A regional appeals court has upheld the annulment of a record 2.68 billion lira administrative fine imposed by Marmaris municipality on Kızılbük GYO, the listed real estate investment trust developing a large resort project in the Aegean district, the company said on Monday.
In a filing to the Public Disclosure Platform (KAP), Kızılbük said the 8th Administrative Chamber of the İzmir Regional Administrative Court had rejected the municipality’s appeal against a lower court ruling in the company’s favour.
How the dispute unfolded
Marmaris’s municipal executive committee, known as the encümen, fined the company 2,677,149,516 lira over its project in the district. Kızılbük challenged the decision at the Muğla 2nd Administrative Court, which first suspended enforcement and then annulled the penalty, finding it unlawful on the grounds of its stated reason.
The appeals court has now confirmed that ruling. The municipality can still take the case to the Council of State (Danıştay), Türkiye’s highest administrative court, the company said.
Municipal fines for construction allegedly breaching zoning or permit rules are common on the Turkish coast, where local councils, often run by opposition parties, have clashed with developers over large tourism and residential schemes. The size of the Marmaris fine made it one of the largest such penalties against a listed developer.
Why investors are watching
Real estate investment trusts (GYOs) are companies listed on Borsa Istanbul that own and develop property, and court disputes over permits can weigh heavily on their valuations. A final ruling in Kızılbük’s favour would remove a contingent liability larger than many listed developers’ annual revenue.
The Muğla coast, which includes Marmaris, Bodrum and Fethiye, remains one of the most sought-after regions for foreign buyers and luxury development. Billionaire Roman Abramovich reportedly bought a large plot near Bodrum’s Kaplankaya this month, while Marmaris tripled its cruise traffic in the first nine months.
Buyers considering off-plan homes in coastal resorts should confirm that a project’s building permits and zoning are final before paying, and compare locations using our guide on where to buy property in Turkey. Our Bodrum guide covers the wider Muğla market.
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Sources
Photo: George Chernilevsky / Public domain, via Wikimedia Commons
