Real Estate Investment Trusts (REITs) offer both a reliable and profitable investment model for investors in the capital markets. REITs, which gained a legal framework in Turkey in 1995, provide institutionality to the real estate sector and enable individual and institutional investors to become partners in large projects. With their transparent management approach, independent valuation processes and tax advantages, REITs play an important role not only in the capital markets but also in the economy in general. In this article, the history, functioning, legal foundations and contributions of REITs to the Turkish economy will be discussed in detail.
1. The Place of Real Estate Investment Trusts in the Capital Markets
Real Estate Investment Trusts (REITs) have an important position in capital markets. REITs enable real estate investments to be securitized and traded in the capital market. Thanks to this structure, large real estate projects are opened to the participation of both small and large investors.
The Role of REIT in the Capital Market :
- REITs play a critical role in bringing savings into the economy. Instead of purchasing real estate directly, savers can become partners in large projects through REIT shares.
- In terms of liquidity, REITs provide an advantage for investors. Shares traded on the stock exchange can be easily converted into cash when needed.
Contribution to the Economy :
The real estate sector is one of the driving forces of the economy. REITs provide institutionality to this sector and facilitate the financing of large projects . Especially in developing countries like Turkey, infrastructure projects and housing investments can be financed through REITs.
Benefits for Investors :
- Transparency : The activities of REITs are supervised by the Capital Markets Board (CMB) and investors are regularly informed.
- Risk Distribution : Investments are diversified across different real estates without being tied to a single project.
- Return Potential : Regular rental income and value increases provide investors with significant returns.
As a result, REITs make significant contributions to both investors and the economy as safe and transparent instruments of the capital market. Especially for long-term investments, REIT shares stand out as a reliable alternative .
2. Historical Development of REITs and Applications in the World
The concept of Real Estate Investment Trusts (REITs) has developed and been implemented in different ways in different parts of the world. Historically, the emergence of REITs is closely related to economic needs and financing requirements in the real estate sector.
History of REITs in the US
The REIT model was first implemented in the United States (US) in 1960 under the name Real Estate Investment Trusts (REIT) . The REIT model in the US aimed to enable small investors to become partners in large-scale real estate projects.
- Corporate Tax Advantage : REITs enjoy tax advantages when they meet certain conditions.
- Liquidity and Ease of Investment : Thanks to their publicly traded structure, investors have been able to invest in real estate through the stock market.
The REIT system in the US has grown rapidly and has spread to a wide range of investments such as large commercial projects , shopping malls , hotels and residential projects . Today, the REIT system in the US operates as an important part of the real estate market.
REIT Applications in the European Union and Germany
REIT practices in Europe have developed inspired by the US model but have been shaped by local legal and economic conditions . European Union (EU) regulations have made the activities of REITs more transparent and regulated .
Germany , REITs are notable for their tax exemptions and foreign investor-friendly regulations. In Germany, real estate investment funds are also used to finance real estate investments in a similar way to REITs.
REIT applications in Europe have shown rapid growth, especially after the 2000s. Commercial real estate and construction projects in major cities have become the main investment areas of REITs.
Development of REIT in Turkey
Real Estate Investment Trusts in Turkey were placed within a legal framework with the circular published by the Capital Markets Board (CMB) in 1995.
- The first REITs : The first REITs in Turkey were established to invest in large-scale projects.
- Economic Impact : The REIT model plays an important role in the financing of real estate projects. Especially urban transformation projects and infrastructure investments are realized with the contribution of REITs.
- Investor Protection : CMB regulations and audits ensure that REITs operate in a transparent and reliable structure.
REITs in Turkey contribute to both the capital market and the real estate sector by enabling individual investors to easily participate in the real estate market. In recent years, the influence of REITs has increased in large-scale projects such as shopping malls , housing projects and hotels in Turkey .
REITs have been shaped according to economic needs and legal regulations in different parts of the world . Starting from the USA and spreading to Europe and Turkey, this model allows investors to invest in real estate safely and profitably. Applications in Turkey are developing in accordance with international standards and support the real estate market.
3. Purposes and Functions of REITs
Real Estate Investment Trusts (REITs) are corporate structures established to enable investors to invest in real estate projects more easily, reliably and efficiently. They act as a bridge between the financial markets and the real estate sector .
Main Purposes of REITs
The reason for existence of REITs is to gather real estate investments within a corporate structure and present them to the benefit of both investors and the economy :
- Ensuring Small Investors Participate in Large Projects
REITs enable small savers to become partners in large-scale projects. Projects that are not accessible to individuals due to high costs can be easily invested in through REIT shares. - Ensuring Transparency and Auditability
The activities of REITs are subject to the audit of the Capital Markets Board (CMB) . Financial reports are regularly disclosed and investors are informed. This transparent structure creates a safe investment environment. - Offering Risk Spreading
REIT portfolios contain multiple real estate investments, which helps balance risk in the event that a single investment fails. - Providing Long-Term Fixed Income
REITs provide investors with regular and sustainable income through rental income and real estate value increases. REIT shares are an important alternative, especially for retirement and savings investments.
Functions of REITs
The functions that REITs undertake in the market are of great importance both economically and socially:
- Bringing Institutionalism to the Real Estate Market
Creating a corporate structure in real estate investments brings confidence to the sector. Thus, the interest of foreign investors also increases. - Supporting Economic Growth
Financing of large-scale projects is provided more easily through REITs. This contributes to the growth of the real estate sector and the increase in employment. - Providing Liquidity to Investors
REIT shares are securities traded on the stock exchange . Thanks to this feature, investors can easily convert their shares into cash when needed. - Standardizing Real Estate Valuation
Real estate valuation in REITs is done by independent valuation organizations. This ensures that valuation processes are standardized and reliable .
Application Oriented Evaluation
In Turkey, REITs are particularly active in areas such as large housing projects , shopping malls and tourism investments . In addition, the role of REITs in urban transformation projects is increasing.
Example Scenario :
Instead of purchasing real estate directly, an investor invests in REIT shares to:
- Shares the risk,
- Makes more efficient investments thanks to expert management,
- Benefits from liquidity advantage in the stock market.
REITs are important institutional vehicles that support the growth of the real estate sector while ensuring investors make safe investments . They are an attractive option for both individual and institutional investors thanks to the added value they provide to the economy and their transparent structure.
4. Distinguishing Features of REITs from Other Real Estate Investment Companies
Real Estate Investment Trusts (REITs) differ from other real estate investment companies in many ways. These differences stem from the fact that REITs are built on the principles of transparency , corporate governance and investor protection .
4.1. Independent Board of Directors and Corporate Governance
One of the most important distinguishing features of REITs is that they have independent board members . Independent board members create an impartial control mechanism in company management and ensure that decisions are made in favor of the investor.
- Transparent Management : In REITs, board decisions are disclosed to the public in detail to protect investors' rights.
- Professional Management : The activities of REITs are managed by experts .
4.2. Portfolio Management Principles
REITs are subject to strict legal regulations in terms of portfolio management . Portfolio management processes are carried out with the aim of minimizing risk and maximizing return potential.
- Portfolio Diversification : REITs provide risk management by diversifying the real estate they invest in.
- Long-Term Strategy : REITs focus on long-term projects rather than short-term profit-oriented investments.
- Liquid Assets : It is mandatory that a certain part of the portfolio be evaluated in liquid assets such as capital market instruments.
4.3. Liquidity Advantage
REIT shares are traded on organized markets such as Borsa Istanbul . This is an important difference between REITs and other real estate investment companies:
- Easy Buying and Selling : REIT shares can be converted into cash quickly and reliably on the stock exchange when needed.
- Market Valuation : The market value of REITs is determined according to the supply-demand balance in the stock market.
4.4. Tax Exemption
are exempt from corporate taxes if they meet certain legal requirements . This gives REITs an advantage over other real estate investment companies.
- Reflection of Tax Advantage : The tax advantage obtained is returned to investors as higher returns .
4.5. Risk Elements and Investment Assurance
REIT investments consist of real estate that has been evaluated by independent appraisal firms . This ensures that the investments are based on true market value.
- Real Estate Valuation : The entire portfolio is regularly valued by independent companies with a CMB license.
- Investor Confidence : Thanks to regular auditing and transparent reporting, investors can track the performance of the portfolio.
4.6. Risk Distribution
REITs spread risk by investing in multiple properties and financial instruments. This provides a level of security not often found in other real estate investment companies:
- Project-Focused Risk Reduction : REITs minimize risks through different investments without being dependent on a single project.
Real Estate Investment Trusts (REITs) are distinguished from other real estate investment companies by their features such as corporate governance, independent auditing, liquidity advantage and tax exemption. These structures offer a safer , more transparent and profitable investment environment for investors.
5. REIT Legislation in Turkish Law
In Turkey, Real Estate Investment Trusts (REITs) are regulated within the framework of the Capital Markets Law and relevant communiqués. This legal framework ensures that REITs conduct their activities in a transparent , reliable and investor-friendly manner.
5.1. Capital Markets Law and CMB Regulations
The legal infrastructure of REITs was established under the Capital Markets Law (CMB) No. 6362. This law regulates all processes from the establishment of REITs to their activities.
- CMB Communiqués : The operating principles of REITs are detailed in the communiqués of the Capital Markets Board . In particular, the REIT Communiqué numbered III-48.1 includes current regulations.
- Mandatory Publicity : REITs are required to have the status of a publicly held joint stock company. This regulation ensures that REITs are traded on the stock exchange and increases investor safety.
5.2. Obligation and Content of Articles of Association
In order for REITs to start operating, they must prepare a CMB-approved articles of association . This articles of association stipulates that the company:
- The purposes of the establishment,
- Activity limits,
- Management principles,
- It includes provisions regarding profit distribution and capital increases.
Mandatory Provisions : The regulations included in the articles of association must be in accordance with the CMB circulars . No changes can be made to the articles of association without CMB approval.
5.3. Regulations Regarding the Field of Activity
Turkish law has clearly defined the fields of activity and investment limits of REITs. Accordingly, REITs:
- Real estate projects ,
- Real estate-based rights and income partnerships ,
- Can invest in capital market instruments .
However, their business is not real estate trading but creating a portfolio of real estate for investment purposes. This allows REITs to be separated from commercial activities.
5.4. Public Disclosure Obligation
In Turkish legislation, it is essential that REITs operate in accordance with the principle of transparency . In this context, REITs:
- periodic financial statements ,
- portfolio valuation reports with the public,
- they inform investors about important developments in a timely manner .
These obligations make it easier for investors to track the performance of REITs.
5.5. CMB Audit and Sanctions
REITs are regularly audited by the Capital Markets Board to ensure that their activities are carried out in accordance with the legal framework.
- Independent Audit : The financial status of REITs is periodically audited by independent auditing companies.
- Sanctions : In case of unlawful behavior, the CMB may impose sanctions such as administrative fines and suspension of activity.
5.6. Tax Regulations
Under Turkish law, REITs are provided with certain tax advantages :
- REITs are exempt from Corporate Tax . However, in order for this exemption to continue, the REIT must conduct its activities in accordance with CMB legislation.
- The rental income and portfolio gains generated are distributed to investors as dividends , which avoids double taxation .
In Turkish law, Real Estate Investment Trusts are regulated in detail by the Capital Markets Law and CMB circulars. These regulations ensure that REITs operate in a transparent , auditable and investor-friendly structure. Tax advantages and public disclosure obligations make REITs an important alternative to other investment vehicles.
6. Establishment and Transformation Principles of REITs
The establishment and commencement of operations of Real Estate Investment Trusts (REITs) are subject to legal regulations determined by the Capital Markets Board (CMB) . The establishment process is completed by fulfilling certain conditions and completing approval mechanisms. In addition, the transformation of existing companies into REITs is also possible within the framework of certain criteria.
6.1. Establishment Process of REITs
Legal entities wishing to establish a REIT must follow certain steps in accordance with CMB legislation:
- Public Joint Stock Company Condition : REITs can only be established as public joint stock companies . This structure allows the company's shares to be traded on Borsa Istanbul .
- Application and CMB Approval : It is mandatory to apply to the Capital Markets Board for the establishment of a REIT. CMB examines the company's articles of association , capital structure and activity plan . If found appropriate, it gives approval for the establishment.
- Minimum Capital Requirement : The minimum capital amount for REITs is determined by the CMB and encourages investment in high-end projects.
6.2. Public Offering Requirement
In order for REITs to operate, they must be offered to the public and their shares must be traded on the stock exchange. During the public offering process:
- Offering a certain percentage of the company's capital to investors ,
- Starting trading on the stock exchange,
- It is ensured that company activities have a transparent and auditable structure.
IPOs provide financing to REITs and increase investor confidence, leading to greater interest in capital markets.
6.3. Principles of Conversion to REIT
Existing joint stock companies or real estate investment companies can convert to REIT status by meeting certain conditions :
- CMB Approval : The company's activities must be brought into compliance with the REIT legislation and approval must be obtained from the CMB.
- Portfolio Structuring : The company's assets must be structured to consist of real estate investments and capital market instruments .
- Amendment of Articles of Association : The company's articles of association must be rearranged in accordance with the REIT provisions.
This transformation process enables companies to gain REIT status and benefit from tax advantages and the opportunity to be traded on the stock exchange .
6.4. Qualifications Required for Establishing a REIT
The qualifications sought by the CMB in the establishment of REITs are as follows:
- Competence of Founders : The financial strength and investment plans of the REIT founders must be reliable.
- Compliance with Portfolio Management Principles : Company activities must be carried out in accordance with the portfolio limitations and risk management principles determined by the CMB.
- Independent Audit : During and after the establishment phase of REITs, their financial statements are regularly audited by independent auditing firms.
6.5. Capital Structure and Investment Criteria
The capital structure of REITs must exceed the minimum amount determined by the CMB at the establishment stage. In addition, investments must:
- Real estate projects ,
- Real estate-based rights ,
- for capital market instruments .
Non-Operational Investments : REITs are prohibited from engaging in activities such as real estate trading or construction activities. This ensures that REITs operate solely for investment purposes .
The establishment and transformation process of REITs are subject to detailed legal regulations. Criteria such as CMB approval, public offering and portfolio structuring ensure that REITs operate in a transparent , institutional and investor-friendly structure. These processes contribute significantly to the development of capital markets by increasing investor confidence.
7. The Scope of Activity and Portfolio Management of REITs
The scope of activities of Real Estate Investment Trusts (REITs) is clearly defined by legal regulations. According to these regulations, REITs can only conduct investment activities and invest in real estate projects and capital market instruments within this scope . The scope of activities and portfolio management play a critical role in the success of REITs.
7.1. Fields of Activity of REITs
The fields of activity of REITs are carried out within the framework of the limitations determined by the Capital Markets Board (CMB) . The fields of activity are as follows:
- Real Estate Investments : Investments can be made in various types of real estate such as commercial, residential, shopping mall, hotel and industrial.
- Real Estate-Based Rights : REITs may invest in real estate-based rights such as mortgages and lease certificates.
- Capital Market Instruments : REITs may have a certain amount of liquid assets and capital market instruments in their portfolio. This aims to ensure cash flow for the REIT.
Prohibited Activities :
- REITs cannot engage in construction activities or real estate trading .
- Speculative buying and selling activities are prohibited.
These restrictions ensure that REITs have an investment-oriented structure.
7.2. Portfolio Management Principles
REIT portfolio management is done to minimize risk and maximize investment returns . Some basic principles are applied in this process:
- Portfolio Diversification : In order to spread the risk, REITs invest in different types of real estate and liquid assets. For example; housing projects, shopping malls and hotels are investment areas that diversify the portfolio.
- Portfolio Limitations : According to CMB regulations, at least 51% of the REIT portfolio must consist of real estate investments.
- Cash Asset Management : REITs must keep a certain portion of their portfolio in cash or liquid assets in order to continue their operations.
Expert Management :
REIT portfolio management is carried out by professional and competent people . The performance of the portfolio is regularly monitored and strategies are developed to meet investors' expectations.
7.3. Real Estate Valuation
The valuation of real estate in the REIT portfolio is carried out by independent valuation firms licensed by the CMB . In this process:
- The market value of the real estate is determined,
- Regular reports are prepared and presented to investors,
- Transparency and reliability are ensured.
The valuation process is of great importance in terms of reflecting the true value of the portfolio. It also allows investors to evaluate the performance of the REIT.
7.4. Sources of Income
The income sources of REITs mainly consist of the following areas:
- Rental Income : Regular income obtained through renting out real estate in the portfolio is one of the main income items of REITs.
- Increases in Real Estate Value : Increases in the market value of real estate over time also increase the value of the REIT.
- Financial Asset Income : Interest and dividend income obtained from liquid assets and capital market instruments in the portfolio also constitute additional resources.
7.5. Transparency in Operations
The activities of REITs are regularly shared with investors within the scope of the public disclosure obligation . In the activity reports:
- Real estate in the portfolio,
- Investment strategies,
- Portfolio performance and financial status are included in detail.
This transparent structure allows investors to evaluate the performance of REITs and make informed decisions.
The scope of activities and portfolio management of REITs are determined within the legal framework and are based on investor security and efficient portfolio management . Thanks to transparent valuation processes, risk distribution and professional management approach, REITs offer regular income and a reliable investment tool for investors .
8. Valuation Processes in REITs
In order to ensure the reliability and transparency of the activities of Real Estate Investment Trusts (REITs), the properties in the portfolio are regularly subjected to independent valuation processes. This process ensures that REITs provide accurate information to their investors and that portfolio performance is realistically reflected.
8.1. Legal Framework of the Valuation Process
The real estate valuation process in REITs is carried out within the framework of the Capital Markets Board (CMB) regulations:
- CMB Licensed Valuation Firms : Valuation of real estate owned by REITs can only be done by independent valuation firms authorized by the CMB.
- Periodic Valuation : The properties in the portfolio must be valued at least twice a year .
- Valuation Reports : The results obtained are reported and disclosed to the public to be presented to investors.
These regulations ensure that the valuation process produces unbiased and accurate results.
8.2. Steps of the Real Estate Valuation Process
The independent valuation process is carried out within the framework of the following steps:
- Physical Examination of the Real Estate
Appraisers examine the physical characteristics of the relevant real estate in detail. Within the scope of this examination:
- The location of the real estate,
- Building condition and age,
- Factors such as purpose of use and zoning status are taken into consideration.
- Market Valuation
The value of real estate is determined by comparing it with market conditions and similar properties . The methods used are as follows:
- Peer Comparison Method : Sales and rental prices of similar real estate are taken as basis.
- Income Method : Future rental income and cash flows of the real estate are taken into account.
- Cost Method : Valuation is made based on the reconstruction cost of the real estate.
- Preparation of the Valuation Report
At the end of the valuation process, a detailed valuation report is prepared. The report includes:
- The current status of the real estate,
- Valuation methods used,
- The determined value and bases are included.
- Sharing of Reports with Investors
Prepared reports are shared with investors within the scope of REIT's activity reports and public disclosure obligation. In this way, investors are informed about the real value of REIT portfolio.
8.3. Importance of the Valuation Process
The independent valuation process plays a critical role in ensuring investor confidence in REITs:
- Transparency : Valuation reports prove that REITs' portfolios are in line with market value.
- Trustworthy Investment Environment : Investors are assured that the assets in the portfolio are evaluated fairly and impartially.
- Performance Measurement : Valuation results objectively evaluate the performance of REIT management.
8.4. Areas of Use of Valuation Reports
- Investment Decisions : Investors can make informed decisions about REIT stocks based on valuation reports.
- Portfolio Changes : REIT management may make necessary changes in the portfolio, taking into account the valuation results.
- Public Reporting : Reports are regularly announced to the public within the scope of investor information policies.
The valuation process in REITs is carried out by independent institutions licensed by the CMB, ensuring that the real value of the real estate in the portfolio is determined. Regular valuation and transparent reporting processes increase investors' confidence in REITs. This process is of great importance in terms of the market value of REITs , investment performance and transparency principles .
9. Public Disclosure Obligations of REITs
The activities of Real Estate Investment Trusts (REITs) are based on the principles of transparency and accountability . In this context, REITs have the obligation to inform the public accurately, timely and completely. The obligation to inform the public is carried out within the framework of the regulations determined by the Capital Markets Board (CMB) .
9.1. Periodic Financial Reporting Requirement
REITs are required to regularly disclose their financial status and operating performance to the public . These reports are prepared in accordance with the standards set by the CMB:
- Quarterly Reports : REITs publish their financial statements and portfolio performance every three months.
- Annual Activity Reports : A detailed activity report covering all activities of the REIT is prepared at the end of the year. This report includes the financial status of the company, investment strategies and future plans.
Periodic financial reports are presented to investors after independent auditing and published on the Public Disclosure Platform (KAP) .
9.2. Announcement of Important Events and Developments
Important developments regarding the activities of REITs must be shared with the public immediately. These developments include:
- New real estate investments or changes in the portfolio,
- Disclosure of valuation reports,
- Significant changes in the board of directors or the company's activities,
- Profit distribution decisions , capital increases or decreases,
- There are important legal situations (lawsuits, mortgages, etc.) regarding real estate.
Fast and accurate announcement of such developments enables investors to make informed decisions .
9.3. Publication of Portfolio Valuation Reports
The valuation of real estate in the REIT portfolio is carried out twice a year by independent valuation institutions. The valuation reports obtained are:
- It clearly reveals the market value of the portfolio ,
- It shapes investors' expectations regarding REIT shares,
- Increases investor confidence by evaluating the performance of the portfolio.
These reports are shared with the public through activity reports and KAP announcements .
9.4. Investor Relations and Disclosure Policies
REITs are obliged to manage investor relations strongly. In order to facilitate investors' access to information:
- Investor Relations Unit is established,
- The company's information policy is created and announced to the public,
- All current reports, statements and announcements are shared on the websites.
These policies ensure that investors have timely access to accurate information about the company's activities and performance .
9.5. Use of Public Disclosure Platform (KAP)
The public disclosure obligations of REITs are carried out through the Public Disclosure Platform (KAP) . All financial reports, valuation reports and important developments are made available to investors by being reported to KAP.
- KAP announcements must be made on time and completely .
- This platform makes it easier for investors to access accurate and up-to-date information .
9.6. Transparency and Investor Confidence
The obligation of REITs to disclose information to the public is of critical importance in ensuring investor confidence. By implementing the transparency principle:
- Investors' confidence increases and the company's reputation is contributed to.
- REIT shares become more liquid and more valuable in the market.
- Investors can make informed decisions about the company's financial condition and strategies .
REITs’ obligations to disclose information to the public are strictly monitored within the scope of CMB regulations . Periodic financial reports, valuation reports and announcements of important developments ensure that REITs operate in a transparent , accountable and investor-friendly structure. These processes increase the trust in REITs in the capital markets and keep investors’ interest alive.
10. Economic and Legal Importance of REITs
Real Estate Investment Trusts (REITs) are important financial instruments that contribute to economic growth and the development of capital markets. These structures have great importance both economically and legally by institutionalizing the real estate sector.
10.1. Economic Importance
The contributions of REITs to the economy are particularly concentrated on the capital markets and real estate sector.
- Contribution to Economic Growth REITs support
the construction sector , infrastructure projects and commercial investments by providing financing for large-scale real estate projects . This:
- Accelerates economic growth,
- It creates employment by opening new business areas ,
- external financing to the real estate sector .
- Increasing Investor Participation in Capital Markets
REITs enable small and large investors to participate in real estate investments. In particular, REIT shares traded on the stock exchange make real estate investment more accessible by offering the advantage of liquidity . - Attracting Foreign Investment
REITs enable international investors to invest safely in the Turkish real estate market. The flow of foreign capital is facilitated thanks to transparency and audit mechanisms.
10.2. Legal Importance
The legal framework of REITs is regulated in detail by the Capital Markets Board (CMB) . These regulations play a critical role in protecting investor rights and ensuring market security.
- Transparency and Audit
REITs' activities are regularly audited by independent auditing institutions and the CMB. Thanks to these processes:
- Investors' rights are protected,
- Real estate valuation is carried out fairly and objectively,
- the obligation to inform the public, every development is shared with the public.
- Legal Assurance
The activity limits of REITs are determined by CMB communiqués . This situation prevents real estate trading and speculative activities and ensures that REITs operate only for investment purposes . - Tax Exemption
Turkish law increases the economic efficiency of REITs by providing tax advantages to these structures. Thanks to the corporate tax exemption, REITs maintain the vitality of capital markets by distributing their income directly to investors.
10.3. Bringing Institutionalism to the Real Estate Sector
REITs bring institutionality to the real estate market:
- Creates transparent valuation mechanisms ,
- Applies long-term planning and risk management principles in real estate investments ,
- Provides safe investment opportunities for individual investors .
Thanks to their corporate governance approach, REITs focus on planned and sustainable projects, unlike speculative real estate investments.
10.4. Social and Infrastructure Contributions
operate not only in commercial projects but also in areas that provide social benefits such as urban transformation projects , infrastructure investments and tourism projects . These investments:
- To the modernization of cities,
- Increasing the quality of life,
- Contributes to the strengthening of economic infrastructure.
For example, thanks to urban transformation projects, old and risky buildings are renewed and modern real estate projects are implemented.
10.5. Investor Confidence and Market Stability
REITs increase investor confidence with the transparency and regular disclosure policies they provide. Operating within the framework of CMB regulations, these structures play a stabilizing role in capital markets.
- Corporate Governance Standards : Transparency of management processes increases the reliability of REITs in the market.
- Liquidity Advantage : REIT shares traded on the stock exchange provide economic vitality by increasing liquidity in the market.
REITs stand out as important structures that support economic growth, develop capital markets and increase investor confidence. The legal framework of REITs in Turkey provides a reliable investment environment for both domestic and foreign investors . Thanks to their economic and social contributions, REITs are not only financial instruments, but also play a strategic role in the country's development .
Real Estate Investment Trusts are a strategic investment model that supports economic growth, provides depth to capital markets and increases investor confidence. REIT practices in Turkey are built on the principles of transparency and accountability thanks to the regulations of the Capital Markets Board. These structures provide significant contributions not only to individual investors but also to bringing the country's real estate sector to international standards. REITs continue to solidify their place in the economy as a reliable alternative for long-term investments.