TÜRKIYE Law and Practice Contributed by: Serkan Gül, Nazım Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
nications with guests and property flows while also co-ordinating consistent operations for a wide range clientele from boutique hotels to multi-property port - folios. As one of the few AI platforms in this industry, it recently welcomed a USD1 million seed invest - ment led by several venture capital companies and the Development Fund of Türkiye. This funding will be used to increase the platform’s automation rates and the scope of autonomous operations as well as to support its expansion across global hospitality mar - kets. A New Investment Era: Real Estate Certificates A real estate certificate is a regulated financial instru - ment designed to facilitate investment in real property by dividing independent units of a development pro - ject into tradable shares. This structure allows inves - tors to participate in large-scale construction projects with relatively small amounts of capital. This model offers investors the flexibility to either benefit from the potential value appreciation through trading on Borsa Istanbul or to accumulate a sufficient number of shares to obtain physical title deeds. In a significant milestone for this investment model, the Turkish Capital Markets Board approved the issu - ance of real estate certificates by TOKİ and Emlak Konut GYO for a residential project in Başakşehir, İstanbul. The offering was successfully completed in August 2025, raising approximately TL21.41 billion. This initiative bridges the gap between capital markets and the real estate sector, offering a transparent, liq - uid, and government-backed investment vehicle that also simplifies the path to homeownership. Growing Data Centre Investments Continued investments from local and international investors are fuelling expansion in real estate and technology infrastructure. The total investment in data centre infrastructure in Türkiye has exceeded USD1 billion over the past five years, with a signifi - cant portion allocated to real estate acquisition and facility construction. (The USD1 billion cumulative investment estimate is based on publicly disclosed investment figures from major data centre projects in Türkiye over the past years, supplemented by indus - try insights. While not an exact reported total, this figure was derived by aggregating publicly available
data on large-scale investments. Strategic locations such as İstanbul, İzmir and Gebze remain prime real estate hubs for data centres.) The rise of hyperscale and edge computing data centres is expected to fur - ther accelerate Türkiye’s role as a regional digital hub. As Türkiye continues its digital transformation jour - ney, the data centre sector will remain a key pillar of economic and technological advancement. Strategic investments in real estate, sustainability and next- generation infrastructure will determine the country’s competitiveness in the global data economy. 1.3 Proposals for Reform Proposal for Legislation Regarding Reduction of Title Deed Fees A new legislative proposal has been submitted to the Turkish Grand National Assembly by various oppo - sition parties, seeking a significant reduction in title deed transfer fees under Law No 492. The proposal foresees lowering the current title deed fee rate, regu - lated under Tariff No 4, from 2% to 0.5% for both buyers and sellers, consequently reducing the total transaction tax burden from 4% to 1%. With this amendment, the proposal aims to reduce the prac - tice of unreported sales and discourage the informal economy, thereby fostering market transparency and social justice in property ownership. Proponents argue that this proposal will generate sustainable revenue through a broader tax base. This proposal is currently under discussion by the relevant commission; how - ever, it is uncertain whether it will be approved, given that the proposal was introduced by opposition par - ties. Proposal to Condominium Law: Voting Threshold For Management Plan May Be Reduced to Two- Thirds Under Article 70 of Condominium Law No 634, amending management plans requires the approval of four-fifths of the total number of independent units represented by the board of representatives. Recently, the ruling party submitted an omnibus bill to the Turk - ish Grand National Assembly to amend this provision. The proposal seeks to reduce the required majority from four-fifths to two-thirds, potentially making it easier to approve changes to management plans.
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