Housing Programs

The housing need in Turkey shows a gradual increase everyday. The housing need is on our agenda in the form of population growth, urbanization, urban transformation and renovation, economic and quality housing meeting the needs.

Due to the “Report for Real Estate Sector in 2023 Vision” prepared by GYODER; production of 7,56 million houses is suggested for the 12 year period between 2012-2023. TOKİ, with its rapid housing production practices, aims to meet          5% -10 % of the housing need of Turkey, which currently has been realized as 9%.

According to Turkish Statistical Institute (TurkStat) data, the total number of buildings throughout Turkey is 19 million 209 thousand 928 (approximately 20 million) and 40 percent of these buildings are shanty and 67 percent lack settlement permit.

It is estimated that within the prospective 20 years approximately 6,7 million housing units shall be demolished and reconstructed throughout the country.

Social housing program of TOKİ targets the low and middle-income people who cannot own a housing unit under the existing market conditions. (Considering the distribution of the housing projects realized by TOKİ, 15% of the same consists of “Fund Raising by method of Revenue Sharing” and 85% of “Social Housing” projects.)

The beneficiaries of the social housing projects of TOKİ (constructed on lands pertaining to TOKİ) make their down payments on the start of the constructions after the tender or at a certain stage (determined by the Administration) (no down-payment is collected in projects toward the poor), and continue monthly payments according to a single-indexed reimbursement plan. For most of these projects the index is the public sector wage index (semiannual index calculated by the Ministry of Finance of Republic of Turkey).

For the projects targeting the low income group citizens, monthly installments are increased (twice in a year) depending on the rate of increase for public sector wage index or Producer Price Index or Consumer Price Index (inflation indices announced by TurkStat), whichever is smaller (namely; variable single-indexed credit system). The maturities of the loan repayments of TOKİ are set as 8-25 years in average depending on the financial capabilities of the target groups.

40,55% of the social housing projects realized consists of those for the narrow- and middle-income groups. As to the 23,01% portion of the projects (the lowest 20%-40% income tranche), they consist of projects toward the low-income group. The urban transformation projects, which have recently become increasingly significant, have a ratio of 15,08 %.

Implementations of the poor group houses are executed under the coordination of TOKİ and the Ministry of Family and Social Policies-General Directorate of Social Benefits (SYGM), and TOKİ only undertakes construction of the houses in those projects. Applications and all following procedures are realized by the concerned social solidarity foundations.These projects seek the condition that the applicant him/herself, his/her spouse and the children under his/her custody have no real estate registered in his/her name with the land registry office. It is necessary that the applicants are not subject to the Social Security Organization.(In housing sales toward the poor and low-income groups, there is a condition of residence for the purchaser or his/her family until pay-off of the debt for the contracted house.)

The applications, sales, repayment terms (debiting) and identifying beneficiaries related to these houses are determined by General Directorate. These houses are delivered to poor citizens by the concerned of General Directorate.

With regard to the applications for low-income group houses, it is also expected that the net monthly household income is 3.200 TL. at most.(Income limit for İstanbul has been determined as 3.700TL.)

The Administration realizes projects using method of collecting preliminary demands in order to prevent idleness of investments to be made in projects toward settlements with a population below 40.000. The preliminary demand collection method is organized by the Governorships, District Governorships or Municipalities. The project is put into effect in case of adequate application to the project (at least 100 houses).

The existing demand for TOKİ properties far exceeds supply. Every citizen who does not own a house has a right to apply for social housing. However, in general workers and civil servants benefit most from these houses. Due to the very high demand, houses are sold to applicants through a lottery supervised by a public notary.

Since the property right is owned by TOKİ until the debt is over, the repayments of the projects are under guarantee. That is, TOKİ is acting as a ‘guarantor’ for the repayments of the project. TOKİ finalizes the construction of housing units within 24 months.

The fact that the title deeds are not issued until full repayment of the debts minimizes the default of payment of installments. Indeed, the rate of non-payment is near to zero in the sales practices realized by the Administration. The rate of termination of the sales contracts/rate of taking back of the houses are also low. (approximately 1/ 2.000 houses).

TOKİ accounts are with public banks in accordance with the General Communiqué of Public Treasury. The reimbursements for the sales realized and loans made available by TOKİ are pursued and collected over public banks (Ziraat Bank, HalkBank and Vakıflar Bank) in the name of TOKİ. The collections accumulating in Banks are transferred to the accounts of the Administration within the framework of the protocols with the banks.

Housing units in TOKİ projects are offered for sale in the beginning of the construction stage after the tender or at a certain stage.

Sales prices of the units are set by TOKİ, by taking into consideration the cost of construction, social facilities, cost of infrastructure, cost of consultancy services and cost of land. Sales prices are determined without a profit purpose, in view of the saving patterns and monthly affordability of the target groups.

Construction cost is the sum of building, mechanical, electrical, substructure, and land-scape and ground Improvement etc. costs.

The sales prices of the housing units produced for the poor citizens (one of the category of TOKİ’s social type housing program) do not include the cost of land.

Among the houses produced by TOKİ;

-Approximate m2 cost of poor group houses constructed with cooperation of the Ministry of Family and Social Families is 1.100TL/m²,

-Approximate m2 cost and sale price of the low-income group houses is 1.180TL/m²,

-Approximate m2 cost and sale price of the middle-income group houses is 1.200TL/m² and

-The sales prices for luxury houses are between 2.000 to 15.000TL/m2.

The fundamental conditions of sale of the social housing projects of TOKİ are as follows:

For low-income group and poor houses (The 20%-40% income group without any means to purchase housing under the current market conditions; having a maximum net income of 3.200 TL., or a maximum net income of 3.700 TL. in Istanbul as the monthly household income)

-For the poor group houses constructed with the cooperation of the Ministry of Family and Social Policies; houses with an area of 45 – 65 m2, with installments starting from 100 TL starting from delivery of house without down-payment, with a maturity of 25 years,

-For the low income group; houses with an area of 65 – 87 m2, with installments starting from delivery of the house with a down-payment of 12% and a maturity of 15 years,

-For the narrow- and middle-income group: Houses with an area of 87–146 m2, 10% to 25% of the house price in advance are offered to our citizens in need with a maturity of 8-10 years.


Because the problem of slums and shanty settlements cannot be solved through the efforts of the local governments only, since 2003 TOKİ has been following a comprehensive policy toward supporting modern urbanization in cooperation with local administrations, with the support of the central government.

Within the scope of the Law No.5162 that underlines “the prevention of shanty settlements in our cities in cooperation with local authorities and the transformation of the existing shanty settlements” in the Emergency Action Plan of the program of the 58th Turkish Government and the regulations adapted in 12.05.2004, TOKİ has been assigned to be in service in the urban renewal projects and has been carrying out its projects in this sense.

TOKİ’s practices constitute a model for local governments and other actors of the housing sector. TOKİ not only transforms slums, extremely intensive shanty settlements, areas with a high risk of natural disasters (earthquake, flood, landslide etc.) and historical urban areas as well as urban areas whose economic lifetime is over but also tries to prevent formation of new slum areas with the houses it produced for narrow-income groups.

Renewal projects and not only produce renovated housing areas; but also provide major recreation areas (like, Trabzon-Zağnos Valley), city parks (like, İzmir-Kadifekale), city quarters, trade centers for the city.

In this context, major urban transformation projects have been implemented in other cities and districts, particularly in cities with intense population such as Ankara, Istanbul, İzmir, Bursa, Denizli, Erzurum, Erzincan, Gaziantep, Trabzon.

The tender works for 104.896 houses have been started in 229 different projects as a part of the slum transformation project of 276.162 houses in total divided into 336 projects formed within the scope of urban transformation as of 05 January 2015, and 95.534 houses have been produced in 212 projects whose tenders are complete, and 56.354 houses being completed in 128 regions, were delivered to beneficiaries.

With this model, areas are developed by the Administration where slum clearance is made/to be made by the local managements, and project-based solution suggestions and implementations are implemented after acquisition by the concerned municipality of the proprietorship of the area vatandaşların da katılımı ile in cooperation with the local governments within the scope of relevant laws. Because Urban Renewal Projects require comprehensive study as they include direct    participation of the public.

In these projects, it is the main target to rehabilitate the slum, shanty settlement and bedraggled regions of the city by way of most efficient use of the public resources while simultaneously trying to keep the satisfaction of the proprietor citizens and other city dwellers at a maximum.

TOKİ houses use the “tunnel formwork” system with higher building safety which is also earthquake resistant providing smooth geometric spaces and allowing fast and high-quality production, while schools, trade centers, hospitals, mosque, police station, dormitories, stadiums etc. buildings apply conventional formwork systems.  Besides, the light steel building systems are preferred in buildings such as village house, village clinic, which are small in number.

  • TOKİ pioneers the efforts of the government to construct houses, substructure and public utilities in regions damaged by natural disasters. The activities of the administration in the field of disaster management and restructuring started with Erzincan Earthquake in 1992. TOKİ received the United Nation’s HABITAT Scroll of HONOR in 1994 for having provided housing credits to hundreds of thousands of low and medium income families and for having implemented the Erzincan Earthquake Reconstruction Project successfully.

After VAN Earthquake, one of the major earthquakes recently realized in Anatolia, 15.000 houses and their social facilities have been completed within a year in Van by our Administration in coordination with AFAD actively participating in restructuring of the city, and 18 thousand houses were constructed for the beneficiaries up until today. Furthermore, all kinds of support were provided to those willing to build their own house, barn, work place (Houses are produced for disaster regions within the scope of the disaster regions in line with the demand by the Prime Ministry Disaster and Emergency Management Office. All houses under construction by TOKİ are purchased by AFAD.)

 With the “Law on Transformation of Places under Disaster Risk” numbered 6306 that took effect during the time of office of 61st Turkish Government for the purpose of demolition of unpermitted/risky buildings with inadequate earthquake-resistant design, material resistance and construction and of restoration of old buildings, urban transformation works spread throughout Turkey and TOKİ’s duties reached a significant position with entities responsible at implementation level. On legalization of the relevant legislation, comprehensive urban transformation projects were started throughout Turkey with a new era in urban transformation.

60% of the buildings in our country are above 20 years of age according to 2012 data. In other words, it was not constructed according to earthquake standards. 60% of the buildings in Istanbul are unlicensed on shanty settlements, approximately 27% of them should be urgently discharged and demolished.

Since one thirds of the existing buildings are on risky areas, or within the scope of risky buildings, it is not the “discharge of risky buildings and risky areas” to be performed in the process, but ensuring their transformation within the framework of a program throughout cities.

TOKİ also creates innovative models to implement government decisions regarding existing housing and settlement policies. The most important model is a financial model which is named as the “income (revenue) sharing model” which provides housings to high income groups, in order to establish a fund for housing projects of low and middle income groups. This model is based on housing production on TOKİ owned lands in provinces like İstanbul and Ankara, in collaboration with the private sector and on sharing the sales income with the private partner. (This is a build-sell model and this concept is based on income - not housing.) TOKİ developed this model to close the gap between its short-term investment expenses and its long-term receivables.

The other activities are mainly the “agricultural village projects”, “migrant dwellings”, “restoration of buildings of historical-cultural importance”, “cooperative credits, housing credits for victims of war”.

In accordance with the Law on Preservation of Cultural and Natural Assets numbered 2863, TOKİ grants loans for maintenance, repair and restoration of the registered immovable cultural assets requiring protection owned by real persons and legal entities subject to private law, and an amount of 57.752.107,56 TL. loan has been allocated to a total of 630 projects as of the end of 2014.

Another loan implementation of TOKİ is the one for Marty Families and terror casualties.

The first implementation of the Interest-Free Housing Loan for Martyr Families, Terror Casualties and Widows and Orphans from the Housing Development Fund has been initiated in 1985 by adding an article to the Law on Duties and Liabilities of Police, extending 5.000.000TL. interest-free loan from the Housing Development Fund to the families of martyred policemen as of 1.1.1971. The scope of the loan was expanded by addition of an article to the Housing Development Law in 1991, and it has been ensured that all martyr families and terror casualties and widows and orphans of them with salary from the Pension Fund and acquiring a Beneficiary Certificate for Interest-Free Loan also benefit from the same.

The "Regulation on Interest-Free Housing Loans to be made available from the Housing Development Fund to the Martyr Families, Disabled Veterans and Widows and Orphans” regulating those matters has taken effect upon publication on the Official Gazette dated 21 September 1991 and numbered 20998. Due to the expansion of the scope of beneficiaries to be use interest-free housing loans; this Regulation has been abolished with the “Regulation on Interest-Free Housing Loan to be Made Available to Martyr Families, War and Duty Casualties by the Housing Development Administration” dated 13 February 2014 and numbered 28912.

Within the scope of this regulation, 388.577.018,16 TL. of loan was made available by TOKİ to 16.582 martyr relatives as of end of 2014.

TOKİ’s affordable housing includes producing all the social facilities within the projects. TOKİ also invests a great of effort in infrastructure (roads, water lines, etc.)  Landscaping is provided for the projects.

In addition to this, construction experience of the Administration has been actively employed in many social practices such as health, education, security, lodging, sports facilities, care centers for homeless children and dormitories where needed, especially in the recent years within the protocols signed with various ministries, state institutions and organizations.

Because of the tender-construction activities experience TOKİ has, its reducing bureaucracy to a minimum and ensuring cheap cost and quality formation in its implementations, an amendment was made by the Government in the Housing Development Law with the Law numbered 5793 (Article: 7, 8, 9, 10, 11, 12 and 13) taking effect in July 2010, and additional articles have been added. With Article 9, one of these articles, the Administration was authorized to make the projects and implementations subject to claim upon the request of the Ministries and approval of the affiliated Minister. Consequently TOKİ can, with the experience and accumulation it has, provide support to all public entities regarding the planning, tender and construction of the particular service building needed by the public.

In this sense, besides the mobilization it has promoted, TOKİ is in charge of constructing health, education facilities in the areas where needed, care centers for homeless children, military lodgings, police stations and public buildings within the scope of the protocols signed with the following institutions:

-Prime Ministry (National Intelligence Organization)
-Ministry of National Education
-Ministry of Health  
-Ministry of National Defense 
-Ministry of the Interior (Gendarmerie General Command, Security General Directorate)
-Ministry of Youth and Sports
  (Credit and Dormitories Institution, General Directorate of Youth Services and General Directorate of Sports)
-Ministry of Finance
-Ministry of Family and Social Policies (General Directorate of Child Services)
-Ministry of Labor and Social Security (Social Security Organization)
-General Directorate of Forestry
-Ministry of Culture and Tourism
-Ministry of Justice
-Disaster and Emergency Management Presidency
-Ministry of Food, Agriculture and Livestock
-Ministry of Science, Industry and Technology
-Ministry of Customs and Trade
-General Directorate of Highways
-Turkish National Lottery Administration
-General Directorate of State Hydraulic Works
-Turkish Standards Institution
-Turkish Statistical Institute
-Small and Medium Entreprises Development Administration.

The Administration, as of the end of December 2014, started the construction of total of 6.672 social facilities, which it mostly completed.