The term “government guarantee” in Turkey and the groups benefiting from it

The term “government guarantee” in Turkey refers to projects based on partnerships between construction companies affiliated with the Turkish Presidency of the Council of Ministers and private companies. In this partnership, the government construction company provides the state-owned land, while the private company is responsible for implementing and building the project. This type of partnership is known as “public-private partnership” and is prevalent in countries worldwide.

In Turkey, the government guarantee takes a different form, which is evident through the title deed, known as “Tapu.” To maximize the government guarantee, it is advisable to choose reputable and long-standing real estate companies in Turkey or companies associated with government construction firms.

There are two important points to know about the government guarantee:

The absence of government-affiliated construction companies in any Turkish real estate project does not imply the absence of government guarantee for foreign buyers. All contracts, whether with public-private sector companies, private sector companies, or individuals, are registered through a notary public and recorded in the Turkish title deed registry (Tapu). Many private Turkish construction companies have a high reputation, extensive experience, and a longstanding presence in the Turkish real estate market. These companies prioritize timely delivery and offer higher quality than government construction companies, which are known for bureaucratic procedures that may cause delays in delivery.

The following are the two main categories of foreigners eligible for the government guarantee:

Those interested in property ownership in Turkey for residential purposes:

This category benefits from the government guarantee through the official documentation of the property contract through a notary public and subsequent registration in the Tapu institution after completing all payments. To enhance the government guarantee for this category, the Turkish government has established two housing institutions, namely TOKI and KONUTDER, in collaboration with financially capable private companies with a solid reputation. This collaboration aims to mitigate potential risks for those purchasing properties in Turkey.
Those interested in property ownership in Turkey for investment purposes:

This category faces greater risks compared to the first category. Individuals in this category come to Turkey with substantial funds intending to invest and increase their profits. To address the concerns of foreign investors, the Turkish government has implemented necessary measures to alleviate their worries. In 2015, the government enacted a law requiring large construction companies to establish transparent investment funds that can be directly monitored and supervised by the government. These funds also receive significant facilitations regarding licensing and sales processes.

For investing in small companies in Turkey, the government advises foreign investors who wish to establish a new company in Turkey to partner with an existing small company to ensure government guarantee for their rights.

The term “government guarantee” in Turkey and the groups benefiting from it

Those interested in property ownership in Turkey for residential purposes:

Those interested in property ownership in Turkey for investment purposes:

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The term “government guarantee” in Turkey and the groups benefiting from it

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