Real Estate Investment Trust (REIT) Model for Local Governments in Infrastructure Finance

ÖMÜRGÖNÜLŞEN U., Pirgaip C. Z., Pirgaip B.

MALIYE DERGISI, no.168, pp.20-30, 2015 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: Issue: 168
  • Publication Date: 2015
  • Journal Name: MALIYE DERGISI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.20-30
  • Hacettepe University Affiliated: Yes


The effects of globalization are perceived in public administration as well as in other areas and show up as delegation of duties and authorities from central government to local governments. This phenomenon is called decentralization that in a way requires local governments to have fiscal autonomy. We think that this autonomy would reveal itself in infrastructure investments only if capital markets, providing long-term finance, are utilized. In this study, we discuss the role of real estate investment trusts (REITs) in infrastructure investments and propose that REITs specialized in infrastructure finance would relieve local governments' burden on central government budget.