When investing in real estate, property valuation is one of the most important factors to consider.
Property valuation is the process of estimating the value of a property based on various factors, such as its location, condition, size, and market trends.
In Turkey, property valuation is a crucial part of the real estate market and plays a significant role in the buying and selling process. In this blog, we will take a closer look at property valuations in Turkey.
What is Property Valuation?
Property valuation is a process that determines the estimated value of a property based on various factors.
First, I would like to point out that property valuation differs from a property appraisal. An appraisal is an estimate of the property’s market value at a specific point in time.
In contrast, property valuation considers all relevant factors that may affect the property’s value in the future.
Factors Affecting Property Valuations in Turkey
The following factors can affect property valuations in Turkey:
Location
The location of a property is one of the most critical factors that affect its value. Properties in prime places like Istanbul or the Aegean and Mediterranean coasts are generally more expensive than those in less desirable areas.
Property Condition
The condition of the property can also affect its value. Properties that are well-maintained and in good condition are generally more valuable than those that require extensive repairs.
Property Size
The size of the property is also a factor that can affect its value. More significant properties are generally more expensive than smaller ones, all equal.
Market Trends
Current trends can also affect the property’s value. Property values may increase if the real estate market is booming, while a slowdown may cause values to decrease.
Infrastructure
The availability of infrastructure, such as transportation, schools, hospitals, and shopping centers, can also affect property valuations.
How Property Valuations are Conducted in Turkey
In Turkey, property valuations are conducted by licensed valuation companies authorized by the Capital Markets Board (SPK). These companies use a variety of methods to determine the property’s value, including:
Comparative Method
This method involves comparing the property to similar properties in the same area that have recently been sold.
Cost Method
This method estimates the cost of rebuilding the property from scratch and subtract any depreciation.
Income Method
This method is used for commercial properties and involves estimating the potential income the property can generate and valuing the property based on that income.
Conclusion
Property valuation in Turkey is an essential part of the real estate market.
They estimate the property’s value and play a significant role in the buying and selling. Property valuations consider various factors, including location, property condition, size, market trends, and infrastructure.Therefore, working with licensed valuation companies when conducting property valuations in Turkey is vital to ensure accuracy and fairness.
