Real estate appraisal in Turkiye: when It’s needed and what It offers

As of June 2024, real estate appraisals in Turkiye are no longer mandatory for all foreign buyers. Now, they’re required only for property purchases aimed at obtaining citizenship. Let’s explore why this process is important and what benefits it provides.

Who needs a real estate appraisal?

A property appraisal is mandatory when purchasing real estate to obtain Turkish citizenship. The evaluation is carried out by licensed agencies accredited by the SPK (Sermaye Piyasası Kurulu).

In certain cases, an appraisal is NOT REQUIRED:
– When purchasing property from a developer with GYO status
– When buying property not intended for citizenship purposes
– When acquiring commercial real estate

Steps in the appraisal process

MAIN TIMEFRAMES
Appraisal duration: 2–3 business days
Report validity: 3 months
On-site visit by the appraiser: 1 day

The appraisal process involves several steps:

1. Selecting the property
2. Ordering the appraisal
3. Appraiser’s on-site visit
4. Preparation of the report
5. Receiving the official appraisal document
6. Finalising the sale and purchase agreement

If the transaction is not completed within three months of receiving the appraisal, the document expires, and the process will need to be repeated.

What does a real estate appraisal provide?

For Citizenship applications:

• Confirms that the property value meets the minimum investment requirement ($400,000)
• Serves as an official document for immigration authorities
• Ensures transaction transparency for the government

For buyers security:

• Determines the property’s actual market value
• Identifies potential construction defects
• Evaluates the quality of materials and workmanship
• Confirms the legality of the construction
• Verifies the property’s legal status
• Assesses the building’s seismic resistance

For investment purposes:

• Analyses the investment potential
• Evaluates rental income opportunities
• Highlights prospects for value growth
• Compares the property to similar ones in the area

GOOD TO KNOW:

The cost of an appraisal depends on the property type and size. In 2024, the average price ranges from 15,000 to 20,000 Turkish lira (approximately $500–650).

Beyond appraisal costs, property owners in Turkiye should consider additional expenses. For more details, refer to our article “Taxes and property expenses in Turkiye in 2024.”

What does the appraiser evaluate?

1. Technical specifications:

• Exact property size
• Number of rooms
• Condition of the property
• Availability of utilities

The appraiser always evaluates: building’s seismic resistance, quality of construction materials, compliance of the layout with official documents, availability of necessary permits.

2. Legal aspects:

• Absence of encumbrances or liens
• No outstanding debts
• Occupancy permit availability
• Presence of a technical passport

3. Location:

• Assessment of the neighbourhood
• Transport accessibility
• Proximity to social facilities
• Infrastructure development

Benefits of a real estate appraisal

What the appraisal provides
– Confirms the property value for citizenship eligibility ($400,000)
– Protects against fraud
– Ensures legal clarity
– Helps assess investment potential

Summary

A real estate appraisal is an essential tool for protecting the buyer’s interests. It allows for an informed decision and helps avoid potential future issues. When purchasing property for citizenship purposes, it’s recommended to order the appraisal immediately after selecting the property and before making the full payment. This gives you time to explore alternatives if the results are disappointing.