Turkish real estate investment trust Emlak Konut has raised TL 21.41 billion ($525.8 million) through the initial public offering (IPO) of real estate certificates for its flagship Damla Kent housing project in Istanbul.
The offering, priced at TL 7.59 per certificate, included 1.92 billion base certificates and 897.1 million in overallotments, according to bookrunner Halk Yatırım Menkul Değerler.
Investor demand reached 1.87 times the base offer, with a total of 3.60 billion certificates sought, it said on Monday.
Approved by the Capital Markets Board (SPK) in late July, the IPO’s first stage was designed to raise TL 14.60 billion and cover 1,540 residential units. Strong demand prompted an expansion to 674 additional units, bringing the total fundraising to TL 21.41 billion.
Emlak Konut REIT said it aimed to finance the construction of 2,214 homes in the Damla Kent development, located in Başakşehir. The trading will begin on the Borsa Istanbul Stock Exchange as of Thursday.
The real estate certificate model allows individuals to invest in housing projects through tradable units listed stock exchange. Investors can accumulate certificates to claim full ownership of a unit, receive proportional revenue from unsold properties, or trade the certificates for capital gains.
The model aims to democratize access to homeownership by removing traditional barriers such as down payments and mortgage requirements.
Damla Kent’s construction is expected to start in October and is scheduled for completion by February 2029. The project is backed by Emlak Konut and the Housing Development Administration of Turkey (TOKI), under the coordination of the Ministry of Environment, Urbanization and Climate Change.
Environment, Urbanization and Climate Change Minister Murat Kurum on Monday said the model received record demand and highlighted public trust and belief in the project.
“This demand is the strongest indicator that small savings can confidently turn into major investments… In response to this interest, we will offer additional phases of our Damla Kent Project to the public,” Kurum wrote on the social media platform X.
“We are using every resource at our disposal, and will continue to do so, to ensure our citizens can own homes and access safe, healthy buildings.”
One of the most notable benefits of the real estate certificate model is its accessibility.
By allowing individuals to invest with relatively small amounts of capital, it opens the door to real estate investment for a broader segment of the population, including those who may not have the financial means to purchase property outright.
The model also introduces liquidity to the real estate market. Traditional property transactions can be time-consuming and costly, whereas certificates can be traded quickly and easily on the stock exchange. This flexibility allows investors to respond to market conditions and manage their portfolios more dynamically.
Additionally, the model benefits from institutional oversight and transparency. The involvement of established entities such as Emlak Konut and TOKI, along with regulatory supervision by SPK, enhances investor confidence and ensures that the offering adheres to legal and financial standards.
For retail investors, real estate certificates offer a way to diversify their portfolios. By adding exposure to real estate without the responsibilities of property management, investors can balance risk across different asset classes.
Still, the model is not without risks.
Market volatility may affect certificate prices, which are influenced by investor demand, project performance and broader economic factors. Unlike rental properties, certificates do not generate direct income, and returns depend on trading performance or eventual unit ownership.
Another limitation is the project-specific nature of the investment. Since certificates are tied to a single development, investors are exposed to risks associated with that particular project, such as construction delays or changes in market value.