Automatic Appraisal in Real Estate Causes 1.8 Billion TL of Sales Loss in Sales to Foreign

The Impact of Automatic Valuation on Turkey's Real Estate Market

Turkey's property market is facing a tough test. A new automatic valuation system has changed how experts price homes. Ömer Faruk Akbal leads GİGDER, a major real estate group. He says the industry lost 1.8 billion TL in sales to foreign investors in just 15 days. This hit comes from rules set by the Land Registry in late 2021.

Experts now use the TADEBIS – WEB TAPU system to assign appraisers. This was meant to make things fair. But it created a huge gap between market prices and official reports instead.

Why the 1.8 Billion TL Loss Happened

Money started flowing out almost immediately. GİGDER members alone lost 478 million TL in the first two weeks. Since these members handle a quarter of all foreign sales, the total damage is huge. We're looking at a 1.8 billion TL loss for the whole sector.

This isn't just a number on a page. It means canceled deals and lost deposits. It also shows that foreign investors are losing confidence. If the system doesn't change, the market might miss its sales goals by thousands of homes.

How the Automatic Valuation Gap Hurts You

The main problem is the price difference. Often, the official report is 45% lower than the real market price. This causes two big headaches:

If you need a closer look here, see The Valuation Gap: Sales Price vs. Official Appraisal.

• Citizenship Eligibility: Back then, you needed a $250,000 investment to get Turkish citizenship. If the appraisal is too low, you can't meet that legal limit.
• Loss of Trust: You'll feel cheated if an official report says your new home is worth much less than you paid. This hurts Turkey's reputation with buyers around the world.

Trends in the GİGDEKS Index

GİGDER tracks these trends with their GİGDEKS index. It shows that while prices go up, the valuation system stays behind. By September, the average home price rose by 21%. It hit about $196,037.

Even with higher prices, it's harder for people to get money. Fewer foreigners are using bank loans now. That rate dropped from 30% to 10% in just a few months. Banks are getting nervous, and so are buyers.

What’s Next for the Turkish Real Estate Sector

Local leaders want to reach a $225,000 average sales price by 2025. But this automatic valuation bottleneck makes that hard. Mr. Akbal says we need quick action to fix these appraisals.

To keep going, the market needs an automatic valuation system that matches real life. Turkey needs to stay competitive. You need transparency to feel safe with your investment.

Related Articles

• property appraisal rules in Turkey
• property valuation procedure updates
• changes in property valuation laws

If you need a closer look here, see Future Outlook for Real Estate for Foreigners / Related Articles.

If you need a closer look here, see Related Articles.