Turkey’s Real Estate Market: Changes on the Horizon – BNN Breaking

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End of Rental Price Cap and Introduction of Tiered Taxation in Turkey’s Real Estate Market

In a move that signals a significant shift in Turkey’s housing market, the government’s regulation that caps the annual increase in housing rental prices to a maximum of 25%, is slated to phase out on July 1, 2024. This regulation was seen as a safeguard for tenants against exorbitant rent hikes, but the government has made it clear that this measure will not be extended in the future.

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Transition towards a Tiered Taxation System

The expiration of the regulation is not the only change on the horizon for Turkey’s real estate market. The government is also contemplating the implementation of a tiered taxation system for real estate. The proposed system is expected to apply varying tax rates depending on whether a property is an individual’s first or second home. Additionally, the tax rate would also differ according to the value of the property.

A Nuanced Approach to Real Estate Taxation

The primary goal of these changes is to introduce a more nuanced approach to real estate taxation. This approach is expected to reflect the diversity of property ownership and values. The tiered taxation system would ensure that those with multiple properties or high-value properties contribute more to the country’s tax revenue.

Implications for Turkey’s Housing Market

These changes are set to have far-reaching implications for Turkey’s housing market. The expiration of the rental price cap could lead to increased rental costs for tenants. Meanwhile, the tiered taxation system could discourage individuals from purchasing multiple properties, potentially slowing down the real estate market. However, it could also potentially generate significant revenue for the government, which could be invested back into the housing sector to support affordable housing initiatives.

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