Housing cooperatives in Türkiye

This profile, prepared by Cooperative Housing International, presents a comprehensive country study on Turkish cooperative housing. It examines the historical development, policy environment, and current challenges of housing co‑ops, offering data‑driven insights for a pan‑European audience interested in sustainable housing solutions.

Co‑operative housing in Turkey began in the 1930s, with the first project – Bahçelievler Housing Cooperative – launched in 1935 and delivering 169 dwellings. Growth was modest until the post‑World War II era, when the Social Security Organisation started financing co‑ops in 1952, enabling 374 co‑operatives to build 32 862 units between 1950 and 1965. The 1969 Co‑operative Law and the Five‑Year Development Plan (1967‑1972) accelerated expansion, culminating in the Batıkent project that created around 70 000 homes for 250 000 people across 275 co‑operatives.

The 1981 Mass Housing Law (revised 1984) allocated state land to co‑operatives and established a Housing Development Fund funded with 5 % of the national budget. As a result, the number of co‑operatives rose sharply: 131 in 1980, 920 by 1985, 2 613 in 1987, and a peak of 167 514 cooperative units built in 1988, representing 35 % of all building permits that year. From 1935 to 2002, nearly 70 000 co‑operatives were formed.

Between 1993 and 2002, co‑operatives faced a steep decline due to withdrawal of state financing, rising land costs and reduced household savings. The Housing Development Fund was abolished in 2001, and a market‑oriented housing policy introduced in 2002 excluded co‑operatives from public land and financial aid. Consequently, the share of co‑operatives in construction permits fell from 20 % in the early 1990s to just 6 % by 2005, contributing to a national housing deficit of roughly 500 000 units per year, while actual production dropped to 160 000 units.

Since 2002, public land, which accounts for about half of Turkey’s territory, has been controlled exclusively by the Housing Development Administration (HDA). No land has been allocated to co‑operatives since 1998, forcing them to rely on private markets where land prices are 40‑60 % of total project costs, far higher than the 20‑30 % typical in Western Europe. Urban renewal programmes are similarly limited to private contractors and the HDA, further marginalising co‑operatives.

State support ended in 2002, leaving co‑operatives with only two financing options: member contributions or commercial bank loans, both burdened by high interest rates. A marginal “Complementary Credit” scheme covers merely 5‑6 % of construction costs and is often too late in the project cycle to be useful. Consequently, co‑operatives now serve predominantly higher‑income groups, reducing their relevance for low‑ and middle‑income households.

The latest figures list 54 996 housing co‑operatives, 1 985 076 individual members, 383 cooperative unions and two central unions (TÜRKKENT and TÜRKKONUT). TÜRKKENT, founded in 1988, has supported the construction of over 250 000 dwellings through its network of unions. Nevertheless, the sector’s contribution to total housing production remains limited, with only 6 % of permits in 2005.

Co‑operatives historically delivered large‑scale, community‑oriented developments that incorporated schools, health centres and infrastructure, aligning with sustainable urban planning principles. Their decline reduces the availability of affordable, socially integrated housing and hampers Turkey’s ability to meet the estimated demand of 500 000 new units annually. Re‑engagement of state policies—such as land allocation, low‑interest financing and legal reforms—could reactivate co‑operatives as a vehicle for sustainable, inclusive housing in line with European best practices.