Property Auctions in Turkey: How Bank and Court Sales Really Work
In many countries, investors are already familiar with official government platforms for debt enforcement, bankruptcy auctions, and the sale of seized property through state-run portals.
In Turkey, the logic is similar, but the system operates within a different legal framework. Here you will find:
- court-ordered property auctions via the UYAP system and the e-satış portal
- bank auctions held by Ziraat, VakıfBank, Halkbank, and other banks
- sales of distressed assets by NPL funds
For an investor, this is an opportunity to purchase real estate below market value. However, each model has its own pros, cons, and hidden risks — especially if you are a foreign buyer aiming not only to generate profit but also to obtain a residence permit through property purchase.
Formats of “Auctioned Apartments” in Turkey
1. Court Auctions of Seized Property via UYAP e-satış
This is the Turkish equivalent of state-run seized property auction platforms used in other legal systems.
Sales are conducted through:
- official portals of enforcement authorities and court listings
- the electronic platform esatis.uyap.gov.tr
The classic scenario: a debtor fails to meet obligations, their real estate is seized and listed for property auction.
Process overview:
- The court orders the sale.
- An announcement is published with the appraised value, deposit amount, VAT, and auction dates.
- The auction opens on the e-satış platform.
- Participants pay a 10% deposit and submit their bids online.
- The first auction is held, followed by a second round if necessary.
The starting price is usually 50% of the appraised value. In subsequent auction rounds, the threshold remains the same, but if demand is weak, the final sale price may be lower.
2. Bank-Owned Auction Apartments from Ziraat Bank and Other Banks
The second major segment of the market consists of bank-owned auction properties. These are not seized assets of debtors, but properties that have already transferred into bank ownership after the completion of foreclosure procedures.
Example: how Ziraat Bankası sells a property:
- publishes a listing
- conducts sales in several stages: sealed bids, open auction, final negotiations
- accepts payment in cash or by installment plan
- transfers the title deed after full payment
This process is managed by the bank’s internal real estate sales committee. In practice, these are bank property auctions, but with clear legal structure: the buyer enters into a direct transaction with the bank as the legal owner.
How It Looks in Practice: Example of a Listing
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In the UYAP database, you can see a typical example of an auctioned apartment:
- 📍 Location: Istanbul Province, Pendik district
- 📍 Land plot: 9017
- 📍 Address: Altından Sokak
- 💰 Appraised value: 41,400,000 TL
- 💰 Deposit: 4,140,000 TL
- 📊 VAT: 20%
- 📅 First auction: January 6–13, 2026
- 📅 Second auction: February 12–19, 2026
The auction is conducted online. If a new bid is placed during the last 10 minutes, the time is extended by three minutes — repeatedly, up to one hour. This is the same “competitive bidding” mechanism commonly used on digital property auction platforms.
At the same time, the listing clearly states:
- according to the land registry, the asset is recorded as ARSA (land plot)
- in reality, there is a 6-storey building with 11 apartments on the site
- no interior inspection has been carried out
In other words, you are bidding on land, but acquiring a physical residential building. It may sound attractive, but the legal nuances must be understood extremely well.
Legal Nuances of Such Listings: Why “Land with a Building” Is Not What It Seems
These listings are typical for Turkish property auctions. The photos show an apartment building, the description mentions 11 apartments, yet in the TAPU the asset is registered as ARSA (land plot).
For an unprepared buyer, this may look like a “once-in-a-lifetime opportunity,” but the legal reality is very different.
1. ARSA (land plot) in the registry means that, legally, the building does not exist
The TAPU contains no record of: the building itself, number of floors, individual apartments, or ownership rights to them.
What you see in the photos may:
- lack a valid construction permit;
- have been built with violations;
- have the status of kaçak yapı (unauthorized construction);
- fail to pass any municipal inspection;
- be subject to potential demolition under the Istanbul Urban Transformation (Kentsel Dönüşüm) program.
📌 You are buying land on which a building happens to stand.
Not a building that is “accidentally” labeled as arsa.
2. Apartments do not legally exist
If there is no kat irtifakı (construction servitude / floor ownership allocation), you will not be able to:
- register 11 separate apartments,
- sell them individually,
- obtain a residence permit based on one of them,
- take out a mortgage or use the property as collateral,
- divide the asset into independent units.
To legalize floor ownership, the property must comply with the approved project, have valid permits, an occupancy permit (iskan), architectural plans, and pass fire safety and earthquake compliance checks.
❗ If the building is old or was constructed informally, obtaining an iskan may be fundamentally impossible.
3. Lack of interior access is a key risk
The UYAP file explicitly states: “İçerisine girilememiştir” — “Interior access was not possible.”
This means:
- you do not know the actual condition of the building;
- there may be cracks, mold, or structural issues;
- there is no reliable information about utilities such as gas, water, or electricity;
- there may be occupants or tenants who cannot be removed without a court order.
In enforcement auctions, inspectors are not required to assess technical condition — this risk lies entirely with the buyer.
4. People may be living inside — and may not leave voluntarily
If the debtor, tenants, unlawful occupants (işgalci), or relatives of the debtor are residing inside, you will need to file a separate eviction lawsuit. The process can take months or even years. For foreign buyers, this is particularly complex: a lawyer, power of attorney, and a local address for legal notifications are required.
5. ARSA properties may carry debts that transfer to the buyer
Assets registered as ARSA (land plots) often have outstanding obligations such as water utility debts (İSKİ), electricity bills, municipal fines, property taxes (emlak borcu), or zoning and planning disputes.
In Turkey, some debts are tied to the property itself rather than to the previous owner — and must be settled by the new owner.
6. Risk of “kaçak kat” — illegal floors
If a building includes a basement, several standard floors, and an attic, it is essential to verify whether all of them were approved in the original project.
In many cases, only three floors were authorized, while additional floors were added later and the attic is entirely unauthorized. The municipality may issue penalties → impose usage restrictions → and ultimately order demolition of illegal floors.
7. Below-market pricing is NOT due to attractiveness — it reflects high risk
41.4 million TL is the appraised value, but:
- 📌 the valuation reflects the land, not the legal status of the building;
- 📌 the market price already factors in risks that are not immediately visible.
That is why a discount in icra auctions is not a gift, but compensation for uncertainty. For foreign buyers, this format is extremely risky. A finished apartment on the open market is, in most cases, significantly safer. Auctions are primarily the domain of local investors who understand all the hidden pitfalls.
Ziraat Bank Auctions: How Bank-Owned “Auction Apartments” Work
Ziraat Bank’s documentation provides a very clear “X-ray view” of the entire process.
Stage 1. Letter of Offer
The buyer completes a letter of intent to purchase real estate, confirming that they:
- have seen the property;
- have reviewed its legal and factual characteristics;
- understand the condition of utilities, maintenance fees (aidat), presence of tenants, ownership shares, zoning status, protection zones, and restrictions.
In practice, the bank removes maximum liability upfront. Signing this letter is effectively an acknowledgment that you accept the property “as is.”
The letter allows you to propose either a full-cash price or an installment-based price (with down payment and term). Submitting both options at once renders the offer invalid.
Stage 2. Sale Conditions and Auction Formats
According to the Ziraat Bank Real Estate Sale Conditions:
- if the property is not sold on the scheduled date, it moves into a continuous auction format;
- auctions are held on the 1st and 3rd Thursday of each month;
- the sale currency is Turkish lira only;
- both full payment and installment options are available.
The auction itself unfolds in three steps: sealed-envelope bids, an open auction among envelope bidders, and final negotiations with the highest bidder.
The bank retains full discretion in decision-making. It is not subject to public procurement rules and may sell the property, decline to sell it, or choose any buyer at its discretion.
Stage 3. Deposit and Documentation
Participation requires a security deposit. Accepted forms include Turkish lira, government bonds and notes, bank guarantees, deposits in TRY or foreign currency, and blocked cheques.
The common habit of participating remotely in property auctions without any physical presence does not fully apply here. In most cases, you will need to visit a bank branch at least once to sign the conditions and submit the deposit.
Stage 4. Ziraat Electronic Auctions (e-ihale)
A fully digital format also exists. The process is as follows:
- visit a Ziraat Bank branch;
- pay a 6% deposit of the appraised value;
- sign all pages of the “Real Estate Sale Conditions”;
- receive an SMS access code;
- log in to e-satis.ziraatbank.com.tr and place your bid.
If a new bid appears during the last 30 minutes, the auction is extended by another 30 minutes. The principle is the same as UYAP, but within the bank’s internal system.
Payment and Title Deed (TAPU)
The winning bidder must, within 7 business days: visit the designated branch, pay the full price or down payment, and sign the sale agreement and debt documents.
For installment plans, at least 25% of the price is paid upfront. The remaining balance accrues interest at a rate set by the bank on the contract date.
The title deed is transferred:
- within 15 days for full payment;
- only after the final payment for installment purchases.
Until 100% of the price is paid, the property effectively remains under the bank’s ownership.
Pros and Cons of Bank Auction Apartments (Ziraat and Other Banks)
Pros
- 1. Clean title. The bank has already completed all court procedures. You buy directly from the legal owner.
- 2. Installment option. Some properties can be purchased without a traditional mortgage, directly from the bank.
- 3. No VAT. In most cases, VAT is not added to the price — especially relevant for commercial and high-value properties.
- 4. Transparent procedure. Clear sale conditions, standard forms, and an official e-auction platform.
- 5. Market discount. Prices are often 15–20% below market, sometimes more for niche assets.
Cons
- 1. “As is” condition. The bank explicitly states it is not responsible for hidden defects, does not clear utility or maintenance debts, and does not guarantee vacancy. All physical risks are transferred to the buyer.
- 2. Deposit forfeiture. If you win the auction and withdraw, the deposit is lost.
- 3. No guaranteed sale. Even the highest bid does not obligate the bank to sell. The final decision rests with the bank’s committee.
- 4. Language and bureaucracy. Documentation is in Turkish only, and disputes fall under Istanbul courts. Without a local lawyer, foreign buyers face serious challenges.
UYAP e-satış Court Auctions: Pros and Cons
Pros
- starting price from 50% of the appraised value
- potential for very deep discounts
- title is cleared by a court decision
- transparent portal interface showing bids, steps, and timing
Cons
- requires e-Devlet access, a Turkish ID number, and a registered MERNIS address
- 10% deposit and full payment within a short timeframe
- complex legal language in listings
- often no interior access to the property
- VAT can be high, as in the 20% example
Almost all of these drawbacks are particularly challenging for a foreign buyer acting without local professional support.
Residence Permits, Citizenship, and Auction Properties
From the perspective of Turkey’s immigration framework, what matters is not that the property was purchased at auction, but rather:
- the district in which the property is located
- its cadastral value
- whether residence permit or citizenship requirements are fully met
Court Auctions UYAP e-satış: Pros and Cons
Pros
- starting price from 50% of the appraised value
- possibility of deep discounts
- title is cleared by a court decision
- transparent portal interface: bids, steps, and timing are visible
Cons
- requires e-Devlet access, Turkish ID, and a registered MERNIS address
- 10% deposit and full payment within a short timeframe
- complex legal language in auction listings
- often no physical access to the property
- VAT may be high (e.g. 20%)
Most of these disadvantages are especially challenging for foreign buyers acting without local legal support.
Residence Permits, Citizenship and Auction Properties
From a Turkish immigration perspective, what matters is not that the property was purchased at auction, but:
- the district where it is located
- its official cadastral value
- compliance with residence permit or citizenship requirements
Key thresholds:
- Residence permit through property ownership — cadastral value from USD 200,000 and the property must be in an open district
- Citizenship by investment — from USD 400,000 with a mandatory 3-year holding period
Market cycles and timing for entering distressed property deals are covered in RestProperty analytics:
Against the backdrop of declining Central Bank interest rates and the market’s exit from recession, entry opportunities in distressed assets are becoming particularly attractive.
How Turkish Auctions Differ from Other Markets
- in many countries, distressed sales are handled through enforcement agencies and bankruptcy auctions
- in Turkey, the main channels are UYAP e-satış, bank auctions, and NPL funds
The key difference is the immigration component. Even distressed properties can become a pathway to long-term residence and a second passport.
This is no longer just about buying confiscated assets — it is a structured investment strategy:
- purchase below market value
- bring the property to a marketable condition
- generate rental income in euros or US dollars
- obtain residence permits for yourself and your family
Standard market options can be viewed here:
Which Strategy to Choose in 2026
In 2026, the choice of a real estate acquisition strategy in Turkey depends not on the desire to “buy cheaper”, but on the buyer’s goals and level of preparation.
If you are a foreign buyer planning relocation, residence permit application, purchasing a home for personal use or stable rental income,
👉 the basic and safest strategy remains the purchase of ready-to-use market property — from a developer or a private owner, with full legal due diligence.
This approach:
- allows full inspection before the transaction,
- eliminates hidden legal and court-related risks,
- provides a predictable outcome without surprises.
Court and bank auctions in Turkey should be used only as a supplementary tool — not as a core strategy — and only if the following conditions are met:
- participation through a lawyer or professional intermediary,
- clear understanding that the discount compensates for increased risk,
- no strict dependency on relocation or residence permit deadlines.
What You Definitely Should Not Do
It is important not to confuse:
- an auction as a professional investment instrument
- with an experiment driven by adrenaline and the “illusion of a bargain”.
Real estate in Turkey is a long-term asset, part of a migration strategy and financial planning — not a lottery bet.
How RestProperty Works with Auction Properties
RestProperty is a licensed real estate agency in Turkey, operating since 2003. We are not an auction platform, do not accumulate distressed assets on our balance sheet, and do not act as a bank or auction organizer.
Our role is professional guidance between the client’s investment objectives and the realities of the Turkish real estate market — with its legal nuances, market cycles, risks, limitations, and opportunities.
We help not to “win an auction”, but to make a well-balanced decision:
- when an auction is truly appropriate and justified,
- and when a classic market transaction is safer and more rational.
We:
- eliminate legally dangerous scenarios,
- offer alternatives if the auction format does not align with the client’s goals.
We also offer new developments, ready-to-move apartments, and project-based investments in Antalya, Alanya, Istanbul, Bodrum, and other cities.
We maintain our own property database, deep expertise in Turkey’s resort real estate market, as well as selected offers in Dubai, Thailand, and Northern Cyprus.
Sometimes, instead of one “super-profitable” auction property, it is more reasonable to choose:
- a ready rental apartment with clear demand and proven income history
- a liquid new development for resale during a growth phase
- or a villa with verified legal clarity and predictable returns
Still Have Questions About Market Cycles or Strategy?
Get a personal consultation from RestProperty experts with experience since 2003.
