Expanded Scope for Real Estate Investment Funds in Türkiye

Strategic Insights -

The Communiqué on Principles Regarding Real Estate Investment Funds in Türkiye has undergone significant changes. Recently, the Capital Markets Board of Türkiye adopted a principle decision, expanding the scope of real estate that real estate investment funds (REIFs) may include in their portfolios. The Principle Decision, dated July 17, 2025, and numbered 40/1271, allows REIFs to diversify their portfolios by including abandoned, income-generating, or "risky" real estate and buildings that have been demolished. To include such real estate, REIFs must meet specific conditions, including confirming the condition of the building through a real estate valuation report and submitting a declaration to the CMB stating that the relevant buildings will be demolished.

Key Takeaways:

  • The Principle Decision, dated July 17, 2025, and numbered 40/1271, allows REIFs to include abandoned, income-generating, or "risky" real estate and buildings that have been demolished in their portfolios.
  • REIFs must meet the following conditions to include such real estate:

- Confirm the condition of the building through a real estate valuation report;

- Submit a declaration to the CMB stating that the relevant buildings, if any, will be demolished, and if necessary, amend the type classification of the real estate in the land registry.

  • The Principle Decision enhances the diversification of REIFs' portfolios, bringing new momentum to urban transformation efforts.
  • The development reflects a growing alignment between REIFs - including Project REIFs - and the widely ongoing urban regeneration efforts.
  • REIFs are now able to include real estate with "risky structures" in their portfolios.

Statistics:

  • 40/1271: the number of the Principle Decision dated July 17, 2025.
  • July 17, 2024: the date of publication of the Communiqué on the Principles Regarding Real Estate Investment Funds No. III-52.3.f Amending the Communiqué on the Principles Regarding Real Estate Investment Funds No. III-52.3.
  • 32604: the Official Gazette number dated July 17, 2024, where the Communiqué on the Principles Regarding Real Estate Investment Funds No. III-52.3.f Amending the Communiqué on the Principles Regarding Real Estate Investment Funds No. III-52.3 was published.

Sources:

[1] Mondaq Ltd, [no date], "Communiqué on Principles Regarding Real Estate Investment Funds No. III-52.3" [accessed date unavailable], via Mondaq article.