Real EstateTurkiye

New Real Estate Investment Fund Set to Transform Turkish Property Sector

Proje GYF Aims to Boost Urban Renewal and Housing Supply

The upcoming launch of the Proje Gayrimenkul Yatirim Fonu (Proje GYF) is expected to significantly boost Turkiye’s real estate sector, according to Nesecan Cekici, Chairman of the Real Estate Investors Association (GYODER). The fund will serve as a crucial tool for financing urban renewal projects and increasing the housing supply.

Recently, Treasury and Finance Minister Mehmet Simsek announced that the Capital Markets Board is in the final stages of developing regulations for Proje GYF. These regulations will pave the way for real estate investment funds to invest directly in sector projects.

“Proje GYF: A Game Changer for Real Estate Investment”

In an interview with AA, Cekici emphasized the pivotal role of the real estate sector in Turkiye’s economy, highlighting its proven success both domestically and internationally. She noted that the sector comprises not only buildings but also market instruments like Real Estate Investment Trusts (GYO) and Real Estate Investment Funds (GYF), which have shown significant growth over the past two years.

“Proje GYF is poised to become a vital instrument that can invest in development projects, facilitate urban renewal, and enhance the housing supply,” said Cekici. She added that current restrictions limit GYF investments to smaller, less impactful areas, but the new regulations would enable broader and more substantial contributions.

Sector-Wide Benefits and a Call for Unified Housing Policy

The real estate sector is eagerly anticipating these changes, with many GYF applications already in progress. Cekici pointed out that the market size has reached $83.7 billion in a short time and could exceed 200 funds by year-end, creating significant liquidity and providing regulated investment opportunities for both small and qualified investors.

“These securitization instruments must grow and evolve, similar to global examples, to meet the increasing interest from both domestic and foreign investors,” she stated.

Cekici also called for a comprehensive housing policy that addresses various needs, from social and affordable housing to luxury and disaster-affected properties. She stressed the importance of maintaining Turkiye’s position as a top real estate market in Europe and the OECD, second only to the US.

“We need a collective approach that includes the government, private sector, and relevant NGOs to develop a unified housing policy,” Cekici urged. “Instead of short-term, isolated solutions, we should work towards a comprehensive strategy that addresses all aspects of the housing market, from taxation and financing to design and technology.”

The Proje GYF is poised to be a transformative force in the Turkish real estate sector, providing the necessary financial backing to drive urban renewal and meet the growing demand for housing.

Source: AA / Prepared by Irem Yildiz

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