Emlak Konut Real Estate Investment Trust (REIT) has raised TL 21.41 billion ($526 million) from the initial public offering of real estate certificates linked to its Damla Kent housing development in Istanbul.
The IPO, priced at TL 7.59 per certificate, comprised 1.92 billion base certificates and 897.1 million in additional allotments, according to bookrunner Halk Yatırım Menkul Değerler. Investor demand reached 1.87 times the base offer, with 3.6 billion certificates requested.
Approved by the Capital Markets Board (SPK) in late July, the first phase targeted TL 14.60 billion for 1,540 residential units. Higher-than-expected demand led to the inclusion of 674 more units, increasing the fundraising total to TL 21.41 billion.
Trading of the certificates is set to begin Thursday on the Borsa Istanbul Stock Exchange.
The real estate certificate model allows individuals to invest in housing projects through tradable units listed on the stock exchange. Investors can accumulate enough certificates to claim ownership of a property, receive proportional revenue from unsold units, or trade certificates for capital gains.
Designed to reduce barriers to homeownership, the model eliminates traditional requirements such as down payments or mortgages. Damla Kent, located in the Başakşehir district, will be built by Emlak Konut REIT in partnership with the Housing Development Administration of Türkiye (TOKI) and coordinated by the Ministry of Environment, Urbanization and Climate Change. Construction is expected to begin in October and finish by February 2029.
Authorities view the model as a tool to broaden property market participation, especially for individuals without large capital reserves. Certificates offer liquidity, as they can be traded on the stock exchange more easily than traditional property transactions.
The involvement of public institutions such as Emlak Konut, TOKI, and regulatory oversight from SPK has helped build investor confidence. For retail investors, certificates provide exposure to the real estate market without the operational responsibilities of property management.
Despite its benefits, the model carries risks. Certificate prices may fluctuate based on demand, project progress, and broader market conditions. Unlike rental property, certificates do not generate ongoing income; returns depend on trading performance or eventual property ownership.
The investment is tied to a single project, meaning delays or shifts in local market value can affect returns. To limit volatility, Borsa Istanbul recently reduced the daily price margin for these certificates from 10% to 5%.
Officials have indicated plans to use the model for additional projects in the future.
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By Ravi Kumar