Cadastral value of real estate in Turkey 2025: Everything a investor and owner needs to know

Changes are coming! Cadastral value of real estate in Turkey in 2025

The Turkish real estate market has traditionally attracted Russian investors and buyers due to its growth potential, favorable climate and affordable prices. However, like any dynamically developing market, it is subject to changes that can significantly affect ownership and investment. One of the most significant events expected in the near future is the revision of the cadastral value of real estate (rayiç bedel) in 2025, which will have serious consequences from 2026. These changes are designed to bring official estimates as close as possible to real market prices, which will affect the tax burden, duties and the overall economic attractiveness of Turkish real estate.

This article is intended to provide comprehensive information about upcoming changes in the cadastral value in Turkey, their causes, potential consequences for owners and investors from Russia, as well as possible ways to protect their interests in the new reality. We will look at what the cadastral value is, how it is formed, and why its revision in 2025 will be a key moment for everyone who owns or plans to purchase real estate in this country.

Cadastral value (Rayiç Bedel): What is it and how is it formed?

The cadastral value (rayiç bedel) is the official, legally fixed valuation of a property in Turkey. It is the basic value used by government agencies to calculate various fees and taxes. Unlike the market value, which is determined by supply and demand, the cadastral value is set by the state and, historically, has often been significantly lower than the actual market price. However, it is this official figure that plays a crucial role in the financial aspect of real estate ownership.

The mechanism of calculating the cadastral value

The process of determining the cadastral value in Turkey is regulated by law and includes several key steps:

• The Evaluation Commission (Takdir Komisyonu): A special commission meets every four years in each municipality of Turkey. It consists of representatives of the municipality, the tax inspectorate, the Office of Registration of Rights (Tapu), as well as the local mukhtar (head of the district) and members of the Chamber of Commerce. This commission is responsible for setting specific values of land value per square meter (m2) for each street and avenue in the respective area. These values serve as the basis for all further calculations.
• The cost of the building and the object: After determining the specific value of the land, it is adjusted taking into account the characteristics of the building located on it. Factors such as the total area of the facility, its age, the quality of construction (for example, the presence of an elevator, heating system, materials used) and other parameters are taken into account. After deducting the depreciation, the total cadastral value of each specific property is calculated, which is recorded in municipal records. For example, an apartment in a new, modern building will have a higher cadastral value than an apartment of a similar size in an old building, even if they are located on a street with the same specific land value.
• Annual updates: The values set by the commissions are valid for four years. In the intervening years, the cadastral value is indexed annually. The increase occurs by an amount equal to half of the revaluation coefficient, which is determined based on inflation. This procedure is established by Law. No. 1319 “On Property tax”.

The role of cadastral value in the taxation system

• Annual Property Tax (Emlak Vergisi): The amount of this tax directly depends on the cadastral value of the property. For residential properties, it is a certain proportion of the cadastral value (for example, 2%, and within large metropolitan areas — 4%). As the cadastral value increases, the amount of the annual tax increases proportionally.
• Fees for registration of purchase and sale transactions (TAPU harcı): Upon transfer of ownership (registration of TAPU), the buyer and seller pay a fee, which is also calculated from the cadastral value. Traditionally, in order to reduce this fee, the parties often underestimated the declared value of the transaction, indicating the cadastral value rather than the market value in the Tapu.
• Inheritance and donation tax: In the case of the transfer of real estate by inheritance or as a gift, the tax base for calculating the relevant taxes is also determined based on the cadastral value.

Sharp increase: Changes in cadastral value in 2025-2026

In 2025, Turkey faced an unprecedented revision of the cadastral value of real estate, which will take effect in 2026. The assessment commissions, which met in mid-2025, set new unit values for land per 1 m2, which will be effective in the period 2026-2029. The increase reaches 10-15 times the current levels, and in some areas of Istanbul, Ankara and Izmir, the tax base has increased by 10-57 times.

Reasons for the increase

Such a radical update of cadastral values is due to several key factors:

• Reducing the gap between cadastral and market value: Over the years, the cadastral value has lagged significantly behind real market prices. This distorted the market and created opportunities for tax fraud. The government strives to bring these two values as close as possible in order to make the market more transparent and fair.
• Increased tax revenues: Due to the underestimation of the declared value of transactions and an unrealistic base for real estate taxes, the state budget received significant funds. According to experts, the annual losses of the treasury amounted to billions of dollars. Increasing the cadastral value will allow municipalities to collect more property taxes, directing additional funds to infrastructure development and social projects.
• Combating undervaluation in transactions: The low cadastral value stimulated the practice of underestimating the official sale price in Tapu documents in order to reduce the amount of duties. The new rules are designed to curb this practice by making transactions more transparent and consistent with the real value.

Specific examples of cadastral value growth

The most noticeable increase in cadastral value is observed in large cities such as Istanbul, Ankara and Izmir, where housing prices have been rising rapidly in recent years. Below is a table with examples of changes in some areas.:

These data clearly demonstrate how dramatic the increase in cadastral value will be, especially in the central regions. The new lists have been posted in Mukhtarov’s offices since mid-2025.

Consequences for property owners in Turkey

The revision of the cadastral value has both positive and negative consequences for various categories of owners and the real estate market as a whole.

Increasing the tax burden

The most obvious and immediate consequence for property owners will be a significant increase in financial burden.:

• Increase in the annual property tax: Since the tax is calculated as a percentage of the cadastral value, its amount will increase proportionally. According to forecasts, for many homeowners, the amount of tax in 2026 may increase 6-7 times compared to the previous year. This will become a serious burden, especially for retirees and people with fixed incomes.
• Increase in purchase and sale fees: The Tapu registration fee is also calculated from the cadastral value. With its increase, the costs of making purchase and sale transactions will increase many times, which may make it difficult to purchase housing from a financial point of view.
• Potential increase in inheritance and gift taxes: Similarly, these taxes will be calculated from the new, higher cadastral value.

Positive aspects (for the state and the long-term perspective)

Despite the initial difficulties, the increase in cadastral value has a number of positive effects in the medium and long term.:

• Increasing market transparency and tax fairness: Bringing cadastral values to the real market level will reduce unfairness in the tax system and reduce opportunities for “gray” schemes. Transactions will be processed at a real price, which will create a fairer procedure in which everyone pays a comparable tax.
• Increased tax revenues: An increase in municipal revenues will allow more funds to be allocated to the development of urban infrastructure, roads, parks and social facilities.
• An increase in the official value and an additional guarantee for owners: An increase in the cadastral value means an official increase in the value of homeowners’ assets. The Tapu document will become a more accurate guideline confirming the actual sale price, which may be an advantage in future transactions.
• The increase in collateral value for loans: Banks take into account the cadastral value when assessing real estate as collateral for loans. Its increase will increase the cost of collateral and, consequently, credit limits. This will simplify access to finance for both individuals and construction projects.
• Improving insurance and renovation: As insurance amounts approach the real value of real estate, payments in case of natural disasters will become more equitable. In urban renovation projects, the shares and incentives for copyright holders will be determined closer to reality, which can accelerate the renovation of buildings.

Negative aspects (for owners and short-term perspective)

Experts also warn of possible negative consequences.:

• Financial burden for owners: A sharp increase in taxes will be an additional burden on family budgets, especially for owners with low or fixed incomes.
• The risk of a slowdown in home sales: Higher taxes and transaction costs could cool the real estate market in the short term, especially for investment transactions, which could lead to stagnation.
• Owners’ reaction and challenges: Many owners are already expressing dissatisfaction and consider the new estimates excessive, which leads to massive appeals to the tax courts to challenge them.
• Potential impact on the rental market: An increase in property taxes may encourage landlords to shift some of the increased costs to tenants, leading to higher rents, especially in large cities.

How to find out and challenge the cadastral value: A step-by-step guide

It is extremely important for property owners in Turkey to be aware of their cadastral value and, if necessary, to know the procedure for challenging it.

Where to find out the cadastral value

New lists of cadastral values have been posted in the offices of the mukhtars (heads of districts) since mid-2025. This is the main official source of information. In some cases, the information may be available through municipal online services, but it is recommended to contact the mukhtariat or Tapu directly for confirmation.

Procedure for challenging the cadastral value

If you believe that the established cadastral value of your property significantly exceeds its market counterparts in your area, you have the right to file an objection. Important: The deadline for submitting objections is limited – until the evening of Monday, September 8, 2025.

Step-by-step guide:

1. Collecting information: Make sure that you have reviewed the new cadastral value of your property at the mukhtar’s office.
2. Market Analog Analysis: Collect data on the market value of similar properties in your area. These can be sales announcements, appraiser reports, or opinions from realtors.
3. Preparation of documents: Prepare all the necessary documents confirming your ownership, as well as evidence that the established cadastral value is excessive (for example, an independent assessment).
4. Appeal to the Tax Court (Vergi Mahkemesi): Objections are not filed with the municipality, but directly with the Tax Court. This can be a complex procedure that requires legal knowledge.
5. Legal assistance: It is strongly recommended to seek help from a qualified lawyer specializing in real estate in Turkey. It will help you to properly file an objection, collect an evidence base and represent your interests in court. There are already precedents and mass lawsuits, which suggests that it is possible to achieve the cancellation or reduction of the assessment for the entire street/area.

Forecasts and recommendations for Russian investors and owners

Changes in the cadastral value in Turkey create a new reality for all participants in the real estate market. Understanding these trends and adapting to them in a timely manner is critically important.

Short- and long-term market prospects

• In the short term: The market may face an adjustment period in the near future. There may be some stagnation in sales, especially investment sales, as buyers and sellers will assess new financial costs. However, this can also lead to more realistic prices on the market, as undervaluation will become less profitable.
• Long-term: In the long term, the Turkish real estate market is likely to become more transparent and predictable. Bringing the cadastral value closer to the market value can increase investor confidence, as official documents will more accurately reflect the real value of assets. It can also boost infrastructure development by increasing tax revenues.

What to do now: Recommendations for Russian owners and investors

1. Check the cadastral value: Without delay, find out the new cadastral value of your property in the local mukhtariate.
2. Estimate your tax burden: Calculate how much your annual property tax and other potential fees will increase. Include these expenses in your budget.
3. Consider challenging it: If you believe that the new assessment is unfair, consider filing an objection with the Tax Court before September 8, 2025. Don’t miss this deadline!
4. Consultations with specialists: Contact lawyers, tax consultants or real estate experts in Turkey. They will be able to provide individual recommendations and help in case of a dispute.
5. Review investment strategies: Investors should review their strategies, given the increased costs. It may be necessary to adjust the expected profitability or select other types of facilities/regions.

Frequently Asked Questions (FAQ)

Summing up the results

The revision of the cadastral value of real estate in Turkey in 2025 is one of the most significant events for the market in recent years. It marks the transition to a more transparent and realistic valuation system, which, while it will increase the financial burden on owners in the short term, promises long-term benefits for market stability and fairness. It is extremely important for Russian investors and owners to pay close attention to these changes, check the cadastral value of their properties, assess the potential increase in costs and, if necessary, exercise the right to challenge within the established time frame. Timely information and adaptation to the new rules will be the key to successful property ownership in Turkey in the coming years.

Sources:

1. The cadastral value in Turkey will increase 15 times from 2026 | Reptur
2. Property taxes in Turkey increased 10 times: how to challenge – RestProperty
3. Buy Property in Türkiye for Residency in 2025 – New Rules