Real Estate Valuation in Turkey?
Real estate valuation in Turkey is one of the most important reasons and factors of reassurance among those wishing to invest in real estate in Turkey, as the valuation of real estate became a mandatory requirement before purchasing any property in Turkey. Previously only required for the citizenship document submission.
Real estate valuation
Real estate valuation in Turkey is a report issued by certified companies by the Turkish government’s Housing and Construction Department, which aims primarily to prevent fraud and prevent the purchase of apartments at higher prices.
In its report, the real estate assessment clarifies all the services, status of real estate, the surrounding area and the legal status of the property.
To obtain a real estate valuation document, you need approximately 4 days to a week, after submitting the application to the relevant company, including the duration of the arrival of the Real Estate Assessment Report in Turkey by mail.
The real estate valuation document is valid for three months from the date of its issuance and those who want to sell the property before the expiry of the valuation period of their property can use the same document again as long as it is valid.
Why was turkey's real estate valuation law passed?
Turkey’s Foreign Real Estate Assessment Act was initially adopted as a mandatory condition only in property ownership procedures for the purpose of obtaining Turkish citizenship.
Turkey requires a foreign investor who buys real estate in Turkey and wishes to obtain Turkish citizenship to have a total real estate price of a minimum of $250,000 or corresponding in Turkish lira according to the exchange rate of currencies when purchasing the property.
Valuing real estate in Turkey in such a case ensures that prices are not manipulated.
It was therefore necessary for the buyer to produce a real estate valuation document in Turkey to confirm that the price of the property corresponded to the minimum price of the property nominated for Turkish nationality.
However, in mid-February 2019, the Real Estate Records and Tabu Department of the Ministry of Environment and Urban Planning in Turkey issued a circular stating that foreigners should obtain a real estate valuation report in Turkey during their purchase or sale of real estate in Turkey.
This is a mandatory requirement for foreigners in Turkey and came into force on 4 March 2019.
Benefits of Turkey’s real estate valuation law?
Protecting foreigners from fraud and fraud in Turkey
So that no foreigner who buys real estate in Turkey falls victim to fraudsters, and so that he/she does not have to pay large sums on real estate that may not be at the required level or who deserves this amount, the decision of the real estate valuation in Turkey came to cut off those who want to cheat on foreigners and sell them cheap properties in Turkey at higher prices.
Controlling the conditions for obtaining Turkish citizenship through real estate investment
Applying for a Turkish passport through real estate investment requires a minimum price for the property to be suitable for Turkish nationality ” $250,000”, so official real estate valuation helps control the application of this requirement and ensure that there is no manipulation of real estate prices.
Increased real estate investment security Turkey
A foreign investor’s sense of security and satisfaction in Turkey is one of the reasons why he/she stays there and increases his investments and projects, and even their diversity. The investor’s comfort and sense of investment security increase as he gets a real-price house, office, or shop without falling into the trap of scammers and brokers who hunt foreigners in Turkey and take advantage of their lack of experience in Turkey’s real estate market.
The increase in real estate purchases in Turkey, particularly in the first half of 2019, reflects the satisfaction and safety felt by Turkey’s real estate investors and buyers, especially after passing the valuation law.
Preventing property tax evasion
Turkey aims to control property tax evasion, which is usually linked to the price of the property, if it were not for this law, it would have been easy for those who wanted to manipulate to register their high-priced luxury property at a very low price, allowing them to evade higher property taxes.
But with Turkey’s real estate valuation law, this has become impossible and has cut off the way for property tax evaders in Turkey.
If all foreign investors in Turkey commit to paying taxes and complying with the laws, this will significantly improve the image of foreign investors in Turkey.
Real estate prices control
The main objective of Turkey’s real estate valuation law may be to control prices and prevent the negative impact on Turkey’s urban development plans, for example, if Turkish plans are aimed at further recovering a region or making an urban transformation, real estate prices must rise there, but what is the proportion?
This is what real estate valuations in Turkey can control, if prices rise to a level beyond normal and familiar limits, especially because foreign investors in Turkey are buying real estate in modern projects, this will reduce the proportion of buyers due to high prices.
If prices are maintained at a certain value and studied by experts and real estate institutions, the rise in the price of the property will be appropriate. There are several cases where poor property price control in an area becomes a major reason for failure of urbanization plans be.
Improving and developing turkey’s real estate investment system
Turkey’s real estate investment sector is one of the most successful and developed economic sectors and signs of rising real estate sales to foreigners remain proof of this.
That is why the Turkish government is constantly seeking to strengthen this sector with easy regulations that increase the number of investors and reduce any hesitancy.
The valuation of real estate in Turkey and its obligation to foreigners was one of the most important improvements made during the recent period in the real estate sector in Turkey, and one of the decisions encouraging the increase in real estate investment in the country.
It is expected that by 2022 it will also be mandatory for Turks to extract the real estate valuation document when buying and selling a property in Turkey, as part of a package of reforms and developments that will affect Turkey’s real estate sector.
What is in the real estate valuation report?
- Title deed (Tabu) and real estate register for the property.
- Information about the address and location of the property, and the means of transportation nearby.
- Legal information of the property
- Special specifications of the property, such as construction style, decorations, finishing, floor, design and views.
- Problems and disadvantages that the property may have at later stage.
- Information about the price of similar properties on the market
- Approximate valuation or real estate valuation of the property
- Extensions and other information
- The reasoning behind Turkey’s real estate valuation law is to facilitate the sale and purchase of real estate , and to ensure the continuity of the development of laws and regulations governing real estate ownership, which shows a positive development towards making more real estate investment opportunities.