Investigation of Some Real Estate Valuation Problems in Turkey

Year 2023, Volume: 9 Issue: 4, 854 - 870, 22.12.2023

Varol Koç

https://doi.org/10.28979/jarnas.1245637

Abstract

The urban population increases after the industrial revolution also increased the commercialization of real estate. In the future, this situation would require being able to determine the real estate values more than before. Today, real estate values are of much greater importance in terms of socioeconomic relations and activities in the world. Establishing a standardized real estate valuation system is among the important duties of public administrations. However, in general, the countries that could not catch up with the industrial revolution in the world and whose industrialization started very late and were not mature enough, could not reach the desired level in terms of real estate valuation. In other words, lagging in industrialization naturally leads to being late and behind in the real estate valuation branch, which is an output of industrialization. The problem created by this situation cannot remain local in today's socioeconomically globalized world. Therefore, the problem affects the whole world and developed countries. In this context, as an example, this study presents the contradictions related to the real estate legislation in Turkey and the application errors in valuation and offers suggestions for the elimination of all these.

Keywords

real estate, valuation, development, cost analysis, regulations, public administration

References

• Açlar A, Çağdaş V. (2002) Real estate valuation for engineers, architects and experts, TMMOB Chamber of Surveying and Cadastre Engineers, 5-9.
• Aisbitt S. (2002) Harmonization of financial reporting before the european Company law Directives : the case of the Nordic Companies act , Accounting and business Research, 32:2 , 105-117. https://doi.org/10.1080/00014788.2002.9728960
• Akça, Y. (1998) Budget and Government Accounting, Istanbul University, Faculty of Economics Publication, No: 4047/555, Istanbul, p. 51.
• Akkaynak , B. (2014) Real Estate Valuation and an Application on Real Estate Valuation, Consultant: Yılgör , AG ., Mersin University . Social Science. Inst . Business USA, Mersin, 202 p.
• Aksoy S. (1994) Public Finance, Filiz Bookstore , Istanbul, 1994, p. 46.
• Alpturk , E. (2007). Real estate valuation guide, Publications of Finance and Law, Ankara, 411 p.
• Altınok T. (1973) Stock Accounting in Our Government Accounting System, Journal of Finance, Issue: 4, July-August, p. 6.
• Anayasa (1982). Constitution of the Republic of Turkey, Law Number: 2709, Date of Adoption: 18/10/1982 , Official Gazette Published; Date: 9/11/1982 Number: 17863 (Repeated), Code of Published; Edit: 5 Volumes: 22 Pages: 3.
• André , P., Cazavan - Jeny , A., Dick , W., Richard, C., & Walton, P. (2009). Fair value accounting and the banking crisis of 2008 – hitting the messenger. Accounting in Europe , 6 (1), 3 – 24. https://doi.org/10.1080/17449480902896346
• Appraisal Institute ( 2008) Appraisal of Real Estate , 13 edn , Appraisal Institute , Chicago, IL Arslan , A. (2004) Public Financial Management and Control Law No. 5018 and Regulations Made in the Expenditure System”, Financial Guide Magazine, Issue: 25, July-September, 88 p.
• Arslan , KO (2017). Determination of the Quality of Public Goods and Principles of Utilizing Public Goods, TBB Journal, 131, 57-86.
• Aydın, I. (2019). Academic Ethics, Ankara: Pegem Academy
• Bağbaşlıoğlu , A. (2004) Boards to be Established and Regulations to be Made with the Public Financial Management and Control Law No. 5018, Financial Guide Journal, Issue: 24 (Free Supplement), April- June, p. 71.
• Bakır, H. (2009). Real estate valuation and finance mathematics , Detail Publishing, Ankara, 160s. Bartke , S. , & Schwarze , R. (2021). The economic role and emergence of professional valuers in real estate markets . Land , 10 (7), 683. https://doi.org/10.3390/land10070683
• Bengtsson , E. (2011). Repoliticizing accounting standard-setting—IASB, EU, and the global financial crisis. Critical Perspectives in Accounting , 22 (6), 567 – 580.
• Bitner , R. (2008). Confessions of a Subprime Lender : An Insider 's Story of Greed, Fraud, and Ignorance ; John Wiley & Sons : Hoboken , NJ, USA.
• Bourassa , SC, Cantoni , E. and Hoesli , M. (2007). Spatial dependency, housing submarkets and housing price prediction. Journal of Real Estate Finance and Economics , 35 (2): 143–160. https://doi.org/10.1007/s11146-007-9036-8
• Bulutoğlu , K. , Kurtuluş, E. (1988) Budget and Public Expenditures, Filiz Bookstore , Istanbul, p. 127. Cete , M. , Yomralioglu , T. (2013) Re- engineering of Turkish land administration , Survey Review , vol . 45, iss . 330, p. 197-205.
• Cadastre (1987). Cadastre Law No. 3402, Official Gazette Published; Date: 9/7/1987 Issue: 19512, Published Code; Edit: 5 Volume: 26 Page: 229.
• Constitutional Court of the Republic of Turkey, (1966). Decisions of the Constitutional Court, Article No: 1966/3 Decision No: 1966/23 Date of Decision: 28/4/1966 , Official Gazette Date: 11/07/1966 Number: 12345
• D'Amato M. (2015) Income approach and property market cycle, International Journal of Strategic property Management 19:3 , p. 207-219. https://doi.org/10.3846/1648715X.2015.1048762
• D'Amato , M., Kauko , T. (2017) Valuation methods and the non-agency mortgage crisis. In Advances of Automated Valuation Modeling ; Springer : Cham , Switzerland, s. 23–32.
• d'Arcy, É., & Keogh, G. (1997). Towards a property market paradigm of urban change. Environment and Planning A, 29(4), 685-706. https://doi.org/10.1068/a290685
• des Rosiers , F., Theriaults , M., and Villneuve , P. (2000) Decomposition of access and neighborhood factors in hedonic price modeling . Journal of Real Estate Investment and Finance , 18 (3): 291 – 315.
• Donaldson, S. E., & Van der Merwe, I. J. (1999). Urban transformation and social change in Pietersburg during transition. Society in transition, 30(1), 69-83. https://doi.org/10.1080/10289852.1999.10520169
• Downie , ML; Robson , G. (2008) Automatic valuation models: An international perspective. In the Proceedings of the RICS Automated Valuation Models Conference: AVMs today and Tomorrow , London, UK, 4 November. http://nrl.northumbria.ac.uk/id/eprint/1683
• EC (European Council) (2006) Directive 2006/48/EC of the European Parliament and of the Council of 14 June 2006 relating to the taking up and pursuit of the business of credit institutions Official Journal of the european Union , L177: 1 – 200 .
• Eriksson , C. , Adair , A., McGreal , S., Webb , J. (2005) Harmonization of Investment Valuation Standards in Europe , Journal of Real Estate Literature , vol . 13, is. 1, p. 45-64. https://doi.org/10.1080/10835547.2005.12090149 Erdem, N. (2019) Investigation of the Effectiveness of Turkey's Real Estate Valuation System , Journal of Geomatik , 4(1) p. 1-13
• Erdem, N (2020) The need for re - engineering in the real estate appraisal system in Turkey , Survey Review , vol . 52, it. 370, p. 84-86.
• Erkek B. , Erkek, E., Yalpir , S. (2021) The Most Effective and Most Efficient Use of Land Analysis: The Case of TKGM Oran Campus, AKU J. Sci . Eng ., 21, 015503, p. 147- 166.
• EU, (2004) European Union Land Policy Guidelines for Support to Land Policy design and Land Policy Reform Processes in Developing Countries , EU Tasks Force on Land Tenure .
• Farjaudon , AL, and Morales , J. (2013). Seeking consensus: The role of accounting in defining and reproducing prevailing interests . Critical Perspectives in Accounting , 24 (2), 154–171.
• Gilbertson , B ., Preston, D. (2005) A vision for valuation. J Prop . val . Investment. Finance. 23 , 123–140. https://doi.org/10.1108/14635780510699998 Gnat , S. (2021). Property mass valuation on small markets, Land , 10 (4), 388. https://doi.org/10.3390/land10040388
• Gözler, K. (2011). On Misuse of Some Administrative and Legal Terms in Laws No. 5018 and 6085, AUHFD, 60(4), 837-919. Güneş, T. and Yıldız, Ü. , (2015) . Collective valuation techniques used in the land registry and cadastre modernization project of the Republic of Turkey. In: FIG workweek 2015 – from the wisdom of the ages to the challenges of the modern world . Sofia, Bulgaria. May 17-21.
• Güneş, T. and Yıldız, U., 2016 . Property valuation and taxation to improve local governance in Turkey . Land use log , 15 (2), 141 – 160.
• Güngör, A. , A. (1981) Turkish Government Accounting System as a Management Tool, Ministry of Finance Inspection Board Publication, No:231, Ankara, p. 8. IVSC (2020) International Valuation Standards Council annual Report 2019–20, London , United Kingdom . Jindrichovska I. & Kubickova D. (2017) The Role and current Status of IFRS in the Completion of National accounting Rules – Evidence from the czech Republic , Accounting in Europe , 14:1 -2, 56-66. Karaca H. (2008) Real Estate Valuation Methods and Comparison, Supervisor: Coşkun Z ., MS thesis, ITU Science and Technology. Inst . geode And Fotog . USA, Istanbul, 69 p.
• Kaplan, G. (2004). Transfer of Immovable Property and Judicial Control between Public Institutions and Legal Persons, Journal of Maltepe University Faculty of Law, Issue: 2004/1–2, 167–188. Kerimoğlu , B. (2002) Reform Studies in Government Accounting, Financial Guide Journal, Issue: 17, July-September, p. 97.
• Kızılkaya , E. (2002) Tangible Fixed Asset Accounts in Accrual Based Government Accounting, Financial Guide Magazine, Issue: 17, July-September, p. 105. Koç, V. (2021a) Taşınmaz Geliştirme Kavramının İrdelenmesi, V. Internartional Istanbul Scientific Research Congress, August 14- 15, Istanbul, pp. 294- 301.
• Koç, V. (2021b) Ayvalık İlçesi Özelinde Konut Değerleme Önerileri, Internartional Halich Congress on Multidisciplinary Scientific Research, August 15- 16, Istanbul, pp. 277- 285.
• Koç, V. (2021c) Taşınmaz Geliştirmede Risk Analizinin Yönetim Sistemleri Anlayışıyla İncelenmesi, Mühendislik Alanında Uluslar Arası Araştırmalar’da kitap bölümü, Ed. Aydemir, E., Eğitim Yayınevi, İstanbul, pp. 97- 121.
• Koç, V. ve Çiçek, E.N. (2021) Samsun İlinde Kentsel Dönüşüm ve Konut Değerleme ile İlgili bir Örnek, Internartional Halich Congress on Multidisciplinary Scientific Research, August 15- 16, Istanbul, pp. 286- 295. Kothari , SP, Ramanna , K., & Skinner , DJ (2011). What Should GAAP Look Like? A Survey and Economic Analysis, Working Paper No. 09-22, Harvard Business School, Boston, MA, 1-111. http://hdl.handle.net/1721.1/66935
• Lai, L. W., & Lorne, F. T. (2019). Sustainable urban renewal and built heritage conservation in a global real estate revolution. Sustainability, 11(3), 850. https://doi.org/10.3390/su11030850