Türkiye's technology development zone (Teknoloji Geliştirme Bölgesi, or TGB) network now encompasses more than 90 active zones across the country, hosting over 7,000 companies and employing in excess of 80,000 R&D personnel. For international investors and developers, this network represents both an opportunity and a set of regulatory requirements that differ significantly from conventional real estate or commercial property investment.
The legal framework
Technology development zones in Türkiye operate under Law No. 4691, which was enacted in 2001 and has been amended multiple times to expand the incentive framework. The law designates specific geographic areas, typically adjacent to universities or established industrial zones, where companies engaged in software development, R&D, and technology commercialization activities are eligible for a substantial set of fiscal incentives.
The key incentives for operating companies within a TGB include: income tax exemption on revenues derived from software and R&D activities through 2028 (with extension subject to periodic government renewal), corporate tax exemption on the same revenues, exemption from value-added tax on software sales, and social security incentives for R&D personnel. These incentives are available to both domestic and foreign-owned companies that establish a legal entity and locate their qualifying activities within the zone.
For developers and investors, the relevant framework is different. The construction and operation of facilities within a TGB is governed by agreements with the zone management company (yönetici şirketi), which is typically a university-affiliated entity or a public-private partnership. The management company holds the operating license from the Ministry of Industry and Technology and is responsible for approving tenant companies and ensuring compliance with the zone regulations.
The real estate opportunity
The commercial real estate within Türkiye's TGBs spans a wide quality range. The oldest zones, established in the early 2000s adjacent to major technical universities, contain aging building stock that is increasingly uncompetitive relative to the newer zones that have been developed with international-standard laboratory and office space.
This quality gap creates an opportunity for developers who can identify zones with strong underlying tenant demand -- anchored by a reputable university, a cluster of established technology companies, or proximity to a major city -- and deliver facilities that meet the space and infrastructure requirements of scaling technology firms.
The tenant base within TGBs is predominantly composed of technology SMEs, software companies, and the R&D arms of larger corporations. Their space requirements combine open-plan office layouts with server infrastructure, laboratory space for hardware and materials companies, and meeting facilities that support external collaboration. Unlike standard commercial office tenants, technology companies within TGBs have specific infrastructure requirements around power, cooling, connectivity, and ceiling height that drive a higher fit-out cost and a longer fit-out timeline.
Lease terms within TGBs are typically shorter than in conventional commercial real estate -- two to three years is common, with renewal options. This reflects the growth stage of many tenant companies and the regulatory requirement for tenant companies to demonstrate active R&D activity to maintain their zone status. For investors, the shorter lease terms increase operational intensity but also provide more frequent opportunities to reprice to market.
What international investors and developers need to know
International developers and investors entering the TGB market face several considerations that do not apply in conventional commercial real estate.
The approval process for becoming a developer within a TGB involves negotiation with the management company and ultimately approval from the Ministry of Industry and Technology. This process takes longer and involves more regulatory engagement than a standard commercial development permit. Engaging a local partner with established relationships in the TGB regulatory environment is not optional -- it is a practical requirement for a realistic development timeline.
The tenant approval process is similarly distinct. Companies wishing to locate in a TGB must apply for and receive approval based on the qualifying nature of their R&D activities. This means that a developer cannot simply fill space with any creditworthy tenant: the tenant must meet the zone's criteria. In practice, this is rarely a binding constraint in well-located zones with strong university connections, where tenant demand comfortably exceeds supply. In weaker zones, it can mean long vacancy periods.
The incentive framework is subject to periodic renewal and amendment by the government. Investors who underwrite TGB rental income on the assumption that the current incentive package will remain unchanged for the full investment period are carrying regulatory risk that should be reflected in the discount rate or exit yield assumption.
Due diligence priorities
For any investor or developer evaluating a TGB project, the due diligence process should prioritize four items above all others: the quality and reputation of the management company, the strength of the anchor university relationship, the existing tenant retention history within the zone, and the status of the management company's license and any pending regulatory changes affecting the zone.
These items are not visible in a standard real estate data room and require direct engagement with zone management, tenant representatives, and the relevant ministry directorate. For international investors without existing relationships in the TGB ecosystem, this engagement is most efficiently conducted through an advisor with direct sector experience rather than through general-purpose legal or real estate counsel.