An Analysis of Problems Encountered in Determination of Rental Value of Waqf Properties

According to the records of General Directorate of Land Registry and Cadastre, there are about 56 million real estate in Turkey. The real estate assets consist of lands, development parcels (land lots), and independent units. The share of waqf real estate within the total asset stock is estimated to be as low as 0,11% and the total number of waqf property in parcels is around 67,000. In this study, leasing transactions of rentable real estates owned by the General Directorate of Foundations and fused foundations (mazbut waqfs) were analyzed and evaluated. In addition, problems encountered in leasing transactions and determination of rental values of waqf real estates were examined and solution proposals were listed depending on the results of the research. The research results show that the comparative rent analysis method was often used to determine rent prices for foundation properties and that the rental price was updated based on the Domestic Producer Price Index each year. The research also showed that repricing the rent was determined every 5 years in order to keep up with fair market value. An analysis of the records about some of the selected foundation properties showed that there was no significant difference in rental costs compared to that of similar private ones. In order to increase rental income, which constitutes 55-60% of budget revenues of General Directorate of Foundations and mazbut waqfs, there is a need to carry out studies for developing a more efficient and effective property management system; to update rental prices in a timely manner; to ensure that comparative rent analyses are made based on international valuation standards and scientific principles; to ensure unification of practices related to rental price fixing and leasing transactions at the regional directorate level. According to the results of the field study (survey), it is understood that the staff in charge of leasing operations lacks knowledge and experience, to a significant extent, in the field of valuation. In order to solve this problem, it is absolutely necessary for the personnel, who are responsible for carrying out all the property management works and transactions including leasing and establishment of limited real rights at the Regional and General Directorates, to be selected from experts who have been trained in this area. In this context, real estate transactions should be carried out by personnel who are experts in the field of real estate development and management. Such personnel with training in this field should be employed. While the