Admin | January 31st, 2023
The new mega housing project by the Turkish government is expected to affect millions of people and ultimately affect the Turkish real estate market
In September 2022, the Turkish government introduced its plan for the largest public housing project ever in Turkey's modern history, named "İlk Evim", including the application conditions. The project includes 500,000 houses, 250,000 lands dedicated for housing projects and 50,000 commercial properties, all of which are offered for sale to citizens in affordable prices with relaxed installments.
The first phase of the project which includes 250,000 houses, 100,000 lands and 10,000 commercial units is planned to be finished within 2 years from the project's start. The entire project is planned to be finished within 5 years, in the period of 2023-2028. The project which offers houses sold at prices 40% less than their construction cost is hoped to help individuals with low income obtain their own houses in an affordable manner. The announcement came as a response to the unusual increase in rentals and house prices and is expected to help reducing prices of housing units. It is worthy to mention that according to the Turkish Institute of Statistics, the consumer price index for house prices has increased by approximately 70% throughout the period of August 2021-August 2022.
The 'ilk evim' project, as well as similar smaller projects built by the directorate of public housing (TOKİ), is dedicated for Turkish citizens who do not own a house. Although the project may affect the prices of both cheap and expensive properties, houses that are not usually bought as the first house (such as expensive villas) or houses with layouts not offered in the housing project (such as projects with 1+1 flats or those with 4+1 plans) are perhaps less prone to be affected. Yet it should be noted that the government also released another housing project that aims to help citizens of middle income.
TOKİ has previously built houses that earned considerable value and in areas now considered stratigic. Always take extra care before making your a real estate deal. You can always contact us to start the search for the ideal real estate property choice, a process that takes time itself.
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