How the Turkish construction industry continues to evolve and meet the growing global demand
The presence of Turkish construction companies in Europe, Asia and Africa
In the past years, Turkish construction companies have become a key player in the global real estate development and infrastructure industry and obtained a growing presence in Europe, Asia and Africa. As per the report of the Turkish Contractors Association (Türkiye Muteahhitler Birligi), in the period of 1972-2022, Turkish construction companies have undertaken 11.605 projects in 133 countries, with a total value of 472 billion USD.
Notably, Turkish construction companies completed 1,864 projects across Africa worth $85.4 billion as of the end of 2023 as per the speech by the Turkish Minister of Trade during the Turkey-Africa IV Business and Economic Forum. These projects include various infrastructure and superstructure projects such as major roads, railways, airports, and public buildings.
The global competitiveness of Turkish construction has contributed to the growing presence of Turkish contractors abroad. Significantly, as of 2023, 40 Turkish construction companies have been listed among the Top 250 International Contractors list issues by ENR (Engineering News Record).
Acquisition of Turkish citizenship by way of investment
The exceptional cases for the acquisition of Turkish citizenship by investment are regulated in Article 12 of Law No. 5901 on Turkish Citizenship Law (the "Law") and the Regulation on the Implementation of the Turkish Citizenship Law ("Regulation").
One of the exceptions for the acquisition of Turkish citizenship under the Law and Regulation is by way of purchase/sale of immovable property.
Accordingly:
- foreigners who purchase an immovable property with a value of at least USD 400,000.00 on which a condominium or a construction servitude has been established or on which there is a construction and on the condition that it is annotated on the title deed records that it will not be sold for three years or
- foreigners who undertake to sell an immovable property with a value of at least USD 400,000.00 on which a condominium or a construction servitude has been established, in the presence of a notary public, on the condition that they will not alienate or cancel it for three years,
may acquire Turkish citizenship by Presidential Decision Under Article 12/1(b) of the Law together with their foreign spouses and their children under the age of 18, provided that there is no obstacle in terms of national security and public order.
It should also be noted that there is no limit to the number of immovable properties that can be acquired through sale or subject to a promise of sale. The minimum investment amount required for the immovable property can be met with more than one immovable.
Green buildings
With the aim to promote sustainable construction practices, reduction of environmental impact and improvement of energy efficiency, Turkey has taken an active approach towards green building and green production efforts.
Turkey is ranked by the U.S. Green Council (USGBC) as 4th in the world (for the year 2023) with 36 LEED (Leadership in Energy and Environmental Design) certified projects covering more than 31 million certified square feet (2.9 million gross square meters), is a clear indication of Turkey's commitment to practicing sustainable architecture, creating healthier spaces, reducing carbon emissions and conserving resources.
The main piece of legislation regulating green buildings is the Regulation on Green Certification for Buildings and Settlements (the "Regulation") which was enacted to reduce the negative impacts of buildings and settlements on the environment by using natural resources and energy efficiently. The Regulation stipulated the procedures and principles regarding the establishment of assessment and certification systems for green buildings and green settlements, the qualifications and assessment criteria of green certification experts, green certification assessment experts and training organisations.
The Regulation covers the assessment and certification of the sustainable environmental, social and economic performance of existing and new buildings and settlements and is executed by the Minister of Environment, Urbanisation and Climate Change. The evaluation guides within the Regulation contain detailed regulations on many issues such as evaluation criteria for green buildings and green settlements, crediting and rating principles, and qualifications of green certification experts.
In addition to the US-based LEED certificate, which is predominantly found in green buildings in Turkey, BREEAM (UK), CASBEE (Japan) and DGNB (Germany) certificates can also be found.
Contact our expert colleagues at OGB law for more information or advise on Turkish Construction law.
