• Municipal real estate shall include lands, buildings, streets, roads, parks, public squares, areas allocated for public utilities or services, organization excesses, grant excesses, planning excesses, coastal beaches, and any other real estate owned by the municipality, or on which it has a statutory right of use

• Disposition of grant excesses, organization excesses, and planning excesses may, pursuant to a decision by the Minister, be carried out according to the following rules:

  • 1. The value of grant excesses, organization excesses, and planning excesses shall be assessed by an assessment committee.

  • 2. Grant excesses shall be sold to the grantee and the committee shall ensure that the sale is at market value.

  • 3. Organization excesses and planning excesses on which the establishment of independent buildings is not permitted by building regulations and which cannot be invested by the municipality shall be sold at market value to the owner of the adjacent real estate.

  • 4. Organization excesses and planning excesses on which the construction of independent buildings is permitted by building regulations shall be sold or invested through public tender.

  • 5. Organization excesses and planning excesses with multiple adjacent real estate on which the construction of independent buildings is not permitted by building regulations and which cannot be invested by the municipality shall be sold through public bidding to the owners of said real estate after amending organization lines.

• The Minister may delegate his authority to another person to sell grant excesses, organization excesses, and planning excesses.

• Investment of lands allocated for commercial purposes as well as lands adjacent to coasts and beaches shall be made in accordance with the rules specified by the Minister.

• A municipality-owned real estate may, pursuant to a decision by the Minister, be bartered for a real estate not owned by the municipality in accordance with the bartering rules provided for in Article 6 of these Regulations.

• Bartering shall be carried out according to the following rules:

• 1. The value of real estate subject to bartering shall be assessed and the temporary taking of the real estate shall be carried out in accordance with the Law of Eminent Domain and Temporary Taking of Property and its Implementing Regulations and implementing instructions.

• 2. Bartering must achieve a public interest by providing a basic development service, provided that such service is among the services the municipality is responsible for.

• 3. Bartering shall be carried out for government real estate. However, it may be carried out for private real estate if the required real estate is not owned by a government agency or if the appropriations for expropriation of the real estate are not available.

• 4. The required real estate must be within an area the plan of which is approved by the competent authority.

• Municipal real estate shall be invested through public tender in accordance with Article 14 of these Regulations.

• Investment of municipal real estate shall be made in accordance with the laws and instructions. The sites and areas required for such investment shall be determined according to the needs of each city, county, or district.

• The invested municipal real estate may be used only for the activity designated in the public tender announcement. If the investor seeks to change such activity due to changing market conditions and the change is consistent with public interest and planning, the investment value shall be reassessed by the investment committee. If the investor accepts the new investment value, the change must be approved by the Minister prior to permitting the change of activity.

Taking into account the market value, the following are exempted from public competition:
1 - Contracts for the investment of municipal Real Estate concluded with government entities or companies with public franchises or in which the state participates for the use of any of the basic service facilities such as electricity, telephone, water, and sewage.
2 - Real Estate designated for public benefit, and Real Estate designated for service activities that the Minister deems exempt from public competition, provided that the contract is not waived or subleased and that the Investor conducts the activity personally. No more than one contract may be concluded with a single Investor in a project exempt from public competition unless there are no applications from other Investors.
3 - Municipal Real Estate specified by a decision from the Minister for the purpose of establishing temporary activities or events according to regulations issued by a decision from the Minister, with the rental value assessed by the Investment Committee, without prejudice to the provisions of the regulations and any other relevant statutory provisions.
4 - Municipal Real Estate invested in projects with innovative ideas, pioneering, and distinguished projects aimed at achieving investment, developmental, or social purposes according to the regulations specified by a decision from the Minister.
5 - Real Estate leased to project executors for a period not exceeding three (3) years, renewable according to the needs of the executed project.
6 - Real Estate leased for the purpose of addressing the status of an existing Real Estate investment.