Turkey

Turkey's housing market in 2025 shows strong sales (834,751 units Jan-Jul, up 24%) despite real prices falling 0.52% yoy amid high inflation. Home ownership rate is 55.8% (2024), implying ~44% rent. Nationwide median apartment price is ~1,150 EUR/sqm (TRY 39,697); no recent national rental median available, but ownership pushes due to high rents. Istanbul averages ~7,100 EUR/sqm.

Publicly owned housing via TOKI (Housing Development Administration) targets low/middle-income, completing 1.75M units historically; 85% of TOKI projects are social housing. New 500,000-unit "Homeowner Türkiye" scheme (launched Nov 2025, deliveries from 2027) offers units from ~200,000 EUR (10% down, 20-year terms at ~760 EUR/month), prioritizing vulnerable groups (60% quota). It includes social rental in Istanbul at half market rate. Public/social housing are synonymous here, emphasizing affordability, resilience, and community facilities—not distinct from urban "social housing in the city."

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Turkey faces a severe housing crisis driven by skyrocketing rents and chronic supply shortages, despite robust sales of 834,751 units from January to July 2025 (up 24% year-over-year) and a 55.8% homeownership rate in 2024, leaving about 44% renting. Rents surged 77.1% in 2025—far exceeding the OECD average of 6.8%—with a decade-long cumulative rise of 1,457.7% versus 48.9% in OECD countries; even inflation-adjusted, 2025 rents increased 31.3% amid 34.88% annual inflation. Nationwide median apartment prices stand at around 1,150 EUR per sqm, with Istanbul averaging 7,100 EUR per sqm, while real prices have declined 0.52% year-over-year for 20 months due to tight policy. Structural shortages persist, as housing production meets only half of demand, exacerbated by 2023 earthquakes destroying 1.9 million units, displacing 3.3 million, and leaving 1.5 million at-risk units in Istanbul alone, plus urbanization and a young population fueling demand.

Renters—millions of households, especially low- and middle-income in urban areas like Istanbul, Ankara, and Izmir—bear the brunt, facing eroded purchasing power, budget strain, and inequality. Vulnerable groups, including earthquake survivors and migrants, suffer most from unaffordable costs turning housing into a luxury. (198 words)

Turkey's national government addresses affordable and sustainable housing through TOKI-led initiatives emphasizing resilience, urban transformation, and supply expansion amid post-earthquake recovery. Recent targets include inflation reduction to 16-21% by end-2026 to stabilize prices, alongside a new social housing push within the 2026 budget prioritizing resilient cities and green/digital transitions.

Key programs: TOKİ's "Homeowner Türkiye" (500,000 units, deliveries from 2027, ~200,000 EUR each, low down payments, long-term financing at ~760 EUR/month, 60% quota for vulnerable groups, half-market rentals in Istanbul). Treasury and Finance Ministry's rental scheme offers tax incentives for private developers and TOKİ to build rental housing, boosting supply. Updated Shelter Regulation (Nov 2025) mandates shelters in large new residential buildings (>10 units), promoting sustainable, disaster-resilient construction via urban transformation (Law No. 6306). These integrate affordability with earthquake-proof standards, community facilities, and repurposed public spaces like metro tunnels.

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Housing cooperatives play a prominent role in Turkey's cooperative sector, leading in number of establishments and ranking second in membership, with over 53,000 total cooperatives and 7.4 million members as of recent ILO data. They historically contributed significantly to housing supply, peaking at 30% in the 1980s and 13% in the 1970s, but their market share has declined to about 2.5% of building permits by 2016, overshadowed by TOKI's mass production.

The sector shows concentration in housing but limited growth amid TOKI dominance and past mismanagement issues. Current dynamics include calls for reform via stricter oversight, membership caps, and public land access to revive them for middle-income groups. No recent exact share of total housing units (amid 55.8% ownership rate) is available, but they remain marginal.

The government promotes cooperatives through the 2025-2029 Türkiye Kooperatifçilik Stratejisi ve Eylem Planı, focusing on financial strengthening, digitalization, green transitions, and capacity building across 6 targets and 23 actions. Supports include KOOP-DES hibe (110.5M TRY for 826 projects), 3B TRY credit via TESKOMB, and export incentives. Housing-specific reforms emphasize supervision and subsidies for production/rentals.

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