“Protected bank deposits are dead, long live Real Estate Investment Funds.”
– Cameron Deggin, Co-Founder of Funding Turkey & Founder of Property Turkey
A Turning Point in Turkey’s Investment Landscape
On 23 August 2025, Turkey abolished its protected bank deposit scheme, known as Kur Korumalı Mevduat, or KKM. The scheme was initiated in 2021 as a security measure against the volatility of the Turkish Lira – designed to shield investors against currency devaluations by compensating any losses tied to foreign exchange fluctuations. At its peak, KKM attracted over $125 billion USD in deposits.
In recent times, KKM had become unsustainable with the Turkish Central Bank reporting that it had cost the Treasury $30 billion USD in compensation payments from 2022 to 2024. With the scheme officially coming to an end, global and Turkish investors are looking for alternatives – ones that provide stability and long-term valued returns.
Turkish Real Estate Investment Funds, known as REIFs, just might be the solution that investors are looking for – outperforming other investment schemes for decades.
Why Real Estate Investment Funds Now Take Centre Stage
Banking products and schemes are typically vulnerable to fluctuations in currency, inflation, and any changes in policy by the government. On the contrary, Turkish REIFs derive their value from tangible assets – property.
Key Advantages of REIFs Include the Following:
- Capital Preservation: Properties located within prime districts and cities have historically maintained their values, even during cycles of inflation.
- Dollar-Pegged Stability: Many REIFs in Turkey are USD-based or Euro-based – protecting investors from fluctuations of the Turkish Lira.
- High Yield: Historically, Funds in Turkey that are professionally managed generate annual returns ranging anywhere from 15% to 25%.
- Liquidity and Diversification: By investing in REIFs, risk is spread across various different properties and high-performing real estate sectors.
- Citizenship by Investment: Turkish Citizenship by Investment and a Passport can be obtained by those who invest over $500,000 USD.
The Role of Funding Turkey and Property Turkey
At the heart of this investment transformation is Funding Turkey. Powered by the infrastructure of Property Turkey and Place Overseas, Funding Turkey is a specialist Fund with a unique edge that no other can match – providing investors with the peace of mind that comes with a 25+ year operational history.
Funding Turkey is fully integrated with Property Turkey – offering its investors direct access to one of the most established real estate networks throughout the country and Turkish Citizenship by Investment assistance. With a highly qualified and experienced Board of Directors, Funding Turkey is an entire ecosystem for successful investment.
Why Funding Turkey?
- Property Sourcing: Investors gain access to prime off-market deals at below-market prices.
- Asset Management: Complete asset management, including maintenance and compliance.
- Tenant and Letting: Properties rented using Property Turkey’s 25+ year lettings network.
- Citizenship Support: Using in-house lawyers and legal teams to handle CBI applications.
Historical Context: From Deposits to Property
To understand the seismic size of this shift, investors need to look at the wider financial environment of Turkey. All of the evidence points to two facts: Turkish bank deposits eroded investor wealth, while purchasing properties preserved and even grew wealth.
- Bank Deposits: Data shows that bank deposits had been the default savings method for Turkish citizens, with over 65% of households having their savings in local banks in 2022.
- Inflation Reality: In late 2022, inflation levels in Turkey increased above 85%. This wiped out any real gains that had been made by investors who placed their money in bank deposits.
- Real Estate: From the period of 2019 to 2024, real estate values in Turkey increased by 400% in Turkish Lira terms and 120% in USD terms – especially in Istanbul, Antalya, and Bodrum.
Citizenship by Investment: The REIF Advantage
Introduced in 2017, Turkey’s Citizenship by Investment Program is one of the most successful residency and citizenship schemes around the world. Data shows that over 35,000 families have been granted citizenship as of 2025.
Historically, most investors who obtained Turkish Citizenship have done so via the real estate route – purchasing property worth at least $400,000 USD. However, Turkish REIFs offer an easier, stress-free route to a Turkish Passport for $500,000 USD. The advantages of REIFs include the following:
- Diversification: REIFs invest in multiple properties – spreading risk and potential ROI.
- Professional Management: Managed so investors do not have landlord responsibilities.
- Resale Flexibility: More liquid and faster to sell REIF shares than a traditional property.
- Citizenship Eligibility: Quicker processing times recognised by the Ministry of Interior.
In simple terms: Turkish REIFs offer the security of real estate ownership combined with the ease of a simple financial and transactional investment. For this reason, REIFs are the natural successor to protected bank account deposits.
Compared Returns: Turkey vs Global REITs
Data and statistics show that well-managed REIFs in Turkey are not only outperforming other domestic investment schemes and instruments, but global ones too – making Turkish REIFs one of the strongest investment plays in international emerging markets today. To put things into perspective:
- Funding Turkey: Our verified data and reporting shows annualised returns of 20% to 22% over the past three years.
- Global REIT Comparison: Statistics show that U.S. REITs returned 8% to 10% annually over the past decade on average.
- Bank Deposits in Turkey 2024: 25% to 30% nominal returns, but with inflation at 45% to 50%, depositors faced negative real returns.
Turkish REIFS: International Investor Profile
Investors in Turkish REIFs are not only looking to obtain Citizenship, many also use REIFs as dollar-based hedges against inflation and instability within their own home countries. The typical investor base for REIFs in Turkey includes the following:
- Middle Eastern and GCC Nationals: Usually looking to obtain second passports and in some cases, a safe haven for their capital.
- South Asians (Indians, Pakistanis, Bangladeshis): Looking to obtain a stronger passport in order to improve global mobility and diversify wealth.
- Russians and Ukrainians: Driven by heightened geopolitical risk and restrictions within their home countries.
- Europeans and North Americans: Mostly looking to take advantage of lifestyle opportunities that can be found in Istanbul, Bodrum, and Antalya.
Turkey’s Strategic Position and Advantage
Bridging the East and West, Turkey’s strategic advantages and strong fundamentals ensure that its real estate market, and therefore REIFs, retain their long-term resilience and remain popular amongst global investors.
- Tourism Numbers: According to market data, Turkey welcomes over 60 million tourists every single year – driving high rental yields in cities including Istanbul, Bodrum, and Antalya.
- Urban Growth: In Istanbul alone, 200,000 new housing units are required to be constructed each year in order to satisfy the growing demand for real estate.
- Geopolitical Hub: Turkey is strategically located at the crossroads of Europe, Asia, and the Middle East. Istanbul Airport offers direct flights to over 110 countries around the world.
Looking Ahead: A Safer, Smarter Investment Future
As Turkey moves into a new future without protected bank deposits, a new wealth management model is emerging – Real Estate investment Funds provide a future-proof solution for investors seeking high ROI, stable returns, and even Turkish Citizenship.
Cameron Deggin summaries the new era: “The end of protected deposits is not a setback, it’s a liberation. Investors are no longer tied to unsustainable state subsidies. Instead, they can anchor wealth in tangible, appreciating assets. Real Estate Investment Funds represent the safest, smartest, and most rewarding path forward in Turkey.”
For investors, the message is clear:
- Protected Turkish bank deposits are now gone.
- Real Estate Investment Funds are here to stay.
With unmatched real estate expertise, a proven track record, and a core focus on client success, Funding Turkey, backed by Property Turkey and Place Overseas, symbolises the evolution of Turkey’s investment ecosystem. For more information about investing in a Turkish REIF, and for a free consultation with advice tailored to your unique situation, contact us today – our local and professional advisors are happy to answer all of your questions.
Aleksandra Cihanoğlu Senior Advisor
Aleksandra Cihanoğlu is a Senior Advisor at Property Turkey and a regular contributor on topics including Citizenship by Investment, relocation, travel, and lifestyle opportunities in Turkey. Her writing focuses on helping international readers understand the practical realities of living, investing, and building a long-term future in the country.
By:
Senior Advisor
Istanbul 
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