Massive housing project aims to curb rent, property prices

ISTANBUL

As reconstruction in Türkiye's earthquake-hit provinces nears completion, the government is preparing a new housing initiative aimed at easing access to homes and reversing the decline in ownership rates, which have fallen to as low as 56 percent.

Authorities plan to launch a nationwide affordable housing campaign, with 500,000 units to be built across the country's 81 provinces. For the first time, the program will also include rental social housing, designed to address the needs of low-income households and accelerate urban transformation.

Both projects will be carried out by the state housing agency TOKİ.

By year-end, 453,000 homes are scheduled for delivery in the earthquake zone. Following this effort, public institutions will shift their focus to broader housing challenges.

President Recep Tayyip Erdoğan announced the new campaign earlier this week, saying: “Through our Environment Ministry, we are initiating the construction of 500,000 social housing units across all 81 provinces,” adding that rental homes for low-income citizens will also be included.

The initiative, described as the largest social housing mobilization in the republic's history, will be detailed further in the coming days.

Under the scheme, the state will cover 40–50 percent of construction costs, allowing homes to be sold well below market prices. The goal is to make housing more accessible and lift the ownership rate from its current lows. Applications will be open to low-income citizens and those without a home.

Rising rents have become a pressing issue in recent years, with millions of households affected.

A temporary 25 percent cap on rent increases failed to resolve the problem. Today, the average rent for a 100-square-meter apartment stands at around 25,000 Turkish Liras ($600) nationwide and approaches 35,000 liras in Istanbul, with new units commanding even higher prices.

To address this, the government will introduce rental social housing, with Environment, Urbanization and Climate Change Minister Murat Kurum confirming that projects will be built on both the European and Asian sides of Istanbul.

The rental model, implemented in other countries but a first for Türkiye, is expected to deliver three key benefits: Affordable options for low-income families, protection from landlord pressure through institutional leasing and slower rent increases as supply expands.

Real estate sector representatives welcomed TOKİ’s initiative but argued that the private sector should also be involved.

They noted that high land costs mean most new housing currently targets upper-income groups, while the real need lies in the middle-income segment.

Industry voices suggested that combining public land resources with private sector expertise through public-private partnerships could accelerate the delivery of affordable housing and provide a more comprehensive solution to Türkiye's housing shortage.