As of March 4, 2019, real estate sales to the citizens of foreign countries shall require an appraisal report to be issued for the real estate property. With the new regulation, the government aims to prevent overpricing, off-the-record dealings in the construction industry and to increase Turkey's brand value before foreign investors.
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As per the memorandum published by the General Directorate of Land Registry and Cadastre (TKGM), which operates under the umbrella of the Ministry of Environment and Urban Planning, all sales dealings involving foreign individuals as either the buyer or the seller shall require an appraisal report to be issued showing the market value of the real estate property. Assessing the regulation which will be brought into effect as of March 4, 2019, Bayram Tekçe, the Chairman of Antalya Homes, stated: "This new regulation means that the Ministry of Environment and Urban Planning has chosen housing sales to foreigners as the pilot scheme for 'Real Estate Property Valuation System' which was listed in the 100-day action plan. This is a significant development for Turkey's brand value. We believe that this regulation will protect foreign buyers from steep prices and fraud by introducing transparency to housing sales to foreigners."
Appraisal reports shall be valid for 3 months.
The Appraisal Report scheme is already being implemented for real estate purchases for the citizenship application. With the new regulation, it will be required for all real estate sales to foreigners. As per the memorandum, the appraisal reports shall be valid for 3 months starting from the date they are issued, and they shall be used in all sales transactions. Should the value of the real estate property be affected in any way in the 3-month period, a new appraisal report shall be required. The calculations for the buildings still in construction shall be based on the value the building will have once it is completed. The submitted sales value shall not be lower than the value set out in the appraisal report. Should the sales value be higher, it shall be noted as submitted. Experts licensed by the Capital Markets Board of Turkey (SPK) shall continue to issue the appraisal reports.
"As of 2022, appraisal reports shall be mandatory throughout Turkey."
Noting that a "Directorate of Real Estate Property Valuation" was established in early February within the General Directorate of Land Registry and Cadastre to regulate and execute valuation activities, Bayram Tekçe, the Chairman of Antalya Homes, stated: "We anticipate that appraisal reports will be mandatory for all real estate property sales across Turkey as of 2022. The foreign sales industry which offers a low volume has been chosen for the pilot scheme before moving onto implementing the scheme throughout the country. This will allow any shortcomings to be addressed over time. The new regulation will boost the importance of professionalism and expertise in housing sales to foreigners, contributing to an improvement in service quality. Turkey's reputation and credibility among the citizens of foreign countries will also increase. On the other hand, as the labor costs which make up approximately half of the construction costs could not be invoiced, the official value submitted used to be almost half of the actual value. This implementation will ensure that these off-the-record construction costs will be recorded as well."
Contact: Tülay Genç | [email protected] | +90 (850) 885 12 55
About Antalya Homes
Founded in 2004, Antalya Homes Emlak A.Ş. is the leading international real estate property company in the market of real estate property sales to foreigners across Turkey operating out of its offices in Antalya (Lara, Konyaaltı), Alanya, Istanbul, and Trabzon and under the brands Antalya Homes, Istanbul Homes and Trabzon Homes.