Real estate value to be standardized


Appraisal has been a long-standing problem in real estate trading but that looks to be coming to an end. The appraisal process undertaken by banks, municipalities, realtors and various agencies working in the sector is now to be standardized for those who are seeking to purchase land or property.

Those times when it was possible to declare the value of a house as 20,000 TL when its actual value was 150,000 TL, in order to avoid higher charges, will surely be over now. Appraisals undertaken by municipalities, banks or different agencies are to be standardized; values of real estate will be appraised based on international criteria.

According to a report by the Ministry of Environment and Urbanism, real estate will be appraised in Turkey by international criteria. The appraisal process will take into account the distance towards hospitals, schools and subways, whether the property is located on an artery, and whether it has the option of additional development rights such as building additional stories. In coordination with the World Bank, the trading of land or buildings will be completed according to an appraisal system built on 50 parameters. The General Directorate of Land Registry and Cadastral Works has completed its preparations and now it is the turn of other agencies involved in the project. The Capital Markets Board (CMB), the Ministry of Finance and the various municipalities are expected to complete their work soon. This project also aims to put an end to the deliberate undervaluation of real estate which some people have been doing in order avoid the appropriate charges.



It is anticipated that the appraisal project will be completed towards the end of the year. Thanks to an appraisal map, there will no longer be huge discrepancies between the bank and realtor values. This data will also be used in expropriation procedures. A Ministry officer noted, “If it is not possible to implement the system this year then it will definitely be ready for activation next year”.



This new system of standardisation has already been implemented in many European countries. While it was first discussed in Turkey six years ago, no concrete steps towards standardisation were taken. But over the previous months there have been concerted efforts to accelerate the process. A protocol was signed between the General Directorate of Land Registry and Cadastral Works and the World Bank on 13th August 2008. The project objectives are extensive: Ownership data, spatial data and value data should be kept and registered at international standards. The data that will be pooled following the new appraisal system may also be used for urban transformation.

Ercan Baysal / Star Gazetesi



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