Determination of Housing Prices with Mass Appraisal in Turkey

Yılmaz M., Bostancı B.

Ankara V. International Scientific Research Congress, Ankara, Turkey, 10 - 12 October 2021, pp.262-263

  • Publication Type: Conference Paper / Summary Text
  • City: Ankara
  • Country: Turkey
  • Page Numbers: pp.262-263
  • Kayseri University Affiliated: Yes


Local governments need valuation on issues such as the management of immovable assets, zoning practices, value increase in plan changes, expropriation and property tax. Houses within the real estate types mostly constitute the subject of property tax. Property tax is among the income sources of municipalities. Although the number and value of immovables have increased over the years, this increase cannot be transferred to the revenues of local governments. Due to inadequacies in valuation and unfair practices, municipalities cannot collect a large part of their property tax revenues. Local governments' own revenues are insufficient to meet their expenses and their financial dependence on the central government increases. This is not a sustainable financial method. For a sustainable source of income, the increase in real estate values should be transferred to local governments. Instead of an areabased valuation according to streets and streets, valuation should be made according to the criteria that affect the value of the immovables. However, there are many parameters that affect the value of immovables and there are many immovables that need to be evaluated. It is not appropriate in terms of time and cost to determine the values of a large number of real estates in a fair and efficient manner by single valuation. Collective valuation methods should be preferred instead of this method. The process steps for a collective valuation model can be listed as determining the variables, data collection, data analysis, model determination, performance criteria of the model, ratio analysis and publishing the results. The details of the work to be done in order to determine the housing prices are explained with a sample application in the province of Kayseri. The data set was created from the immovables that were sold between the years 2019-2021. It has been ensured that the independent variable information in the data set is accurate and reliable. Data analysis operations (normality, homogeneity of variance, multicollinearity, outlier, etc.) with ensured the compliance of the data with parametric tests. Multiple regression analysis and artificial neural networks were used as aggregate valuation method in the application. This study has shown that housing prices can be determined by the collective valuation method in accordance with international standards. The other result of the study, it is thought that it will contribute to the establishment of a reliable collective valuation model and to increase the revenues of local governments.