Approval from the Parliament is awaited for a legal regulation regarding the sale of valuable real estate properties owned by 1,407 municipalities, 41 special provincial administrations, and 262 local administrative unions across Turkey.
According to current legislation, unlike the Privatization Administration, local administrations can only sell their real estate properties for a 'lump sum' payment. Due to the ban on installment sales, they have been unable to quickly convert valuable assets in city centers into cash. To remove this obstacle, the AKP has added a critical article allowing installment sales of real estate to the latest omnibus bill.
BRIDGES AND HIGHWAYS COMPLETED, NOW IT'S MUNICIPALITIES' TURNThe regulation, which has passed the Parliamentary Plan and Budget Commission and is now at the General Assembly stage, is preparing to trigger a massive wave of privatization in local governments. The impact analysis prepared for the regulation admits that difficulties have been experienced in selling properties due to the installment ban.
According to calculations, local administrations realized approximately 100 billion Turkish liras in real estate sales throughout 2025. However, with the new legal approval and the introduction of installment options, annual real estate sales are expected to increase two to threefold.
THE DOOR TO 300 BILLION LIRA SALES OPENEDIf the bill becomes law, it is expected that a massive volume of 200 to 300 billion Turkish liras annually will be generated from the sale of prime plots, lands, lodgings, and social facilities owned by local governments. Years2024 Share(Million TL)2025 / 9 Months Share(Million TL)Annual Income1,420,6791,478,428Real Estate Sales Income76,22879,903Share of Real Estate Sales Income in Total Income5.36%5.40%The new regulation also poses a significant risk, especially for opposition municipalities struggling with resource shortages while receiving shares from the central budget and burdened with debt.
There are concerns that opposition municipalities seeking to overcome financial difficulties may see this installment sales formula as the 'only solution' and be forced to quickly dispose of public lands and valuable facilities used by the public in city centers.
