Real estate in Turkey has recently witnessed a huge boom, with increasing rates of value

THE IMPORTANCE OF REAL ESTATE ...

Date:

Wednesday, September 30, 2020

Real estate in Turkey has recently witnessed a huge boom, with increasing rates of value

Real estate in Turkey has recently witnessed a huge boom with increasing rates of purchasing value annually, which made the real estate market in Turkey a desirable target for foreign investors, and the signs of escalating real estate sales to foreigners are still the best proof of this, and the real estate sector represents a fifth of the output. The total domestic amount in Turkey is 20%.

Therefore, the Turkish government gives it great importance and seeks intensively and permanently to support this sector with easy systems to attract investors to Turkey, and the economic and commercial capital of Turkey, Istanbul, is the first place among investors looking for real estate investment or want to own apartments in Istanbul due to the ease of investing in real estate. And return the sale if desired.

In the interest of the Turkish government for the interest of the next foreign investor to buy real estate in Turkey, it issued a law by the Turkish Ministry of Housing stipulating the request for the evaluation report, which is called in the Turkish language (real estate appraisal in Turkey) or the real estate appraisal document, after the great demand to buy real estate in Turkey and the diversity of regions And the specifications, characteristics of cladding, as well as the quality of projects and the great difference in prices, and the real estate appraisal decision in Turkey entered into force as of March 2019, and became mandatory when foreigners buy real estate in Turkey as a reassurance factor for investors.

It is a detailed report on the status of the property to be sold, in which the market price of the property is presented, and it is prepared by certain companies that specialize in valuing real estate in Turkey, and hold a license to do so.

As it is not possible to accept real estate evaluation in Turkey unless it is issued by a government licensed and approved company, but if the report is issued by persons or even real estate experts or real estate companies that are not approved by the government, then it is rejected and not accepted.

In order to obtain a real estate appraisal report document in Turkey, you need a period ranging from 3 days to approximately one week, after submitting the application to the competent company, the real estate valuation document in Turkey is valid for three months from the date of its issuance, and whoever wants to sell the property before the expiry of the evaluation period of his property can use the same The document once again as long as it is valid and the period assigned to it "three months" has not expired.

The goal of real estate appraisal is:

• Determine the price requested by the seller

• Helping the buyer to determine the fair price of the purchase

• Determine the value of the insurance required on the property.

• Determining the value of a specific property as part of a legacy or a share in a company.

• Determining a relative value of property to be exchanged between different parties.

• Determine the value of financing a mortgage loan, which is usually a percentage of the market value of the property.

• Determining rent for the property as a percentage of its value.

• Determining property losses as a result of fire, storms or earthquakes.

• Property valuation for tax calculation.

• Determining the cost of real estate construction defects as part of a litigation or compensation process.

• Determining real estate taxes when selling properties.

• Valuation of properties during cases between multiple parties.

• Determining whether a building can be demolished or not for better reuse.

• Determine whether the current use of the property is the best use or not.

• Evaluating the property to determine its fair values as an investment building in the financial statements.

The real estate appraisal document in Turkey contains the following information:

• Information about the resident company, its licenses, and the certificate obtained from the Banking Supervision and Regulatory Agency (BDDK).

The engineering plan of the property and its net area, and in case the property is residential, the engineering plan will clarify the distribution of rooms and public facilities and their areas.

• A copy of the title deed and information about the real estate registry for the deed.

• Complete photos of the property from the inside showing its current condition

• The final result and the market value of the property in Turkish Lira, Dollar and Euro.

• Information about the location, transportation and general surroundings of the property.

• Technical, structural and physical specifications of the property.

• Legal details related to the property.

• Building and housing permits for the property.

• Approach to assessing specific information.

• Investigating and researching the real estate market.

• The expected rental return of the property.

There are many factors that affect the value of the property, the most important of which are:

1. Location of the real estate: Where the prices differ in different regions, the level of their services, and their class classification within the city.

2. The type of property: Such as the age of the property, its area, and the type of property, is it commercial or residential.

3. The general condition of the property: Whether it is new or dilapidated and old, furnished or empty, the level of finishing, the integrity of the property's facilities, the availability of natural gas, and so on.

4. View: It plays a big role in the high and low price of the property. It also plays an important role in the evaluation and report writing process.

5. Availability of services: This means the availability of schools, hospitals, public transportation, places of worship, health and entertainment centers, and others in the real estate area.

6. Legal papers: Where the investor makes sure that the ownership can be transferred easily and that the property is free from any legal problems.

7. Comparing the property with its surroundings: The price of the property is determined by comparing it with the surrounding real estate, that is, you ask about the average price in the area, or you ask about properties that have been sold in the same area and have the same advantages as your property, and it is preferable that the sale is made from a short period because the prices will change in the longer time period.

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