regulations by the CMB, Real Estate Investment Trusts in Turkey are incorporated with minimum 30 Million TL capital and must maintain minimum 75% of their assets in real estate or real estate-related projects. 

Investing into Turkish Real Estate Investment Trust

Real Estate Investment Trusts can export and sell their shares to either qualified investors or to the public by having their shares traded on stock exchanges. Public REITs can list their shares on the Istanbul Stock Exchange, providing liquidity and access to a broader base of investors. The operation of REITs involves acquiring, developing, and managing real estate properties, with the aim of generating rental income and capital appreciation for shareholders.

Investment Portfolio of Turkish REITs

The investment portfolio of a typical Turkish REIT can include various types of real estate, such as residential buildings, office spaces, shopping malls, hotels, and warehouses. Beyond direct property investments, REITs may also invest in real estate development projects, real estate-based rights, infrastructure investments and services, capital market instruments, Takasbank money market and reverse repo transactions, interest-bearing accounts in Turkish Lira, interest-bearing in foreign currencies and other assets and rights to be determined by the Board. This diverse portfolio provides a diversified exposure to the real estate sector.

Benefits of Investing in REITs

Investing into Turkish Real Estate Investment Trust offers several advantages, including portfolio diversification, potential for stable yields, and accessibility to large-scale real estate investments with a relatively small amount of capital. Furthermore, REITs allow investors to gain exposure to the real estate market without the complexities and management responsibilities associated with direct property ownership.

Differences between REIT and REIF (Real Estate Investment Funds) in Turkey

While both REITs and Real Estate Investment Funds (REIFs) offer investment opportunities in real estate, there are notable differences in their structure and investor accessibility. 

1) Diversification in REIT

Unlike REITs, REIF may only invest in real estate, real estate rights and real estate companies. REITs, on the other hand, may invest in fiat, stocks, securities and other publicly traded assets.

2) Liquidity and Accessibility in REIT

REITs, given their status as publicly traded entities, provide investors with liquidity and the flexibility to buy and sell shares through the stock market.
REIF in Turkey, on the other hand, do not offer the same level of liquidity, as they are not traded on a public exchange. The shares of Real Estate Investment Fund in Turkey  may only be sold to private qualified investors.

3) Differences in Incorporation of REIT and REIF

REITs are incorporated as legal entities with a minimum capital of 30 Million TL. Real Estate Investment Funds, on the other hand, is a group of assets, not a legal entity, and is started with minimum 10 Million TL investment.

Challenges and Considerations for investing into Turkish Real Estate Investment Trusts

Despite their advantages, investing in Turkish REITs involves certain risks and challenges, including market volatility, interest rate sensitivity, and regulatory changes. Investors must also consider the impact of economic factors on property values and rental incomes. Conducting thorough due diligence, understanding the specific attributes of each REIT, and considering the broader economic and regulatory environment are essential steps before investing.

Future Potential of Turkish Real Estate Investment Trusts

The Turkish real estate market has shown resilience and growth potential, supported by urbanization trends, demographic factors, and infrastructural development. The future outlook for REITs in Turkey remains positive, with potential for expansion and diversification of investment portfolios. As the market matures and investor awareness increases, REITs are expected to play an increasingly important role in the Turkish investment landscape.


Real Estate Investment Trusts in Turkey offer a structured pathway for investors to access the real estate sector’s growth potential, providing benefits such as income generation, portfolio diversification, and liquidity. While challenges exist, the regulatory framework, combined with the market’s underlying strength, positions Turkish REITs as a compelling option for investors looking to capitalize on real estate investments.

Turkish Lawyer Baris Erkan Celebi and his Law Firm in Turkey offer legal due diligence for investors who wish to understand the legal aspects of Turkish Real Estate Investment Trusts.

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