Leasing property from Turkish government entities—whether for commercial, industrial, or infrastructure use—requires an understanding of a unique category of rental contracts known as administrative lease agreements. These contracts are significantly different from private lease agreements in terms of legal rules, governing bodies, and dispute resolution mechanisms. For foreign companies and individuals seeking to operate in Türkiye, especially in sectors involving strategic or large-scale real estate, navigating public lease agreements with legal clarity is essential.
Understanding Administrative Lease Contracts in Türkiye
Administrative lease contracts are legally defined rental agreements in which one of the parties is a public legal entity—such as a ministry, municipality, or a state-owned enterprise. These contracts are not subject to the Turkish Code of Obligations like private leases, but are instead governed by administrative law principles and the jurisdiction of administrative courts.
Such leases typically involve public assets, including:
Treasury-owned lands
Municipality-owned properties
Premises owned by institutions such as TOKİ (Housing Development Administration) or the General Directorate of Foundations
Ports, airports, and industrial areas managed by government-affiliated organizations
Key Differences from Private Lease Agreements
Administrative rental contracts differ from private ones in several fundamental ways:
Legal Regime and Jurisdiction
While private leases fall under civil law and disputes are heard in civil courts, administrative leases are governed by public law and resolved in idare mahkemesi (administrative courts).
One-Sided Authority
Public bodies often retain greater flexibility in administrative leases, such as:
The right to unilaterally terminate the lease for public interest
Imposing new terms or increasing rent unilaterally
Withdrawing the property if the use no longer serves the administrative purpose
Tender Process Required
Unlike private leases, administrative leases usually require a tender process under the State Tender Law No. 2886 or Municipality Tender Law, especially for long-term use. The highest bidder does not always win—financial, technical, and policy-related considerations may play a role.
Legal Requirements and Compliance
Foreign nationals or companies wishing to lease public property in Türkiye must:
Participate in open public tenders or sealed-bid procedures
Provide security deposits or performance guarantees
Accept that the property’s status is subject to administrative change
Comply with zoning, licensing, and usage restrictions tied to the lease
Leases are often time-limited (5–30 years) and extensions are at the discretion of the public authority.
Termination and Eviction
Unilateral Termination by the Administration
Public authorities may terminate leases in cases such as:
Urban transformation projects
Non-compliance by the lessee
Change in public use priority
National emergencies
Unlike private leases, administrative contracts allow for termination without the need for judicial approval.
Remedies for the Tenant
Tenants can challenge terminations or penalties by filing lawsuits in administrative courts within specific time limits (usually 60 days from notification). Compensation claims may also be pursued for unjustified terminations or damages.
Dispute Resolution and Jurisdiction
All disputes arising from public lease agreements fall under the jurisdiction of administrative courts, not civil courts. This means:
Different legal procedures and timelines apply
Lawyers experienced in administrative litigation are required
The burden of proof and appeal procedures are more formalized
Common Pitfalls for Foreign Tenants
Assuming it’s a private lease: Many foreigners assume these are normal real estate rentals, leading to errors in expectations and legal remedies.
Not understanding unilateral authority: Administrations can make significant decisions without tenant consent.
Overlooking zoning limitations: Some lands cannot be developed or used for certain commercial activities, despite being leased.
Ignoring tender requirements: Leasing directly from a municipality or state agency without a legal tender process may invalidate the contract.
How Bayraktar Attorneys Can Help
Our law firm has extensive experience representing international investors, developers, and business operators in lease agreements involving Turkish public authorities. We provide:
Legal due diligence on government-owned properties
Tender participation and contract negotiation
Review of lease terms and obligations
Representation in administrative disputes and eviction cases
Licensing and zoning compliance
Final Thoughts
Leasing public property in Türkiye presents lucrative opportunities but also complex legal risks. Administrative lease contracts offer access to prime real estate for commercial and industrial use—but only if approached with proper legal strategy. If you're considering leasing land or facilities from a Turkish government body, expert legal counsel is essential to protect your investment and ensure long-term compliance.
