Azernews.Az

As reconstruction efforts in earthquake-affected areas near completion, the Turkish government has turned its attention to a major social housing initiative. The objective is clear: to increase homeownership rates and offer relief to citizens struggling with rising rents.

A two-phase plan has been rolled out. The first phase marks the largest social housing mobilization in the history of the Republic. Applications for 500,000 social housing units across all 81 provinces have now closed. Lottery draws will begin on December 29, with successful applicants expected to move into their homes starting March 2027.

According to Hürriyet, the second phase is particularly notable: the introduction of Turkiye’s first rental social housing model, a system already implemented in other countries. Istanbul will be the first city to host the program, with 15,000 rental units planned across both sides of the city in the initial stage. Eligible citizens will rent these homes at affordable rates from the state.

Rental social housing will specifically target low-income groups. Applications are open to those without a home and whose income falls below the defined threshold. Similar to social housing projects, special quotas are planned for certain groups, including public servants, retirees, people with disabilities, and those whose homes are subject to urban transformation.

Once the projects are completed, the Housing Development Administration of Turkiye (TOKİ) will announce the details. Applications will be collected, and winners will be selected by lottery. Those selected will sign a three-year rental agreement with TOKİ. During this period, management, maintenance, and oversight of the properties will be handled by TOKİ.

Rents will be set at approximately half the market rate, with increases tied to public servant salary adjustments. At the end of the three-year term, tenants will vacate the property, after which maintenance work will be completed and the unit will be transferred to the next qualified tenant.

This model allows low-income citizens to rent housing at far below market rates while ensuring protection against sudden rent hikes or arbitrary eviction, thanks to a reliable institutional counterpart.

The government expects that as the projects expand, housing supply will increase, helping to slow the pace of rent inflation.

Another key aspect is urban transformation. For families whose homes are set to be redeveloped, these rental units will serve as a viable alternative, providing affordable temporary housing and facilitating smoother transitions during reconstruction.

There are two main reasons for launching the rental social housing program in Istanbul: the city faces the steepest rent increases, and it has the highest need for reserve housing to support urban transformation projects.

Minister of Environment, Urbanization and Climate Change Murat Kurum recently stated that construction has already begun for some of the projects, with the remaining units scheduled to be completed in 2026. The goal is to make the first handovers within approximately one year.