May 2008 Constitutional Court abrogated the subsection (d) of the article 3 of the Law on Direct Foreign Investment no. 4875 by its decision made on the 11.03.2008 and published on the Official Gazette on the 16.04.2008. The subsection (d) of the article 3 of the Law on Direct Foreign Investment no. 4875 is titled “Acquisition of Real Estate” and it is about acquisition of real estate property or limited real rights by companies established or participated in Turkey by foreign investors in zones open to acquisition by Turkish nationals. In the petition requesting for the abrogation of the subsection (d) of the article 3 of the Law on Direct Foreign Investment no. 4875 it is alleged that by this article companies established or shared in Turkey by foreign investors are allowed to acquire real estate and limited real rights in zones open to acquisition by Turkish nationals without requesting the condition of reciprocity, without excluding the zones strategically important for public benefit and security and without providing a limit of quantity, and that this was in contradiction with the preamble of the Constitution and its articles 2, 3 and 11. In its statement of reasons, the Constitutional Court argued that in the abrogated subsection (d), foreign investors were considered in the same status with national investors with respect to acquisition of real estate, no distinction was made and no quantity limit is provided for real estates to be acquired by companies established or shared by foreign investors. Constitutional Court mentioned that recognition of a limited right to acquire real estate for foreign investors is essential for efficient foreign investment as developments in sciences and technology brought new aspects to international relations and made denser the cultural and political relations. However, the Constitutional Court mentioned that the subsection (d) of the article 3 of the law on Direct Foreign Investment which regulates the right to acquire limited real right or real estate by companies established or shared by foreign investors in Turkey in the zones open to acquisition by Turkish nationals used to regulate the right to acquire real estate in very broad terms, did not provide any regulation for purpose of acquisition, way to use and transfer the real estates to be acquired by foreign investors and conclude that the abrogated article brought an unlimited and unclear right to acquire real estate to all foreign investors without considering the benefit of foreign investments to the country’s economy and this was incompatible with the article 2 of the Constitution. Constitutional Court ruled that the decision of abrogation will enter into force six months later than its publication that is on the 16.10.2008 for the purpose of granting a period to the legislator to fill the gap emerged by the abrogation of the subsection (d) of the article 3 of the law no. 4875. The abrogation decision of the Constitutional Court does not aim to take foreign investors away from the country or to prevent new foreign investments by putting new barriers to acquisition of real estate. Its purpose, as mentioned in the statement of reasons, is to push the legislator to regulate the reasons, purposes, way to use and procedure to transfer the right to acquire limited real right or real estate by companies established or shared by foreign investors in Turkey in the zones open to acquisition by Turkish nationals in the related law. Thus, the absence of such a regulation leads to ambiguities and let foreign investors to acquire real estate and limited real rights in an unlimited way. It is obvious that by virtue of this abrogation decision of the Constitutional Court, the legislator will issue a more comprehensive, clear regulation on the right to acquire limited real right or real estate by companies established or shared by foreign investors in Turkey in the zones open to acquisition by Turkish nationals and this regulation will distinguish real investors from fake investors recognizing the right to acquire real estate to real investors. For this reason, in following days a new legislation will fill the gaps in practice on the one hand and distinguish real foreign capital and the right to acquire real estate and fake foreign investors who invest only in appearance for traversing the law and acquire real estate on the other, thus it will promote real foreign investment on this matter.