The Hidden Science Behind a Price Tag: Lessons from Ankara

Picture by Kateryna Hnidash

Have you ever wondered why two identical apartments in Ankara can have completely different prices? Most people think it’s just about square meters and neighborhood, but there is actually a fascinating science to it.

In her insightful thesis at METU, Zeynep Bulut dives deep into how property valuation actually works in our city. While most of us look at the "sticker price," professionals use a method called the Hedonic Price Approach.

What is it? Think of it like a recipe. A house isn't just one "thing"—it’s a collection of ingredients. Bulut’s research shows that every "ingredient" has its own cost:

• How much is that view worth?

• What is the "bonus" for being 5 minutes from the metro?

• How much does the age of the building discount the price?

The Ankara Reality By analyzing real data from across Ankara, Bulut proved that this scientific "recipe" method is often just as accurate as traditional sales comparisons. It highlights that in a growing city like ours, external factors—like proximity to new highways or public centers—often shift property values more than the tiles in the bathroom.

The Takeaway For anyone looking to buy or invest in Ankara, this research is a great reminder: Data doesn't lie. Understanding the "layers" of a property’s value is the secret to making a smart investment.

Credit: Based on the Master's Thesis "Real Estate Appraisal Methods and Their Application in Ankara" by Zeynep Bulut (METU).