2027 Property Tax Construction Cost Rates Announced!

The square-meter normal construction cost values that will serve as the basis for the 2027 property tax calculations, closely affecting millions of property owners and investors across Turkey, have been published in the Official Gazette and entered into force. Under the General Communiqué on Property Tax Law jointly prepared by the Ministry of Treasury and Finance and the Ministry of Environment, Urbanization and Climate Change, the new cost values determined according to building type, construction quality, and class have been clarified. According to the regulation, square-meter costs for residential buildings will range between 604.10 TL and 27,712.26 TL.

Building construction cost, one of the primary parameters in calculating the tax value subject to property tax, directly impacts the minimum fair market value of the real estate. The new communiqué, reflecting inflationary pressures and rising construction input costs, will serve as a binding element in property tax assessment and accrual operations carried out by municipalities throughout 2027.

2027 Square-Meter Normal Construction Cost Values for Residential Properties

In accordance with the communiqué published in the Official Gazette, the square-meter normal construction cost values to be applied to residential buildings have been categorized according to the architectural and structural characteristics of the property as follows:

• Luxury Construction Class: 12,642.67 TL – 27,712.26 TL per square meter

• First-Class Construction: 5,335.40 TL – 18,532.07 TL per square meter

• Second-Class Construction: 3,758.56 TL – 12,555.79 TL per square meter

• Third-Class Construction: 1,269.61 TL – 8,551.49 TL per square meter

• Simple Construction Class: 604.10 TL – 3,856.64 TL per square meter

These figures will be multiplied by the gross usable area of the residence to determine the minimum cost value of the building. By adding the land share value and deducting the building depreciation allowance from the calculated building value, the final property tax base will be determined.

Commercial Structures, Hotels, and Industrial Facilities Updated as Well

The published General Communiqué is not limited to residential properties; it also comprehensively reshapes the square-meter costs for all building types in the commercial and industrial real estate segments. In this context, official declarations have been made for:

• Factory and Workshop Buildings: Updated square-meter values based on the structural system and cladding quality of production facilities,

• Commercial Properties and Offices: Construction cost coefficients for business centers, plazas, and retail areas,

• Hotel and Accommodation Facilities: Tax-based cost coefficients for qualified properties such as tourism facilities, social structures, hospitals, schools, and bank buildings,

• Warehouse and Logistics Areas: Square-meter values for high-ceiling and specialized infrastructure storage facilities.

In line with the new cost values, the property tax amounts payable by commercial real estate owners in 2027 will also undergo a gradual update depending on the building classification.