Turkey to Launch Digital Real Estate Valuation System

Turkish authorities have announced the launch of a new digital platform to determine the market value of real estate. The system aims to eliminate price manipulation and reduce government revenue losses, reports Hurriyet Daily News.

Pilot Program to Begin in 2026

The pilot project will launch in Istanbul in the first quarter of 2026 and expand to cover all 81 provinces by mid-2027. The core objective is to create a unified "objective value" database for property transactions. Under the new system, sales contracts will no longer reflect seller-declared prices, but rather valuations provided by the Value Information Center (VIC), which will be based on real market data.

The reform is intended to address widespread underreporting of property values to minimize tax liabilities—a practice that costs the state billions of lira annually. Authorities also expect it to curb inflated and speculative pricing in both sales and rental markets.

Digital Twins and AI-Powered Valuation

The VIC system will utilize digital twins—3D models of cities updated in real-time. These models will track:

- market fluctuations,
- urban density,
- risk zones,
- and infrastructure changes.

Artificial intelligence will assess property values based on multiple parameters, including:
- location,
- infrastructure quality,
- transaction history,
- building materials,
- and seismic risks.

The VIC platform will provide essential data infrastructure for urban development, taxation, disaster recovery, and infrastructure planning. It will be fully integrated with Turkey's land registry, municipal authorities, and other government databases.

Through this online system, both parties involved in transactions will have access to transparent pricing, while state agencies will benefit from more effective oversight and tax collection.

Fighting Inflation and Market Volatility

The system is being introduced at a time of significant price volatility in Turkey’s real estate market. Inflationary pressures and declining construction activity have triggered sharp price hikes. According to Turkish experts, property prices in major cities have more than doubled over the past three years, and verifying fair market values has become increasingly difficult without digital tools.

Global Property Guide notes that in January 2025, nominal housing prices in Turkey rose by 32% year-on-year. However, when adjusted for inflation, real prices actually declined by 7–9%. This underscores the need for objective, data-driven valuation benchmarks.

Domestic Demand Rises as Foreign Sales Fall

According to the Turkish Statistical Institute, domestic real estate demand remains strong. In the first four months of 2025, 454,145 properties were sold, a 27.9% increase compared to the same period in 2024.

However, sales to foreign buyers declined by 13.5% to 6,018 transactions, reflecting continued caution from international investors. That said, foreign sales rebounded slightly in April 2025, rising 13.2% to 1,440 units. Russian citizens led with 276 purchases, followed by Iranians (128) and Ukrainians (120).

Expected Impact of VIC on Market Stability

The introduction of VIC is expected to:

- stabilize pricing in high-demand areas,
- discourage speculative transactions,
- and create a more predictable environment for investors, developers, and buyers.

Turkish Environment, Urbanization, and Climate Change Minister Murat Kurum emphasized the system’s importance, especially for provinces prone to natural disasters.

Global Examples: Korea and Singapore

Similar digital valuation systems have already proven effective in other countries:

South Korea operates its Real Estate Transaction Price Reporting System, requiring buyers to report actual transaction prices within 30 days. As of 2024, the system was upgraded to include full property details such as floor number, unit block, and buyer type.

Singapore offers even greater transparency via the Urban Redevelopment Authority (URA), providing open data on pricing, rentals, construction permits, and upcoming projects. Its Virtual Singapore initiative also includes 3D city models and real-time data integration for property valuation, urban planning, and climate risk analysis.