Turkey Launches Its Largest-Ever Social Housing Project

The Housing Development Administration of Turkey (TOKİ) has announced what it calls “the largest social housing campaign in the history of the Republic.” The ambitious initiative aims to build 500,000 homes across all 81 provinces, with 100,000 units allocated to Istanbul, to help low-income families become homeowners under affordable payment plans.

Experts say the project could ease the pace of housing price increases in the short term, though they caution that lasting impact will require deeper reforms in how housing is distributed, owned, and financed.

Experts Warn: “Supply Alone Won’t Solve the Housing Crisis”

According to Hürriyet journalist Fulya Soybaş, the housing sector has faced significant pressure in recent years due to economic instability, the pandemic, and rising rents, making access to housing one of Turkey’s most pressing social issues.

Prof. Dr. Harun Tanrıvermiş, from Ankara University’s Department of Real Estate Development, emphasized that the TOKİ project is a valuable step toward balancing supply and demand in the market, especially for low-income citizens:

“This is crucial for helping lower-income groups become homeowners. For years, those living on minimum wage had no realistic chance of buying a home. Large-scale social housing projects like this can temporarily ease price and rent inflation by increasing supply in markets suffering from imbalance.”

However, Tanrıvermiş warned that long-term effectiveness depends on continuing production, maintaining diverse and sustainable financing models, and ensuring projects are integrated into broader urban planning goals.

“For permanent impact, housing must be regulated not only in terms of production but also in fair distribution and ownership. If social housing remains a small fraction of total supply, its effect on prices will be minimal. As long as construction costs rise and speculative demand persists, even new housing will struggle to keep pace with market realities.”

He further advised that Turkey’s housing strategy should focus on reforming the urban transformation process, taxing vacant homes, enforcing transparency in rental markets, and redirecting speculative investment into other sectors.

“We should also encourage the private sector to invest in rental housing and introduce alternative financial tools to support long-term affordability,” he added.

Dr. Ahmet Büyükduman: “Every Supply-Oriented Project Helps”

Real estate economist Dr. Ahmet Büyükduman also welcomed the project, highlighting its positive short-term market impact:

“Any initiative that increases housing supply positively affects the market. Adding 500,000 new units to Turkey’s housing stock will undoubtedly have a moderating effect on both sales and rental prices.”