After Turkey has become a major destination in recent times for owners of capital who wish to invest in real estate and obtain its citizenship, he must be fully aware of all real estate laws and terms, and among these terms, the term "popular allowance” for real estate, we will introduce you in this article to the popular allowance and how to calculate it.
The popular allowance for real estate is a basic value on which the real estate tax is calculated, and is considered essential for completing real estate sales and purchases. In other words, the popular value of the property is seen as the value according to which Turkish law deals with the property.
It is legally defined: as the value of immovable property prepared for sale, which is estimated in accordance with the provisions of the "State Law for Determining Values Devlet İhale Kanunu” No. 2886, dated 8/9/1983, or the provisions of the law related to the amendments made to the "Law on Valuation of Immovable Property of the Treasury” and Value Added Tax” No. 4706 and dated June 29, 2001. It is the basic value in determining the price of real estate in Turkey (buying and selling real estate). It is calculated in such a way that the value of the property should not be less than the value of the popular allowance for real estate in Turkey, and it is determined by a committee appointed by the Presidency of the State, after issuing an evaluation decision and then sending it to the states by the Ministry of Finance.
The values on the basis of which the popular allowance is calculated: It is calculated according to several values that play a role in the difference in its value, according to the following
The current market value: It is the value of the property in the current market, and this value is affected by factors such as supply and demand, city, neighborhood, residential sector, street, transportation...
The value based on real estate tax in Turkey: It is the smallest value of the property and is generally less than the market value of the property, on the basis of which the real estate tax is calculated
How is the common property allowance calculated?
If we want to calculate the popular allowance for a property, the method of calculating it is simple and does not need to be complicated. If we want to calculate the popular price for a property or a house, for example, we must take into account information such as the area, and the popular value of at least three other properties, and these three properties must be present In the same neighborhood in which the required house is located, then we collect the values of the popular allowance for the three properties and divide this number by the total areas of these properties per square meter, so that the approximate value of the popular allowance for the property is multiplied by the value of one meter by the area of the property.