Real EstateTurkiye

Slowdown in Housing Market Drives 127% Surge in Demand for Real Estate Investment Funds

Housing Sales Decline, Interest in REIFs Soars

Rising property prices and increasing mortgage rates in Turkiye have made real estate less accessible, leading to a noticeable slowdown in the housing market. As a result, Real Estate Investment Funds (REIFs) have emerged as a significant alternative for individual investors.

According to the Turkish Statistical Institute (TÜİK), housing sales in Turkiye decreased by 11.8% in April compared to the same month last year, totaling 75,569 units. This marks the lowest monthly sales figure since May 2021. The Central Bank of the Republic of Turkiye’s March 2024 Housing Price Index shows annual price increases of 40.4% in Istanbul, 63.9% in Ankara, and 49.5% in Izmir. Industry experts attribute the decline in housing sales primarily to the increased difficulty of obtaining mortgages due to higher interest rates.

Why Investors are Turning to Real Estate Investment Funds

With rising property prices and financing costs, individual investors unable to directly invest in real estate are turning to REIFs. These funds allow investors to participate in the real estate market collectively by purchasing shares in a fund that invests in various properties. This approach enables investors to benefit from real estate investments without dealing with direct ownership responsibilities, such as property management and taxes.

Growth and Benefits of REIFs

The total size of REIFs in Turkiye has grown significantly, from just ₺6 billion in 2019 to over ₺83 billion today, a 127% increase in the past year alone. As of April 2024, the total value of these funds reached ₺18.9 billion, with Re-Pie Portfolio leading the market with a 22% share.

REIFs offer numerous advantages, including professional management, diversified investment portfolios, and the potential for regular income through rental yields and capital appreciation. Additionally, REIFs provide tax benefits, as earnings from fund shares held for more than two years are exempt from income tax.

Turkiye’s Largest REIF: Downtown AVM REIF

Re-Pie Portfolio, Turkiye’s first alternative investment fund management company, has launched 32 REIFs, making it the leading issuer in this sector. The Re-Pie Portfolio Downtown AVM REIF, specifically developed for Bursa’s largest mixed-use project, Downtown, exemplifies the benefits of these funds. This investment includes luxury hotels, residential units, offices, and entertainment centers such as InterContinental Bursa.

With a market size of ₺5.3 billion as of April 2024, Downtown AVM REIF offers investors a rental income of ₺9,525 for a ₺400,000 investment every three months. The fund’s performance has increased by 142% since its inception.

Re-Pie Portfolio Downtown AVM REIF continues to provide regular dividend payments to its qualified investors, with significant rental income generated since July 2023. Located at the intersection of Bursa’s Osmangazi and Nilüfer districts, Downtown Life and Entertainment Center houses notable facilities like Meditown Health Center, Hupalupa Entertainment Center, DasDas Bursa, and X Media Art Museum.


REIFs present a compelling investment alternative for individual investors, offering access to a diversified real estate portfolio managed by professionals. As demonstrated by Turkiye’s largest REIF, Downtown AVM REIF, these funds provide regular income and tax benefits, making real estate investment more accessible and attractive.

Source: Emlakdergisi / Prepared by Irem Yildiz

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