• Provision of Social Housing in Turkey is a priority. Turkey’s demographics are characterized by its population of about 77.7 million inhabitants at end-2014 with a median age of 30.7 years. According to Turkish Statistical Institute (TurkStat) data, the annual population increase speed of the country in 2014 has been realized 13,3 per thousand. The country population continues to increase and urbanize.
  • While the rate of those resident at province and district centers was 77,3% in 2012, today 91,3% of the total population resides in province and district centers with the significant effect of establishment of metropolitan municipalities in 14 provinces and participation of counties and villages to district municipalities as quarters in 14 provinces.

According to the data of The Association of Real Estate and Real Estate Investment Companies  (GYODER), the urbanization rate in Turkey is 78%. It is suggested that the urbanized population, which is about 60 Million will be 71 Million in 2023.

In this context, there is housing pressure caused by the low income groups in need in particular, the process caused establishment of slum areas in metropolitan cities. This has also put pressure on infrastructure such as water, sanitation, housing and healthcare.

The access to private funding through banking system to buy a home remains limited for low income groups due to income and savings levels that are inadequate to meet housing loan payments.

Articles 56 and 57 of the Turkish Constitution declare that; every Turkish citizen has the right to decent housing and that the State has a responsibility to help meet those needs and to promote mass housing projects.

The Mass Housing Law (Law No. 2985, on ’public housing’) is a framework law defining the fundamental principles, which give direction to the solution of the housing problem in Turkey. The Law also determines the tasks of the Housing Development Administration (TOKİ).

TOKİ, which is the leader official institution of Turkey in terms of dealing with housing and settlement issues, has acquired essential knowledge and experience on developing different finance models regarding housing production throughout its 30 year-activity period. For its mass housing projects produced on its own lands, TOKİ has the target group of low and middle-income families, who are not able to own a housing unit within the existing market conditions in Turkey.

TOKİ has been effective in developing housing technology and housing finance in Turkey between 1984 and 2002, total of 43 thousand 145 houses were produced and credit support was provided for 940 thousand houses within 19 years.

In 2001, Housing Development Fund was removed along with some other funds. On elimination of the Housing Development Fund, the articles regarding the incomes, expenditures, duties, authorities and responsibilities of the Administration included within the Housing Development Law have been re-regulated.

The primary income of the Administration consist of revenues from the sales and rents of houses, work places and land, loan reimbursements, interest incomes, subsidy allocated with the budget laws and fees for departure to a foreign country, and the service fee amounts collectable from concerned entities and organizations between 3-10% of the construction cost of the constructions made in the name of government agencies.

The banking activities of Emlak Bank of Turkey have been transferred to Ziraatbank and Halkbank in 2001. Emlak Bank’s assets and real estate unrelated to its banking operations have all been transferred to TOKİ.

After November 2002, 58th., 59th., 60th., 61st. and 62nd. Turkish Republic Governments have issued the Emergency Action Plan, which is in parallel with the Government Program and is expected to solve basic social, economic and administrative problems of the country. 

The Emergency Action Plan for Housing and Urban Development is passed on January 1, 2003, setting a five-year goal of 250,000 housing units to be built through renovation, transformation and production of quality housing, by the end of 2007. TOKİ aimed to reach the target of starting the constructions of 500 thousand housing units (in cumulative), with their social facilities, in the first period of 2011 and TOKİ has succeeded.

The number of housing units started to be constructed as of January 30th.,2015 is 649.498.

With time, TOKİ has been affected by various legal arrangements; like in 2001 Emlak Bank’s assets and real estate unrelated to its banking operations are all transferred to TOKİ, within the framework of “housing production and planned urbanization” objective included in the Emergency Action Plan of the Government, tasks and liabilities of Urban Land Office were transferred to TOKİ and upon this transfer, 64.5 million m2 land was passed into the ownership of TOKİ, on December 2004.

A great expansion was achieved via various legal regulations and arrangements in public management made as of 2003 within the framework of TOKİ’s field of duty and activity, starting a “planned urbanization and housing leap” so great for the first time in the history of Turkey.

In this context;

  • All activities of T. Emlak Bankası apart from banking upon its being closed down,
  • All duties of Housing Undersecretariat after its being closed down,
  • The duties of Immigrant Houses Coordination Office Ahıska Turks Settlement Coordination Office,
  • All duties and responsibilities of National Land Office, upon its being closed down,
  • The duties of the abolished Ministry of Public Works and Settlements (Ministry of Environment and Urbanism)-Department of Dwelling Afairs,
  • The ongoing duties of the Prime Ministry Project Implementation Unit, after its being closed down;

have been assigned to TOKİ.

With these regulations, the duties and authorities of TOKİ have been increased with regard to housing production and decision-making mechanism has been gathered under a single roof. The bureaucracy has also been diminished accelerating work flow, an efficient structure was formed toward problem solving and production.