Assessments of Real Estate Finance System and Instruments in Türkiye

The scarcity of resources necessitates the effective and efficient use of existing resources to enhance the activities of the real estate sector, thereby facilitating economic development. Furthermore, advances in information and communication technology, coupled with increasing demands arising from globalisation, have imposed more active and novel roles on the real estate sector—not only serving as a means to address housing needs but also functioning as a target of production activity aimed at ensuring economic development and sustainability. Given the growing significance of the real estate development process, the introduction of alternative financing methods beyond traditional capital market financing becomes essential. This development, however, is contingent upon a robust capital market and the enhanced role of real estate derivatives as intermediaries within this market. Additionally, the level of development across countries varies, influenced by the strength of their money and capital markets, as well as the diversity of instruments used. In this context, it is highly important to aim at improving the integration of Türkiye’s real estate markets with international markets, in conjunction with money and capital markets, to initiate new real estate and financial instruments based on derivatives, and to enhance existing instruments.