Some may think that the title of this article is traditional and its only goal is to attract the reader’s attention, but when we say that since March 2024 a law has been issued by the Ministry of Environment, Urbanization and Climate Change in coordination with the General Directorate of Land Registry and Survey and the Real Estate Valuation Department
Making more than 90% of Istanbul projects unsuitable for Turkish citizenship!
Then we realize that this title is very specialized and the content writer has more than ten years of experience in the field of real estate investment and obtaining Turkish citizenship.
So what is this law and why is it the cause of this major imbalance? The most important question is why only a minority are talking about it while the vast majority of the real estate sector, whether brokerage companies or sales offices, ignore the existence of this law and continue their work normally?!
What is the real estate valuation law in March 2024?
The official text of the law includes a resolution extending over 10 pages in which it addresses the official authorities, the reason for issuing this law, and details related to real estate evaluation, of which we will discuss only what concerns us here.
We also know that to obtain Turkish citizenship, you must obtain a real estate evaluation worth at least $400,000 so that this property is suitable for Turkish citizenship, regardless of the real property price.
In the past, there was a group of real estate appraisal companies licensed by the Turkish state that evaluated new properties at the same prices as they were sold without any scrutiny. For example, if you buy an apartment under construction, even if it is even in the first stages of construction, at a price of 400 thousand dollars, you get a real estate evaluation. It is more than 95% identical, and therefore it was sufficient to ensure obtaining an appropriate real estate evaluation to obtain Turkish citizenship if you purchased a property worth $420,000.
The amendment issued in the March 2024 law stipulates that from now on only GEDAŞ will have its real estate evaluation accepted for those wishing to apply for Turkish citizenship.
What is GEDAŞ company?
It is a government real estate evaluation company with one branch in Istanbul in the Kucukcekmece area, and according to the new law, it is the only company with an acceptable evaluation for applying for Turkish citizenship.
So far everything is clear, but what does GEDAŞ have to do with making the majority of Istanbul projects unsuitable for Turkish citizenship?
GEDAŞ Company conducts a real estate evaluation in a manner that is claimed to be fair, which is by comparing real estate prices in the same area and giving a real estate evaluation of the requested property.
However, evaluating nearby properties, especially if relying on local sites with inaccurate prices, will make the real estate evaluation unfair and less than the real value of the property by sometimes up to 50%!
This means that to get a real estate appraisal worth $400,000, I must buy a property worth $800,000 to be on the right side, whatever the outcome of the appraisal.
This idea itself is completely rejected by the foreign real estate investor who already finds that the amount of $400,000 is not small at all, let alone double it in order to obtain Turkish citizenship!
Of course, the property valuation does not have to be 50% less than its actual price. It could be any lower percentage, but this is the maximum percentage.
Now, before we talk about the projects excluded from this law, let us talk about the reason for this amendment and choosing only GEDAŞ for real estate evaluation.
Why GEDAŞ?
Excessive pricing of new properties has spread in the Turkish real estate market, especially in the past three years, due to high demand and low supply after Turkey emerged from the effects of the Corona virus with a very small number of ready properties and a large number of properties under construction with prices even higher than similar ready ones in Same area.
This made real estate developers take action by agreeing to raise the prices of properties under construction uniformly to force those wishing to buy to pay high commissions, most of which are hidden commissions, with the aim of maintaining a large profit margin for the developer and workers in the field of real estate marketing, including sales offices and real estate brokerage companies.
GEDAŞ claims to conduct a fair and correct evaluation of the properties so that the foreign buyer will know the difference between the price he paid for the property and the real value of the property.
This is with the aim of reducing the large profit margin achieved by the real estate developer, especially from the foreign investor.
The idea seems to be really good and entirely for the benefit of the foreign investor, but the reality is different from that.
Why did GEDAŞ not succeed in developing a correct real estate evaluation?
- The properties to be evaluated were compared with old properties in the same area that do not share the same features, and this is considered a clear flaw in finding a correct evaluation.
- The properties to be evaluated were compared with properties found on local buying and selling sites with random prices set for the purpose of marketing and attracting customers and do not reflect the true value of the property offered, but GEDAŞ adopted these properties as a cornerstone and built upon them an unfair real estate evaluation for the sake of properties that deserve a better evaluation.
- The properties of developers participating in the Istanbul Real Estate Investment Exchange (GYO) were excluded from this evaluation and were given an accurate evaluation of more than 95% even for properties under construction in their early stages.
- The routine work system in it, as it belongs to the public sector, makes the issue of real estate evaluation require two weeks of time on average, and this in itself is not suitable for foreign investors who want to obtain the result of the real estate evaluation during the period of their visit, which often does not exceed several days.
What real estate projects are suitable for obtaining Turkish citizenship in 2024?
In general, projects with the correct evaluation are for developers participating in the Istanbul Real Estate Investment Exchange (GYO), but the title deed must also be ready to be able to apply for Turkish citizenship, and since these matters are variable, it is possible at any time for the issuance of a new project or the end of the sale in another project. We cannot mention names. Projects suitable for Turkish citizenship and install them here, because the reader may reach this blog at a time when circumstances vary, so to facilitate valued investors, we have facilitated communication with our specialized team by filling out your information in the form below or communicating directly through chat or WhatsApp so that we can provide you with advice. It includes all the appropriate projects to obtain a correct real estate evaluation and Turkish citizenship at exactly the time you are looking for.
