A home of one's own: can Türkiye tackle the mounting housing crisis?

The article “A home of one’s own: can Türkiye tackle the mounting housing crisis?” is published by Türkiye Today and authored by journalist Onur Erdogan. It analyses the Turkish government’s recent policies aimed at reversing a decade‑long decline in homeownership and addressing soaring house‑price and rent inflation, drawing on data from TÜİK, the OECD and various market trackers.

In 2024, 56.1 % of Turkish households owned their home, while 28 % paid rent and 15 % lived rent‑free in family‑owned dwellings. Homeownership has fallen by 3.6 percentage points since 2016, with the tenant share rising by the same margin. The OECD’s 2024 report shows Turkey’s home‑ownership rate well below the OECD average of 70.9 %, and its tenant share exceeds the OECD average of 24 %.

Between 2014 and 2024, Turkish residential prices increased almost twenty‑one‑fold and rents fifteen‑fold, outpacing all OECD countries. In June 2024, national rent rose 27.75 % year‑on‑year to ₺23,402 (£589), while Istanbul’s rent jumped 38.39 % to ₺29,939 (£767). House‑price growth averaged 32.8 % nationally, with Ankara posting the highest annual rise at 42.1 % in 2025.

Average mortgage rates have surged to 42.56 % per annum, making a typical ₺4.36 million home require a monthly payment of about ₺134,775 (£3,315) on a ten‑year loan. In Istanbul, the same loan would cost roughly ₺179,514 (£4,425) per month. Consequently, mortgage‑financed sales fell from a peak of 38.24 % in 2020 to just 10.72 % in 2024.

Finance Minister Mehmet Simsek announced plans for 500,000 new social‑housing units and the extension of mortgage maturities from the current ten years to 30, 40 or even 50 years. These measures aim to lower monthly payments and increase long‑term affordability for low‑income families.

The Ministry of Environment, Urbanisation and Climate Change introduced tradable real‑estate certificates, launched with the ₺51.1 billion Damla Kent project in Istanbul’s Başakşehir district. Certificates trade on Borsa Istanbul from 4–8 August and cost ₺7.59 (£0.19) each. To fully acquire a 62 m² 1+1 apartment, an investor needs 631,516 certificates (≈₺4.79 million). The scheme promises ownership without down‑payment or traditional mortgage, but unit prices remain above market averages.

Higher rents and prices have shortened amortisation periods for investors to 13–14 years, making property investment more attractive. However, the share of mortgage‑financed transactions remains low, reflecting credit‑cost constraints. Real‑estate certificates could broaden participation but may not close the affordability gap without parallel supply‑side policies.

Turkey’s experience highlights the challenge of balancing rapid price growth with affordable, sustainable housing. Policy tools such as long‑term mortgage extensions, large‑scale social housing programmes and novel equity‑based financing illustrate potential avenues for other European nations facing similar affordability pressures. The data underscore the importance of coordinated supply‑side interventions and financial mechanisms that align monthly housing costs with household incomes to achieve durable, inclusive housing markets.