Turkey: Regulatory Developments In The Turkish Real Estate Market

This article contains information on the latest regulatory developments in the Turkish real estate market, in such areas as public tenders and real estate investment trusts. In particular, we wish to bring you up to date on developments that have occurred between December 2008 and March 2009.


The Regulation on Acquisition of Real Property by Foreign Capital Companies ("Regulation") includes certain rules for transfer to foreign capital companies of title to real property and establishment of limited rights in rem in favor of foreign capital companies. The Regulation requires foreign capital companies incorporated in Turkey to apply to certain governmental authorities and to obtain permission to finalize such real estate transactions. According to the Regulation, foreign capital companies are required to apply to the Governorship Provincial Planning and Coordination Directorate ("Commission") where the target real property is located. The Commission will then ask the Provincial Directorate of Industry and Trade, the General Staff, and the General Directorate of Security Forces whether the real estate transaction in question is appropriate. Having received the opinion of the said governmental authorities, the Commission will notify the foreign capital company and the respective land registry in writing of its positive or negative decision.


Construction Agreements

In December 2008, the Accounting Standards Committee of Turkey published a communiqué concerning Commentary on Turkey's Financial Reporting Standards Regarding Real Estate Construction Agreements ("Commentary"). The Commentary elaborates on the accounting of proceeds and relevant expenses generated by commercial enterprises carrying out construction work.

Challenging Public Tenders

On 3 January 2009, the Public Procurement Authority announced the Regulation on Procedures for Challenging Public Tenders. This regulation provides a detailed guideline for both bidders and public authorities by laying out the entire procedure for challenging public tenders held pursuant to Public Procurement Law No. 4734.

Infrastructure Real Estate Investment Company

On 29 January 2009, the Capital Markets Board published the Communiqué Regarding Infrastructure Real Estate Investment Company ("IREIC"). The Communiqué regulates the procedures relating to portfolio management activity permits, organizational structure, registration of capital market instruments with the Capital Markets Board, investment activities and public disclosure requirements. The Communiqué also articulates the requirements for establishing an IREIC and provides extensive rules regulating operation of the IREIC. The Capital Markets Board requires the IREIC to have at least 100 million TL of initial capital, and that at least one of its founding partners be a leading investor, as defined under the Communiqué.

Deforested Areas - 2B Lands

The Turkish Parliament has finally reached a decision on this long-debated and controversial subject. Law No. 5831, which facilitates registration of deforested areas known to the public as "2B lands," entered into force on 27 January 2009. The Turkish government intends to bring Forest Law No. 6831 in line with the recent amendments to the Cadastre Law, thus expediting the process of forest cadastral surveys. In other words, Law No. 5831 aims to support completion of forest cadastral surveys, border delineation and settlement of prolonged ownership disputes, thus establishing an effective legal framework. Population increase and urbanization can be considered the other vital factors that have led to the new Law on 2B lands.

Master Zoning Plans

In February 2009, the Ministry of the Environment and Forestry published a Communiqué Regarding Master Zoning Plans. Unlike other regulations on larger-scale zoning plans, the Communiqué introduces a new 30-day announcement period following evaluation of the objections to the Master Zoning Plans.

Contribution To The Protection Of Cultural And Natural Heritage

The Amendment Law Regarding the Law on the Protection of Cultural and Natural Heritage ("Amendment Law") entered into force on 11 February 2009. The Amendment Law requires the taxpayers to pay a new charge of 10% of the real estate tax accrued in accordance with Real Estate Tax Law No. 1319. The purpose of this new charge is to generate funds for the protection of cultural and natural heritage.

Tourism Investments

The Amendment to the Regulation regarding the Allocation of Public Lands to Tourism Investments clears up the ambiguity about additional allocation rules for public lands.

Public Disclosure Requirements For Listed Companies

On 9 February 2009, the Communiqué on Public Disclosure No. 54, announced by the Capital Markets Board of Turkey, introduces a new system of public disclosure requirements for listed companies, in order to establish a system parallel to the rules of the European Capital Markets. This new system does not specify each and every action/information that must be disclosed, but instead grants these companies the discretion to decide whether such action/information is important enough to be disclosed to the public.

New Regulations For Public Tenders

Public Procurement Law No. 4734 is applied through various sub-regulations, depending on the type of procurement. Recently, new regulations have been adopted for the procurement of consulting services, construction work, and goods and services. These regulations detail the public tender procedures for public procurement.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions