Net Operating Income for Property Core point Net operating income (NOI) is effective
Net Operating Income for Property Core point Net operating income (NOI) is effective operating income after vacancy minus operating expenses and is generally calculated before financing interest and debt service. How to verify it Include expenses attributable to operating the asset—management, routine maintenance, insurance and relevant operating taxes—while keeping capital expenditure and loan principal separate.
Decision impact NOI should be reproducible from leases, receipts and actual invoices rather than copied from a sales presentation. Net Operating Income (NOI) Calculate Gross Potential Income (GPI) at full occupancy, deduct vacancy and collection losses to obtain Effective Gross Income (EGI), then subtract direct operating expenses such as property taxes, insurance, maintenance and property management.
Do not include debt service or the owner’s personal income tax in NOI. Use the resulting figure to assess operating performance and property value through capitalization metrics.
Evidence to retain Keep historical rent collections, operating/maintenance statements and annual property-tax and insurance costs. Decision use Debt service is deducted later when moving from NOI toward cash flow, not inside NOI itself.
Cap Rate is derived by relating annual NOI to the property’s total price/value, making consistent expense classification essential. Source calculation point: GPI begins at a 100% occupancy assumption before vacancy/collection losses are deducted to reach effective income.
From market data to testable cash flow
For each fact use a source capable of proving it and link the result to its effect on purchase, ownership or cost. Calculate gross yield from annual rent relative to price, then calculate net yield after vacancy, management, maintenance, insurance, taxes, dues and non-recoverable costs. For a capitalization rate, use NOI before debt service and distinguish property performance from leveraged equity return. Any rent-growth, resale-price or interest-rate assumption should be stress-tested with alternative scenarios rather than accepted as a single forecast.
Property investment analysis must separate market data from the calculation for the specific asset. The review becomes useful when the finding is tied to a defined effect on rights, price, cost or executability and backed by evidence that can be rechecked later. TCMB publishes the House Price Index to track housing-market price movements and, in 2026, began publishing the New Tenant Rent Index to capture new-rental price developments more quickly than rent measures that include existing contracts. These indices do not provide the sale price or rent of one unit, so they must be combined with verifiable local comparables. Turn the review topic into provable facts: identity, date, amount, registry status, document or technical condition.
Taxes that depend on year and owner status
A property tax file is not proved by one receipt. Turn the review topic into provable facts: identity, date, amount, registry status, document or technical condition. Municipal property tax depends on the tax value, property category and location, and GİB states that values calculated for 2026 are subject to a specific cap relative to 2025 values; obtain the current value and debt position from the competent municipality when it matters rather than carrying an old figure into a new year. Rental income is governed separately by GİB rules, so distinguish rent actually received, deductible expenses, the chosen expense method and the resident/non-resident position of the owner.
The review becomes useful when the finding is tied to a defined effect on rights, price, cost or executability and backed by evidence that can be rechecked later. On exit, disposal of certain real property within five years of acquisition can fall under value-increase gain rules of the Income Tax Law, subject to the owner’s circumstances and statutory exceptions. Keep returns, receipts and cost evidence because they affect both verification and resale analysis. For each fact use a source capable of proving it and link the result to its effect on purchase, ownership or cost.
2026 analytical update — Net Operating Income for Property
NOI measures property operations before financing and investor-level tax. Start with collected rent and recurring ancillary income, deduct vacancy and recurring operating costs, and keep loan principal, interest and acquisition costs outside NOI.
TÜİK reported 123,603 home sales in July 2026; 23,888 were mortgaged (19.3%), with 42,529 first-hand and 81,074 second-hand sales. Foreign-buyer sales were 2,120, or 1.7% of the total.
Formula / check: NOI = effective gross income - recurring property operating expenses.