The building construction cost values used to calculate property tax for 2027 have been officially announced. Published in the Official Gazette on 6 August 2026 under General Communiqué No. 90 of the Property Tax Law, the new regulation sets the standard per-square-metre construction cost values to be used in determining the tax value of buildings for the 2027 tax year.

But what do these figures actually mean? Do they directly determine the property tax payable in 2027? Will the same per-square-metre value apply to every residential property? Why do the type of structure, construction class and intended use of a building affect its tax value? And, perhaps most importantly, do these figures reflect the actual market value of a property?

These questions matter not only to property tax payers, but also to property owners, homebuyers and real estate investors. The standard per-square-metre construction cost is not, on its own, the amount of property tax payable. Rather, it constitutes one of the key components used to determine a building's tax value.

In this article, we examine the 2027 building construction cost values used for property tax purposes, the criteria that determine these values, and what General Communiqué No. 90 means for property owners, within the framework of the applicable legislation.

The Legal Framework Behind the Regulation

The system used to determine the tax value of a building is not based on a single regulation. The principal legal framework consists of the Property Tax Law No. 1319, Tax Procedure Law No. 213, and the secondary legislation governing property taxation.

Under Article 29 of the Property Tax Law, the tax value of buildings is calculated by taking into account the standard per-square-metre construction costs determined under the applicable legislation, together with the value of the land or the relevant land share.

Article 49 of the Tax Procedure Law further provides for these construction cost values to be determined annually and published in the Official Gazette.

Accordingly, General Communiqué No. 90 does not introduce a new type of tax or establish a new property tax rate. Instead, it updates one of the calculation parameters already embedded in the existing property taxation system.

How Is the Tax Value of a Building Determined?

The tax value of a building is not determined solely by its floor area.

The calculation is based primarily on two components:

• The standard per-square-metre construction cost applicable to the characteristics of the building

• The value of the land on which the building stands or the relevant land share

The construction cost per square metre therefore represents only one component of the final tax value.

For example, two residential properties with the same size and similar structural characteristics may nevertheless have different tax values if they are located in areas with different underlying land values. This reflects the fact that the system takes into account not only the building itself, but also the land associated with it.

What Determines the Construction Cost per Square Metre?

The schedule published for 2027 does not assign a single construction cost to all buildings. Instead, the applicable figures vary according to the characteristics of each structure.

Type of Structure

The first distinction concerns the structural type of the building.

The schedule provides separate values for different structural categories, including:

• Steel-frame structures

• Reinforced-concrete structures

• Masonry structures

• Semi-masonry structures

• Timber structures

• Stone buildings

As a result, two buildings with identical floor areas may be subject to different standard construction cost values simply because their structural systems differ.

Construction Class

The second determining factor is the construction class.

Different values are established for:

• Luxury construction

• First-class construction

• Second-class construction

• Third-class construction

• Simple construction

For each category, the schedule also provides minimum, maximum and average values.

Intended Use

The third factor is the building's intended use.

The schedule distinguishes between a wide range of property types, including residential buildings, factories and manufacturing facilities, hotels, cinemas and theatres, banks and insurance buildings, administrative buildings, garages, dormitories, schools, swimming pools, Turkish baths, commercial premises and other buildings with special characteristics.

In other words, two buildings of the same size may be assigned different construction cost values solely because their intended use or structural characteristics differ.

What Are the 2027 Construction Cost Values?

The figures set out in the new schedule vary considerably depending on the type and construction class of the building.

For residential buildings, the standard per-square-metre construction cost values range from TRY 604.10 to TRY 27,712.26, depending on the applicable category.

This wide range does not simply reflect differences in size. It results from differences in structural systems, construction classes and other technical characteristics.

Significant variations also apply to non-residential buildings. For example, the average standard construction cost for luxury steel-frame cinema and theatre buildings has been set at TRY 27,177.75 per square metre.

The complete set of values can be reviewed in the schedule attached to General Communiqué No. 90, titled “Schedule Showing the Standard Per-Square-Metre Construction Cost Values of Buildings for 2027.”

Do These Figures Represent the Market Value of a Property?

No.

This distinction is particularly important.

The standard per-square-metre construction cost values established by the Communiqué do not represent a property's:

• Sale price

• Market value

• Appraised or valuation value

• Actual construction cost

Instead, they are standardised administrative cost values used in determining the tax value of a building for property tax purposes.

For this reason, it would be misleading to directly compare a figure in the official schedule with the current market price per square metre of a residential property.

These values should also not be confused with the approximate unit construction costs used in calculating architectural and engineering service fees and construction-related costs. Although the terminology and figures may appear similar, the two systems serve different purposes and are established under different regulatory frameworks.

Does the Communiqué Directly Determine the Property Tax Payable?

No.

General Communiqué No. 90 does not change property tax rates or announce the exact amount of tax that an individual taxpayer will have to pay.

The standard construction cost per square metre is one of the components used to determine the tax value of a building. The final value is established by considering the characteristics of the building, the applicable construction cost, the value of the land or land share, and the other calculation principles set out in the legislation.

For this reason, the unit cost stated in the Communiqué should not be interpreted as the amount of property tax payable.

What Is the Difference Between Communiqué No. 89 and Communiqué No. 90?

The distinction between General Communiqué No. 89 and General Communiqué No. 90 is important when assessing the property tax framework for 2027.

General Communiqué No. 89 establishes the framework concerning the determination of property tax bases and values for the 2027–2029 period.

General Communiqué No. 90, by contrast, determines the standard per-square-metre construction cost values to be used in calculating building tax values for 2027.

Accordingly, the final tax liability cannot be assessed solely on the basis of Communiqué No. 90. The applicable calculation results from the interaction of several provisions within the property tax framework.

When Will the New Values Apply?

The values established under General Communiqué No. 90 will be used in the calculation of building tax values for 2027.

Their practical effect will therefore be reflected in property tax calculations for the 2027 tax year.

It is important to reiterate, however, that the published figures do not themselves constitute the tax payable. They are one of the parameters used in determining the underlying tax value.

Frequently Asked Questions About 2027 Property Tax

What is the standard per-square-metre construction cost?

It is the standardised cost value used when determining the tax value of a building for property tax purposes. The applicable figure varies according to the building's structural type, construction class and intended use.

Will the same per-square-metre value apply to every residential property in 2027?

No. The applicable value depends on the building's structural type and construction class, as well as its intended use.

Does the construction cost per square metre represent the property's sale value?

No. It does not represent the property's market value or sale price.

Is the value of the land included in the calculation?

Yes. The value of the land on which the building stands, or the relevant land share, is also taken into account when determining the building's tax value.

Did Communiqué No. 90 change the property tax rate?

No. The Communiqué determines the standard per-square-metre construction cost values to be used for 2027; it does not change property tax rates.

Where can the 2027 construction cost values be found?

The complete schedule of values for different building types and construction classes is included in the annex to General Communiqué No. 90, titled “Schedule Showing the Standard Per-Square-Metre Construction Cost Values of Buildings for 2027.”

In Real Estate, Value Goes Beyond Price

In real estate, the value of an asset cannot always be understood through its purchase or sale price alone.

Taxation, regulatory changes, land value and the physical characteristics of a property all contribute to its broader financial framework. For investors and property owners, understanding these variables is particularly important when assessing the long-term cost and value of an asset.

The new standard construction cost values for 2027 should therefore be read within this broader context. They do not determine the market value of a property; rather, they form one component of the regulatory framework used to establish its tax value.

At Space Istanbul, we closely monitor regulatory developments, valuation dynamics and market movements across Türkiye's real estate sector, helping property owners and investors evaluate their decisions from a broader and more informed perspective.

Because in real estate, making the right decision is not simply about finding the right property. It is about understanding every variable that shapes its value.

This article has been prepared for informational purposes only. As tax obligations may vary depending on the characteristics of the property and the taxpayer's individual circumstances, professional advice should be obtained from the relevant municipality or a qualified tax adviser for specific tax assessments.

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