Leasing State Lands – 2025

The leasing of State lands is of great importance for the sustainability of economic development and agricultural production in our country. This process offers new opportunities to both investors and farmers, while the lands are also prevented from remaining idle. These lands, which are owned by the State, generally belong to the Treasury and are leased out within the framework of special laws and regulations. In this article, the basic pillars, conditions, and procedures to be followed in the state land leasing process have been examined in detail, based on the 2025 current legislation.

An Overview of the State Land Leasing Process

State land leasing transactions are primarily carried out by the General Directorate of National Real Estate (Milli Emlak) within the Ministry of Environment, Urbanization and Climate Change. Through this institution, it is determined for what purposes (agriculture, animal husbandry, industry, tourism, etc.) and for what periods the designated lands can be leased. First of all, the identification of the land to be subject to the lease and the assessment of its suitability for leasing are required. Subsequently, depending on the method of leasing, an auction process is initiated or a direct leasing right is granted to persons determined by law.

Thus, this process aims at the most efficient use of the land for public benefit.

National Real Estate Land Leasing Procedures

National Real Estate land leasing transactions are realized within a specific chain of procedures. First, the person or institution requesting the lease applies with a petition to the relevant National Real Estate Directorate or Malmüdürlüğü.

Afterward, the suitability for leasing and the zoning status of the applied land are examined. If the land is suitable for evaluation through leasing, the leasing by auction method is widely used. Auctions are generally conducted through open tender or closed tender procedures. In fact, the lease price remains with the person or institution that gives the highest bid as a result of the auction. Therefore, a lease contract is signed following the auction, and the land is delivered to the lessee.

What are the Conditions for Leasing Treasury Land?

The conditions for leasing Treasury land vary according to the land’s purpose of use and the lessee’s status. Generally, the basic conditions sought to participate in the leasing are summarized below:

1. Legal Capacity: The lessee is required to have the capacity to contract.
2. Debt Status: The absence of overdue debt to state institutions is a prerequisite.
3. Prohibition: It is of great importance that the applicant has not been prohibited from tender and leasing procedures.
4. Security Submission: The deposit of the determined temporary security for participation in the tender is stipulated.
5. Project Suitability: Especially in long-term leases, the project to be carried out on the land is expected to be suitable for the relevant legislation and public benefit.

Nevertheless, special conditions, such as a farmer registration system (ÇKS) document, may also be requested for agricultural leases.

49-Year Land Leasing Opportunities

Long-term land leases provide great advantages, especially for large-scale investments. The opportunity to lease land for 49 years is mostly granted for high-investment-cost and long-amortization-period projects such as tourism, energy (renewable energy plants), or large industrial projects.

Furthermore, the determination of the lease price and the contract provisions are regulated much more specifically and in detail for such long-term leases. This is because the aim is to ensure trust and continuity for the investor. Indeed, 49-year leases are realized with the approval of the Ministry and with special contract conditions, based on the Projecting of Investments.

Conditions for Leasing State Land for Animal Husbandry

The support of animal husbandry activities is an important part of agricultural policies. The processes of leasing state land for animal husbandry generally proceed in a manner similar to the agricultural land leasing legislation.

First, the land to be leased must not be pasture, yaylak (summer pasture), or kışlak (winter quarters). Otherwise, it is not possible to make it subject to a lease. Priority is given to enterprises that want to do animal husbandry and can document their animal assets. For this reason, the application is conditional on being made with an animal husbandry project and giving an undertaking that the leased land will not be used for any other purpose. Consequently, these types of leases can be made under more favorable conditions to encourage production and to reduce the feed costs of the enterprises.

Determination of Lease Prices and Payment Methods

The lease prices of state lands are determined through appraisal commissions. Accordingly, factors such as the land’s location, area, zoning status, comparable rental values, and purpose of use are taken into consideration when determining the price.

In particular, in leases in strategic sectors such as agriculture and animal husbandry, lease prices can be kept lower or special discounts can be applied. However, lease prices are usually determined annually, and payment in advance or in installments may be requested. In addition, a rent increase to be made every year according to the D-PPI rates is also stipulated in the contracts.

Priority Rights Holders and Exceptional Circumstances in Leasing

The legislation has granted priority rights in leasing to certain individuals and institutions under specific conditions. For example, it may be possible to grant a direct leasing right to individuals who de facto use the land or are shareholders, without having to participate in the auction.

Furthermore, priority is given to farmers registered in the ÇKS and young farmers in the leasing of Treasury lands for agricultural purposes. In this context, priority tenants are granted the opportunity to sign a contract directly over the determined market value.

Termination and Extension of the Lease Contract

In cases such as the use of the leased land contrary to the contract provisions, the failure to pay the rent on time, or the use of the land for unintended purposes, the termination of the lease contract comes into question. In this situation, the contract can be terminated unilaterally, and the eviction of the lessee may be requested.

In contrast, at the end of the contract period, the right to request the extension of the lease term has been granted to the lessee, provided that the lessee has complied with the contract conditions and used the land productively. However, the extension process is also carried out only if it is found appropriate after being evaluated by the National Real Estate.

Evaluation of 2025 Legislative Changes and Current Developments

Within the year 2025, regulations aimed at reducing bureaucracy and increasing digitalization in the state land leasing processes are expected to be implemented. In particular, it is aimed to run the monitoring of agricultural lands via ÇKS and the leasing transactions more quickly with e-Government integration. In this framework, it constitutes a great necessity for investors and farmers to closely follow the current communiqués and National Real Estate announcements. Consequently, even the smallest changes in legal regulations can directly affect the beginning and outcomes of the leasing processes.

The leasing of state lands is accepted as a critical mechanism for the Turkish economy. Long-term and profitable projects can be carried out for investors and farmers if the right steps are taken and the legislation is meticulously followed. In this context, it has been seen that opportunities are offered in a wide range, from 49-year leasing options to animal husbandry supports. Therefore, approaching the application processes carefully and ensuring all necessary legal conditions form the basis of a successful lease contract.

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