Revolutionary Ruling by Constitutional Court: Market Value Rule in Pre-emption Rights Annulled

A landmark legal decision has been reached that directly concerns millions of citizens and investors in the Turkish real estate market. On November 6, 2026, the Constitutional Court (AYM) invalidated the authority of judges to determine the 'market value' (rayiç bedel) during the exercise of pre-emption rights (shufa) in shared properties such as houses, lands, and fields. Under the previous regulation, if a shareholder sold their share to a third party, other shareholders exercising their priority right to purchase were subject to a price determined by a judge based on current market values. The High Court ruled that this rule infringed upon the essence of property rights and violated the principle of proportionality, leading to a significant reshuffling of the cards in the real estate sector.

In its reasoning, the Court emphasized that the discrepancy between the original sale price of the property and the market value at the time of the lawsuit could lead to unfair outcomes and cause economic losses for property owners. Especially in inflationary environments, the value increases occurring between the sale date and the conclusion of the lawsuit were found to create an unbalanced burden on the parties. To prevent a legal vacuum, the AYM decided that the annulment would take effect 9 months after its publication in the Official Gazette. During this period, the Grand National Assembly of Turkey (TBMM) is expected to enact new legislation that protects property rights while remaining compatible with market realities.

Legal experts and real estate professionals describe this decision as a 'precedent' that will alter the course of thousands of ongoing pre-emption lawsuits. While the ruling aims to eliminate uncertainties faced by shared title deed owners during sales processes, it provides a constitutional guarantee for the protection of property rights. This development, which hit the headlines on November 6, 2026, concerns not only individual property owners but also companies making large-scale land investments. The 9-month transition period is seen as a critical window for legislative adjustment.

Background of the Development

The right of pre-emption is a long-standing legal institution in the Turkish Civil Code, designed to preserve the integrity of ownership among shareholders in joint properties. If a shareholder sells their portion to an outsider, other shareholders have the right to purchase that portion under the same conditions. However, extreme fluctuations in real estate prices in recent years caused a widening gap between the sale price and the market value determined during the court process. Plaintiff shareholders often sought to acquire the share at the lower price recorded years ago, while defendant buyers demanded the current market value. This situation led to a serious bottleneck in the judicial system and sparked debates over the violation of property rights.

The annulled regulation aimed to resolve this dispute by granting the judge the authority to determine a fair market value. However, in practice, uncertainties regarding the criteria the judge would use to determine this value brought about criticisms regarding the restriction of property rights. In the appeal brought to the Constitutional Court, it was argued that being forced to transfer property at a value significantly different from its actual worth contradicted constitutional guarantees. The Court reminded that 'predictability' and 'certainty' are essential for the limitation of property rights, concluding that the existing article failed to meet these standards.

Historically, pre-emption lawsuits have constituted one of the largest categories of real estate disputes in Turkey. Regulations originally intended to prevent the fragmentation of agricultural land became complex over time with urbanization and housing projects. This latest decision by the AYM is recorded as a turning point aimed at re-establishing the balance between the protection of property rights and the interests of shareholders. The 9-month grace period provides the legislature with an opportunity to develop a new formula that maintains this delicate balance.

Expert and Industry Insights

Real estate law experts and industry representatives characterize the AYM's annulment as a giant step toward strengthening property rights. According to experts, the removal of the market value rule could curb speculative lawsuits in the market. Key evaluations from industry stakeholders include:

• Legal Certainty: Lawyers emphasize the need for more concrete and objective criteria for determining the sale price following the ruling. Alternatives such as updating the real value at the time of sale according to inflation rates are being discussed.
• Investor Confidence: Real estate investors previously hesitated to invest in shared properties due to 'pre-emption risks.' The decision is expected to increase market confidence by making property rights more secure.
• Litigation Processes: While the possibility of staying current cases or proceeding according to the new law after the 9-month period may increase the judicial workload in the short term, it is expected to yield fairer results in the long run.

Real estate consultants state that sales traffic, especially in shared plots and fields, may change following this decision. Disputes over 'price' in lawsuits between shareholders are expected to settle on more transparent ground. Industry representatives warn that parties should act more cautiously in shared title deed transactions during the 9-month period until the new legal regulation is implemented.

Economic and Social Implications

This decision by the AYM should be viewed not just as a change in a legal text, but also as an economic correction mechanism. In a period where housing and land prices in Turkey have risen rapidly, calculations based on arbitrary market values meant significant wealth transfers or losses for property owners. With the annulment of the rule, the goal is to protect the actual market value of the property. This will create a more rational basis for bringing properties that have become multi-partnered through inheritance back into the economy.

From a social perspective, a reduction is anticipated in hostilities between shareholders caused by 'buying out shares cheaply' or 'demanding exorbitant prices.' Such strong constitutional defense of property rights is an element that reinforces citizens' trust in the state's legal system. Landowners will face a more predictable cost structure when selling their shares or purchasing others' shares. This is of critical importance for rural development and the management of agricultural lands.

In terms of economic markets, any legal clarity that increases the liquidity of real estate allows capital to flow more easily into this area. The reduction of uncertainties in shared deeds may also indirectly affect the appetite of banks to accept such properties as collateral for loans. The AYM's decision has certified that property must be protected not only on paper but also as an economic value.

Future Projections and Outlook

The upcoming 9-month period will be an intensive preparation phase for Turkish real estate law. The Justice Commission of the TBMM is expected to draft a new article taking into account the AYM's reasons for annulment. In the new regulation, it is likely that a more technical calculation method will be introduced for determining the pre-emption price, blending the sale price, official inflation rates (CPI/PPI), changes in the property's characteristics, and comparable sales in the region.

Market actors predict that with the new rules expected to take effect by mid-2027, pre-emption lawsuits will be concluded faster, and claims of property right violations will decrease. Furthermore, the integration of digital title deeds and appraisal systems into this process could completely relegate market value disputes to history. In conclusion, this move by the Constitutional Court is the most concrete indicator of Turkey's will to bring property law standards to a modern and fair level.