TÜRKIYE Law and Practice Contributed by: Serkan Gül, Nazım O Kurt and Türkay Avanaş, Hergüner Bilgen Üçer Attorney Partnership
the construction process of its eighth hotel. Fur - thermore, a globally recognised American hotel group, currently operating 125 hotels in Türkiye, plans to further expand its footprint, aiming for a total of 150 hotels by the end of summer 2025. Additionally, a German tourism group is pre - paring to enter the Turkish market through the launch of its hotel brand, featuring the opening of a five-star hotel in Side, Antalya, marking a significant advance in Türkiye’s hotel industry. In addition to Antalya, cities such as Balıkesir, Tekirdağ and Afyonkarahisar are also attracting interest in the luxury hotel market due to their potential to enhance winter tourism. The Corporate Income Tax Exemption for REICs and REIFs is Now Contingent Upon Profit Distribution as per a New Regulation In accordance with a new regulation, REICs and REIFs are required to distribute a minimum of 50% of their profits generated from properties owned by them in order to qualify for an exemp - tion from corporate income tax, effective 1 Jan - uary 2025. This distribution must occur by the end of the second month following the month in which the corporate income tax return for the applicable accounting period is due. Introduction of Project-Based REIFs Previously, REIFs in Türkiye were restricted to investing in existing real estate assets such as buildings, land and properties that were already developed. In other words, REIFs were not allowed to directly invest in construction pro - jects or fund the development of new proper - ties. However, with the launch of Project REIFs, this limitation has been lifted. These specialised funds allow investments to be directed specifi - cally towards the construction and development of real estate projects, offering a new avenue for investment in the Turkish real estate market. This
change was introduced to attract greater capital to the sector, particularly for large-scale devel - opment projects that require significant funding. By opening the door for REIFs to engage in pro - ject financing, the government aims to bolster the real estate sector, encourage more private and international investment, and address hous- ing shortages in urban areas. Furthermore, it is anticipated that it will foster increased transpar - ency and bring a more professional approach to the financing and execution of real estate pro - jects, ultimately making the Turkish real estate market more competitive and appealing to both Continued investments from local and interna - tional investors are fuelling expansion in real estate and technology infrastructure. The total investment in data centre infrastructure in Tür - kiye has exceeded USD1 billion over the past five years, with a significant portion allocated to real estate acquisition and facility construction. (The USD1 billion cumulative investment esti - mate is based on publicly disclosed investment figures from major data centre projects in Türkiye over the past years, supplemented by industry insights. While not an exact reported total, this figure was derived by aggregating publicly avail - able 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 further accelerate Tür - kiye’s role as a regional digital hub. As Türkiye continues its digital transformation journey, the data centre sector will remain a key pillar of eco - nomic and technological advancement. Strate - gic investments in real estate, sustainability and next-generation infrastructure will determine the country’s competitiveness in the global data economy. local and international investors. Growing Data Centre Investments
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