AUTOMATIC APPRAISAL IN REAL ESTATE CAUSES 1.8 BILLION TL OF SALES LOSS IN SALES TO FOREIGN

President of Real Estate Overseas Promotion Association Ömer Faruk Akbal stated that the automatic valuation application in real estate caused a loss of 1.8 billion TL in sales to foreigners in 15 days

Within the scope of the Procedures and Principles Regarding the Valuation Reports to be Prepared in Transactions to which Foreigners are a Party’ circular of the General Directorate of Land Registry and Cadastre, the residual valuation expert is selected by contracted institutions through the TADEBIS – WEB TAPU system, which was put into effect on September 20, 2021. not automatically assigned.

After the valuation regulation for real estate sales to foreigners, the appraisal value of many houses sold remains below the sales price and cannot reach the 250 thousand dollars required for citizenship. With the regulation, when the appraisal values ​​were 45 percent below the housing price, the problem of trust among foreigners increased.

Real Estate Overseas Promotion Association (GİGDER) introduced GİGDEKS, the housing sales index to foreigners, prepared in cooperation with AGS Global.

GIGDER President Ömer Faruk Akbal, speaking at the introductory meeting, said that the said practice harmed the industry.

Akbal, noting that there was a decrease in the rate of those expecting an increase in house sales to foreigners in the third quarter compared to the previous quarter, said, “The positive sector expectations in the previous quarter were realized with the positive data received in the last quarter. negative effects caused hesitancy in the expectations for the last quarter of the year in the sector.”

 GIGDER President Akbal stated that the loss experienced with the appointment of an automatic valuation firm amounted to 478 million liras in 15 days and gave the following information:

“When we consider that GIGDER realizes approximately 25 out of every 100 real estates sold to international investors in Turkey today, this loss of 478 million liras is to the entire sector. It can be seen through concrete data that the reflection of it can easily reach 1.8 billion liras by induction.The loss of confidence of foreign buyers due to the value differences of up to 45 percent between the values ​​in the reports prepared for collateral and the market price of the real estate not only increased the size of the material damage, but also caused loss of reputation. “If no urgent action is taken at the solution point, the damage suffered by the sector will decrease exponentially in the next 2-3 months. In this case, it seems very difficult to reach our sales target of 50 thousand units at the end of the year, but we will have difficulty in catching even 30 thousand units next year.”

PRICE INCREASED BY 21 PERCENT

Reminding that they determined the average sale price of housing to foreigners as 161 thousand 500 dollars in January, Akbal said, “If we accept this price as the base value (100 points), GİGDEKS, which increased to 120.5 points with 194 thousand 602 dollars in the April-June period, “It continued its rise in the quarter and reached 121.4 basis points with 196 thousand 37 dollars. The increase in the average housing sales price was 21 percent in September compared to the beginning of the year,” he said.

Noting that they aim to increase their sales value to 225 thousand dollars in 2025, Akbal stated that they will follow their progress in the sector with the applications they have implemented, with the GIGDEKS datasets they will publish every three months.

Ömer Faruk Akbal stated that there was a significant decrease in the rate of those who stated that they made bank loans available to foreigners in the third quarter, adding that “the rate that was 30 percent in the April-May period was 10 percent in the third quarter.