Recent Changes in Turkey's Real Estate Appraisal Legislation for Foreign Buyers
Turkey has recently amended its legislation regarding mandatory property appraisal for foreign buyers. Previously, all foreign buyers were required to obtain an appraisal report that protects their interests by revealing all legal aspects of the property, including any debts the seller may have to government entities and other nuances. Appraisals could only be conducted through licensed companies regulated by the Banking Regulation and Supervision Agency (BDDK).
According to the new changes, an appraisal is now required only if a foreigner is purchasing property for the purpose of obtaining Turkish citizenship. In such cases, the appraisal report must be submitted to the Turkish Land Registry and Cadastre Department before the transaction is finalized. The Turkish Ministry of Foreign Affairs also reserves the right to request an appraisal report if deemed necessary.
Property Prices in Turkey Increased by Nearly 50% in the Last Year
According to the Turkish Statistical Institute (TÜIK), property sales in Turkey in May 2024 showed a significant increase of 46% compared to the previous month, although they decreased by 2% compared to last year. A total of 110,588 residential units were sold, which is 3.4% less than during the same period last year.
Key Data for May 2024:
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Sales Volume by Region:
- Istanbul: 18,814 homes
- Ankara: 9,861 homes
- Antalya: 6,305 homes
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Price Increase:
- Annual price increase: 48.47%
- Real annual increase (after adjusting for inflation): decreased by 14%
- Monthly real increase: decreased by 3%
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Rent Prices:
- Annual rent increase: 54%
- Real annual increase (after adjusting for inflation): decreased by 11%
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Price Growth in Ankara:
- Nominal price increase: 55.3% over the year
- Real price increase: decreased by 10%
Despite the overall increase in property values, the pace of this growth is slowing down. This is reflected in the real metrics, which, when adjusted for inflation, show decreases both annually and monthly.
