Gov’t aims to boost affordable housing with 500,000-unit projects

ISTANBUL

Türkiye is preparing to launch the largest housing initiative, with plans to build 500,000 new affordable units across all 81 provinces starting in the final quarter of the year.

The government aims to ease the country’s deepening housing problem by increasing supply, curbing soaring property and rental prices and providing long-term payment options for low-income citizens.

Rising prices and high interest rates are preventing citizens from accessing housing, while declining supply continues to drive up property and rental costs.

For nearly three years, the growing housing challenges have remained a top concern for both the public and the government.

Following the devastating earthquakes, the Environment, Urbanization and Climate Ministry Change prioritized reconstruction efforts in 11 affected provinces. Now that significant progress has been made in those regions, the ministry has decided to refocus its efforts on social housing projects across the country.

Finance Minister Mehmet Şimşek provided the details on the scale of the initiative, highlighting that housing supply is one of the most critical variables in the fight against inflation and cost-of-living pressures.

He credited Environment, Urbanization and Climate Change Minister Murat Kurum with leading the charge, noting that Kurum’s plan involves constructing at least 500,000 affordable homes over the next two to three years, with a focus on major urban centers.

In an interview earlier this week, Şimşek stated that rent inflation now declined to 83 percent and emphasized that rent remains one of the key factors keeping headline inflation elevated. He noted that there is a backward-looking indexation in rental prices.

He added that the government aims to increase homeownership by permanently reducing inflation and boosting housing supply.

Eligibility for the new housing units will be determined by a lottery system, with priority given to groups such as veterans, retirees, people with disabilities, and young first-time buyers.

With long-term payment plans — up to 20 years — and targeted support for those without homes, the government aims to make affordable housing a reality for hundreds of thousands of families.

Kurum stated that President Recep Tayyip Erdoğan will officially announce the largest social housing initiative in the history of the country by the end of this year.

The initiative will not only support earthquake recovery but also reduce housing costs nationwide, according to Kurum.