The number of real estate investment trust (REIT) companies, which started to be traded on the ISE for the first time on January 2, 1997, increased to 21 as of December 2010. However, apart from the REITs traded on the ISE, there are also organizations that have completed their establishment permits, waiting for the appropriate public offering time. With the completion of the planned public offerings, it is expected that there will be a significant increase in the number of REITs and their total portfolio sizes in the coming years.
Although the REIT sector is still new in our country, a significant amount of institutional capital has entered the sector so far. The tax incentives provided by the government have led many companies to secure new financial resources by establishing real estate investment partnerships and securitizing their idle real estates. The fact that the real estate sector is a sector with an increasing demand, the need for institutional capital to meet this demand, and the fact that REITs enable small investors to make real estate investments in return for small sums have been effective in the entry of new REITs into the sector. Considering that the largest part of the savings of our country’s people consist of real estate, it is of great importance to introduce institutional capital managed by professionals to the construction sector. With the implementation of long-term housing finance, REITs, which provide institutional capital inflow to the sector, are expected to play a more active role in the markets as a new capital market instrument.