A real estate appraisal by a state expert shows the nominal market value of the property. Foreigners planning to purchase real estate are required to obtain this expert appraisal. This is done to ensure that foreign buyers would buy property in Turkey at a real price.

Cadastral value and housing prices

⚠️ What is the cadastral value of real estate in Turkey? It is the value of real estate, which is set by the state through cadastral valuation. From this value are calculated as an annual property tax in Turkey (2% of cadastral value), and property transfer tax (4% of cadastral value).

In most cases, the cadastral value of real estate does not correspond to the market value (set too low). Only when buying real estate in Turkey in the framework of citizenship it is necessary to specify the highest cadastral value of the object, as it is taken into account when calculating the amount of investment for Turkish citizenship.

The cadastral valuation also takes place before the transaction – when the documents have already been submitted to the cadastral service and the buyer has to exchange the necessary amount in lira before the transaction and present the currency exchange receipt.

What does expert real estate appraisal mean

An appraisal of the value of an apartment or house provides information about the value of the property based on its characteristics, condition, location, etc. The valuation is carried out by two certified experts approved by the SPK (short for “Sermaye Piyasası Kurulu” Capital Markets Council). Both expert witnesses are sworn appraisers.

What it’s for

According to a government decree, an appraisal report (appraisal report) became mandatory for the sale of real estate to foreigners. The reason for this is that the government wants to know the real market value of the property rather than relying on the stated value.

Previously, sellers could set the sales value too low to avoid paying all taxes in full. Thus, the value assessment is used as the main indicator in calculating the property tax.

Types of expert evaluations of real estate

There are two types of expert evaluations in Turkey.

  1. Real estate appraisal;
  2. Evaluation of the project with a feasibility study;

Real estate appraisal ( types of appraisals)

  • Housing Assessment;
  • Valuation of commercial real estate (premises);
  • Valuation of agricultural land. appointments;
  • Hotel Evaluation;
  • Urban Renewal Assessment;
  • Evaluation of coal mining and gas plants;
  • Evaluation of ships and aircraft;
  • Evaluation of brands;
  • Company Assessment;

Contents of the examination

  • Information about ownership;
  • Location on the cadastral map;
  • Up-to-date photos;
  • Prices for similar properties;
  • Forecast of the price of this property;
  • Check debts and technical condition of the property with the municipality and Cadastral Office.

Depending on the characteristics of the property, the examination also includes additional information. The evaluator will make an evaluation report, usually using one of the three methods shown below. The choice of method depends on the specific characteristics of the object:

Real estate appraisal comparison method: the property is compared to several similar options.

Profitability method: the value of the property is determined based on the calculation of the expected income from possession.

The cost method: is based on determining the costs required to restore the property in the current economic situation.

How to make an expert assessment of the apartment in Turkey?
It takes 3 days to prepare an expert assessment of real estate in cities with a population of millions of people in Turkey. In other cities an additional 3 days may be required (the total process will take 6 days). Hotel reviews take an average of 15 days, depending on the city.

You can also request other types of evaluations, such as a project evaluation with a feasibility study, land evaluation report, enterprise evaluation report, business evaluation, trademark evaluation, etc. These reports can take anywhere from 2 weeks to 1 month.

If you are purchasing from TrCompass Real Estate, we can help you complete this document within 2 days. Because we provide the best price guarantee, all real estate offers on our website are pre-qualified.

Benefits of working with TrCompass Real Estate for an appraisal report
TrCompass Real Estate cooperates with independent real estate valuation experts licensed by Sermaye Piyasası Kurulu. Sermaye Piyasası Kurulu in Turkish means the Capital Markets Council, the highest regulatory body for finance and banking in Turkey.

We can provide you with expert real estate valuations throughout Turkey. You can contact us to get a quote and timeline for a property appraisal report and project feasibility study.