Real estate rent

The formation of urban rents in Turkey is directly proportional to the activities of the construction sector in the country. Especially during periods of monetary expansion, investments in developing countries like Turkey are directed toward infrastructure and the construction sector. In Turkey, there has been development in this direction since the 2000s. Therefore, to understand the development of urban rents, let us look at the development of the construction sector in our country. The share of the construction sector in Turkey's GDP has increased, rising from levels of 4.5-4% to 7.5% over the 22 years covered by the study. However, it is observed that its share has declined to the 6% level since 2017.

The annual growth of the construction sector experiences major fluctuations. Positive growth of over 20% is seen, but at the same time, negative growth of 20% is also observed. It is evident that economic crises affect the construction sector. The impact of the crises in 2001 and 2008 is seen in the form of negative growth in the construction sector. Furthermore, the construction sector has been experiencing negative growth since 2018.

Foreigners have also turned to real estate purchases in Turkey, and due to this demand, according to TUIK figures, 278,927 sales were made to foreigners between 2013 and 2021. In 2024, 23,781 residences were sold to foreigners. In the January-June period of 2025, the number of residences sold to foreigners was 9,354. The interest of foreigners in purchasing housing in our country is decreasing.

In the 2010–2020 period, housing price indices and unit prices showed a greater increase than the CPI and PPI rates. This indicates that housing price increases were higher than inflation during the period in question, and therefore, urban rents increased in real terms. The development and deepening of financial markets in Turkey, expansionary monetary and fiscal policies, the increase in bank credit facilities, the relatively low course of loan interest rates, capital market instruments such as Real Estate Investment Trusts (GYO), Real Estate Investment Funds (GYF), lease certificates, and institutional regulations have also had significant effects on the increase in urban real estate rents.

Although housing policy appears to be determined only by the government and bureaucracy, some specialized structures are also influential in these policies. These are;

• Ministry of Environment, Urbanization and Climate Change

• TOKİ

• Municipalities

• Ministry of Transport and Infrastructure

Fragmented zoning authorities granted to numerous organizations facilitate the formation of zoning rents, and rent appears in two common forms: value created by zoning plans and value created by plan amendments. Municipalities can receive a Regulation Partnership Share (DOP) from the value increase occurring within the framework of zoning plans in accordance with Article 18 of the Zoning Law. However, plan amendments that can create very high rents are outside this scope, and the public cannot receive a share from this again.

One of the most important elements in terms of the formation and distribution of urban rent in Turkey is public real estate and the policies and practices regarding their management. Treasury real estate has been transformed into a tool for obtaining rent through methods such as sales, privatization, transfer, and the establishment of easement rights. In this process, forests, 2/B lands, agricultural areas, pastures, coasts, and protected areas have become tools for creating and distributing rent.

We can express the reasons for urban rents with our country's practices as follows:

• Changes made with plan notes

• Constructions made in squatter (gecekondu) areas

• Construction projects offered as public facility donations

• Constructions made within the scope of PPP Projects

• Construction works through Revenue Sharing Projects